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Moustafa Abdulrahman
Oracle SCM Consultant, Egypt
Mo012st@gmail.com
Introduction:
This white paper was made to give a quick introduction about “Order Management” in. If you have
anything you want to add to that paper, please don’t hesitate to E-mail me. Special thanks to Oracle
development team whom have helped us partners to understand it.
Overview of order to cash:
We are going after where the OM falls among the cloud in this session, so let us just look at the overall
flow. We have in the red boxes, which are the major components that we implement to have order to
cash up and running. The arch across the top represents the processes, and this is basically how you are
going to break down through the OM, later we are going to talk about each little thing in details and we
are going to break it into pits and pieces.
So you create the order and configure it and price it and if the capture came from a non-manual user
interface like another system then we might have to enrich it and view it for the first time in the system,
that is why we use OM , also optimize the source and schedule it by interacting with the global order
promising engine and when we are ready to launch the order then we are going to use the orchestrate
fulfillment process which is embedded in the whole system and check with the inventory if the items are
ready for fulfillment and finally within the inventory we’ll pick and shipping, then the last step is
communicate with the financial systems and bill and collect the invoices. So that is pretty much the
whole flow.

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-Next �ݺ�ߣ!!
So, we are going to cover this, and let us start with “Order to cash” functional steps and in the order to
cash cycle, this is pretty much what we are going to do.

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Capture:
So somehow you are going to have to capture the order so you enter customer select a product, some
of the products are going to need configuration so you’ll be able to walk through a configurator dialog to
choose sub components etc.. pricing rules are going to run in a background engine, also you will be
allocating credit to the sales men so they’ll show up in the revenue recognition engine in the AR.
as well in the incentive, also global order promising to check supply and tax engine, submit and
once the invoices are in process we can go through and do some revision on it even after the order is
complete and finished you can return some items if you want as “Return process” is supported.
Fulfill:
It depends on the nature of the customer and the product and our supply chain but we might want to
enrich the order and make it follow some rules to give it more meaning, you might pick one item and we
have some rules that we will discuss exactly the additional items that will go along with it, then you
schedule and the global promising system will tell you whether you can deliver this within the time
frame designed by the customer. The next thing you would want to do is reserve that source of supply.

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Cash:
Eventually when we have it and it’s ready to ship we can ship it but if it’s not ready to ship and the item
is something that can be drop shipped or back to back ordered then we go through these processes or
even internal transfer but we tend to group under advanced procurement type of paradise as it take the
standard process and works closely with supply chain orchestration system in order to figure out how
we are going to supply this order then eventually we are going to invoice it.
How does OM cloud specially play in that process:

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So, this is kind of how we look at it, prior to release 11 we had “Order Orchestration “and it acted as an
order hub so it had multiple sources of capturing the order and multiple means of fulfilling the order so
what happens is that you throw these multiple sources of capturing the order and the order will come
into our order hub and apply all the roles and then call the outbound fulfillment system whether it was
Oracle or external. So, we have an online manual user interface that I am going to walk through in 1 sec
where you can capture the order and get the order ready for processing and always monitoring it and
we have it online or through interfaces through external system like POS.

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Here is an eye test for you to walk you through the different features of OM and we got to split between
capturing the order and processing the order and figuring out how we are going to price it and whether
we need to configure it or not.

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Let us talk a little bit about integration
So here is the OM cloud and this is where we position the OM cloud. Now as you might expect through
our SCM applications and financial applications you see the red lines which means it’s predefined and
integrated with all the rest of SCM and financial apps and we also know that there are other cloud
products that are in the landscape “CPQ” which means “Configure Price and Quote” and that is an
acquisition Oracle made around complex pricing and coding and it has been taken from “Big Machines”
and what we have done that we built an integration with CPQ cloud and we call it a “Suggestions” and
it’s an out of the box working between two vanilla instances so 90% of the work has been done and you
might have to do the other 10% same to E-business suite, we have done some out of the box as well
with it, and finally when we talk about integration, we are going to show you how to build integrations
with other systems, so we have 3 flavors, out of the box and suggested and API so you can write your
own.

