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Order Management Basic Setup steps

Step 1: Define Flexfields

Define key and descriptive flexfields to capture additional information about orders and transactions. This step is required for Key Flexfields, and optional if you plan on using the functionality surrounding Descriptive Flexfields. Several defaulting values are
provided.

Step 2: Multiple Organizations

Define multiple organizations in Oracle Inventory. This step is optional.

Step 3: Inventory Organizations

Define inventory organizations (warehouses), parameters, subinventories, and picking rules in Oracle Inventory. You must define at least one item validation organization and at least one organization that acts as an inventory source for orders fulfilled internally.

If you plan to drop ship some orders, you must also define at least one logical organization for receiving purposes. Your item validation organization can be the same as your inventory source or your logical receiving organization, but you cannot use one organization for all three purposes. This step is required.

Step 4: Profile Options

Define profile options to specify certain implementation parameters, processing options, and system options. This step is required.

Step 5: Parameters

Set your Order Management Parameters to validate items, enable customer relationships, and operating unit defaults. This step is required.

Step 6: Invoicing

Define invoicing information, including payment terms, invoicing and accounting rules, Autoaccounting parameters, territories, and invoice sources.This step is required if you plan on transferring invoicing information to Oracle Receivables. Several defaulting values are provided.

Step 7: Salespersons

Define information on your sales representatives. This step is optional.

Step 8: Tax

Define tax features, such as codes, rates, exceptions, and exemptions. This step is required.

Step 9: QuickCodes

Define QuickCodes that provide custom values for many lists of values throughout Order Management. This step is required if you plan on creating user defined Quickcodes for utilization within Order Management. Defaulting values are provided.

Step 10: Workflow

Define order and line processing flows to meet different order and line type requirements. This step is required.

Step 11: Document Sequences (Order Numbering)

Define Document Sequences for automatic or manual numbering of orders. This step is required.

Step 12: Order Import Sources

Define sources for importing orders into Order Management. This step is required if you plan on importing orders or returns into Order Management.

Step 13: Units of Measure

Define the units of measure in which you supply items. This step is required.

Step 14: Item Information

Define item information, including item attribute controls, categories, and statuses. This step is required.

Step 15: Items

Define the items that you sell, as well as container items. This step is required.

Step 16: Configurations

Define the configurations that you sell. This step is required if you plan on generating orders or returns for configured items. Several defaulting values are provided.

Step 17: Pricing

Define price lists for each combination of item and unit of measure that you sell. Optionally, you can define pricing rules and parameters to add flexibility. This step is required.

Step 18: Customer Classes

Define customer profile classes. This step is required if you plan on using the functionality surrounding Customer Profiles. Several defaulting values are provided.

Step 19: Customers

Define information on your customers. This step is required.

Step 20: Item Cross References

Define item cross references for ordering by customer part number, UPC, or any generic item number. This step is required if you plan on using the functionality surrounding item cross referencing. Several defaulting values have been provided.

Step 21: Sourcing

Define your sourcing rules for scheduling supply chain ATP functions. This step is optional.

Step 22: Order Management Transaction Types (Order and Line Types)

Define Order Management transaction types to classify orders and returns. For each order type, you can assign a default price list, defaulting rules, order lines, return lines, line types, workflow assignments, payment terms, and freight terms. This step is required.

Note: Order Management provides NO seeded OM transaction types. For existing Oracle Order Entry customers, Order Management will update existing Order Types to OM transaction type during the upgrade process.

Step 23: Cost of Goods Sold (COGS)

Set up your Cost of Goods Sold Accounting Flexfield combination (COGS Account) in Oracle Inventory. This step is required if you plan on utilizing the functionality surrounding COGS.

Step 24: Processing Constraints

Define processing constraints to prevent users from adding updating, deleting,
splitting lines, and cancelling order or return information beyond certain points in your order cycles. Use the constraints Order Management provides, which prevent data integrity violations, or create your own. This step is optional. Several default values for processing constraints have been defined.

Step 25: Defaulting Rules

Define defaulting rules to determine the source and prioritization for defaulting
order information to reduce the amount of information you must enter manually in the Sales Orders window. This step is optional. Several Defaulting rules and corresponding values for have been defined.

