order to cash cycle.doc

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Order to Cash cycle

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In this article, we will go through the Order to Cash cycle. The below are the steps in short:

Enter the Sales Order

Book the Sales Order

Launch Pick Release

Ship Confirm

Create Invoice

Create the Receipts either manually or using Auto Lockbox ( In this article we will concentrate on Manualcreation)

Transfer to General Ledger

Journal Import

Posting

Lets get into the details of each step mentioned above.

Enter the Sales Order:

Navigation:Order Management Super User Operations (USA)>Orders Returns >Sales Orders

Enter the Customer details (Ship to and Bill to address), Order type.

Click on Lines Tab. Enter the Item to be ordered and the quantity required.
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Line is scheduled automatically when the Line Item is saved.

Scheduling/unscheduling can be done manually by selecting Schedule/Un schedule from the Actions Menu.

You can check if the item to be ordered is available in the Inventory by clicking on Availability Button.

Save the work.

Underlying Tables affected:

In Oracle, Order information is maintained at the header and line level.


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The header information is stored in OE_ORDER_HEADERS_ALL and the line information in OE_ORDER_LINES_ALLwhen the order is entered. The column called FLOW_STATUS_CODE is available in both the headers and lines tableswhich tell us the status of the order at each stage.

At this stage, the FLOW_STATUS_CODE in OE_ORDER_HEADERS_ALL is Entered

Book the Sales Order:

Book the Order by clicking on the Book Order button.

Now that the Order is BOOKED, the status on the header is change accordingly.


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Underlying tables affected:

At this stage:

The FLOW_STATUS_CODE in the table OE_ORDER_HEADERS_ALL would be

BOOKED

The FLOW_STATUS_CODE in OE_ORDER_LINES_ALL will be

AWAITING_SHIPPING.

Record(s) will be created in the table WSH_DELIVERY_DETAILS with

RELEASED_STATUS=R (Ready to Release)

Also Record(s) will be inserted into WSH_DELIVERY_ASSIGNMENTS.

At the same time DEMAND INTERFACE PROGRAM runs in the background and inserts

into MTL_DEMAND

Launch Pick Release:

Navigation:

Shipping > Release Sales Order > Release Sales Orders.

Key in Based on Rule and Order Number

In the Shipping Tab key in the below:

Auto Create Delivery: Yes

Auto Pick Confirm: Yes


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Auto Pack Delivery: Yes

In the Inventory Tab:

Auto Allocate: Yes

Enter the Warehouse

Click on Execute Now Button.

On successful completion, the below message would pop up as shown below.


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Pick Release process in turn will kick off several other requests like Pick Slip Report,

Shipping Exception Report and Auto Pack Report


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Underlying Tables affected:

If Autocreate Delivery is set to Yes then a new record is created in the table WSH_NEW_DELIVERIES.

DELIVERY_ID is populated in the table WSH_DELIVERY_ASSIGNMENTS.

The RELEASED_STATUS in WSH_DELIVERY_DETAILS would be now set to Y (Pi ck Confirmed) if Auto Pick Confirm

is set to Yes otherwise RELEASED_STATUS is S (Release to Warehouse).

Pick Confirm the Order:

IF Auto Pick Confirm in the above step is set to NO, then the following should be done.

Navigation:Inventory Super User > Move Order> Transact Move Order

In the HEADER tab, enter the BATCH NUMBER (from the above step) of the order. Click FIND. Click on VIEW/UPDATEAllocation, then Click TRANSACT button. Then Transact button will be deactivated then just close it and go to next step.

Ship Confirm the Order:

Navigation:

Order Management Super User>Shipping >Transactions.

Query with the Order Number.

Click On Delivery Tab


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Click on Ship Confirm.


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The Status in Shipping Transaction screen will now be closed.

