Oracle Apps OM Back to Back orders setups

Consider the following scenario,

One of your customer XYZ technologies has ordered for 2 quantities of XX B2B item. You do not manufacture or stock the item. Define the item in the Master Item so that the item can be shipped from your supplier to you and then you pack it and ship it to your Customer.

In the standard Back to Back process, the end customer’s requirements are created as a Sales Order (SO) in Order Management. The B2B process automates the creation of a requisition and supply order (Purchase Order) when a sales order is booked and progressed. The supply order is transmitted to the supplier; the inventory is received from the supplier in the organization’s warehouse and shipped to the customer.

We just saw the Back to Back scenario in order management. We will first discuss regarding the mandatory setups required for B2B process flow.

1.    Create an item named XX B2B Item

2.    Add the item to the Corporate Price List 

Navigation: Inventory à Items à Master Items

Navigate to Master Item window

1. Items > Master Items

2. In the Organization window, select V1 and click on OK button.

3. In the Master Item window, enter the following details:

Item = XX B2B Item

Description = XX Back to Back Order Item

Using the Tool Menu, select “Copy From”. In the Copy From window, select the “Purchased Item” template and click on the Apply button and then click on the done button.

In the Master Item window, navigate to Order Management Tab, enable the Assemble To Order check box.

Now navigate to the Purchasing Tab and enter the following details:

Default Buyer = URNAME, Mr. XX

List Price = 50

 

Now navigate to the Work in Process Tab and ensure the Build in WIP check box is enabled.

Now navigate to the General Planning Tab and ensure the Make or Buy attribute is set to Buy.

Save your work and then using Tool Menu select Organization Assignment. Assign the Item to M1 and save your work and close the form.

Now add this item to a price list

The following setups are required to approve a PO automatically:

1. User should be defined as a buyer.
2. User should have enough privileges to approve requisition and purchase order.
3. GL, Inventory and Purchasing periods are Open.