Oracle Supply Chain Management
Cloud: Order to Cash
(Includes Order Management, Pricing,
Configurator, Global Order Promising, Inventory
Management, Supply Chain Orchestration,
Supply Chain Financial Orchestration, and
Advanced Fulfillment)
What’s New in Release 11
March 2016
Revised: June 2016
TABLE OF CONTENTS
REVISION HISTORY .................................................................................................................................................4
OVERVIEW ..........................................................................................................................................................................5
Give Us Feedback ............................................................................................................................................................... 5
RELEASE FEATURE SUMMARY .............................................................................................................................................6
ORDER TO CASH .....................................................................................................................................................8
MULTICHANNEL ORDER MANAGEMENT..............................................................................................................................8
ORDER MANAGEMENT......................................................................................................................................................10
Capture Orders ................................................................................................................................................................ 10
Integrate for Complete Order-to-Cash Process ............................................................................................................... 17
PRICING ............................................................................................................................................................................20
Create Targeted Pricing Strategies and Customer Segmentation .................................................................................... 20
Manage Pricing and Shipping Rules ................................................................................................................................. 21
Configure and Customize Pricing Processes..................................................................................................................... 22
CONFIGURATOR ................................................................................................................................................................24
Simplify Configurations of Complex Solutions ................................................................................................................. 24
Centrally Manage Configurator Models ........................................................................................................................... 26
GLOBAL ORDER PROMISING..............................................................................................................................................29
Promise Orders with Complex Fulfillment Scenarios ....................................................................................................... 29
Integrate Order Promising with Manufacturing .............................................................................................................. 31
Promise Orders for Configure-to-Order Items ................................................................................................................. 32
Use an Updated User Interface to Manage Backlog and Rescheduling ........................................................................... 33
Update Supply in Real Time ............................................................................................................................................. 34
Promise Orders Using Data From External Sources ......................................................................................................... 35
SUPPLY CHAIN ORCHESTRATION .......................................................................................................................................38
Automatically Create Supply for Each Predefined Process .............................................................................................. 38
Configure Supply Chain Rules .......................................................................................................................................... 40
Use Real-Time Change Management ............................................................................................................................... 41
Get Full Visibility Into End-To-End Supply Processes ....................................................................................................... 43
SUPPLY CHAIN FINANCIAL ORCHESTRATION .....................................................................................................................45
Define Multinode Financial Flows .................................................................................................................................... 45
Simplified Modeling of Financial Flow ............................................................................................................................. 46
Unified User Interface for Monitoring and Managing Exceptions ................................................................................... 47
Support for Internal Material Transfers ........................................................................................................................... 48
Support for Customer Drop Ship Flow ............................................................................................................................. 49
INVENTORY MANAGEMENT ..............................................................................................................................................51
Packing Slip Enhancements.............................................................................................................................................. 51
ADVANCED FULFILLMENT .................................................................................................................................... 55
USE SUPPLIER-TO-CUSTOMER DROP SHIP FLOWS .............................................................................................................55
USE CONFIGURE-TO-ORDER FLOWS .................................................................................................................................. 61
Capture and Manage Customer Orders for Configured Products .................................................................................... 61
Automatically Create Items for Specific Configurations .................................................................................................. 62
Promise and Source Configurations ................................................................................................................................. 63
Plan Demand and Supply for the Configure-to-Order Process ........................................................................................ 65
Automatically Create Supply for Configured Products .................................................................................................... 66
Maintain Configured Item Data ....................................................................................................................................... 68
2
Support Transactional Item Attributes ............................................................................................................................ 69
USE BACK-TO-BACK FLOWS ...............................................................................................................................................71
Planning and Promising Back-to-Back Orders .................................................................................................................. 71
Automate Supply Orders ................................................................................................................................................. 73
Automatically Reserve Inventory ..................................................................................................................................... 75
Manage Change in Real Time ........................................................................................................................................... 76
Provide Fulfillment Visibility ............................................................................................................................................ 77
USE INTERNAL MATERIAL TRANSFER FLOWS .....................................................................................................................79
Use Multiple Transfer Sources ......................................................................................................................................... 79
Configure Transfer Processing ......................................................................................................................................... 80
Use a Simplified Transfer Process .................................................................................................................................... 81
Get Visibility to Order Promising and Planning ................................................................................................................ 82
Transfer Consigned Inventory .......................................................................................................................................... 82
Automate Transfer Pricing ............................................................................................................................................... 83
Centralize Transfer Management .................................................................................................................................... 83
Configure Transfer Flow................................................................................................................................................... 84
Integrate Sales Order Fulfillment ..................................................................................................................................... 85
Flexible Return Transfers ................................................................................................................................................. 86
Configure Transfer Accounting ........................................................................................................................................ 87
Monitor Trade Flow Costs ................................................................................................................................................ 88
SIMPLIFIED SETUP ................................................................................................................................................ 90
3
REVISION HISTORY
This document will continue to evolve as existing sections change and new information is added. All
updates are logged below, with the most recent updates at the top.
Date
25 MAY 2016
01 MAR 2016
What’s Changed
Global Order Promising:
Promise Orders Using Data
From External Sources
Notes
Added new feature in Update 6 (June).
Initial Document Creation
4
OVERVIEW
This guide outlines the information you need to know about new or improved functionality, including
support for the Order to Cash business flow, in Oracle Supply Chain Management Cloud Release 11.
Each section includes a brief description of the feature, the steps you need to take to enable or begin
using the feature, any tips or considerations that you should keep in mind, and the resources available
to help you.
GIVE US FEEDBACK
We welcome your comments and suggestions to improve the content. Please send us your feedback at
oracle_fusion_applications_help_ww_grp@oracle.com.
5
RELEASE FEATURE SUMMARY
Some of the new Release 11 features are automatically available to users after the upgrade, and some
require action from the user, the company administrator, or Oracle.
The following table provides a quick view of the actions required to enable each of the Release 11
features.
Action Required to Enable Feature
Feature
Order To Cash
Multichannel Order Management
Order Management
Capture Orders
Integrate for Complete Order-to-Cash Process
Automati
cally
Available
End User
Action
Required
Administrator
Action
Required
Oracle
Service
Request
Required


Pricing
Create Targeted Pricing Strategies and Customer Segmentation
Manage Pricing and Shipping Rules
Configure and Customize Pricing Processes
Configurator
Simplify Configurations of Complex Solutions
Centrally Manage Configurator Models
Global Order Promising
Promise Orders with Complex Fulfillment Scenarios
Integrate Order Promising with Manufacturing
Promise Orders for Configure-to-Order Items
Use an Updated User Interface to Manage Backlog and
Rescheduling
Update Supply in Real Time
Promise Orders Using Data from External Sources
Supply Chain Orchestration
Automatically Create Supply for Each Predefined Process
Configure Supply Chain Rules
Use Real-Time Change Management
Get Full Visibility to End-To-End Supply Processes
Supply Chain Financial Orchestration
Define Multinode Financial Flows
Simplified Modeling of Financial Flow
Unified User Interface for Monitoring and Managing Exceptions
Support for Internal Material Transfers
Support for Customer Drop Ship Flow




















Inventory Management
6
Action Required to Enable Feature
Feature
Automati
cally
Available
End User
Action
Required
Administrator
Action
Required
Packing Slip Enhancements

Advanced Fulfillment
Use Supplier-To-Customer Drop Ship Flows
Use Configure-To-Order Flows

Capture and Manage Customer Orders for Configured Products
Automatically Create Items for Specific Configurations
Promise and Source Configurations
Plan Demand and Supply for the Configure-To-Order Process
Automatically Create Supply for Configured Products
Maintain Configured Item Data
Support Transactional Item Attributes
Oracle
Service
Request
Required







Use Back-To-Back Flows
Planning and Promising Back-to-Back Orders

Automate Supply Orders
Automatically Reserve Inventory
Manage Change in Real Time
Provide Fulfillment Visibility




Use Internal Material Transfer Flows
Use Multiple Transfer Sources

Configure Transfer Processing
Use a Simplified Transfer Process
Get Visibility to Order Promising and Planning



Transfer Consigned Inventory
Automate Transfer Pricing


Centralize Transfer Management



Configure Transfer Flow
Integrate Sales Order Fulfillment
Flexible Return Transfers
Configure Transfer Accounting
Monitor Trade Flow Costs



Simplified Setup
7
ORDER TO CASH
The order-to-cash business flow provides an end-to-end solution that integrates your sales, fulfillment,
and finance organizations. This integration improves order accuracy, drives fulfillment efficiency, and
eliminates billing errors, which results in more profitable sales, and increased customer satisfaction and
retention. To facilitate this business flow, Oracle provides a multichannel order management capability
that supports a central order hub for multichannel environments, and includes services for order
capture and fulfillment orchestration, pricing, product configuration, inventory management, and order
promising. Advanced fulfillment capabilities use a supply orchestration architecture that supports
advanced fulfillment services and flows, such as configure-to-order, drop ship, back-to-back order, and
internal material transfer.
MULTICHANNEL ORDER MANAGEMENT
As the nexus of order capture and fulfillment functions, Oracle Order Management Cloud supports
global, multichannel, order-to-cash processes. You can use it as the order hub for your organization to
centralize and manage multiple order capture channels, promise orders, orchestrate fulfillment policies,
monitor order status, and manage exceptions:
•
•
•
•
•
•
Enter orders. Enter orders directly in Order Management, import them from an external
capture system, or import them from an external order capture system and then edit them.
For example, you can import orders from an e-commerce system, and then edit them in
Order Management.
Use a common order format. Use a standard format to convert all orders for easy search
and viewing. For example, a user can search for Product A across orders that other users
created in Order Management, and across orders that an administrator imported from an ecommerce site, call center, or through electronic data interchange (EDI).
