Oracle Order Management Setups

Oracle Order management is one of the most important part of the oracle EBS. The Order Management Application provides many flexible features enabling you to set up your system to begin processing order information. These orders can be created in Oracle Order Management Suite as well as in some other front-desk application. We can integrate these applications with Oracle Order Management for keeping a controlled track of orders and proper business flow. We can create different types of orders using this application can be for inventory stock items or for services.
You must define your business order policies, such as how you classify your orders, as well as various control features prior to processing orders within the application.

Important Setup Steps for Order Management

Click on the links to go to individual setup steps

Step	Optional or Required
1. Define multiple organizations in Oracle Inventory	required
2. Setup Multi-Org (Multiple Organization) Access Control	optional
3. Define key and descriptive flexfields	required under certain conditions
4. Define inventory organizations (warehouses), parameters, subinventories, and picking rules in Oracle Inventory	required
5. Define Profiles	required
6. Setting OM System Parameters	required
7. Define invoicing information, Payment Terms	required under certain conditions
8. Define your sales representatives	optional
9. Define Tax Features	required
10. Define Quickcodes	required under certain conditions
11. Define header and line processing flows	required
12. Define Document Sequences for Order Numbering	required
13. Define Order Import Sources	required under certain conditions
14. Define the units of measure	required
15. Define item information	required
16. Define the items that you sell	required
17. Define the configurations that you sell	required under certain conditions
18. Define price lists	required
19. Define customer profile classes	required under certain conditions
20.Define information on your customers	required
21. Define item cross references	required under certain conditions
22. Define your sourcing rules	optional
23. Define Order Management Transaction Types	required
24. Set up Cost of Goods Sold Accounting flexfield combination	required under certain conditions
25. Define Processing Constraints	optional
26. Define Defaulting Rules	optional
27.Define Credit Checking Rules	required under certain conditions
28. Define Automatic Holds	required under certain conditions
29. Define Attachments	optional
30. Define Freight and Special Charge Types	optional
31. Define shipping parameters	required

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Sourcing Rule in Oracle Purchasing

Sourcing rule is used to automatically replenish materials in an organization or business.
Sourcing rules determine the movement of materials between organizations in a global enterprise; these organizations include the suppliers and the materials include those items made at the manufacturing organizations.

Profile Options

• MRP:Default Sourcing Assignment Set (set the value of the assignment set where you have added your item) 
• PO: Automatic Document Sourcing (Yes) 
• PO: Allow Auto-generate Sourcing Rules (CREATE AND UPDATE) 
• PO: Allow Autocreation of Oracle Sourcing Documents (Yes)
• MSC: ATP Allocation Method (User-Defined Allocation Percentage)

Define an Item

Noted Attributes:

• Select any Inventory Planning method
• Select the item Make or Buy
• Enter a List price
• Enter a default Buyer (this will help to assign a buyer during planning and in the requisition) 

Define Supplier and Supplier Sites

You can define supplier and supplier sites as required

Purchasing --> Supply Base --> Suppliers

Defining Sourcing Rule

Purchasing -> Supply Base -> Sourcing Rule

Notes:

• You can use this rule across all orgs by Selecting All Orgs
• If you want to use in specific org, the select the Org

Shipping organization type is 3 types

• Buy From: Buying from a supplier
• Transfer From: If you want to transfer the item from another organization in your business
• Make At: This is for making the item in the selected organization

Allocation percentage: This is to identify how much % of the amount will be sourced from which org. This is helpful when you want to maintain multiple sources and want to split the sourcing amount between different sources, so you can split that by allocation%.
Master Scheduling/MRP uses these allocation percentages when creating planned orders, which Purchasing imports as requisitions through Requisition Import. In a group of requisitions imported from Master Scheduling/MRP, those requisitions show the percentage allocation you define. In other words, at the end of a planning period, orders--as a group--to those suppliers approximately equal the percentage split you defined. However, when you create a requisition in Purchasing, Purchasing sources to the supplier with the highest allocated percentage. The Approved Supplier List (ASL) entry for that supplier is then referenced in order to pick up source document information (from a blanket purchase agreement or catalog quotation), if source documents exist

Allocation Rank: To select the sequence in which sources will be identified during planning

Sourcing Rule Assign set, add the item for the sourcing rule

Once sourcing rules are defined, now time to assign the rule to Item or organization as you need

Purchasing à Supply Base à Assign Sourcing Rules

Here you can assign the sourcing rules at 4 different levels

• Item 
• Item-Organization
• Organization
• Global

Add the supplier to Approved Supplied List

This is optional, if you have checked ASL in Item attribute

Purchasing à Supply Base à Approved Supplier List

Run Min Max planning for the item

Inventory à Planning à Min-Max Planning

Submit the request for the item and make sure restock parameter selected as Yes

Then run requisition Import

This will create the Purchase Requisition and in turn submit the Create Releases Program which will in turn create the Purchase Order

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