Step 26: Credit Checking

Define your credit checking rules. This step is required if you plan on performing any type of order credit checking.

Step 27: Holds

Define automatic holds to apply to orders and returns. This step is required if you plan on performing automatic hold for orders or returns.

Step 28: Attachments

Define standard documents to attach automatically to orders and returns. This step is optional.

Step 29: Freight Charges and Carriers

Define freight charges and freight carriers to specify on orders. This step is required if you plan on charging customers for freight or additional order charges.

Step 30: Shipping

Define shipping parameters in Oracle Shipping Execution. This step is required.

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Setup – Approval Hierarchies in Oracle Purchasing Position & Supervisor

Purchasing setup of approval hierarchies

There are two most commonly known methods to route documents for approval.
1. Approval Hierarchies (uses position hierarchies)
2. Employee/Supervisor Relationships (use employee/supervisor relationship)
* Third method of Advanced Approval Support for Requisitions (Release 12 use integration with Oracle Approvals Management) . However in this article, focus here is set on above two most commonly used methods.

1. Position Hierarchies

Position Hierarchies are hierarchies that have a position relationship. Purchasing utilizes positions as a roadmap to determine how and where documents will be routed once the approval process has been initiated. It is first necessary to have created all positions that are going to be used in the system. Once all positions have been created, it is necessary to build the position hierarchy. Each position has approval limits, so when a purchase order exceeds the limits of the position, the purchase order is forwarded onto the next position in the Hierarchy. The hierarchy for positions is defined on the Position Hierarchy form. When this is complete or is changed, the Fill Employee Hierarchy concurrent program must be run for the new hierarchy to come into effect. You must set up Positions if you plan to use either security or approval hierarchies. If you are using Shared HR navigate, Purchasing: Setup: Personnel: Position Hierarchy. Otherwise, if you are using a full install of HR then navigate, Human Resources: Work Structures: Position: Hierarchy.

2. Employee/Supervisor Relationships

This type of hierarchy does not use the Approval Hierarchy form, but is defined by the employee/supervisor relationship. The supervisor of an employee is defined on the Assignment region of the Employee form. If the purchase order entered by the employee exceeds the approval limits, the purchase order is forwarded onto the employees’ supervisor, as defined on the Employee form.

To implement this form of approval routing, you need only to define jobs. The job will then serve as the tie to the Approval group, and based on the approval limits from the Approval Group, the Document will either be Approved or Forwarded to the Employees’ Supervisor. If no Supervisor is able to be located and the job assigned to the employee does not have Approval Authority, then the Approving employee must enter a Forward-to person, or the Document will be returned to an Incomplete status and a notification will be sent to the Approving employee, stating – ‘No Approver Found – Please Select a Forward-To Employee’.

Selecting an approval routing method

There are two forms that determine the route that an approval will take:
1. Financial Options (Purchasing: Setup: Organizations: Financial Options)
2. Document Types (Purchasing: Setup: Document Types)

1. Financial Options
The Human Resources zone on the Financial Options form has an option called Use Approval Hierarchies. This option determines which type of hierarchy is used for the approval process. When checked, the Position Hierarchy is used and when unchecked the Employee/Supervisor relationship (i.e. Jobs) is used.

2. Document Types

There are three attributes on this form that determine the approval path of the document:
a) Forward Method
b) Default Hierarchy
c) Transaction Type (for Requisitions only)
* Each of these 3 options are described in some details below

a) Forward Method
This field has two options that apply regardless as to whether you use a Position Hierarchy or an Employee/Supervisor relationship.

– Direct: the document will pass to the next position or supervisor in the hierarchy who has enough authority to approve the document.
– Hierarchy: the document will pass to the next person in the hierarchy regardless to whether that position or supervisor has enough approval authority to approve.

b) Default Hierarchy
The Default Hierarchy option will only appear on the Document Type form if the option Use Approval Hierarchies is checked on the Human Resources zone on the Financial Options screen. The Default Hierarchy field has a LOV. This list is derived from the hierarchies created using the Position Hierarchy form.