Use orchestration fulfillment policies. An orchestration policy routes and manages orders
across multiple fulfillment systems. For example, you can use a schedule, ship, and bill
process to route order lines to two different enterprise resource planning (ERP) systems.
Get centralized status updates. Normalize status updates from multiple fulfillment systems.
Return normalized status updates to external capture systems. For example, return a
SHIPPED order status to an e-commerce system even if one warehouse system returns a
Shipped status for an order line, but another warehouse returns a SHP status for the same
line.
Get analytic summaries. Get a summary view of statuses and exception orders. For example,
you can view a graph that displays a summary of orders that are at risk of missing a promise
date.
Configure order promising. Use Oracle Fusion Global Order Promising to collect supply data
from multiple sources and to configure rules that select the best fulfillment location for
demand from any channel. You can select according to future availability, expected delivery
date, and preferred delivery method. Allocate scarce supply according to customer,
channel, or to resolve order exceptions.
8
•
•
Manage change orders. Use change order logic to make sure change requests are processed
and revised consistently across all orders. For example, if Order Management receives a
quantity change from an imported order, and if the product has not shipped, then it uses
change logic that allows the change, and then rolls back the fulfillment process so that it can
reschedule and send a new ship request to the external fulfillment system.
Use heterogeneous deployment. Use a mixture of cloud and on-premise environments for
your capture systems and fulfillment systems. For example, you can import orders from a
cloud capture system, and then fulfill them to an external, on-premise enterprise resource
planning system.
9
ORDER MANAGEMENT
Oracle Fusion Order Management provides a central order hub for multichannel environments to
improve order capture and fulfillment across the order-to-cash process. You can capture, price, and
configure orders directly in Order Management. You can receive orders from external sources, modify
them in Order Management, and then process them for fulfillment. You can use prebuilt integrations
with other Oracle Cloud services, centrally manage orchestration policies, get global availability, monitor
status, and manage exceptions.
CAPTURE ORDERS
Order Management provides intuitive interfaces for users to capture perfect orders – for the correct
product at the correct price – to enhance customer experience and reduce operation costs:
•
•
•
•
•
•
•
•
•
•
Enter order header information. Enter information for customer, contact, purchase order
number, sales credits, and so on. Use predefined rules that automatically enter default
values for these fields, or create custom rules.
Select and add products. Search for items, view price and availability, and then add
products to the order.
Configure products. Search for a configurable product that includes multiple components
that you can configure, such as a desktop computer, view components and pricing during
configuration, validate your configuration, and then add it to the order.
Price your order and order lines. Price each order line before you add it to the order,
calculate tax, display price breakdown, and then view order totals while you create the
order.
Manage order lines. Copy or delete order lines, enter custom attributes, manage
attachments, and apply and release holds.
Select shipment details. Select a shipping address, shipping contact, priority, request date,
shipping warehouse, and the shipping method. View availability according to request date
and shipping method.
Select billing and payment preferences. Select the bill-to account, contact, and payment
terms. Select billing preferences for recurring services.
Validate and submit. Use predefined or custom validations to validate your order at any
time, view and correct errors, and then submit the order for fulfillment.
View fulfillment status. Receive and view automatic fulfillment updates for each order line.
Navigate to detailed fulfillment information so that you can examine the fulfillment process
steps and timelines, including fulfillment sources, order lines that are at risk of not meeting
a promise date, and to view alternate supply options that you can use to resolve order
exceptions.
Search and view orders. Quickly search to find and drill to specific orders. Use an advanced
search to add your own search criteria. View a graphic summary of important issues, and
then drill to a list of orders that matches the issue. Quickly navigate to important tasks, such
as creating an order.
10
•
•
•
Revise orders. Cancel an order. Add, cancel, or modify order lines, and view change history.
Use predefined business rules, or create your own to make sure only valid changes are
allowed.
Create return orders. Create, edit, or revise an order that includes returns to an existing
customer order. Set default values for the order header and return line attributes according
to the original order information. Validate returns on-demand or when you submit the
order.
Import orders. Import orders from multiple order capture applications, including ecommerce, quoting, and EDI. Import orders using a Microsoft Excel spreadsheet or flat file.
Allow imported orders to be revised, or optionally, to be processed for fulfillment only (no
changes to price, quantity, and so on).
Use the following page to get analytic data, search for an order, or create a new order:
11
Use the following page to enter header information and order line information:
Use the following page to add a configured product to an order:
12
Use the following page to choose options for a configured product:
Click the Amount in an order line to view the following price breakdown:
13
Click Total in the title to view the following totals breakdown:
Use the following tab to enter shipping preferences:
Use the following tab to enter billing and payment preferences:
14
Use the following page to view the status of the order lines that Order Management processes after you
submit the order:
Use the following page to search for orders according to order attributes:
15
Use the following page to take action on an order that Order Management is processing, such as Copy,
Cancel, Create Revision, Hold, or Fulfillment View:
Use the following dialog to enter the return information for the order lines that you want to return:
16
Use the following page to view a return, including credit pricing and total:
STEPS TO ENABLE
No steps are required to enable this feature.
KEY RESOURCES
•
Oracle Supply Chain Management Cloud: Implementing Order Management, available on
the Oracle Help Center.
INTEGRATE FOR COMPLETE ORDER-TO-CASH PROCESS
Order Management comes integrated with other Oracle Cloud applications so that you can use a set of
advanced fulfillment processes that can speed time to market and lower implementation costs. Order
Management and Oracle Fusion Inventory Management use fulfillment orchestration to fulfill orders
that you enter directly in Order Management or that you import from some other source. Order
Management also provides a set of web services that you can use to integrate with other Oracle and
third-party cloud and on-premise applications that your supply chain requires to complete the order-tocash process:
•
•
Integrate cloud processes. Integrate cloud processes, including order to cash, quote to cash,
drop ship, back-to-back, configure to order, and internal material transfer processes. This
integration includes predefined processes and simplified set up.
Integrate applications. Order Management comes integrated with the following Oracle
Cloud solutions:
17
•
o Oracle Inventory and Cost Management Cloud
o Oracle Manufacturing Cloud
o Oracle Procurement Cloud
o Oracle Product Master Data Management Cloud
o Oracle Financials Cloud
o Oracle Configure, Price, and Quote Cloud
Integrate web services. Use web services to perform batch and real-time order import, send
a request to a fulfillment system, receive a status from fulfillment systems, and integrate to
other cloud and on-premise systems. Inventory, shipping, receiving, finance, and order
management are examples of fulfillment systems.
You can use the following page to examine the predefined orchestration process that integrates cloud
processes:
IMPORTANT: See Advanced Fulfillment for the integrated cloud processes, including configure-toorder, supplier-to-customer drop ship, back-to-back, and internal material transfer processes.
18
STEPS TO ENABLE
No steps are required to enable this feature.
KEY RESOURCES
•
Oracle Supply Chain Management Cloud: Implementing Order Management, available on
the Oracle Help Center.
19
PRICING
Oracle Fusion Pricing is a new product in Release 11 that provides a flexible price management
capability that you can use to create targeted pricing rules and processes that support your corporate
pricing practices. Pricing administration functionality allows you to design pricing rules that meet your
revenue and business objectives so that you can price products and services for each customer
segment. The pricing architecture allows you to configure and customize predefined logic so that you
can implement pricing processes that run the pricing rules that your deployment requires.
CREATE TARGETED PRICING STRATEGIES AND CUSTOMER SEGMENTATION
Pricing enables you to effectively implement and enforce corporate pricing strategies so that they meet
your business requirements and revenue objectives. You can group pricing rules in a pricing strategy to
create targeted and accurate pricing behavior. You can assign customers who use similar buying
practices to a pricing segment, and then associate this segment with a pricing strategy that meets the
business and revenue goals that you set for this segment.
Use the following page to associate types of pricing and shipping rules with a pricing strategy:
20
STEPS TO ENABLE
No steps are required to enable this feature.
KEY RESOURCES
•
Oracle Supply Chain Management Cloud: Implementing Order Management, available on
the Oracle Help Center.
MANAGE PRICING AND SHIPPING RULES
Pricing allows you to create date effective rules that calculate multiple price or shipping charges for a
product or service. You can create rules that calculate these charges, along with tier-based and
attribute-based adjustments, discounts, and costs. Pricing will execute against these rules and will
create charge components for each charge. Charge components represent the price points you want to
capture as part of your implementation.
You can use currency conversion and rounding rules to manage pricing for different currencies.
Use the following page to manage product prices or charges on price lists:
STEPS TO ENABLE
No steps are required to enable this feature.
21
KEY RESOURCES
•
Oracle Supply Chain Management Cloud: Implementing Order Management, available on
the Oracle Help Center.
CONFIGURE AND CUSTOMIZE PRICING PROCESSES
Pricing uses a configurable and easily customizable infrastructure that allows you to customize the
pricing logic by adding or modifying pricing algorithms. You can also add new entities to the pricing logic
by augmenting or creating new service mappings. This flexible infrastructure allows you to create pricing
processes that meets your business needs.
Use the following page to configure the algorithms that define your pricing process:
22
STEPS TO ENABLE
No steps are required to enable this feature.
TIPS AND CONSIDERATIONS
•
Evaluate your caching requirements. Determine how frequently you will make changes to
your pricing rules, and how quickly you must implement these changes.
KEY RESOURCES
•
Oracle Supply Chain Management Cloud: Implementing Order Management, available on
the Oracle Help Center.
23
CONFIGURATOR
Oracle Fusion Configurator is a new product in Release 11. It enables users to configure a product
according to their unique needs and specifications. Configurator allows users to pick and choose options
for complex products, guiding them along the way, while making sure the configuration is valid.