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So, let us get into a little discussion about creating a new order then maybe returning an order etc.
So, creating an order is going to look like this:
So the new order Business flow is going to look like this, so we are going to create an order and the
order will have an order header, where we type the customer and then we are going to type some items
into the orders and optionally you configure the order, also we are going to check the supply to know
whether you can deliver on time or not, eventually you can validate and book the order then we start
the order process and what happens is when you book the order you are going to start the order
process and then your order is going to tell you “hey” we need to ship so you are going to change your
hat and go into shipment and log in as an “Inventory Clerk” and do a pick release and shipment confirm
for your items to be sent out and once they are sent out you can move to the last stage which is sending
along the invoice then you manage the invoicing process in the AR. Now let us go into a quick demo.

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Demo:
So, we are going to do the same as in the drawing above which is create an order, header, customer BU
and items, optionally you configure the order and check supply and see if we can deliver in time or not
then validate and book the order then we start the order process and at some point.
To get to OM we click on the OM tile “Duty” onto the screen or via the navigation menu and the
navigation to OM is only one click. One of the things which a theme for OM that there is no setup for
order to cash because it has been started up by financials already and set up by other productivity
management and OM leverages other setups so most of our sessions is going to be about how to use it
more than setting it up so I am going to walk you through the OM and you’ll see how it touches the
other products then we are going to get to the other products.
So, we land on this dashboard in which most of it are out of the box and they are for an order manager
and for each one of these when you click on it, it’ll bring you to the screen that you need to do, to
manipulate the graph. So, we don’t have that much to do on the main screen. Except for that cute
button called “Create Order”

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So, that is the order entry screen. First thing OM is exactly like procurement and it does indeed work on
the BU and it’s the major stripe of information for OM. Then we must pick the customer. “Bill to
customer” and “Ship to customer” is going to be “Data set” based. You can also show the “Sales credit”
and you can split the credit between two persons and when it pops up to AR then it’s going to split, but
the magic is going to happen in the line. Click on “Actions” then “View Pricing Strategies” so the magic in
here is that the customer has been given what kind of a pricing strategy he’ll be working on.
So, the users here were given info about what pricing strategy they’ll be working on, we are going to be
working on it in depth later but wanted to give you heads up on it. So, look at this segment explanation,
so we chose “Corporate Pricing Group 1” because revenue potential was very high and we marked the
customer with high cost to serve and we gave him other attributes, so what we are going to find out in
just a second that the customer belongs to a certain pricing strategy and it’ll will be explained later. So,
let us switch back to adding an item.

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I can either search for an item or put an item, as soon as you choose an item all the details related
shows up like “In Stock” and we also see the sale price and you can click on it and add a discount if
needed, all this and we still haven’t added the item to the order so now click on the add button.
(item:AS46336,).
You have three tabs on the side, note them and then go and look at the shipment

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So, we specify a date for the shipping and how you want to ship it, so what I am going to do here is I am
going to go to supply and I know the warehouse enough so we go to “Supply” and click on “Estimate
Order Availability”.
And then the promising engine will tell me that we indeed can deliver from this warehouse, you can
choose no warehouses at all and have the engine doing it and get a wide search and we are going to
explain it in further sessions.
If you take a closer look into the screen you will notice that there is no order number which is because
we haven’t saved the order yet so when we click on “Save” changes will happen which is as
follows(Item: AS46334, CM53035):

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Now at the time of saving the price changed and the taxes has been added so when you click on the
price you are going to notice the lines.
So, what we do now is submit the order and what happens roles are going to be generated and decide
what background processed to decide and launch an orchestration process note that it’ll take around 15
mins.
Now if I click refresh you will see the status changing and in the background an orchestration process
has run so this the BPEL process and you can look while it goes through the process. If you click on
“Actions” then “Switch to fulfillment view”

