Oracle Applications Order Management Suite

Order Management Suite

Agenda Overview of Order Management Suite Order Management Shipping Execution Basic Pricing

Integration with other Oracle Application Modules

Necessary Setups Business Flows covering different scenarios and concepts

Overview of Order Management Suite

Using the Oracle Order Management (OM) Suite, you can enter sales orders, calculate the price of items on order lines, fulfill the orders, for example by shipping the items, and send information to an accounts receivable system so that invoices are created. The core OM products are Oracle Order Management Oracle Shipping Execution (SE) Oracle Pricing

Order Entry Methods

Enter order or return online Copy an order or return EDI Import from other systems

Order or return Enter order or return

Order Import

My Customer

What is Sales Order

My Product

My Product Price Terms and Conditions

Order Management Integration

Oracle General Ledger
Returns / Credits Booked Orders

Oracle Receivables

Set of Books ExchangeRates

Oracle Purchasing

Internal Requisitions Unit of Measure Item Information ATP/On-hand

Order Management Suite

Customer Info, Credit Info Sales Reps Payment Terms Sales Orders Order Info

External Systems

Oracle Inventory

Shipments Reservations Demands Item Info & UOM

Model Structure

Oracle Master Scheduling

Demand

Reservations

Oracle Work in Process

Model Structure

Oracle Bills of Material

Simple Order Processing - Business Flow

GL

Oracle Inventory

Oracle Receivables Standard Order Process

Invoice

Customer

Pick/ Ship

Book Order

Inventory About Organization, Subinventory

Order Management: System Parameters

System Parameters for order management are set at the Operating Unit level. The setup screen is available under Order Management Super User responsibility. Navigate: Setup > Parameters.

On opening, the default Operating Unit will display (MO: Operating Unit for the Responsibility). You can set the value for:
Item Validation Organization (Inventory Organizations) to define which Inventory Organization you can use to transact items in a given Operating Unit. The Customer Relationships flag for the Operating Unit defines whether a user can specify SHIP_TO and BILL_TO locations for related customers while entering orders.

Order Management: Security

Order Management operations are secured at Operating Unit Level. Respective operating unit is attached with the respective responsibility. Modules which are controlled at operating level are: OM, PO, AR and AP. Modules which are controlled at inventory organization level are: INV, BOM, WIP, MRP, WMS

Item Master Org Vs. Item Validation Org

Organization is synonymous with warehouse in Order Management.

An Item Master Organization is used for item number maintenance and validation. This master organization serves as a data repository storing items and item attributes, master level categories and category sets, master level cross references, and numerous data defaults. Onhand balances, inventory movements, and other on-going inventory activities are not performed in an item master organization.
In Order Management, the Item Validation Organization parameter indicates the Oracle Manufacturing organization against which items are validated. You must also define all transact able items in this organization.

Inventory Item Creation

An item is a part or service you purchase, sell, plan, manufacture, stock, distribute, or a prototype. You can define and control items that you stock in inventory. Once defined, you assign items to organizations. You may choose to have centralized or decentralized control of your items through a variety of item attributes.

Item Attributes for Order Management

Under Inventory Group Attribute Name Inventory Item Purpose
Indicate whether to stock and transact this item in Oracle Inventory. You must turn this option on if you want to enable the following item attributes: Stockable, BOM Allowed, Transactable, and Build in WIP. This is an item defining attribute. If you turn this option on, the item is automatically assigned to the default category set for the Inventory functional area. Indicate whether to stock this item in Inventory. You can set this attribute only when you turn on the Inventory Item option. Turning this option on enables you to set the Transactable item attribute.

Stockable

Transactable
Reservable

Indicate whether to allow Inventory transactions. You can set this attribute only when you turn on the Stockable option.
Indicate whether you can create material reservations. You can reserve an item only when you have sufficient inventory.

Item Attributes for Order Management

Under Order Management Group Attribute Name Customer Ordered Purpose
Indicate whether to allow an item to be ordered by external customers. You can add any customer orderable items to price lists in Oracle Order Management.