SIMPLIFY CONFIGURATIONS OF COMPLEX SOLUTIONS
You can use the predefined integration that comes with Order Management to enter a sales order for a
complex product. Order Management can call the Configurator user interface directly from the sales
order. Users can specify item characteristics, examine pricing information for the options that you
choose during configuration, and verify your choices in the configurator user interface.
Configurator supports a complete configure-to-order flow in Order Management, providing
configuration rules, user interactions, order capture, and order fulfillment. It can also provide the
integration services that Order Management uses to fulfill a configuration that some other source
captures, such as Oracle Configure, Price and Quote (CPQ) Cloud.
Use the following page to open the sales order where you will add the configured product:
24
Use the following page to set the options for a configurable product:
Use the following page to examine configuration details:
25
STEPS TO ENABLE
No steps are required to enable this feature.
KEY RESOURCES
•
Oracle Supply Chain Management Cloud: Configurator Modeling Guide, available on the
Oracle Help Center.
CENTRALLY MANAGE CONFIGURATOR MODELS
The Configurator Models work area enables a Product Configurator Manager (PCM) to manage the
entire life cycle of developing a configurator model. You can use this work area to import a model
structure into the modeling environment, add additional guided selling structure to simplify the buying
experience of end users, add behavior to the model using different types of rules, create a user interface
and customize it using a what you see is what you get (WYSIWYG) design area, test, and then release the
configurator model to production.
Use the following page to create guided selling structure for a model:
26
Use the following page to define a rule:
Use the following page to design the page that the end users would use:
27
Use the following page to test your design:
STEPS TO ENABLE
No steps are required to enable this feature.
KEY RESOURCES
•
Oracle Supply Chain Management Cloud: Configurator Modeling Guide, available on the
Oracle Help Center.
28
GLOBAL ORDER PROMISING
In Release 11, Oracle Fusion Global Order Promising supports complex fulfillment scenarios. It can
recommend supplies for back-to-back or configure-to-order items, or promise orders that require
fulfillment via drop ship or internal material transfers. Global Order Promising integrates with Oracle
Fusion Manufacturing and considers the manufacturing setup when it promises an order. Global Order
Promising includes a new user interface that allows you to view scheduling metrics and identify problem
areas. You can drill down to individual sales orders, perform what-if simulations, and then repromise the
sales orders. Global Order Promising now takes immediate account of supply changes without the need
to first restart the Global Order Promising engine.
PROMISE ORDERS WITH COMPLEX FULFILLMENT SCENARIOS
Global Order Promising can recommend supply for back-to-back items. Global Order Promising
considers the sources that each sourcing rule specifies for a fulfillment organization when allocating
buy, make, or transfer supply to a back-to-back sales order. It sends recommendations to Oracle
Procurement Cloud, Oracle Manufacturing Cloud, and Oracle Inventory and Cost Management Cloud,
which then create supply documents and reserve them to the back-to-back sales order. Global Order
Promising respects supply reservations against back-to-back sales orders.
Global Order Promising can consider supplier lead time, transit time, and supplier capacity when it
schedules a drop ship sales order. It recommends the creation of a drop ship purchase order supply to
Order Management, which in turn creates the drop ship purchase order supply and reserves that supply
for the drop ship sales order. Global Order Promising uses this reservation by default. However, you can
use the Check Availability page to manually remove the reservation, and then promise the sales order
from some other supply source.
Use the following page to view potential promising results, view availability options, and perform whatif simulations on internal orders:
Global Order Promising can schedule an internal material transfer in the same way that it schedules
other sales orders. To prioritize sales orders and improve scheduling results, you can reallocate supply
29
across internal material transfers and other sales orders. To determine where to look for availability,
Global Order Promising considers the Transfer From sources that the local sourcing rule specifies at the
destination organization. The following sourcing rule allows Global Order Promising to consider internal
material transfer supplies from organization M1 when supplies are required at organization D1
STEPS TO ENABLE
•
•
•
Assign back-to-back items to an ATP rule that uses the Supply Chain Availability Search
option. If the option is Lead Time Based or Infinite Availability Based, then Global Order
Promising does not provide supply recommendations.
Set up your drop ship supplier as a source in the global sourcing rules.
Collect item-supplier specific attributes such as capacity, cost, and lead times using a .csv
upload template. This data is not available in other Oracle Fusion products.
TIPS AND CONSIDERATIONS
If Global Order Promising does not find sufficient supply to promise an order, it will then promise the
order on the Infinite Time Fence, and will not recommend supply for a back-to-back order. Global Order
30
Promising recommends supply for a back-to-back order only for the requested item and for a single
echelon in the supply chain.
INTEGRATE ORDER PROMISING WITH MANUFACTURING
You can promise items that you manufacture or that a contractor manufactures for you. Global Order
Promising considers the availability of components and resources to determine when you must
manufacture the item so that it can promise the sales order. Global Order Promising uses fixed and
variable lead time for the item when it determines the manufacturing lead time for the sales order. It
promises the sales order only if the component supply is sufficient, and if resources are available.
You must associate the manufactured item with an ATP Rule set to the Supply Chain Availability Search
promising mode and with the Search Components and Resources attribute enabled, as shown below:
STEPS TO ENABLE
•
•
•
Set up work centers, resources, item structures, resource capacity, and item lead times in
the Oracle Cloud applications.
Specify the manufacturing organization as a Make At source in the sourcing rule that you
specify for this organization.
Associate the manufactured item with an ATP rule. Use the Supply Chain Availability Search
and the Search Components and Resources options for this rule.
31
PROMISE ORDERS FOR CONFIGURE-TO-ORDER ITEMS
Global Order Promising can promise assemble-to-order or pick-to-order sales orders, or pick-to-order
sales orders that include assemble-to-order items. Order Management sends details about the
configured order to Global Order Promising, including the order structure, model option class, selected
items, matching configurations, and so on. To promise a sales order that includes a manufactured,
assemble-to-order configured item, Global Order Promising examines lead time constraints, material
availability, and resource availability.
Consider the following functionality when you set up configure-to-order in Global Order Promising:
•
Exclude a fulfillment source depending on selected options. You can set up an exclusion rule
in a sourcing rule. This exclusion rule can disallow Global Order Promising from considering
a fulfillment source, depending on whether or not the configuration includes a specific
option item or option class. In the following example, Global Order Promising will not use
Org D1 to fulfill a sales order if the user chooses Option 1, and it will not use Org D2 if the
user chooses Option 2.
•
Use configuration supply that already exists. Global Order Promising checks for existing
supply of any configured item in a sales order. If this supply exists, then it uses this supply
before it determines order availability date based on the availability dates of the individual
selected option items.
Determine configuration lead time. The lead time for a configuration might vary according
to the options that the user selects. To determine this lead time, Global Order Promising
considers lead times for each individual option item and ensures that it uses the lead time
for the entire configuration when it promises the sales order.
•
32
Global Order Promising supports the same functionality whether or not the sales order includes a
configure-to-order item. You can use Check Availability to update attributes on a sales order that
includes a configure-to-order item, perform what-if simulations, view alternate availability options,
reprioritize the sales orders, and so on. Global Order Promising can use a drop ship supplier to promise a
sales order that includes a configure-to-order item, and can create recommendations for a back-to-back
shipment for configure-to-order items.
STEPS TO ENABLE
•
•
Specify sourcing rules and ATP rules for models, option classes, option items, and required
components.
Optionally, specify sourcing exclusions in the sourcing rule.
TIPS AND CONSIDERATIONS
Assign ATP rules to categories that models belong to. Use the Product Information Management work
area to ensure that each configured item is assigned to the same category as its base model. This setup
ensures that Global Order Promising can read the configuration items without requiring you to explicitly
assign them individually to an ATP rule.
USE AN UPDATED USER INTERFACE TO MANAGE BACKLOG AND RESCHEDULING
Use the following Overview page in Global Order Promising to view important performance metrics,
such as overall on-time promising percent or total number and value of demands scheduled late. You
can drill down to view these metrics according to customer, item, organization, or time:
Drill down to the Manage Order Promising Demands page to display sales orders. You can
simultaneously update order attributes for multiple sales orders to improve scheduling results and
33
perform the updates in a what-if simulation. You can then schedule these sales orders to save the
results.
Use the following page to manage and reschedule order backlog and to simulate demand so that you
can view potential promising results for a demand before you modify the sales order:
This page also enables you to create simulated demands or inquiries to view potential promising results.
This is useful when you want to view possible promising results for a demand before an actual sales
order is created.
STEPS TO ENABLE
You must collect and schedule sales orders so that you can view them in Global Order Promising.
TIPS AND CONSIDERATIONS
You must use Order Management the first time you schedule a sales order. You can then use Global
Order Promising to reschedule this sales order.
UPDATE SUPPLY IN REAL TIME
Global Order Promising can consider changes to supply data, such as on-hand supply and purchase
orders, without restarting the Global Order Promising engine. Use the following page to create a rule
that specifies the items, categories, and organizations for which Global Order Promising tracks supply
updates in real time:
34
STEPS TO ENABLE
•
•
Schedule periodic data collections for supply data.
Use the scheduled process named Start Real-Time Supply Update to update the Global
Order Promising engine with the latest supply data.
TIPS AND CONSIDERATIONS
Supply updates to Global Order Promising affect promising only for new, incoming orders. They do not
affect previously generated promising results for existing orders.
PROMISE ORDERS USING DATA FROM EXTERNAL SOURCES
Promise orders against supplies that are maintained in external systems. You can use file-based uploads
to:
•
Upload on-hand inventory: Upload available on-hand inventory for use as a supply source
by Global Order Promising.
35
•
•
•
•
•
Upload purchase orders, purchase requisitions, purchase orders in receiving, and intransits: For example, if you have purchase supplies, you can upload the purchases for use
as a supply source by Global Order Promising.
Upload suppliers and supplier sites: Suppliers and supplier sites are required to upload
purchased supply.