This will kick off concurrent programs like.INTERFACE TRIP Stop, Commercial Invoice, Packing Slip Report, Bill ofLading

Underlying tables affected:

RELEASED_STATUS in WSH_DELIVERY_DETAILS would be C (Ship Confirmed)

FLOW_STATUS_CODE in OE_ORDER_HEADERS_ALL would beBOOKEDFLOW_STATUS_CODE inOE_ORDER_LINES_ALL would be SHIPPED


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Create Invoice:

Run workflow background Process.

Navigation:Order Management >view >Requests

Workflow Background Process inserts the records RA_INTERFACE_LINES_ALL with

INTERFACE_LINE_CONTEXT = ORDER ENTRY

INTERFACE_LINE_ATTRIBUTE1= Order_number

INTERFACE_LINE_ATTRIBUTE3= Delivery_id

and spawns Auto invoice Master Program and Auto invoice import program which creates Invoice for that particularOrder.

The Invoice created can be seen using the Receivables responsibilityNavigation:


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Receivables Super User> Transactions> Transactions

Query with the Order Number as Reference.

Underlying tables:RA_CUSTOMER_TRX_ALL will have the Invoice header information. The columnINTERFACE_HEADER_ATTRIBUTE1 will have the Order Number.

RA_CUSTOMER_TRX_LINES_ALL will have the Invoice lines information. The columnINTERFACE_LINE_ATTRIBUTE1 will have the Order Number.

Create receipt:

Navigation:Receivables> Receipts> Receipts


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Enter theinformation.

Click on Apply Button to apply it to the Invoice.


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Underlying tables:AR_CASH_RECEIPTS_ALL

Transfer to General Ledger:To transfer the Receivables accounting information to general ledger, run General LedgerTransfer Program.

Navigation:Receivables> View Requests

Parameters:

Give in the Start date and Post through date to specify the date range of the transactions to be transferred.

Specify the GL Posted Date, defaults to SYSDATE.

Post in summary: This controls how Receivables creates journal entries for your transactions in the interfacetable. If you select No, then the General Ledger Interface program creates at least one journal entry in theinterface table for each transaction in your posting submission. If you select Yes, then the program creates one

journal entry for each general ledger account.

If the Parameter Run Journal Import is set to Yes, the journal import program is

kicked off automatically which transfers journal entries from the interface table toGeneral Ledger, otherwise follow the topic Journal Import to import the journals to

General Ledger manually.


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Define the Journal Import Run Options (optional)

Choose Post Errors to Suspense if you have suspense posting enabled for your set of books to post thedifference resulting from any unbalanced journals to your suspense account.

Choose Create Summary Journals to have journal import create the following:

one journal line for all transactions that share the same account, period, and currency and that has a debitbalance

one journal line for all transactions that share the same account, period, and currency and that has a creditbalance.

Enter a Date Range to have General Ledger import only journals with accounting dates in that range. If you donot specify a date range, General Ledger imports all journals data.

Choose whether to Import Descriptive Flexfields, and whether to import them with validation.

Click on Import button.

Underlying tables:

GL_JE_BATCHES, GL_JE_HEADERS, GL_JE_LINES

Posting:

We have to Post journal batches that we have imported previously to update the account balances in General Ledger.

Navigation:General Ledger> Journals > Enter


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Query for the unposted journals for a specific period as shown below.

From the list of unposted journals displayed, select one journal at a time and click on Post button to post the journal.


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If you know the batch name to be posted you can directly post using the Post window

Navigation:


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General Ledger> Journals>Post

Underlying tables:

GL_BALANCES

Oracle Apps Tutorial: Processing a Sales Order in Oracle Order Management

On July 7, 2011, inOracle E-Business Suite, Oracle Order Management,Oracle R12,Oracle Shipping, by ssutphin

In this post, well take a more detail look at Order Processing. The order process has 5 main steps. In these steps, you will enter anorder, book the order, pick the order, ship the order, and then close the order. Since Order Management relies heavily on the

workflow technology, I will show you the workflow status for each step along with the order and line status. Below is a summary ofthe status for each step:

StepOrder Header

StatusOrder Line Status

Order Flow Workflow Status

(Order Header)

