Order to Cash Cycle - Oracle O2C

Oracle Order Management & Account Receivables:

Order to Cash Cycle O2C :

Order to Cash (O2C) process starts with entering the order with standard item into system.

When you enter the order, the item is validated in oracle inventory, the availability of the item are checked may be reserved and pricing by advance price.

Enter the Sales Order –

Items are validated in Inventory, availability and price check by price engine.

Book the Sales Order –

Header and line level entry then book the order and order booked and status will be changed to "Booked"

Launch Pick Release –

In next steps Items are moved from Warehouse to staging area.

Ship Confirm–           

Next step it indicates that the items are loaded on the carriers from the staging area. When run ship confirm the system decrease inventory and updates sales order line status.

      

Create Invoice–

After ship confirmation invoice is created through auto-invoice (this is the integration point b/w AR and OM)

Receipts & Match with Invoice – 

Against the receivables receipts enter in the Oracle receivables system and then these receipts matched with the invoices.

Bank Reconciliations –

In Cash management bank reconciliation is performed for receipts.

Create Accounting & GL Transfer–

 Create accounting is run after month end and all the transactions are transferred to GL.

GL Posting –

Once transactions are transferred to GL, then it is posted in GL and after posting it will be reflected in the Trail balance.

Involved Modules

Order Management: Creating and shipping the Order

Inventory:  On-hand availability, Reservation

Receivables: Invoices & Receipt against invoice

General Ledger: Importing, entering and posting the journals.

Steps By Step guide for Order to Cash Cycle (O2C)

Enter the Sales Order:

Order Management >Orders Returns >Sales Orders

Enter the Customer details (Ship to and Bill to address), Order type.

Click on Lines Tab. Enter the Item to be ordered and the quantity required.

Line is scheduled automatically when the Line Item is saved.

Scheduling/unscheduling can be done manually by selecting Schedule/Un schedule from the Actions Menu.

You can check if the item to be ordered is available in the Inventory by clicking on Availability Button.

Save the work.

Book the Sales Order:

Book the Order by clicking on the Book Order button

Now that the Order is BOOKED, the status on the header is change accordingly.

Launch Pick Release:

Shipping > Release Sales Order > Release Sales Orders

Give the Sales Order and Rule details as required

Key in the details in Shipping Tab, Autocreate Delivery: Yes, Auto Pick Confirm: Yes, Autopack Delivery: Yes

Similarly key in the Subinventory, location and org details in Inventory tab as required

Then select Execute Now button.

On completion this will show below window

Pick Release process will in turn run few more concurrent requests like Auto Pack Report, Pick Slip Report, Shipping Exceptions Report (These are what we have chosen in the shipping tab during Pick Release)

Pick Confirm the Order:

If Auto Pick Confirm is set to Yes during Pick Release, then this process will happen systematically.

In other cases, need to do this by doing a move order transaction

Inventory Super User > Move Order> Transact Move Order

Take the Move Order Number form the Shipping Transaction Form and find that and transact.

Ship Confirm the Order:

Order Management Super User>Shipping >Transactions

Find by Order Number

Here you can find all the details

If the line status is Staged/Pick Confirmed, we can go for a shipment.

Then Click on the Delivery tab

Then Click Ship Confirm

Note: If Ship Confirm button is inactive, then please check to the user id you are logged in, whether Shipping Grant given or not. If not they add a shipping grant to the user id and try again.

Then OK.

The Status in Shipping Transaction form in Delivery tab should be closed

This will kick off concurrent programs like.INTERFACE TRIP Stop, Commercial Invoice, Packing Slip Report, Bill of Lading

Once all background process completes, the Shipping Transaction Status in Lines/LPNs tab becomes Interfaced

Create Invoice:

Run workflow background Process

Order Management >view >Requests

And spawns Auto invoice Master Program and Auto invoice import program which creates Invoice for that particular Order 

Check the Invoice:

The Invoice created can be seen using the Receivables responsibility

Receivables Super User> Transactions> Transactions

Query with the Order Number as Reference

Create receipt: Receivables> Receipts> Receipts

Click Apply to apply this to an invoice and then select the invoice in next screen and then apply.

Transfer to General Ledger:

To transfer the Receivables accounting information to general ledger, run General Ledger Transfer Program

Order to Cash Cycle (O2C) in Oracle Apps

Oracle ebusiness suite>Oracle SCM > Order Management (OM)

Order to Cash Cycle (O2C) in Oracle Apps

Here I am going to explain the steps for Order to Cash (O2C) in Oracle Applications.

Steps in Order Cycle:

1)   Order Entry

2)   Booking

3)   Pick release : 

  Shipping Responsibiltyà  Release sales order

 Here In this form , In the ORDER tab, we have to enter ORDER Number .  And delete the Scheduled shipped Dates To & Requested Dates To.

    In SHIPPING tab, set AUTO CREATE DELIVERY to YES. In INVENTORY tab enter WAREHOUSE, set AUTO ALLOCATE to YES and AUTO PICK CONFIRM to YES. IF we set AUTO PICK CONFIRM to NO, then We have to go for the following steps 

   go to Inventory Resp

Move order à  Transact Move Order 

then it will ask for  warehouse information. Give the same name as before [M2]

In this form, In the HEADER tab, enter the BATCH

                           NUMBER of the order that is picked .Then Click FIND

                           Button. Click on VIEW/UPDATE Allocation, then

                           Click TRANSACT button. Then Transact button will be

                           deactivated then just close it and go to next step.

4)   Shipping : 

For this we need to go to Shipping à Transaction

                        Give the order Number, and click find

                        Then we can see the order status.

   Then we have to click DELIVERY Tab Button, in the Action LOV 

We have to choose, SHIP CONFIRM.

                       Then four concurrent program will run in the background.

                       Such As::

1.) INTERFACE TRIP Stop

2.) Commercial Invoice

3.) Packing Slip Report

4.) Bill of Lading

After this concurrent program will complete successfully, we have to run

                 One more WORKFLOW BACKGROUND PROGRAM.

·       If we don’t want to ship all the items, that are PICKED, then we have to click   LINE/LPN tab , then click DETAIL button .

     Now, in that form , in the SHIPPING field, we have to enter how

Much quantity of items, we want to ship . The rest remain quantity,

   that are Ordered will become backorder quantity .

5)   Interfacing with AR  :

After WORKFLOW BACKGROUND PROGRAM Concurrent  program will complete successfully, we have to run

                 AUTO INVOICE MASTER PROGRAM from

                 RECEIVABLE RESPONSIBILTY. After this program

                 will complete successfully , we can the invoice

 RECEIVALE à TRANSACTIONS à TRANSACTIONS. Here in

                 This Form, we have to give our order number in reference field

                       And query for the invoice details .Then we can see the invoice details.

                             

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