Customer Orders Enabled

Internal Ordered Internal Orders Enabled Shippable OE Transactable

Indicate whether an item is currently customer orderable. If you turn this attribute on you can specify the item in the Enter Orders window in Oracle Order Management.
Indicate whether to allow an item to be ordered on an internal requisition. Indicate whether you can currently order an item internally. Indicate whether to ship an item to a customer. Indicate whether demand can be placed for an item by Oracle Order Management, and whether shipment transactions are interfaced to Oracle Inventory.

Item Attributes for Order Management

Under Order Management Group Attribute Name Pick Components Purpose
Indicate whether an item has a bill of material with options, classes, or included items picked from finished goods inventory. Pickto order items must have this attribute turned on. Assembletoorder items and items without a bill of material must have this attribute turned off. Turn this attribute on if an item is generally built for sales order demand; a final assembly work order is created based on sales order Details. Select Check Material Only, Check Material and Resources, Check Resources Only, or None to indicate whether to check available to promise and/or capable to promise information when placing demand. Indicate whether to include, in available to promise checking, additional components in the bill of material for ATO and PTO items.

Assemble to Order

Check ATP

ATP Components

Item Attributes for Order Management

Under Order Management Group

Attribute Name
Returnable

Purpose
Indicate whether to allow customers to return an item. If an item is returnable, you can enter it on the Returns window in Oracle Order Management. Order Management uses this attribute along with Stockable and Transactable to determine which authorized returned items Indicate whether inspection is required for items returned by the customer. The item then must be separately transferred to inventory. Credits are never automatically generated by Oracle Order Management for customer return items awaiting inspection.

RMA Inspection Required

Physical Attributes of an Item

Under Physical Attribute Group (Container Items and Vehicles)
Weight Unit of Measure Unit Weight

Volume Unit of Measure

Unit Volume Container

Vehicle (Vehicles used for shipping sales orders)

Container Type (Lookup Values) Internal Volume (Internal volume of the container or vehicle)

Item Cross References in Sales Order

OM allows your customers to order in their internal, customer specific, generic item numbers, or your internal item numbers. The following commonly used generic identifiers are supported: UPC (Universal Product Code) EAN (European Article Number) JAN (Japanese Article Number) CLEI (Common Language Equipment Identifier) ISBN
Customer/generic items can be used in both on-line order entry and Order Import. When entering on-line, searching using the cross references is possible. Both customer and generic item numbers can be printed on external documents, including acknowledgments and invoices.

Stock Strategies
Stock strategies denotes a process that identifies and maintains the optimum level at which you should maintain your inventory, so that your inventory investment is minimum. Delivery lead time is very important determinant of the supply chain stocking strategy. Types of stock strategies: Make to Stock Pick to Order Assemble to Order Make to Order Engineer to Order

Stock Strategies and Lead Time

Define Item - Navigation

Responsibility: Inventory Navigation: Items -> Master Items Action: Enter Item Name and Description Menu-> Tools -> Copy From -> {Select the Template} Assign this item to Item Validation Organization

Let us define Item

Basic Pricing capability of Order Management

The Basic Pricing component of Oracle Order Management provides the capability to price orders according to price lists, pricing formulas, or agreements. You can also apply discounts, control the lowest level price that may be given in order to comply with General Services Administration Agency (GSA) regulations, and apply freight and logistics related charges to orders.

Order Management enables you to define and use multiple price lists to serve various business needs. At least one price list must be established to price all orders. A base or corporate price list can be created with all inventory items to establish a base price for each.

Basic Pricing - Capabilities

Multiple Price lists
Order Management enables you to define and use multiple price lists to serve various business needs. At least one price list must be established to price all orders. A base or corporate price list can be created with all inventory items to establish a base price for each. This price list can be used in the absence of a specific price list.

Secondary Price Lists

The pricing engine uses secondary price lists when it cannot determine the price for an item using the price list assigned to an order. Primary and secondary price lists must have the same currency. You can only assign one secondary price list to any specific primary price list, however, you can assign the same secondary price list to multiple primary price lists.