Line Flow Workflow Status

(Order Line)

1. Enter an Order Entered Entered Book Order Manual EnterLine

2. Book the Order Booked Awaiting Shipping Close Order Schedule ->Create Supply -

>ShipLine3. Pick the Order Booked Picked Close Order ShipLine

4. Ship the Order Booked Shipped Close Order FulfillDeferred

Booked Closed Close Order Fulfill ->Invoice Interface -

>Close Line -> End

5. Close the Order Closed Closed End End

Step 1. Entering an Order
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Lets assume that all the master data (customers, items) have been entered and that the basic Order Management configuration is in

place. To enter the order header information, you will need to know :

1. Your customers name or number

2. Your customers bill-to and ship-to addresses

3. The order type you wish to use

To enter the order line information, you will need to know :

1. The item number

2. The quantity

3. The selling price (either by using a price list or by manually entering the price)

4. The shipping warehouse

Once the order is entered and saved, there are two workflows that are triggered. The Order Flow Generic workflow is the

workflow associated with the order header and the Line Flow Generic workflow that is associated with the order line. The headerworkflow (Order flowGeneric ) will move from the Enter node to the Book Order Manual node. This tells us that the

workflow is waiting for us to click the Book Order button. The line workflow (Line FlowGeneric) starts the Enter Linestatus.

At this point, your order header and order line status will be entered.

Step 2: Booking the Order

When you have completed entering all the order lines, you can book the order by clicking the Book Order button on the Sales Order

form. This will perform a check on your order and, if everything is ok, i t will change the order header status to Booked and the

order line status to Awaiting Shipping.

During the booking process, both workflows (order and line) perform some activities. The order workflow moves from the Book

Order Manual node to the Close Order node. The Close Order node will wait for the lines to be closed and for the month-end

to pass. The line workflow moves from the Enter Line node through the Schedule Line and Create Supply Line nodes tothe Ship Line Manual node. This updates the sales order line with a scheduled ship date.

After the order is successfully booked, you are ready to perform the pick release.

Step 3: Picking the Order

When pick release an order, the shipping module moves the item from a sub-inventory to a staging area. This transaction is called adelivery. Think of a delivery as the act of driving a forklift to a certain row, rack, and bin in the warehouse, picking up the item, and

then delivering it to an area on the shipping dock.

The information you need to perform a pick release are the order number and the current location of the item (subinventory / locator).

The picking process will change the status on the order line to picked and will interface a move order to inventory. This move order

will decrement the on-hand inventory in the pick from location and increment the on-hand in the staging area. The picking process

does not change the status of the order or line workflows.

Once all the items are picked and placed on the truck, you are ready for the next step ship confirming the delivery.

Step 4: Shipping the Order

In order to ship a product, you must ship confirm the delivery. This is done in the shipping module by opening the shipping

transaction form and then opening the Confirm Delivery window. Once the delivery has been successful confirmed, the order line

status will change to the shipped status. The order line workflow will move to the FulfillDeferred node. After the interface tripstop has run your on-hand inventory will be decremented by Sales Order Issue transaction. In 11i, the Sales Order Issue would also

debit your Cost of Goods account. In R12, the Sales Order Issue debits your Deferred Cost of Goods account.


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After another workflow runs, the order line workflow moves from the Fulfilled Deferred node through the Fulfill, Invoice Interface,

and Close line nodes to the End node. This will create AR invoice lines for your shipment and put them in the AR Open Interfacetable. This workflow also changes the order line s tatus from Shipped to Closed.

Step 5: Closing the Order

Once all the order lines have been shipped (or cancelled). You can change the status of the order to closed. This will prevent any

changes to the order and allows the Order Management programs to run more efficiently (since they are only looking at open orders).If you do not want to manually close the order, you can wait until month-end and the Order Flow Generic workflow will close it

for you.

This completes the steps in the Order Process and now you are ready to sell more products!

order to cash cycle.doc

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