Sourcing Rule in Oracle Purchasing

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.

Sourcing rule can be global (available to all organizations) or local (available to the only organization in which it is defined)

Replenishment source can be:

1) An inter-organization transfer (Transfer From)

2) The replenished organization that manufactures the item (Make At)

3) An external supplier (Buy From)

Make at:

This option specifies that you will make any items associated with the rule at the receiving organization.

Buy From:

This option specifies that you will buy any items associated with the rule from supplier. You must enter appropriate supplier and site (optional).

Transfer from:

This option specifies a diff organization within the enterprise as the source of the items. Using this option you will identify the source organization. You must have already defined the shipping network between source and receiving organization.

Ship method

Ship Method determines the Intransit time and shipping cost which planning will use in its calculations.

Allocation and Rank in Sourcing rule

You can rank the sources of supply named in the rules and bills, giving one priority over another when the planning process generates recommendations. You can also assign sourcing percentages to these sources, allowing you to allocate a portion of the total orders to each source. You cannot apply sourcing rules and bills of distribution (make them Planning Active) until the sum of the allocation percentages equals 100.

Once you have defined your sourcing rules and bills of distribution, you must assign them to particular items and/or organizations.

Each Sourcing rule can be assigned to:

A single item (across all organizations)

An item in a specific organization

All items in a specific organization

A category of items

A category of items in an organization

All items in all organizations (globally)

Here, I’ll discuss how to create sourcing rule and assigning it to an item.

1) Verify Profile Options
Navigate to System Administrator à Profile à Personal Profile

Verify the following Profile Options

MRP:Default Sourcing Assignment Set: Supplier Scheduling

PO: Automatic Document Sourcing: Yes

PO: Allow Auto-generate Sourcing Rules: CREATE AND UPDATE

PO: Allow Autocreation of Oracle Sourcing Documents: Yes

2) Create a Item in Inventory with Purchasing Item Template

3) Create Sourcing Rule

Navigate to Purchasing à Supply Base à Sourcing Rules

Enter the Name, Effective Date

Select All Orgs

Select Type as Buy From

Enter Supplier Name, Allocation % and Rank

Save

4) Assigning Sourcing Rule

Navigate to Supply Base à Assign Sourcing Rule

Go to Menu à View à Find

Choose Supplier Scheduling from the list of values.

Add a new line with the item created and Assign the Sourcing Rule to the Item

5) Verify Sourcing Rule

Now, Navigate to Requisitions à Requisitions

Verify that the Sourcing Rule is defaulted on creation of the requisition for that particular item.

Enjoy Learning Oracle Apps J

Processing Constraints in Oracle Order Management

Processing Constraints are a security framework where you can define rules in Oracle Order Management that validate back-end operations such as Create, Update, Delete and Cancel.

Examples:

You cannot change the Order Type in the order header once the order is Booked.

You cannot delete the line in an order once the Order Status is Closed (if the order is ship confirmed or invoice interfaced).

Here, I’ve explained about Processing Constraints with an example.

Navigate to Order Management à Setup à Rules à Security à Processing Constraints

Query the Application as Order Management

Create a New Line on the Constraints region:

Operation = Update

Attribute = Order Type

User Action = Not Allowed

Enabled check box = Selected

Create a New Line on Conditions tab:

Group Number = 101

Scope = Any

Validation Entity = Order Header

Record Set = Order

Validation Template = Booked

Enabled check box = Selected

User Message = Order is Booked

Create another New Line on Conditions tab:

Group Number = 102

Scope = Any

Validation Entity = Order Header

Record Set = Order

Validation Template = Lines Exist

Enabled check box = Selected

User Message = Order has Lines

Navigate to Order, Returns à Sales Order

Create a Sales Order with Order Type as Mixed

Enter the Item Number and Save the Record (i.e., the order will be in Entered Stage)

Now, you try to change the Order Type. It will give you the error that "You are not allowed to update the Order Type because: Lines exist for this Order".

Now, Book the Order and try to change the Order Type. 

It will give you the error that "You are not allowed to update the Order Type because: Order is Booked"

Enjoy Learning Oracle Apps J

Scheduling Sales Order in Order Management

In this blog, I will discuss how to schedule a Sales Order

Navigate to System Administrator Responsibility > Security > Profile > Personal

Set the profile option: OM: Auto Schedule = No

Navigate to Order Management Super User à Setup à System Parameters à Values

Reservation Time Fence = 30 (Time in days)

If the schedule date falls within the Reservation Time Fence, item will be reserved at the time of scheduling itself.

Navigate to Order Management Super User à Order, Returns àSales Order

Enter the Customer Name, Order Type and Price List

Go to Lines tab and enter Ordered Item, Qty and Request Date

See to that the Request Date should be greater than the Reservation Time Fence Value (in my case I've set the Date as Today's Date + 43 Days)

Click the Availability button to view whether the quantity is available. If the available quantity is sufficient, you can continue to the scheduling task.