Multiple Currencies
International sales transactions can be recorded in different currencies by defining a price list for each currency.

Pricing Concept
The pricing engine determines selling prices for products. It answers the following questions:

Who qualifies for prices and benefits? What is the product or service to be priced? How should I adjust the order price or order line price?
Who qualifies?
What is the product or service to be priced? Qualifiers

Product Hierarchy Pricing Attributes

How should I adjust the price?

Modifiers

Pricing Concept
All

INPUT
Qualifiers

OUTPUT

Eligibility
Attributes

Final Price

What

Modifiers Agreements

Adjustments

PRICING ENGINE

Modifiers Type in Basic Pricing

Let us define our Price List

Responsibility: Order Management Super User, Vision Operations, USA

Navigation:
Pricing -> Price Lists -> Price List Setup Action: Define Price List Header and Lines

Let us define our Price List

Party Vs. Customer

Party
A party is an entity that can enter into business and can be of the type Organization or Person. A party exists separately from any business relationship that it enters in to with another party.

Customer
A customer is an organization or person with whom you have a selling relationship. This selling relationship can result from the purchase of products and services or from the negotiation of terms and conditions that provide the basis for future purchases.

Party/Customer can be an Organization or Person.

Customer Profile Class

Grouping customers based on attributes like credit worthiness, payment promptness, business volume etc.

11 12 1 2 10 9 3 8 4 7 6 5

Diners Club

Credit Worthiness
Finance Charges Dunning letters Min. Customer Balance Min. Invoice Balance

Paymet Promptness
Payment Terms Discounts GRace Days

Business Volume
Credit Limit Discounts Statement Cycle

Customer Information

Customer

Profile Class

Tax Code

Addresses

$ Payment Method Bank Accounts

Contacts

Contacts

Business Purpose

Profile Class

$ Tax Code Bank Accounts Payment Method

Let us define Customer and Profile Class

Responsibility: Order Management Super User, Vision Operations (USA)
To Define Customer Profile Class: Navigation: Customers -> Profile Class To Define Customer: Customers -> Standard

Let us define Customer and Profile Class

Simple Order Processing - Business Flow

Invoice only 1 2 3 Standard shippable Standard shippable (Distributor) (Manufacturer) 1 1 Customer requests order 2 2 Enter order 3 3 Book order 4 4 Schedule 5 Release order to Manufacturing 5 6 Ship product and update inventory 6 7 Invoice the customer Complete Complete

Complete

Sales Order - Booking

Booking a sales order indicates that the order entry process is complete and that the customer has committed to the order. Booking is required before the order or return can advance to the next activity.

Sales Order Scheduling

Scheduling is a communications tool that helps balance customer demands with your ability to fulfill that demand.

Aspects of Order Schedule that OM Provides

Schedule Aspects ATP Inquiry Schedule Tools Description Enables you to make delivery commitments to customers while taking an order, or to verify from where a line can be fulfilled Provides a schedule date and warehouse that will fulfill the customers request. If an item has Check ATP enabled, then the supply will be consumed from the pool of available supply for that item. If an item does not have Check ATP enabled, then the supply will not be consumed. Allocates inventory to a specific order line from a warehouse, subinventory, lot, or revision

Reservation

Sales Order Scheduling

Order Management
We have an order

Manufacturing/ Distribution Were planning a run on 1/8 and can give you 500 then, but not on 1/7. Great, I may need to adjust the forecast and our supply plan. Sure, weve got 125 on hand. Ill mark 100 of them for ACME.

ATP Inquiry

for 500 items on 1/7. Can we fill it?

Schedule

I have the numbers on the orders we took today.

We need to ship 100 items to ACME tomorrow. Can you set aside inventory for it?

Ship Set
Ship Sets enable you to group order lines within a set for shipment. You can use ship sets to do the following:

Assign a single ship set to all the lines in an order to support your customers that do not allow partial shipments.
For orders that contain multiple lines with the same item, to ensure that the an order line is not released until the full quantity is available, assign the order line to a ship set.