Upload transfer orders: If you have inbound transfers that should be considered as a supply
by Global Order Promising, then you can upload the transfers.
Upload ATP rules and ATP rule assignments: Upload ATP rules for use by Global Order
Promising.
Collect other data: Upload other entities, such as calendars, organizations, carriers,
currencies, units of measure, and cross-references that map reference entity names (such
as unit of measure names) from the values used in the external system to the values used in
Oracle Supply Chain Management Cloud.
STEPS TO ENABLE
1. Enter data in the .xlsm file that corresponds to each business object to import and convert into
comma separated file. Alternately, enter data directly into corresponding .csv files.
2. Create a single zip bundle with all files to import.
3. In the Navigator, click File Import and Export.
4. Select the zip file to import.
5. Enter Oracle Universal Content Manager (UCM) account. Save and close.
6. Navigate to Scheduled Processes, and then click Schedule a New Process. Search for and select
Load Planning Data from Flat Files.
7. Provide the relevant parameters, such as collection type of Targeted or Net Change.
8. Select the zip file to import from the Oracle UCM server.
9. Submit the request. Note the request ID.
10. Monitor request status using the Scheduled Processes page: in the Navigator, click Scheduled
Processes.
11. Review the log files to pinpoint data validation errors, if any.
12. Review collected data in the Plan Inputs work area: in the Navigator, click Plan Inputs.
TIPS AND CONSIDERATIONS
•
•
Perform targeted data collection for all business entities the first time, or in the event that
any of the filter criteria change.
Oracle Planning Central Cloud requires you to use other components of the Oracle Supply
Chain Management Cloud, including: Oracle Order Management Cloud, Oracle Product
Master Data Management Cloud, Oracle Manufacturing Cloud, Oracle Procurement Cloud,
and Oracle Inventory and Cost Management Cloud.
KEY RESOURCES
•
Oracle Supply Chain Planning Cloud Release Training – Introduction to Planning Central:
Product Overview and Monitoring Supply Chain Performance
36
•
Oracle Supply Chain Planning Cloud Release Training – Introduction to Planning Central:
Planning Central Configuration and Integrated Planning and Fulfillment
37
SUPPLY CHAIN ORCHESTRATION
Supply Chain Orchestration provides the backbone infrastructure that delivers end-to-end supply
execution and management across the Oracle Supply Chain Management Cloud. Supporting various
business processes and flows, Supply Chain Orchestration receives supply requests from multiple Oracle
SCM Cloud products. You can run business process steps and tasks across the Oracle SCM Cloud,
according to predefined orchestration flows. Supply Chain Orchestration provides visibility and alerts
when exceptions or jeopardy conditions occur. It improves the efficiency of the supply chain and helps
to reduce the cycle time that is required to get supply where it is needed so that it meets demand.
Supply Chain Orchestration allows you to create both standard and configured products.
Supply Chain Orchestration is designed to execute Advanced Fulfillment business processes such as
contract manufacturing and back-to-back fulfillment.
It takes a request to create supply from various Oracle Cloud products, such as Oracle Fusion Planning
Central, Oracle Fusion Inventory Management, and Oracle Fusion Global Order Promising. After
receiving these supply requests, Supply Chain Orchestration launches and manages complex supplycreation processes to create supply in designated warehouses in order to fulfill demand.
When changes to either the demand or the supply happen, Supply Chain Orchestration performs
automated change management to keep the supply balanced with the demand in terms of quantity and
fulfillment dates.
Supply Chain Orchestration also provides users complete visibility into the progress of the supply that is
being created and the relationship between various documents of a flow.
AUTOMATICALLY CREATE SUPPLY FOR EACH PREDEFINED PROCESS
You can use the following predefined flows to automatically create supply:
•
•
•
•
•
Procured back-to-back
Transferred back-to-back
Internally manufactured back-to-back
Outsourced contract manufactured back-to-back
Plan-to-produce contract manufacturing
In addition, Supply Chain Orchestration also orchestrates the internal material transfer (IMT) processes.
To provide a single integration point, Planning Central and Inventory Management min-max planning
capabilities send their buy, make, and transfer supply requests to Supply Chain Orchestration. Supply
Chain Orchestration uses the orchestration process and business rules to determine the Oracle Cloud
system that must run the request. For example:
38
When a request for supply creation is received, Supply Chain Orchestration automatically selects the
appropriate supply-creation process, launches the process, and tracks the entire life-cycle of the supplycreation process.
Automated selection and execution of processes in Supply Chain Orchestration enables optimal
selection of the best process for supply creation, for better utilization of in-house and partner resources.
The following is a page from a back-to-back, in-house-manufacturing supply creation process. In the
Supply Order Details page, users can see that this order is a back-to-back manufacturing (make) order
for in-house manufacturing (because it is not a contract manufacturing order):
39
STEPS TO ENABLE
No steps are required to enable this feature.
KEY RESOURCES
Oracle SCM Cloud: Implementing Manufacturing and Supply Chain Materials Management, available on the
Oracle Help Center.
CONFIGURE SUPPLY CHAIN RULES
You can use Oracle Business Rules to configure and manage the documents that Supply Chain
Orchestration uses when it routes a flow to the Oracle SCM Cloud. Release 11 includes predefined
business rules that are ready to use. You can configure them to implement custom processing. You
define the business conditions that determine the rule to use.
Set up rules to determine how transfer of goods between two inventory organizations are executed.
For example, initiate a simple transfer or an arms-length transaction that requires the receiving
organization to purchase the goods from the supplying organization. Automating the execution rules
ensures that the transfers comply with all legal and business requirements. It provides the extensibility
and configurability to accommodate expansion, reorganization, and mergers and acquisitions.
Automating the rules also improves accuracy and reduces cost by eliminating manual intervention.
40
The following shows a page from the Oracle Business Rules user interface:
STEPS TO ENABLE
No steps are required to enable this feature.
TIPS AND CONSIDERATIONS
Best practice is to set up rules based on the ship-from organization and ship-to organization. Because
the organization could belong to different business units or legal entities, the business rules will apply to
how they do business with each other.
KEY RESOURCES
•
Oracle SCM Cloud: Implementing Manufacturing and Supply Chain Materials Management,
available on the Oracle Help Center.
USE REAL-TIME CHANGE MANAGEMENT
Immediately adjust to changes in demand or supply to minimize risk in the supply chain. Support
changes in supply and demand and automatically take corrective action or, if an action cannot be run,
then send an alert to the Oracle SCM Cloud.
Supported supply-side changes include the following:
•
•
Increase or decrease in supply quantity
Supply order cancellation
41
•
•
Changes in supply availability dates
Split of supply if total supply is available in more than one delivery
Responses to these changes depend on the type of change and the business process. A comprehensive
set of change management rules provided in Supply Chain Orchestration address the supply side
changes.
Supported demand-side changes include:
•
•
•
Demand cancellation
Increase or decrease in demand quantities
Change in need-by dates for the demand
When demand-side changes occur, Supply Chain Orchestration change management attempts to alter
the supply to match the demand. If supply cannot be changed to satisfy the new conditions, it notifies
the fulfillment system of the exceptions.
The exact logic of change management depends on the business processes for creating supply.
Automated change management ensures on-time fulfillment without manual intervention. It prevents
buildup of excess inventory by reducing the supply to match demand. It also reduces costs associated
with manual management of changes and reduces errors that are inevitable in manual management of
such processes.
You can use the Supply Chain Orchestration work area to track supplies that are undergoing change
management:
42
STEPS TO ENABLE
No steps are required to enable this feature.
KEY RESOURCES
•
Oracle SCM Cloud: Implementing Manufacturing and Supply Chain Materials Management,
available on the Oracle Help Center.
GET FULL VISIBILITY INTO END-TO-END SUPPLY PROCESSES
Receive constant visibility into the Oracle SCM Cloud processes that create supply. Use summary views
to monitor progress, view errors, and manage exceptions that might jeopardize supply from meeting
demand. Use the Supply Chain Orchestration work area to view errors, take corrective action, resubmit
to continue processing, or drill into supply details to monitor each task and task progress. Open
documents directly from the Supply Chain Orchestration work area to view important information
Visibility into the supply-creation flows is crucial for ensuring high customer satisfaction by creating
supplies on time to fill the orders. It allows for expedient exception handling by ensuring that
appropriate level of details and the context is presented to the decision makers. It facilitates better use
of enterprise resources by promoting management by exception and by providing a single point of entry
for navigating up and down the value chain to identify and address exceptions, errors, and jeopardy.
The Supply Order Details page provides a 260-degreee view of supply progress:
43
STEPS TO ENABLE
No steps are necessary to enable this feature.
KEY RESOURCES
•
Oracle SCM Cloud: Implementing Manufacturing and Supply Chain Materials Management,
available on the Oracle Help Center.
44
SUPPLY CHAIN FINANCIAL ORCHESTRATION
Oracle Fusion Supply Chain Financial Orchestration is a configurable application that manages the
financial relationships that result from trade that occurs between internal parties. It allows you to
separate your physical flow of goods from the financial accounting of these goods.
DEFINE MULTINODE FINANCIAL FLOWS
You can create financial orchestration flows that include multiple ownership changes for a single
movement of goods. This feature allows you to account for centralized supply chain functions without
sacrificing supply chain efficiency. You can define a relationship between your internal parties that
controls each ownership transfer. This specifies the transfer price to use and the documentation and
accounting required to settle the financials for each of these relationships.
Use the following page to manage a financial orchestration flow that includes multiple financial routes:
A supply chain transaction, such as a purchase order receipt or a sales order shipment, starts the
financial orchestration flow. Supply Chain Financial Orchestration recognizes this transaction, identifies
the financial orchestration flow to run for this transaction, and then creates the invoicing and
accounting tasks for the internal parties that the relationships reference.