Go to Tools menu, select Scheduling à Schedule. Click OK.

Go to Shipping tab and notice that the schedule ship date has been set to the request date.

Go to Tools menu, select Scheduling à Reserve. Click OK.

On the Shipping tab, you can view the reserved quantity in the Qty Reserved field.

Save the record.

Auto Scheduling Sale order

If Auto Schedule Option in the Tools Menu is Enabled, the Item will be Reserved automatically once the line is saved.

You can see that the Item is Reserved automatically

Enjoy learning Oracle Apps J

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Creating and Progressing Sales Order for ATO Configuration Item

Navigate to Order Management Super User Responsibility > Orders, Returns > Sales Orders

Enter the following in the sales orders window:

Enter the Customer Name, Order Type and Sales Person.

In the Order Lines region, enter the ATO Model in the Ordered Items field and enter the quantity. Click Configurator button.

Separate window opens showing the Configurator and select the classes that should be a part of the ATO model. Use the Select box to choose the classes. Click Finish.

Configurator processes the classes that you have selected to display on the sales order window. You will get a message indicating that the Configurator processing is in process. Once the processing is complete, the sales orders window shows the ATO Model information.

Now, Book the order.

Keep the cursor on the ATO Model Line and right click and then click on Progress Order (Configure Item will be inserted to OE_ORDER_LINES_ALL table). 

Click on Create Configuration - Eligible

Configuration Star Item will be created on the second line. 

Now, keep the cursor on the Configuration Star Item Line and right click and then click on Progress Order.

Click on Create Configuration - Eligible 

This runs a Concurrent program that will push the data from Order Management (OM) to Work in Process (WIP)

Open the output of the Concurrent program and note down the WIP Job ID.

Navigate to WIP > Discrete Jobs and query for Job ID.

Change the Status from Unreleased to Released and Save.

Navigate to Completion Transactions window and enter the Job Number and see that Type is WIP Completion and click Continue.

Enter the Subinventory and quantity and select the Check Box Final Completion and click Done. This will complete the Job.

Now, you can see that the status of the Configuration item will be Awaiting Shipping.

Now, you can Pick Release and Ship Confirm the Order as like normal sales order.

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Creating ATO Configuration Item in Oracle Apps

Create an ATO Configuration    

Navigate to Inventory à Items à Master Items

Enter the item name and description:

Go to Tools in the Menu à Copy From the Template: ATO Model and click Apply and Save.

Now, go to Tools in the Menu à Organization Assignment. Assign the item to Organization you want to transact and Save.

Now, Create ATO Option Class by applying ATO Option Class template and assign it to Organization

Now, Create ATO Option Item and assign it to Organization.

Create Bills of Materials

Navigate to Bills à Bills

Create a bill of material for the Option Class and then for Model.

Start with the sub-class or the lowest class in the hierarchy so that once it is created it can be included in the top models or classes.

The field Item is the item name as well as the BOM name.

Ensure that the Item Seq is in the order you want the items included in the Bill of Material. Enter all quantities as appropriate.

Click the tab Order Management to enter if the item is optional or Mutually Exclusive for the bill or not. Please not included items are not optional.

Go to Tools in the Menu à Create Common Bill concurrent program.

Select All Organizations button so that the Bill of Material is available across all inventory organizations.

Go View in the Menu à Requests option to view the completion of the Bill of Material.

Repeat the same steps for creating a Bill of Material for the remaining Items

Run the Create Common Bill for ATO Model

Enter Quantities for the items

Use the Miscellaneous Receipts window to create quantities for the items. You need to enter quantities only for finished goods.

Navigate to Inventory à Transactions à Miscellaneous Receipts

Select Miscellaneous Receipt from the Type LOV. Click Transaction Lines to view the Type LOV.

The Miscellaneous Receipt window opens so that you can specify the Subinventory, account and quantity for the item.

Save and exit once you have completed entering the quantity for the items.

Now, you'll be able to book sales Order for the ATO Model you have created.

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Creating and Progressing Sales Order for ATO Model

You must specify a valid bill for this bill revision

Error:

"You must specify a valid bill for this bill revision" while creating Sales Order for ATO/PTO Model/Kit.

Solution:

1) Set up the Profile option OE: Item Validation Organization

2) Run the Concurrent program "Create Common Bills" in Bill of Materials responsibility or from the Tools menu of the Bills.

Values have not been entered for one or more required segments

Error:

"Values have not been entered for one or more required segments" while creating a sales order"

Solution:

Enter the suitable value for Required Field in Descriptive Flexfield or make the field "Not Required" in the Descriptive Flexfield (DFF) or disable the DFF.

Read Enabling/ Disabling Descriptive Flexfield in Oracle Apps