Ship Set
Ship sets ensure that all order lines within a Ship set do not progress past the Ship workflow sub process within respective line flows until all lines within the set have available quantity to ship. Ship sets are limited to order lines that contain the same following identifying order/line attribute values: Ship From and Ship To Organization (a null value within either of these fields is not valid) Scheduled Ship Date

Arrival Set
Arrival sets ensure all order lines within the set definition are scheduled to arrive at a customer site on the same date regardless of shipping method and ship to location. Arrival sets can: Span multiple organizations, but are limited to the order for which they were created. Ship from different warehouses and ship on different days

Arrival Set
All order lines within a Arrival Set must have the following identical identifying order/line attribute values: Order Line Scheduled Arrival Date Order Line Ship To Organization

Shipping Execution Pick Release

Pick Release: An order cycle action to notify warehouse personnel that orders are ready for picking.

Picking: The process of withdrawing items from inventory to be shipped to a customer.

Pick release rule: A user-defined set of criteria to define what order lines should be selected during pick release. Pick release sequence rule: The rule for pick release that decides the order in which eligible order line details request item reservations from Oracle Inventory.

Shipping Execution - Delivery

Pick slip: Internal shipping document pickers use to locate items to ship for an order. If you use standard pick slips, each order will have its own pick slip within each picking batch. If you use the consolidated pick slip, the pick slip contains all orders released in that picking batch. Pick slip grouping rule: Criterion for grouping together various types of pick slips. The rule dictates how the Pick Slip Report program groups released lines into different pick slips.

Delivery: A set of order lines to be shipped to a customers ship-to location on a given date in a given vehicle. Multiple deliveries can be grouped into a single departure. A single delivery may include items from different sales orders and may include backorders as well as regular orders.

Shipping Execution Pick Confirm &Ship Confirm Pick Confirm: The Move Order Line Details (transaction lines) created by the detailing process must be transacted to confirm the material drop-off in staging: Transacts Move Order Details to staging subinventory Transfers reservation to staging location Ship Confirm: To enter shipped quantity and inventory controls for specific shippable lines (delivery lines).

Pick Confirm (Transact Move Orders)

Packing
Container Load Relationship: Item which requires packing should have preferred container load relationship in the organization. Navigation: Shipping->Setup->Container Load Details Auto Packing: The Auto Packing feature selected at the time of pick release, creates containers automatically. LPN: LPN is an acronym for License Plate Number. A packing container has a license plate number for unit identification and reporting capability, so containers are also called LPNs in Oracle Shipping Execution.

Packing Pick Release by Containers

Pick Release by Containers: Delivery lines that have not been pick-released can be assigned to LPNs and packed. You can run a pick-release batch by container name which enables you to pack multiple LPNs with multiple lines in one transaction.

Packing Work Bench

You can use the Packing Workbench to split the delivery lines between containers or to pack sequentially one container at a time to its full capacity. Equal Packing Delivery Lines into Containers: You can split the delivery lines equally between the selected LPNs so that each of the resulting split lines (from every delivery line) is packed into each available container. Sequential Packing Delivery Lines into Containers: You can fully pack one LPN and then proceed to pack the next LPN. When packing multiple lines into multiple LPNs, the packing is performed one container at a time. The first delivery line is packed into the first container until the container is full or the line is completely packed.

Shipping Execution Trips, Stops and Leg

Trip: is carrier-specific (such as UPS, DHL, FedEx) and contains deliveries and departs from a particular location. It must contain at least two stops. Stop: Can consist of pick-ups, drop-offs, or both Leg: Consists of at least two stops and one leg or trip

Trip 1 San Francisco Stop 1 Trip 1

Stop 2 NY
Stop 4
Dallas Trip 1

Stop 3 Miami

Launch Pick Release

Pick Release can be run using the following methods: On-line:
You can pick release one order immediately, thereby eliminating time spent waiting for the order to process through the Concurrent Manager queue. This is done in the Release Sales Orders for Picking window.

Concurrent:
You can run pick release in the background, enabling you to run other processes simultaneously. This is done in the Release Sales Orders for Picking window.