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The interesting part is when you scroll a little bit you’ll see that it decided to run a background process
called

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So, this is a generic or better say seeded process that will move to fulfill the order and take certain steps
on the order, what we can do here is drill down on the process so click on the number before it and you
will get more info about the orchestration plan and what is done that it ran a BPEL workflow and it has
gone through a series of steps that we have configured (This is similar to the workflow in EBIZ).
So, it invoked the OM orchestration so it scheduled reserved and created orders ready for shipment.
So now this is the time when we change our hats and do the shipping. Usually we must be under a
different user who does the shipment. So, we go on the shipment screen.(User: Frank.Eagan)

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So, we go into the shipment screen.
So now what you going to do is that you going to tell the system show me all the fulfillment lines that
you have and type your order and here we go!!

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So auto create it!

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So we going to go and do a pick release on that. It runs a batch program for that shipment and do the
pick on it.
So, go again but this time go and search for the shipment using the shipment number.
Then go and click on “Actions” then “Pick Release”

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If you click on the shipment # the screen will open in details:

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click on the shipment number and your screen will look like above. And verify that will be automatically
shipped. Click on actions then “Ship Confirm”.

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Then hit ship confirm. So, what does that mean that if I go back to my OM page. And query my order. I
will see that it’s shipped now.

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If you click on “Actions” and switch to fulfillment line view. And go and look at the orchestration process
again. You will see that it’s “Awaiting process” so what BPEL has done is auto populate the AR invoice
tables for you.
So now you need to log in as an AR employee (User: Tracey.Allen). And process the invoice. It’s run
through a batch program or ESS so navigate to “Scheduled Process” which is “Import Autoinvoice” and
you have to give it the BU and transaction source which is “Distributed Order Orchestration”. So, it’ll run
but something different is going to happen which is apart from creating the invoice which is
So, this job knows that this job was a “DOO” (Distributed Order Orchestration) and informing them with
what the number of invoices that has been created. So, go and search for invoices billed to the AR from
“manage transactions”.
And have it referenced back to the order.
So this is how it’ll look like below

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If you check the cross reference. so, go back and log in with an OM user. and go and search for the order
and switch to fulfillment line and click on it and you’ll see the status for the invoice is billed. so, the
whole thing for the invoice line is closed.

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Now you can even return the product if you want. And choose the type and note how the total has been
changed.

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The return of the process is locating the original order and choosing the item to return and yet enter the
details and then create a return order. What is going to happen is when you create a return you can
create it as a return for a financial credit or return it physically and in that case, you’ll get a confirmed
receipt. You can also go and create return financially only. and then create a credit memo.
Let us find an order which is already there.

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And it’s been shipped and billed and so since the line or the order is closed, you can return items off the
line. So, click on the return button.
Assuming the quantity is 1 and type has different values choose one. So, then you click on create order.
Again, it figures out the orchestration process and it goes and launches that process.

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Now note how the price changed and it became in the minus. Also, click on top and you will see the
different factors that got hit. So, what you do next “Save the number”.

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And click submit and note now that it’s a new order going in reverse. And it’ll launch that process. now
click on the returns tab.

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And, click on the orchestration process and you’ll notice that it’s awaiting billing.
Now switch your user to run an import program “User:Tracy Allen”
Now it’ll run the following:
Now go and look at the transactions in AR.
Search using the customer and reference

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You will find it as a “Credit Memo”
Click on the number and you’ll see two lines:
One for the original and one for the discount made.

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When you create an order then you feed the interface table which has the invoice and what will happen
is that you will set up an item which has a method in it that’ll determine what the method should be. So
what’ll happen is that the orchestration process will understand the item and its billing schedule should
be and it’ll in the AR import interface and will create a multiple line in the table so when you run the AR
the AR will pick the line for a certain period.

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