Back to Back (B2B) Order Flow in Oracle R12

Back to Back Order flow applies to the scenario where Customer orders a product which

1. You do not Stock

2. You do not Manufacture

Customer places order with you, you place the order with the supplier and the supplier ships the product to you and you in turn ship the product to Customer.

This scenario is called S3 (Sell-Source-Ship)

Item creation for Back to Back Orders

In the Purchasing tab, select the Check boxes Purchased, Purchasable. Enter the Default Buyer and List Price.

In the General Planning tab, select Make or Buy as Buy.

In the Work in Process tab, select the Check box Build in WIP.

In the Order Management tab, select the Check boxes Customer Ordered, Customer Orders Enabled, Shippable, OE Transactable and Assemble to Order. Default SO Source Type as Internal.

Assign the Item to Inventory Organization

Add the Item to the Price List

Create a Sales Order

Go to Order Management Super User à Orders, Returns, Sales Order

Create a Sales Order with type Mixed and with the item created for Back to Back Order.

Make sure that the ATO Check box is selected.  Once you save the Order the Order Status will be in Entered.

Also make Sure in the Shipping tab Source Type as Internal.

Now Book the Order. Order Status will be Supply Eligible.

Right Click on the line and select Progress Order. Create Supply Order – Eligible Window opens. Click OK.

Now the Sales Order Line Status will be External Req Requested

Import Requisition

Go to Order, Returns à Requisition Import

Run the request with Import Source CTO

Open the request once the request is completed successfully. Its shows “Number of Approved Requisitions Created = 1”

Now, the Sales Order Line Status will be External Req Open

Go to Purchasing à Requisitions à Requisition Summary

Clear the entire field and enter Import Source as CTO and click Find. Requisition Headers Summary window opens. Now you can see the Requisition Number and the status as Approved. Copy the Requisition Number.

Auto Create Purchase Order

Go to Purchasing à Auto Create

Clear the entire field and enter the copied Requisition Number and click Find. Auto Create Document window opens. Click the Automatic Button. New Document window opens. Enter the Supplier Name and Site and click Create.

Auto Create Purchase Order Window Opens with Purchase Order Created with Status Incomplete. Click the Approve button and submit the PO for Approval.

Approve Purchase Order

Go to Purchasing à Purchase Order à Purchase Order Summary.

Enter the PO number and verify whether the PO is approved.

Once the PO is approved, the Sales Order Line Status will be PO Open.

Receiving the Item/Receipts into Inventory

Go to Purchasing à Receiving à Receipts

Enter the PO Number and Click Find. Receipts window opens. Check the box in left side. Enter the Quantity received and Subinventory. Save the Receipt.

Go to Purchasing à Receiving à Receiving Transaction Summary.

Enter the PO Number and click Find. Now you can see that the Item is received into Inventory.

Now, the Sales Order Line Status will be Awaiting Shipping.

Now, you can Pick Release and Ship Confirm as of Normal Sales Order.
For Order to Cash Flow, See my post http://oracleapplicationsfunctional.blogspot.com/2011/08/order-to-cash-cycle-in-order-management_28.html