45
For example, assume that Vision Corporation is a design and manufacturing company with headquarters
in New York and a manufacturing facility in China. It uses a sales office in New York to create sales
orders for customers who reside in the United States, and it uses a warehouse in China to fulfill these
orders. It uses a procurement hub in Singapore for all purchases that flow into and out of Asia, so the
United States must buy goods from Singapore, who then buys them from China.
STEPS TO ENABLE
No steps are required to enable this feature.
SIMPLIFIED MODELING OF FINANCIAL FLOW
Use the following page to set up buy and sell terms directly in the financial orchestration flow. This page
helps to reduce the set up work you must perform, and it improves visibility into your supply chain
relationships:
STEPS TO ENABLE
No steps are required to enable this feature.
46
UNIFIED USER INTERFACE FOR MONITORING AND MANAGING EXCEPTIONS
You can use the following page to manage event exceptions and monitor event orchestration, giving you
an entire view of the status of your financial orchestration tasks. You can view task details for each
transaction in a separate dialog:
Use the following page to get the status for each orchestration task for an event:
STEPS TO ENABLE
No steps are required to enable this feature.
47
SUPPORT FOR INTERNAL MATERIAL TRANSFERS
Use the following page to set up a transfer order that orchestrates a financial orchestration flow that
results from a transfer of goods between two internal organizations that belong to different business
units. You can specify whether or not to transfer the title of goods during shipment at origin, or during
receipt at destination. The transaction that transfers order shipment or that transfers order receipt
starts the financial flow:
Use the following page to get an estimate of the transfer price and taxes when you create the transfer
order:
48
STEPS TO ENABLE
No steps are required to enable this feature.
SUPPORT FOR CUSTOMER DROP SHIP FLOW
You can configure and run a financial flow according to the ownership transfer that occurs between
parties who are involved in a drop ship. You can define the relationship between requisition
organization and the selling business unit. You can apply rules according to attributes, such as item
category, so that Supply Chain Financial Orchestration assigns the requisition organization according to
an attribute value. Supply Chain Financial Orchestration identifies the requisition organization, and then
uses it to create purchase requisitions for the drop ship.
Use the following page to set up a financial flow that includes a drop ship:
49
The financial flow starts when the supplier sends the advanced shipment notice, or when the supplier
matches the invoice with the purchase order for the drop ship. The flow creates cost accounting
distributions and intercompany invoices for the ownership transfers that occur between parties,
including supplier, one or more organizations, and the customer.
Supply Chain Financial Orchestration sends a request to the receiving system to create a drop ship
receipt on the supplier invoice that references the purchase order. Receiving creates a logical receipt,
and then notifies Oracle Fusion Order Management to start customer billing. This automation helps to
reduce billing cycle time.
STEPS TO ENABLE
No steps are required to enable this feature.
50
INVENTORY MANAGEMENT
Oracle Fusion Inventory Management offers a materials management solution that allows your
company to manage the flow of goods: inbound, through the warehouse, and outbound. It optimizes
the flow of material to meet customer demand in a cost-effective way.
PACKING SLIP ENHANCEMENTS
Use a new shipping parameter to specify the required fields that appear on the packing slip document.
For example:
•
•
•
Status. Users can indicate the packing slip status as draft or final, providing an easy way to
make sure the document is correct before the sending.
Description. Display the shipment description so that the user can view detailed
information about the shipment.
Reason. Users can indicate a transportation reason for the shipment, such as sales order or
return to supplier.
The following image displays a packing slip that includes a transportation reason:
You can use a new shipping parameter to specify the number sequence to use for each packing slip
document. This enables you to associate the packing slip document with a sequence category in an
inventory organization. It simplifies the task of assigning a number sequence to each document, and it
51
improves auditing. For example, you can specify the document sequence and the method to use to
create it, such as automatic, manual, or gapless.
Use the following page to manage these new shipping parameters:
STEPS TO ENABLE
The following steps enable you to enter the sequence category for the packing slip and specify the
required fields that must display on the packing slip:
1.
2.
3.
4.
5.
6.
In the Navigator, click Setup and Maintenance.
Enter Manage Shipping Parameters in the search field.
Click Manage Shipping Parameters.
Enter Packing Slip Document Sequence Category.
Select Required on Packing Slip.
Click Save and Close.
52
Figure: Manage Shipping Parameters
The following steps enable you to indicate whether the packing slip status is Draft or Final:
1.
2.
3.
4.
5.
In the Navigator, click Setup and Maintenance.
Enter Manage Ship Confirm Rules in the search field.
Click Manage Ship Confirm Rules.
Select Packing Slip Status.
Click Save and Close.
The following steps enable you to create additional transportation reason lookup values:
1.
2.
3.
4.
5.
6.
In the Navigator, click Setup and Maintenance.
Enter Manage Shipping Lookups.
Click Manage Shipping Lookups.
Search for Lookup Type Meaning Transportation Reason.
Click Actions, and then click New.
Click Save and Close.
The following steps enable you to create document sequence categories:
1.
2.
3.
4.
5.
6.
In the Navigator, click Setup and Maintenance.
Enter Manage Document Sequence Categories.
Click Manage Document Sequence Categories.
Enter Shipping, and then click Search.
Click Actions, and then click New.
Click Save and Close.
53
KEY RESOURCES
•
Oracle SCM Cloud: Implementing Manufacturing and Supply Chain Materials Management,
available on the Oracle Help Center.
54
ADVANCED FULFILLMENT
In an effort to reduce cycle times, deliver an excellent customer experience, and increase revenues,
Release 11 supports advanced fulfillment strategies, such as configure-to-order, drop ship, back-to-back,
and internal material transfer flows. Fueled by powerful and innovative supply orchestration
architecture, Release 11 has unsurpassed fulfillment capabilities for supply chains that must exploit the
cloud. Now you can utilize the same flexible fulfillment options in the Oracle Supply Chain Management
Cloud that are available in traditional, on-premise, order-to-cash solutions.
USE SUPPLIER-TO-CUSTOMER DROP SHIP FLOWS
Effectively manage the physical and financial aspects of your supplier-to-customer drop shipments,
helping you reduce costs, accelerate order fulfillment cycle times, and improve working capital:
•
•
•
•
•
•
Promise drop shipments. Configure sourcing rules so that they identify the products that
can drop-ship from a trusted supplier directly to your customer. Promise and source a
customer order directly to your supplier.
Plan drop shipments. Forecast each product that drop-ships to your customers, and
consume the drop-shipped orders from the forecast. Honor the reservations for dropshipped orders. To plan for the delivery of orders to customers, use the transit times that
exist between the supplier and customer site, and use the calendars that measure time at
supplier, supplier shipping, carrier, and customer receiving sites.
Automatically create purchase orders. Automatically create a purchase order that instructs
your supplier to ship directly to your customer. Improve visibility to customer order
information for your buyer and supplier.
Use real-time change management. Keep your buyer, supplier, and sales order manager up
to date with instant updates to the purchase order that reflect customer order changes.
Automatically update the sales order with purchase order changes.
Get visibility to fulfillment. Give your order manager visibility to purchase order status and
notify them when a problem occurs, such as when your supplier cannot meet customer
demand.
Automate accounting. Receive notification that the supplier shipped the goods, and then
automate documentation and accounting of the ownership change from your supplier, to
you, and then to your customer. Use this capability in conjunction with agreements in
Oracle Fusion Supply Chain Financial Orchestration to support the multiple, internal
ownership changes that your global business agreements require.
The following screen captures illustrate the feature and its benefits. The first shows the Supply Details
tab for a fulfillment line, where you can find a section with drop shipment details:
55
The Item Availability graph provides availability information from internal warehouses, drop ship
suppliers, and other sources:
56
Use the Edit Fulfillment Lines dialog to choose a source: internal warehouse or drop ship supplier.
57
On the Manage Orders page in the Purchasing work area, you can find the drop ship purchase order
schedule:
58
STEPS TO ENABLE
Enable the Drop Ship feature for the Order Management offering, and the Customer Sales Order
Fulfillment feature for the Procurement offering:
1. In the Navigator, click Setup and Maintenance.
2. Select the Order Management offering. Click the Configure button if the offering has not been
configured. If you don’t see the Configure button, then your offering has been configured; click
Actions and select Change Configuration.
59
3. On the Configure: Order Management page, click the Features icon in the Order Management
row.
4. Select Drop Ship, and then click Done.
5. Click Actions and select Go to Offerings.
6. Select the Procurement offering. Click the Configure button if the offering has not been
configured. If you don’t see the Configure button, then your offering has been configured; click
Actions and select Change Configuration.
7. On the Configure: Procurement page, click the Features icon in the Procurement row.
8. Select Customer Sales Order Fulfillment, and the click Done.
In addition, the following setups are required to make the drop ship flow work. To locate each setup
task, click Setup and Maintenance in the Navigator, and then search for the setup task by name using
the Search field on the Setup and Maintenance home page.
MANDATORY SETUPS
1. In the Manage Items task: select Yes for the Purchasable attribute.
2. In the Manage Sourcing Rules task: You must have a global “Buy from” type of sourcing rule.
3. In the Manage Drop Ship Financial Flows task: Define a drop ship financial flow that associates
the selling business unit (BU) with the requisition BU and the receiving trade organization.
4. In the Manage Order Management Parameters task: Provide a value for the Preparer for
Procurement parameter for all business units (default value). Optionally provide values at the
level of the selling BU.
5. In the Manage Suppliers and Supplier Sites task: a supplier site must be enabled to perform the
Purchasing function for the requisition BU.
OPTIONAL SETUPS
In the Manage Agreements task: Define an agreement of style Blanket Purchase Agreement for a given
supplier and item. On the Controls tab, select the “Automatically generate orders” and “Automatically
submit for approval” options.
KEY RESOURCES
•
Oracle Supply Chain Management Cloud: Implementing Order Management, available on
the Oracle Help Center.