Standard Report Submission (SRS):

You can run a specific release at the same time every day. SRS runs pick release in the background multiple times.

Shipping Transactions window:

You can run pick release in the Shipping Transactions window by selecting Launch Pick Release from the Actions menu.

Shipping Parameters
Shipping parameters are organization specific. The parameters are arranged into the following tabbed regions in the Shipping Parameters window: General: You can define shipping units of measurement such as weight, volume, and the unit of measure used for percent fill basis calculations. If the Percent Fill Basis Shipping Parameter is set to Weight or Volume, Shipping Execution will use the weights or volumes you define for containers and items to calculate how many items will fit into containers.

Shipping Parameters
Pick Release: You can define release rules, pick slip grouping rules, release sequence rules, and printing parameters. Shipping Transaction: You can define automatic or manual weight and volume calculations, container volume calculations, container inventory control, and goods dispatched (COGS) account. Delivery Grouping: You can define how to group delivery lines for a delivery.

Shipping Grants and Roles

Roles: Shipping Execution introduces data access control features called roles that can be assigned to users. Roles can be assigned to permit or restrict a users access to important shipping entities such as trips, stops, deliveries (including delivery legs, Bill of Lading, and Packing Slip), lines, and LPNs (containers). Grants: When a role is assigned to a user, a grant that contains the identical privileges of the role is assigned. This provides flexibility for the system administrator to apply user-level controls such as adding an expiration date to a grant.

Standard Sales Order Cycle

Invoice GL GL Oracle Inventory Inventory Interface Customer Standard Order Process

Oracle Receivables Invoice Interface Close Order

Move Orders, Pick/Ship Pick Release, Pick Confirm APIs

Book Sales Order

Inventory

Schedule

Enter Order

Order Header Information

The Order Information section of the Sales Orders window allows you to enter header information such as:

Customer, customer bill-to and ship-to addresses Order type Price list and payment terms Salesperson and sales credit Currency and tax information Payment and freight terms Credit card number General shipping information

Order Lines Information

The Line Items section of the Sales Orders form enables you to enter:

Main information such as:

Ordered item, quantity (whole or decimal), scheduled ship date, and so on. It enables you to find pricing for items.

Pricing Shipping Addresses Return information Service information Miscellaneous information such as the project number

Sales Order Processing and Workflow

Order Management is seeded with Workflows which
control order processing

Workflows replace order cycles and approvals You can view order flow status using the graphical
Workflow Monitor
The Workflows control the order header and the line processing. Order types and line types must be set up as follows:
Header flows must be attached to the order type
Line flows must be attached to an order type, line type, and item type combination

Order Header/Line Workflow processes

The Workflow engine will move the order/line ahead as
long as the activities are synchronous activities.

The Workflow engine will move the order/line ahead as

long as the activities are synchronous activities. The order or line flow will stop at any manual activity which will require a manual task to move the workflow along.

The Workflow background engine processes deferred

activities, notifications, wait activities and time out activities. You setup the Workflow background engine when setting up Workflow in your environment.

Conc. Program Name: Workflow Background Process

Sample Workflow for Order Header and Line

Header Workflow

Enter

Book - Order, Manual

Close - Order

End

Line Workflow

Unreserve

Enter - Line

Schedule - Line

Create Supply - Line

Ship - Line, Manual

Fulfill - Deferred

Fulfill

Invoice - Line

Close - Line

End

Transaction Types
Oracle Order Management utilizes transaction types as
order types.

Define transaction types to classify order and returns. Order Types:

Determine Order-Level workflow selection

Not Necessarily Fixed to Orders or Returns

Line Types
Determine Line-Level workflow selections

Key to Mixing Orders and Returns on Single Transaction

Defaulting Rules
Why Defaulting Rules?
to reduce the amount of information that must be entered manually in the Sales Order window.

How it defaults values?