The Default Hierarchy is the one that will be used by the approval process unless the person who submits the document for approval changes it in the Approval Modal form. But, the hierarchy can only be changed on the Approval Modal form if the attribute Can Change Approval Hierarchy is checked on the Document Type form – and this attribute is only enabled if the Use Approval Hierarchies is checked.
When choosing the action of ‘Approve’ for a document, if a Forward-To person is not defined and the person taking action does not have sufficient approval authority, the default hierarchy will first be searched for the employee attempting the approval. This default hierarchy is defined on the Document Types form:

Purchasing: Setup: Purchasing: Document Types

Thus, it is imperative that the low-end users (those with little approval authority) be present in this default hierarchy so the next Forward-To approver can be found. Alternatively, the checkbox Can Change Approval Hierarchies should be selected on the Document Types form. With this checkbox enabled, the user has the option to specify an alternate approval hierarchy; provided that the user belongs to one or more additional hierarchies (i.e. the Approval Hierarchy list of values in the Document Approval window will only contain the hierarchies that this user belongs to).
If the low-end user is not part of the default hierarchy specified in the Document Types form and chooses to approve the document, the end result will be a notification to the user stating ‘No Approver Found’.
A similar scenario of ‘No Approver Found’ will result if the ‘Owner Can Approve’ checkbox (on the Document Types form) is disabled and the person attempting to approve the document is not in the Default Hierarchy. When the Approve button is clicked, this setting is validated and enforced; it is at this time that the requisition and purchase order approval workflows will look to the default approval hierarchy, searching for the current approver’s position in the hierarchy in order for the next approver in line to be located.

c) Transaction Type
For requisitions only, selects the Approval Transaction Type. If you have implemented Oracle Approvals Management, this selection associates the transaction type with the requisition document type. Leave the field blank to use the standard Oracle Purchasing approval logic

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Inventory Basic Setup steps

This section contains an overview of each task you need to complete to set up Oracle Inventory.

 Step 1 Define Inventory Flexfield (Required)

  • System Item
  • Item Categories
  • Item Catalogs
  • Stock Locators
  • Accounting Aliases
  • Sales Order
  • Service Item
Step 2 Define Your Locations (Optional)
Step 3 Define Your Employees (Optional)
Step 4 Define Your Organization Calendar (Required)
Step 5 Define Your Organizations (Required)
Step 6 Define Your Organization Parameters (Required)
Step 7 Change Organizations (Required)
Step 8 Define Your Intercompany Relations
Step 9 Define Your Receiving Options (Optional)
Step 10 Define Your Picking Rules (Optional)
Step 11 Define Your ATP Rules (Optional)
Step 12 Define Your Planners (Optional)
Step 13 Define Your Unit of Measure Classes (Required)
Step 14 Define Your Units of Measure (Required)
Step 15 Define Your Unit of Measure Conversions (Optional)
Step 16 Define Your Subinventories (Required)
Step 17 Define Your Stock Locators (Optional)
Step 18 Define Your Item Attribute Controls (Required)
Step 19 Define Your Categories (Required)
Step 20 Define Your Category Set (Required)
Step 21 Define Your Default Category Sets (Required)
Step 22 Define Your Statuses (Required)
Step 23 Define Your Item Catalog Groups (Optional)
Step 24 Define Your Item Types (Optional)
Step 25 Define Your Item Templates (Optional)
Step 26 Define Your Cross-Reference Types (Optional)
Step 27 Define Your Item Delete Constraints (Optional)
Step 28 Define Your Cost Types (Required)
Step 29 Define Your Cost Activities (Optional)
Step 30 Define Your Material Sub-Elements (Optional)
Step 31 Define Your Material Overheads (Optional)
Step 32 Define Your Default Material Overhead Rates (Optional)
Step 33 Define Your Freight Carriers (Optional)
Step 34 Define Your Organization Shipping Network (Optional)
Step 35 Define Your Shipping Methods (Optional)
Step 36 Define Your Movement Statistics Parameters (Optional)
Step 37 Define Your Account Aliases (Optional)
Step 38 Define Your Transaction Source Types (Optional)
Step 39 Define Your Transaction Types (Optional)
Step 40 Define Your Transaction Reasons (Optional)
Step 41 Define Your Purchasing Options (Optional)
Step 42 Open Your Accounting Periods (Required)
Step 43 Request Your Interface Managers (Optional)
Step 44 Set Profile Options (Required)
Step 45 Define Your Container Types (Optional)
Step 46 Define Your Commodity Codes (Optional)
Step 47 Define Your Customer Items (Optional)
Step 48 Define Your Customer Item Cross References (Optional)
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Purchasing Basic setup steps

