Drop Shipment Set ups and Flow

Drop Shipment Set ups and Flow:
A Drop Shipment is a process where items /deliverables are directly sourced and shipped to customers by Suppliers.


Drop Shipment - Setup
1. Item Attribute set ups:  
Purchased : Enabled
Purchasable : Enabled
Transactable : Enabled
Stockable : Optional
Reservable : Optional
Inventory Item : Optional
Customer Ordered : Enabled
Customer Order Enabled : Enabled
Internal Ordered : Disabled
OE Transactable : Enabled
Shippable : Optional
SO Source type  : External.


2.  Set up of Order Management Transaction Types to order and line workflows that support drop shipments.
3. Oracle Workflow Background Engine is running.
4. Define Drop ship locations used to perform drop shipments have the Ship To Site and Receiving Site.
5. Define the Internal Ship To Locations for your drop shipment customers (Oracle Receivables Standard Customer window, Business Purpose Details Tab).
6. Items have an associated List Price defined within your PO Inventory organization (Oracle Payables Financial Options window, Supplier-Purchasing Tab).
7. Items to be sourced in order management should have a price list assigned.


Drop Shipment - Process Steps

1. Create a Quote with the customer and order type as quote , item and in shipping tab source type as External.
2. Submit the Quote > Submit Draft > Quote status changes to ‘Pending Customer Acceptance’
3. Go to Order Returns > Order Organizer find the quote and Click (T) Order Information > (ST) Main > Actions button > Customer Acceptance
4. Enter the acceptance customer details and  Click (B) Customer Accepted.
5. The status of the Quote Changes to ‘Entered’. The Quote has been converted to a Sale Order which is same as Quote number
6. Book and Schedule the Sales Order - Status changes from Booked
7. Click on ‘Progress Order’. Select ‘Purchase Release Eligible’, 
8. Run Requisition Import Process - Purchase Release process - Orders, Returns > Purchase Release
9. Run Requisition Import Process - Orders, Returns > Requisition Import
10. Now the line status will be in Awaiting Receipt
11. Login to the Receiving Organization (Purchasing) who has been setup as an Approver
12. Create a Purchase Order from the Requisition through Auto Create
13. Approve the PO
14. Receive the full quantity
15. Run Auto Invoice
16. Verify Invoice in Sales Order