Prefill fields (attributes) on tabs in the Sales Order form (entities) with a default value from certain sources (source types)

Various Types of Sales Order

External Customer Sales Order Standard Item Configure to Order (Using
Stock Strategies ATO and PTO)

Internal Customer Sales Order Drop Shipments Returns

External Customer Order

Inventory Interface Customer Move Orders, Pick/Ship Pick Release, Pick Confirm Book Sales Order Inventory Schedule Enter Order

Internal Customer Order

Internal Requisition: A requisition in the Purchasing system that will directly result in the generation of a sales order in the Order Management system through the Order Import process in Order Management. Internal Requisition/Internal Sales Order provide the mechanism or requesting and transferring material from one inventory organization to other inventory organization or expense location.

Internal Customer Order

Customer: Because internal orders are processed through the sales order form, corporate locations that receive product via internal orders must be set up as customers. Create customer records to correspond to internal locations, and link them using location associations on the Customer billto site usage.

Internal Customer Order

Requestor Manually create Demand Import or reschedule requisitions

Approve requisition Create internal sales order

Order entry Schedule order

Pick Release Inventory Expense Direct Intransit Ship confirm Receive Inventory Expense

Inter Org Transfer and Internal Customer Order

Shipping Network

Internal Customer Order - Setup

Item Attributes: Purchased Purchasable Transactable Stockable Reservable Inventory Item Customer Ordered Customer Order Enabled Internal Ordered OE Transactable Shippable : Enabled : Enabled : Enabled : Enabled : Optional : Enabled : Enabled : Enabled : Enabled : Enabled : Enabled

Internal Customer Order

Step to Create Internal Sales Order: In Purchasing: Create Internal Requisition and Approve. Run Create Internal Orders Concurrent Program In Order Management Run Order Import with Order Source Internal Fulfill the Sales Order

Drop Shipment
A Drop Shipment occurs when a customer order is sourced from and delivered by a supplier. Order Management sends information to the Purchasing Application to create that PO, and then when that PO is received (to indicate shipment from the supplier to your customer), the order line is automatically updated to indicate that it was fulfilled. In this process, the company running Order Management is modeled as the company to whom the end customer places the original order.

Drop Shipment
Enter order Drop Ship: Yes or No? Drop Ship Item Send to Purchasing Supplier ship confirmation Internally Sourced Item Schedule Ship and update inventory

Create invoice Close sales order

Drop Shipment - Setup

Item Attributes: Purchased Purchasable Transactable Stockable Reservable Inventory Item Customer Ordered Customer Order Enabled Internal Ordered OE Transactable Shippable Order Source Type : External : Enabled : Enabled : Enabled : Optional : Optional : Optional : Enabled : Enabled : Disabled : Enabled : Optional

Drop Shipment Setup Check

Ensure you have created your Order Management Transaction Types and linked your Transaction Types to order and line workflows that support drop shipments. Ensure the Oracle Workflow Background Engine is running. Ensure all Drop ship locations you will use to perform drop shipments have the Ship To Site and Receiving Site defined.

Drop Shipment Setup Check

Ensure you have defined the Internal Ship To Locations for your drop shipment customers (Oracle Receivables Standard Customer window, Business Purpose Details Tab). Ensure your standard items have an associated List Price defined within your PO Inventory organization (Oracle Payables Financial Options window, Supplier-Purchasing Tab).

Drop Shipment - Steps

Create a Sales Order with line where the line source is External Book and Schedule the Sales Order Run Requisition Import Process Now the line status will be in Awaiting Receipt Login to the Receiving Organization (Purchasing) who has been setup as an Approver Run Requisition Import Create Purchase Order from the Requisition Approve the PO Receive the full quantity Run Auto Invoice Verify Invoice in Sales Order

Sales Order Returns

Order Management provides sophisticated tracking of your return material authorizations (RMAs). Returns from a customer occur for a variety of reasons including damage, shipment error, or sampling. Return material processing functionality enables you to manage customer expectations while controlling inventory receipts and customer credit processing.