Step 1 Set Up System Administrator (Required)
Step 2 Set Up Key Flexfields (Required)
Step 3 Set Up Calendars, Currencies, and Set of Books (Required)
Step 4 Set Up Organizations (Required)
Step 5 Set Up Units of Measure (Required)
Step 6 Set Up Items
           Define item attribute controls. (Required with defaults)
           Define container type QuickCodes. (Required with defaults)
           Define status. (Required with defaults)
           Define item type QuickCodes. (Required with defaults)
Step 7 Set Up Personnel (Required)
           Define employee QuickCodes. (Required with defaults)
           Define supplier and employee numbering. For this step,  Defining Financial
           Options. (Required)
           Define employees. (Required)
           Define jobs. (Required)
           Define positions. (Optional)
           Define position hierarchies. (Optional)
Step 8 Set Up Oracle Workflow (Required)
Step 9 Decide How to Use the Account Generator (Required)
Step 10 Define Manufacturing System and User Profiles (Required)
Step 11 Open Inventory and Purchasing Accounting Periods (Required)
Step 12 Define Subinventory Locations (Optional)
Step 13 Set Up Cross-Reference Types
            Tax Names, and Location Associations (Optional)
Step 14 Set Up Approval Information
            Define approval groups.(Required)
            Assign approval groups.(Required)
            Fill employee hierarchy.(Optional)
            Define document types.(Required with defaults)
Step 15 Set Up Lookups and Classes. (Required)
            Define Purchasing lookups.(Required with defaults)
Step 16 Define Standard Attachments (Optional)
Step 17 Set Up Purchasing Flexfields (Required)
Step 18 Define Purchasing Options (Required)
Step 19 Define Buyers (Required)
Step 20 Define Items (Optional)
Step 21 Set Up Document Controls (Required with defaults)
Step 22 Set Up Financial Options (Required)
Step 23 Set Up Receiving Options (Required)
Step 24 Set Up Transaction Managers and Resubmission Intervals. (Required)
             Start the following transaction managers.(Required)
             Receiving transaction manager
             Document approval manager
Step 25 Define Suppliers (Required)
Step 26 Start “Send Notifications for Purchasing Documents” Process (Required)
Step 27 Set Up Document Creation Options (Required with defaults)
Step 28 Set Up Approval Timeout Feature (Optional)
Step 29 Start Workflow Background Process (Optional)
Step 30 Modify Change Order Workflow Options (Optional)
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Order Management (JSW) Basic Setup steps

Step 1 Flexfields. (Required)
Step 2 Multiple Organizations. MOAC (Required)
Step 3 Inventory Organizations. (Required)
Step 4 Profile Options. (Required)
Step 5 Shipping Parameters. (Required)
Step 6 Invoicing. (Required)
Step 7 Salespersons. (Required)
Step 8 Tax, Tax Categories. (Required)
Step 9 QuickCodes. (Required)
Step 10 Workflow. (Required)
Step 11 Document Sequences (Order Numbering) (Required)
Step 12 Order Import Sources. (Required)
Step 13 Units of Measure. (Required)
Step 14 Item Information. (Required)
Step 15 Define Items & Assign to Organization. (Required)
Step 16 Configurations. (Required)
Step 17 Pricing. (Required) 
Step 18 Customer Classes. (Required)
Step 19 Customers (Required)
Step 20 Item Cross References (Optional)
Step 21 Sourcing (Optional)
Step 22 Order Management Transaction Types (Order and Line Types) (Required)
Step 23 Cost of Goods Sold (COGS) (Required)
Step 24 Processing Constraints (Required)
Step 25 Defaulting Rules (Required)
Step 26 Credit Checking (Optional)
Step 27 Holds (Optional)
Step 28 Attachments (Optional)
Step 29 Freight Charges and Carriers (Required)
Step 30 Shipping (Required)
Step 31 Start Workflow Background Process (Optional)
Setp 32 Request set OM – AR Porting
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