60
USE CONFIGURE-TO-ORDER FLOWS
Efficiently fulfill each configured order through the new configure-to-order (CTO) process. This
streamlined, end-to-end process simplifies fulfillment for a configured product, and provides complete
visibility for every step. It uses an intelligent design that reduces item proliferation, reduces replicated
data, improves item management, and improves on-time order fulfillment.
Configure-to-order is a highly integrated flow that spans multiple products. The flow focuses on the
configuration and fulfillment of two model types:
•
•
Assemble-to-order (ATO) models , where the configuration results in a single item
Pick-to-order (PTO) models with an ATO component, where the configuration results in
more than one item and includes at least one ATO item
Note that the model can be defined with both mandatory and optional components. Mandatory
components do not show up in the customer facing item configuration session, but are added to the
order when the configuration session is completed. Built-in logic ensures that customers are required
to select options that are necessary for fulfillment.
Warehouses rarely stock every set of choices (configuration selections) of an ATO model. Instead, they
source the specific configuration created during the sales ordering process after the order is submitted
for fulfillment. Sourcing choices include:
•
•
•
Manufacturing the item to the specifications on the order
Transferring the item from another warehouse
Purchasing the configured item from a supplier
When the configured product is purchased from a supplier, you can optionally have the supplier ship the
item directly to the customer. See the “Use Supplier-to-Customer Drop Ship Flows” section of this
document for details on this Advanced Fulfillment Flow.
CAPTURE AND MANAGE CUSTOMER ORDERS FOR CONFIGURED PRODUCTS
Select and configure assemble-to-order (ATO) products during the sales order process. View the model
price and availability information during this process. Price the configuration at the model level and at
the selected option level. You can offer multilevel, multiorganization, configured products that are
assembled for each order. You can offer a combination of pick-to-order and assemble-to-order
configurations.
The image below shows an assemble-to-order model for a tablet. During the sales order process, the
customer is prompted to make selections for the option classes. The mandatory components do not
require customer action and are made available to downstream systems during the assembly process.
61
STEPS TO ENABLE
No steps are required to enable this feature.
TIPS AND CONSIDERATIONS
•
Base model items, option class items, and components items must be defined so that they
can be used to define model structures.
AUTOMATICALLY CREATE ITEMS FOR SPECIFIC CONFIGURATIONS
When users finish selecting options for a model, new algorithms quickly determine whether or not a
match for this item definition already exists. If not, then an algorithm creates the new item and the core
structure that the item requires. A dynamically created view into the item structure or manufacturing
work definition is created throughout the supply chain. The view varies based on role – for example, a
planner or production operator can access the complete view, whereas a sales representative, buyer,
supplier, or customer can access a sales view. A warehouse user views the final stockable or shippable
product, and can drill into the sales view.
The final assembly that is built based on customer configuration selections is modeled as an item to
improve handling and identification through the warehouse and shop floor. This approach also enables
all normal item-centric functionality throughout the supply chain and improves item and on-hand
visibility. This item is referred to as a configured item. There is less manual data entry due to automatic
creation of the configured item.
62
The image below depicts a customer configuration on an order in comparison with the match data from
previous customer orders. In this case, the customer order data would not be a match since the option
selections are not identical. A new configured item would be created to represent the combination of
options in the order data.
STEPS TO ENABLE
No steps are required to enable this feature.
TIPS AND CONSIDERATIONS
•
•
The Configured Item Number Generation setup page allows a business to define a
numbering scheme for the generation of new configured item numbers.
The configured item numbering scheme can be defined once for all items, or unique
numbering schemes can be set by item category.
PROMISE AND SOURCE CONFIGURATIONS
You can promise and source customer orders for a configured product. Ensure that the configuration is
sourced from the right location that is capable of fulfilling the configured product order.
63
Orders for models are promised by considering many factors, based on the setup of available-topromise (ATP) rules. It is recommended that work definitions, resource capacities, and lead times
across all levels of multilevel ATO models be used. Availability dates shown in Oracle Fusion Order
Management are based upon the selected options. Availability of similar configurations is also
considered. Sourcing restrictions are evaluated based on option selections (Option-Specific Sourcing) so
that only those suppliers or facilities capable of fulfilling the request are considered.
Existing stock in other warehouses can also be included in sourcing decisions. Internal material transfers
are used to move prebuilt assemblies between two internal organizations. Oracle Fusion Global Order
Promising can support these internal orders just as it does standard external orders, using sourcing rules
and ATP rules to determine the best possible way to promise. Global Order Promising also generates
alternate supply recommendations and enables what-if simulations to determine better promising
options. An order manager can manage internal configure to order requests just like external orders,
and can also reallocate supply between internal and external orders if required.
The following image depicts option-specific sourcing. In the example, configurations with option 1
selected will be sourced from organization D2, while configurations with option 2 selected will be
sourced from organization D1.
STEPS TO ENABLE
No steps are required to enable this feature.
64
TIPS AND CONSIDERATIONS
•
•
•
•
•
ATP rules must be set up for and assigned to models, option classes, and options. ATP rules
for models must be assigned at the category level, which enables configured items to be
recognized by the same ATP rule assignment.
For manufactured ATO models, ensure that the ATP rule has “Search Component and
Resource” enabled.
Option classes must be associated with an “Infinite Availability” based ATP Rule.
Exceptions to sourcing rules can be defined so that only those suppliers or facilities that are
capable of fulfilling the request are considered.
When setting up Global Order Promising rules, it is suggested that you:
o Assign ATP rules by item category to reduce maintenance overhead
o Assign ATP rules for option classes to an Infinite Availability-Based ATP rule
o Define sourcing rules at the model and options level
PLAN DEMAND AND SUPPLY FOR THE CONFIGURE-TO-ORDER PROCESS
You can forecast the demand for a configure-to-order model. Consume orders for the configured
product from model forecasts. Derive the demand on lower level options and option classes according
to predefined planning percentages. To make sure options are available in a timely manner to
manufacture the configured product, offset the required lead times. Exceptions are generated if your
supplier or manufacturing capacity becomes overloaded.
In the following image, you can see how each level of the model is used in planning for ATO models:
65
Planning for assemble-to-order products allows you to forecast demand for models and to forecast
component demand based upon percentages defined in the model item structure. It consumes ATO
model forecasts with sales orders for configured products and explodes the remaining forecast, and
creates the supply to meet demands for configured products.
Planning respects option-specific sourcing exclusion rules, requesting supply creation only from the
suppliers or facilities that are capable of fulfilling the request. For example, if a configuration requires a
silver-plating process to be executed, facilities that are not able to perform that process are not
considered.
STEPS TO ENABLE
No steps are required to enable this feature.
TIPS AND CONSIDERATIONS
•
•
When defining ATO items, ensure that the value for forecast control is set to Consume then
Explode, because Oracle Fusion Planning Central will explode forecasts only for items with
forecast control = Consume then Explode.
Specify the quantity and planning percentage for each option and option class. These
values are leveraged to ensure that the planning of component requirements is as accurate
as possible.
AUTOMATICALLY CREATE SUPPLY FOR CONFIGURED PRODUCTS
Automatically create supply for configured products to reduce cycle times for configured orders. You
can procure this supply through drop ship, procured back-to-back, manufactured back-to-back,
transferred back-to-back, or on-hand inventory. Each configured product uses the same process that
any procured or manufactured product uses. A special procedure or manual procedure for a configured
product is not necessary. You can monitor the configure-to-order process from beginning to end, from
creating the supply through procurement, to internal transfers or in-house manufacturing. You can
visually monitor progress and manage exceptions that might jeopardize order fulfillment:
66
Supply documents (work orders, purchase orders, and transfer orders) are created for the configured
item to leverage item based fulfillment processes, but the model, selected options and transactional
item attributes are also automatically available whenever they are relevant to the fulfillment system.
Oracle Fusion Supply Chain Orchestration provides tracking and exception management for supply
creation and provides error recovery capability. Supply creation information for configure to order sales
orders is integrated into the Order Management workbench for maximum visibility.
STEPS TO ENABLE
No steps are required to enable this feature.
TIPS AND CONSIDERATIONS
•
•
•
•
By default, Oracle Fusion Purchasing includes a document style intended for procured
configurations. This style is automatically applied when importing blanket agreements used
for procuring configurations and is also used when creating purchase orders from requests
for configurations.
Customers can define their own document styles for procured configurations. The
Configuration Ordering Enabled flag on the document style definition must be set to Yes.
When defining an ATO Model Work Definition, it suggested that you ensure that all the first
level components from structure are assigned to operations.
Select the option-dependent attribute only if the operation is truly dependent on certain
options being selected.
67
•
Assign either option classes and/or optional components, or an applicability rule, to the
option-dependent operation.
MAINTAIN CONFIGURED ITEM DATA
Automatically include modifications that occur to the model item definitions in the unique
configurations, and immediately include modifications that occur in the model structures in the dynamic
configured item structures. To minimize setup, maintenance, and setup proliferation, each unique
configuration references other setups that reside at the model level.
Although the configured item itself is stored as a new item, the configured item bill of materials is not
stored. It is constructed upon request using the options captured in the configured item match data
and the mandatory components from the most current version of the base model structure. Supply
Chain Orchestration provides configured item structure details for use by downstream processes – work
orders, purchase orders, transfer orders, and shipping documents.
The following image shows how the complete structure for a configured item is constructed.
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There are two views available:
•
•
Sales View: Used to retrieve the options selected in the sales order.
Complete Instance View: Used to retrieve the complete configured item structure. The
complete item structure is dynamically constructed and includes the sales view, mandatory
components and details from the latest version of the base model.
STEPS TO ENABLE
No steps are required to enable this feature.
TIPS AND CONSIDERATIONS
•
If there is a change to the model structure, users do not have to update all of the configured
item structures.