Simple Sales Order Returns Flow

Create an RMA having a single line whose originating transaction is unknown Book the RMA Receive the RMA using the Receipts form of Oracle Purchasing Check the on-hand quantity of the item in Inventory to verify that correct quantity was received Fulfill RMA line Generate a credit memo View the Credit Memo in Order Management Check the Shipped and Fulfilled quantity on the RMA line

Sales Order Returns Line Types

RMA line types have a line type category of Return. The following are examples of the basic line return types: Return for credit with receipt of goods and approval Return for credit with receipt of goods Return for credit only

Return for credit only with approval

Sales Order Returns - Setup

Item Attributes: Order Management Tab:

Returnable
Shippable Transactable = Yes,

RMA Inspection Required = Yes or No

Receiving Tab: Receipt Routing = Inspection (if required) Invoicing Tab: Invoicable Item = Yes or No, Invoice Enabled = Yes or No

Sales Order Returns Header Workflow

Sales Order Returns Lines Workflow

Line Flow - Return for Credit with Receipt

Line Flow - Return for Credit only

Line Flow - Return for Credit only with Approval

Sales Order Returns Lines Workflow

Line Flow - Supporting inbound and outbound shipments

Configurator
Configurator is an add-on product in OM, launched from the Sales Order. Purpose: To more accurately tailor a customer order by:

Reducing configuration errors

Reducing the need for amending existing orders, thereby reducing the need to remanufacture product

BOM model is required in order to configure an order.

Bill Of Material
A list of component items associated with a parent item and information about how each item is related to the parent item. BOM Types:

Standard BOM Model BOM Option Class Planning Engineering

Option Class: An item whose bill of material contains a list of related options.

Assemble to Order and Pick to Order

Assemble to Order (ATO) and Pick to Order (PTO) are stocking strategies that are used by manufacturers, when they can produce finished products from relatively small number of sub assemblies and components. This stocking strategy is widely know as hourglass strategy, where you maintain inventory at the narrowest level in bill structure.

Model Item and Kit

Model Item: An item whose bill of material lists options and option classes available when you place an order for the model item. Kit: A Kit is a model where it has no options and you order directly by its item number, not using configuration selection screen in OM. Phantom:

A phantom assembly is a nonstocked assembly that lets you group

together material needed to produce a subassembly.

Valid Parent/Component Relationship

Let us understand BOM Structure

Item Templates at Top-Level items

Assemble to Order Model BOM Item type = Model BOM Allowed = Yes Planning Method = MPS Planning Forecast Control = Consume Build WIP = Yes OE Transactable = Yes Check ATP = Yes ATP Components = Yes Assemble to Order = Yes Assemble to Order Item BOM Item type = Standard BOM Allowed = Yes Planning Method = MRP Planning Forecast Control = Consume Build WIP = Yes OE Transactable = Yes Check ATP = Yes ATP Components = Yes Assemble to Order = Yes Pick to Order Model BOM Item type = Model BOM Allowed = Yes Planning Method = Not Planned Build WIP = No OE Transactable = Yes Check ATP = No ATP Components = Yes Pick Components= Yes Pick to Order Item BOM Item type = Standard BOM Allowed = Yes Planning Method = Not Planned Build WIP = No OE Transactable = Yes Check ATP = No ATP Components = Yes Pick Components= Yes

Transacting a Kit - Steps

Create a Sales Order with Item Kit Book and Schedule the Sales Order Pick Release the Sales Order Ship Confirm the Delivery Complete interfacing and invoicing.

Transacting CTO - Steps

Create a Sales Order with ATO Model Book and Schedule the Sales Order In BOM Run AutoCreate Configuration Items
Navigation: Bill of Materials -> ATO (This process creates Configuration Item)

In WIP Run AutoCreate Configuration Items

Navigation: WIP -> Discrete -> Autocreate Orders (This process creates Discreate Job)

Release Discreate Job

Navigation: WIP -> Discrete -> Discrete Job

Perform Move Transactions

Navigation: WIP -> Move Transactions -> Move Transactions

Fulfill Sales Order

Processing Constraints
Define your Processing Constraints to:
prevent users from adding, updating, or deleting order information

prevent splitting lines

prevent orders or return cancellation beyond certain points in your order flows.

Use the seeded constraints Order Management provides to

prevent data integrity violations or create even greater constraint options.

Thank You