SUPPORT TRANSACTIONAL ITEM ATTRIBUTES
The configure-to-order process supports transactional item attributes to match to existing
configurations and for in-house manufacturing. You can easily send transactional item attributes that
users select during order entry to manufacturing, and you can use them to determine work order
operations.
The following image shows how transactional attributes are defined using the Manage Item Classes task
in the Setup and Maintenance work area Management work area:
The transactional attributes that provide a more detailed definition of the product are captured during
the order entry process. Those attribute values are then used in the configuration matching process to
69
determine if the configuration already exists. The matching process uses only the transactional
attributes specified for use in configuration matching and manufacturing. The attributes are also
leveraged by manufacturing to determine which operations should be executed to produce the
configured product.
STEPS TO ENABLE
No steps are required to enable this feature.
TIPS AND CONSIDERATIONS
•
•
Use transaction item attributes in the manufacturing process to determine when to include
option-dependent operations.
Utilize these attributes to create unique configurations based on properties such as power
output or processing speed, or to represent details such as a removable emblem or logo.
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USE BACK-TO-BACK FLOWS
The back-to-back flow enables you to build, transfer, and buy according to customer order
specifications, helping to reduce inventory while providing a wide variety of product choices for your
customers.
In back-to-back supply creation and fulfillment, supply is requested for and reserved against demand
after a sales order is booked and scheduled. You can fulfill a back-to-back order by procuring from an
external supplier, manufacturing in an in-house facility, transferring from another warehouse, or by
reserving against available on-hand inventory. After supply is received into the fulfillment warehouse,
the back-to-back order can be shipped to the customer.
The following figure illustrates the back-to-back supply creation and fulfillment process:
PLANNING AND PROMISING BACK-TO-BACK ORDERS
This feature enables organizations to initiate back-to-back fulfillment for items enabled for back-toback. Promising of these items is based on local sourcing rules that you set up for the fulfillment
warehouse. Sourcing rules are also evaluated to determine supply sources to meet the back-to-back
sales order demand.
The capability to plan and promise back-to-back orders results in considerable savings in inventory
carrying costs. You no longer need to maintain on-hand inventory of back-to-back items in anticipation
of a customer order.
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The following image shows a scheduled back-to-back sales order fulfillment line:
STEPS TO ENABLE
No steps are required to enable this feature.
TIPS AND CONSIDERATIONS
•
Global Order Promising uses local sourcing rules to determine how best to source supply to
fulfill a back-to-back order. The local sourcing rules designate a source type (Make, Buy, or
Transfer) and create the supply recommendation.
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KEY RESOURCES
•
Oracle SCM Cloud: Implementing Manufacturing and Supply Chain Materials Management,
available on the Oracle Help Center.
AUTOMATE SUPPLY ORDERS
Automatically create a work order, transfer order, or purchase order that the application reserves for
the sales order line. Provide visibility to your sales order and customer information from the reserved
supply. Give your supply chain manager visibility to the sales order where the supply order is reserved.
Demand information from Order Management and supply recommendations from Global Order
Promising are matched before the request to create supply is initiated. The type of supply created from
the supply order depends on how order promising rules are set up for the back-to-back item. Supply
can be created through a purchase requisition/purchase order in Oracle Fusion Purchasing, a work order
in Oracle Fusion Manufacturing, or a transfer order in Oracle Fusion Inventory Management.
Automation in the supply creation process helps you prevent delays and errors that commonly occur
due to manual intervention. Moreover, the supply order facilitates detailed tracking of each task
associated with supply creation.
The following images show back-to-back purchase requsitions in Purchasing and Manufacturing:
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STEPS TO ENABLE
To enable automatic creation of back-to-back supply in Oracle Procurement Cloud (purchase
requisitions and purchase orders), do the following:
1. In the Navigator, click Setup and Maintenance.
2. Select the Procurement offering.
3. Click the Configure button if the offering has not been configured. If you don’t see the Configure
button, then your offering has been configured; click Actions and select Change Configuration.
4. On the Configure: Procurement page, click the Features icon in the Procurement row.
5. On the Features page, select Customer Sales Order Fulfillment, and click Done.
TIPS AND CONSIDERATIONS
•
•
To achieve complete automation in the supply creation process for the back-to-back Buy
process, set up a blanket purchase agreement for the back-to-back item in Procurement and
configure agreement controls so that purchase requisitions are automatically converted to
purchase orders.
The back-to-back Make process requires a valid work definition for the back-to-back item in
Manufacturing.
KEY RESOURCES
•
Oracle SCM Cloud: Implementing Manufacturing and Supply Chain Materials Management,
available on the Oracle Help Center.
74
AUTOMATICALLY RESERVE INVENTORY
You can automatically reserve goods for a sales order when they become available in inventory, making
sure that no other order can use those goods.
One key aspect of the back-to-back process is the reservation of supply against a specific demand
source. This reservation, established in Inventory Management, ensures that whenever supply is
received into the fulfillment warehouse, it is used only to meet the demand for which it has been
reserved. In turn, this ensures that you always meet on-time delivery metrics on every single back-toback sales order.
The reservation is updated automatically whenever changes occur on either the demand side or supply
side. You can view and manage the reservation using the Manage Reservations and Picks page in
Inventory Management. Warehouse managers can also view the Back-to-Back indicator on the
reservation to help them make supply allocation and re-allocation decisions.
The following shows a back-to-back reservation that reflects the source of demand (the sales order):
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STEPS TO ENABLE
No steps are required to enable this feature.
KEY RESOURCES
•
Oracle SCM Cloud: Implementing Manufacturing and Supply Chain Materials Management,
available on the Oracle Help Center.
MANAGE CHANGE IN REAL TIME
Instantly adjust to supply and demand changes, giving your supply chain manager the ability to resource the supply, if necessary.
The back-to-back supply creation and fulfillment process supports changes that originate from the
demand side (sales order) or from the supply side (supply document: purchase order, work order, or
transfer order). These changes are handled automatically, and any exceptions that occur in the process
are identified and displayed in Order Management so that you can take appropriate action to recover
from the supply exception.
The following changes from the demand side (sales order) are supported:
•
•
•
Quantity increase or decrease
Requested date pulled in or pushed out
Order cancellation
The following supply-side changes are supported:
•
•
•
Supply delays or date changes
Quantity decrease
Supply cancellation
Notifications show when exceptions occur – for example:
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STEPS TO ENABLE
No steps are required to enable this feature.
KEY RESOURCES
•
Oracle SCM Cloud: Implementing Manufacturing and Supply Chain Materials Management,
available on the Oracle Help Center.
PROVIDE FULFILLMENT VISIBILITY
Give your order manager visibility into work order status, transfer order status, or purchase order
status. You can immediately update the order manager with the latest supply status - such as when the
supply is available for shipment or the date that the supply is expected to be available.
This feature provides you with complete visibility into all tasks, documents, and activities in the back-toback supply creation and fulfillment process. The Supply Chain Orchestration work area gives you a 360degree view of back-to-back demand and supply. Moreover, you can seamlessly drill down from the
back-to-back sales order to the supply order and further down to the supply document without having
to change login credentials. Each supply document that originates from back-to-back demand also
displays back-to-back identifiers.
The Fulfillment Visibility feature also ensures that exceptions in the back-to-back flow are logged and
made visible so that you can take appropriate manual action. For example:
You can get visibility into back-to-back supply and demand information on the supply order:
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STEPS TO ENABLE
No steps are required to enable this feature.
KEY RESOURCES
•
Oracle SCM Cloud: Implementing Manufacturing and Supply Chain Materials Management,
available on the Oracle Help Center.
78
USE INTERNAL MATERIAL TRANSFER FLOWS
To improve efficiency in your supply chain and to optimize working capital, you can centrally manage an
internal material transfer (IMT) across the Oracle SCM Cloud. An internal material transfer is an end-toend solution that orchestrates transfers according to business rules. It can orchestrate across multiple
supply chains. You can manage transfers separately, or you can combine them with sales orders to
improve customer service.
The following diagram illustrates the internal material transfer flow:
USE MULTIPLE TRANSFER SOURCES
Internal transfer requests can be created according to current or anticipated changes to demand and
supply that occur in Oracle Fusion Planning Central. Additionally, internal transfer requests can be
created from min-max replenishment planning and back-to-back orders. You can also upload transfer
requests from external sources through a spreadsheet. Oracle Fusion Inventory Management will create
transfer orders for further processing from the various transfer sources.
STEPS TO ENABLE
No steps are required to enable the feature.
KEY RESOURCES
•
Oracle Supply Chain Management Cloud: Implementing Manufacturing and Supply Chain
Materials Management, available on the Oracle Help Center.
79
CONFIGURE TRANSFER PROCESSING
Oracle Fusion Supply Chain Orchestration orchestrates supply requests. The following page in the Supply
Orchestration work area provides an overview of supply lines and their current status, including supply
line errors, exceptions, jeopardy, and on track:
An analytics area provides a graphical presentation of supply lines according to supply type. Supply
Chain Orchestration provides rules that you can configure to determine whether or not it should use a
transfer order or a purchase order to run an internal material transfer. Supply Chain Orchestration can
route an internal material transfer that references shipments through Oracle Fusion Order
Management, so Order Management users can view the transfer order and the sales orders.
The Supply Orchestration work area provides an entire view of demand and supply and visibility to
supply creation. A supply chain operations manager can use it to take corrective action to address
errors, and can examine the transfer order or the purchase order. Use the following page to get supply
line details, such as requested quantity, fulfilled quantity, supply source, and supply destination:
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STEPS TO ENABLE
Add the rules that control how to create the supply execution document:
1.
2.
3.
4.
5.
6.
In the Navigator, click Setup and Maintenance.
Enter Manage Supply Execution Document Creation Rules in the search field.
Click Manage Supply Document Creation Rules.
Click Actions, and then click Add Rule.
Enter details for the Supply Execution Document Creation Rule.
Click Save and Close.
KEY RESOURCES
•
Oracle Supply Chain Management Cloud: Implementing Manufacturing and Supply Chain
Materials Management, available on the Oracle Help Center.
USE A SIMPLIFIED TRANSFER PROCESS
Supply Chain Orchestration uses a transfer order document that can handle the physical movement of
inventory between the shipping organization and the receiving organization. It uses this document to
process an intraorganization, interorganization, or intercompany transfer. Warehouse personnel can
pick, ship, receive, put away, and return items through the same transfer order document. Users save
time because Supply Chain Orchestration processes these transfer orders in the same way that it
processes shipments and receipts that do not involve an internal material transfer. You can use the
Manage Transfer Orders page to access transfer order details, such as transfer price, source
organization, destination location, requested quantity, and line status.
STEPS TO ENABLE
No steps are required to enable this feature.
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KEY RESOURCES
•
Oracle Supply Chain Management Cloud: Implementing Manufacturing and Supply Chain
Materials Management, available on the Oracle Help Center.
GET VISIBILITY TO ORDER PROMISING AND PLANNING
Oracle Fusion Global Order Promising and Oracle Fusion Planning Central include visibility into internal
material transfers for planned items, from creation to receipt of the transfer. A planner can examine,
and then reschedule or cancel an internal material transfer, if necessary, before shipping occurs. A
planner can release these changes to Supply Chain Orchestration, and then the internal material
transfer is updated in Inventory Management.
STEPS TO ENABLE
No steps are required to enable this feature.
TRANSFER CONSIGNED INVENTORY
Consigned inventory supports the internal material transfer flow. Material can remain in a consigned
state while Supply Chain Orchestration transfers it from a source organization to a destination
organization. Inventory consumption rules determine consumption for the consigned inventory. These
rules support transaction types for transfer orders and for other attributes, such as item, organization,
subinventory, owning party, and so on. Supply Chain Orchestration finishes consumption, creates
consumption advice, and then reports this advice to the supplier.
STEPS TO ENABLE
Add consumption rules:
1.
2.
3.
4.
5.
6.
In the Navigator, click Setup and Maintenance.
Enter Manage Consumption Rules in the search field.
Click Manage Consumption Rules.
Click Actions, and then click Create.
Enter Consumption Rule details.
Click Save and Close.
KEY RESOURCES
•
Oracle Supply Chain Management Cloud: Implementing Manufacturing and Supply Chain
Materials Management, available on the Oracle Help Center.
82
AUTOMATE TRANSFER PRICING
Oracle Fusion Supply Chain Financial Orchestration calculates the transfer price and taxes for an internal
transfer when it creates the transfer order. Use the following page to examine and reconcile this price
and tax:
STEPS TO ENABLE
No steps are required to enable the feature.
KEY RESOURCES
•
Oracle Supply Chain Management Cloud: Implementing Manufacturing and Supply Chain
Materials Management, available on the Oracle Help Center.
CENTRALIZE TRANSFER MANAGEMENT
A transfer order represents demand and supply in a single document. A warehouse manager can use the
following page in the Inventory work area to manage transfer orders:
You can monitor line status, fulfillment status, and interface status, and can examine quantity details,
including requested, shipped, and received quantities. You can also edit a transfer order; for example,
you can edit the source organization, requested delivery date, requested quantity, and so on.
The warehouse manager can use the following page to view transfer order lines and the shipments and
receipts that these lines reference. You can click a link in the Shipment or Receipt field to examine
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details for each shipment or receipt. You can monitor the internal material transfer and identify any
potential problems:
STEPS TO ENABLE
Set up the interorganization parameters so that Inventory Management can perform a transfer order
between organizations:
1.
2.
3.
4.
5.
6.
7.
In the Navigator, click Setup and Maintenance.
Enter Manage Interorganization Parameters in the search field.
Click Manage Interorganization Parameters.
Click Actions, and then click Create.
Enter the Interorganization Parameters.
Select the Transfer Order Required option.
Click OK, and then click Save and Close.
KEY RESOURCES
•
Oracle Supply Chain Management Cloud: Implementing Manufacturing and Supply Chain
Materials Management, available on the Oracle Help Center.
CONFIGURE TRANSFER FLOW
Shipment requests and shipping documentation are directly created from the transfer order. Shipments
and receipts are automatically updated through the transfer order. Supply chain orchestration rules
determine whether a transfer order line is interfaced to Shipping. Transfer order lines are similar to
sales order lines and can be picked, packed, and shipped. A single in-transit shipment is created in
84
Receiving for each outbound shipment in Shipping. Transfer order lines are similar to expected shipment
lines and can be inspected, put away, corrected, and returned.
STEPS TO ENABLE
Specify a rule that determines whether or not to send a transfer order line to Shipping:
1.
2.
3.
4.
5.
6.
In the Navigator, click Setup and Maintenance.
Enter Manage Supply Order Defaulting and Enrichment Rules in the search field.
Click Manage Supply Order Defaulting and Enrichment Rules.
Click Actions, and then click Add Rule.
Enter details for the Supply Order Enrichment Rule.
Click Save and Close.
KEY RESOURCES
•
Oracle Supply Chain Management Cloud: Implementing Manufacturing and Supply Chain
Materials Management, available on the Oracle Help Center.
INTEGRATE SALES ORDER FULFILLMENT
Order Management comes predefined with an integration that interfaces with Inventory Management
to receive a transfer order, and then orchestrate it, including schedule, reserve, and ship the order. This
integration can orchestrate and manage an internal material transfer across fulfillment systems. You can
use the source document type in the Order Management work area to locate a transfer order.
You can use Check Availability to examine alternate supply options and perform a what-if analysis to
schedule each transfer order. You can prioritize orders and reallocate supply between one or more
transfer orders and sales orders. For example, if you reserve supply to fulfill the sales order on time,
then you can prioritize a sales order over a transfer order.
Use the following page to manage fulfillment lines:
85
STEPS TO ENABLE
Specify the rules that determine whether or not to send the transfer order directly to Shipping, or to
send it through Order Management, and then to Shipping:
1.
2.
3.
4.
5.
6.
In the Navigator, click Setup and Maintenance.
Enter Manage Supply Order Defaulting and Enrichment Rules in the search field.
Click Manage Supply Order Defaulting and Enrichment Rules.
Click Actions, and then click Add Rule.
Enter Supply Order Enrichment Rule details.
Click Save and Close.
KEY RESOURCES
•
Oracle Supply Chain Management Cloud: Implementing Manufacturing and Supply Chain
Materials Management, available on the Oracle Help Center.
FLEXIBLE RETURN TRANSFERS
A return can include a physical return of material, or only a logical return. The manage return process
starts the return transaction, and creates an inventory transaction that uses the transfer order type.
If the Physical Material Return Required field on the following page:
•
Is selected: Order Management creates a transaction for the physical return of the material,
and then sends the sales order to Shipping.
86
•
Is not selected: Order Management creates a logical return, and does not send the sales
order to Shipping. Order Management also creates a document that you can use for tax,
accounting, and audit trail purposes:
STEPS TO ENABLE
Indicate whether or not a physical return of the material is required:
1.
2.
3.
4.
5.
In the Navigator, click Receipts.
Click Return Receipts.
Search for Transfer Order.
Click Return.
Set the Physical Material Return Required option.
KEY RESOURCES
•
Oracle Supply Chain Management Cloud: Implementing Manufacturing and Supply Chain
Materials Management, available on the Oracle Help Center.
CONFIGURE TRANSFER ACCOUNTING
You can use Supply Chain Financial Orchestration to manage the financial relationship that results from
trade that occurs between internal organizations that belong to different business units. You can use it
to separate the physical flow of goods from the financial accounting of these goods.
You can configure Supply Chain Financial Orchestration so that it defines the parties that are involved in
the ownership transfer. You can specify the documentation and accounting that is required for this
transfer.
Supply chain controllers can use a transfer order to perform financial orchestration between internal
organizations. You can specify to transfer the title of goods when you ship them, or when the
destination receives them. The transfer order shipment or the transfer order receipt starts the financial
flow. Use the following page to create a financial orchestration flow:
87
STEPS TO ENABLE
No steps are required to enable the feature.
KEY RESOURCES
•
Oracle Supply Chain Management Cloud: Implementing Manufacturing and Supply Chain
Materials Management, available on the Oracle Help Center.
MONITOR TRADE FLOW COSTS
Oracle Fusion Cost Management supports internal material transfer flows and can help you to improve
efficiency in your supply chain. You can monitor trade flow costs, and use an audit trail that includes
transfer prices and costs for shipments across your business units.
Cost Management uses a profit in inventory cost element to track profit earned on each internal transfer
so that you can view internal markups in an intercompany trade flow. If you allow this profit tracking,
88
then a cost accountant can view the profit earned during each part of the transfer. In the following
example, you can view goods received in the US West business unit at a price of $11.55, and you can
also view the profit that the Singapore and China business units earn, and the original cost of the
material. You can analyze goods received according to the profit that each business unit earns:
Cost Management can cost and account for each internal material transfer that includes a purchase or a
return, and it streamlines accounting when the physical flow of shipping goods is different from the
financial flow.
STEPS TO ENABLE
No steps are required to enable the feature.
KEY RESOURCES
•
Oracle Supply Chain Management Cloud: Implementing Manufacturing and Supply Chain
Materials Management, available on the Oracle Help Center.
89
SIMPLIFIED SETUP
Intuitive setup tasks help you set up the common components in Oracle SCM Cloud: inventory
management, manufacturing, and cost management. You can quickly get an instance up and running to
use for a pilot test. For details, see Getting Started with Your Manufacturing and Supply Chain Materials
Management Implementation, available on the Oracle Help Center.
---
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