Back to Back Order Cycle

Release 12.1.1

Table of Contents
Overview

Key Business Drivers

Step 1: Create a B2B item4

Step 2: Attach the Item in a Order Price List
Step 3: Create a Sales Order

Step 4: Progress the Order

Step 5: Create a Requisition Import in Purchasing

10

Step 6: Verify the requisition from Requisition Summary

11

Step 7: AutoCreate the Purchase Order from Requisition

12

Step 8: Receive the Purchase Order

Step 9: Verify the Order Status

15

17

Step 10: Make Shipment of Order

18

Step 11: Preparation of Auto Invoice in AR

Step 12: Creating of Purchase Invoice 21

18

Overview
Often customers order products that you do not typically stock but that you do not manufacture
either. You may want to purchase that item specifically for this order, have the supplier ship it to
you, and then combine it with other items you may have purchased or stocked to create one
shipment to the customer. This is a common scenario for Wholesale Distributors who use the S3,
or Sell-Source-Ship business model as well as for other demand channels. We call this process
back-to-back orders or procure-to-order.
Supply-to-order items are either standard items or models that have the assemble-to-order
item attribute turned on. It is this attribute that launches the ATO workflows that deliver this
feature. PTO models by definition cannot be supply-to-order, since turning on the assemble-toorder attribute would make them an ATO model. But you can fulfill the shippable options of a
PTO model with back-to-back orders by checking the assemble-to-order item attribute of those
components.

Key Business Drivers

1
2
3
4

Low inventory time and cost

Link supply to specific demand
Can offer variety of product to customer
Used heavily in contract manufacturing where the product is standardized
and the company plans to focus on product design rather than
manufacturing

Step 1: Create a B2B item

Navigation: India Local InventoryOracle
InventoryItemsMaster Items

Apply the finished goods template from ToolsCopy from

Put the List Price and Market Price

(Mandatory)

In general planning Make or Buy

should be Buy

Build in WIP should be ticked in Work in Process Tab

Assemble to Order should be ticked in Order Management Tab along with

all other options.

Assign the item to particular inventory organization where you will transact the
process.
Note: the ATO item attribute is checked as the B2B process utilizes the ATO process
of workflow. However, the item is not manufactured in WIP, as instead is a Buy
that replenish in the supply order in PO. Hence the item may also be called and ATO
buy item.

Step 2: Attach the Item in a Order Price List

Navigation: Oracle Order ManagementPricingPrice ListsPrice List Setup

Step 3: Create a Sales Order

Navigation: Oracle Order ManagementOrders, Returns Sales Orders

Book the Order and check the Line Status

Status is Supply Eligible

Step 4: Progress the Order

Go to Line Items tabActions
buttonProgress Order

View the Status; it is External Req Requested

View the Reservation Status of the Order from
ToolsSchedulingReservation Details

Look no reservation is being made right now

Step 5: Create a Requisition Import in

Purchasing
Navigation: Oracle PurchasingReportsRun

Run the Process with these parameters

verify the approved requisition
number

Wait until the request

completes normally and

View the status External Req Open

Now view the reservation details again to find the Requisition
Number

Step 6: Verify the requisition from

Requisition Summary
Navigation: Oracle PurchasingRequisitionsRequisitions
Summary

View the Requisition by giving the requisition number and

clicking Find

Step 7: AutoCreate the Purchase Order from

Requisition
Navigation: Oracle PurchasingAutoCreate
Edit ClearForm to clear existing form data

Select the Requisition Line and click on

Automatic

Put the Supplier Name and Choose

create

Now verify the Order Information and attach tax (if any)

For attaching tax: India LocalizationPurchase OrdersPurchase

Orders (Localized)

Look, 1% CST has been attached with Order

Now Approve the Order

On creation of Purchase Order, the Order Line status will be PO Open.

Step 8: Receive the Purchase Order

Navigation: Oracle PurchasingReceivingReceipts

Supply the Purchase Order Number and Choose Find

As the Receipt routing is Inspection required, so you need receive the item in
Receiving location and Save it.

Verify the Requisition

number using Header
button

Now complete the Inspection and finally receive the item

in Inventory

Navigation: Oracle PurchasingReceivingReceiving

Transactions

Put the PO number and choose Find

Select the Order Line and click on Inspect

Accept or Reject the Quantity, put additional information and choose Ok. Now
save the Receiving transaction form again.
Now, requery the receiving transaction form and complete the item
receiving by receiving it in Inventory, in this step you need to supply the
SubInventory information (Mandatory)

Again save the form and to complete the transaction.

Step 9: Verify the Order Status

Step 10: Make Shipment of Order

Navigation: Oracle Order
ManagementShippingTransactions
Process the Pick Release and Shipping Execution as
usual

Step 11: Preparation of Auto Invoice

in AR
Navigation: Oracle
ReceivableInterfacesAutoInvoice

Submit the process with given parameters

These are related process of Autoinvoice

Master Program. View the output of

AutoInvoice output program

Look, Successfully 1 Invoice Processed.

Now run the India Local Concurrent For Processing Order Lines to AR
concurrent Request to Import Order Management India Local taxes to AR Invoice

Run the request with given parameters

Wait for the above request to

complete normal. Now open the newly
generated invoice
Navigation: Oracle
ReceivablesTransactionsTransactions

Click on this button

Put the reference numbers and GL Dates and

click on Find.

View the Invoice created and verify

Accounting for your Invoice:
Navigation: ToolsCreate Accounting

Choose a create accounting method as per your choice

and choose OK View the Accounting done
Navigation: Tools View Accounting

Look,
Sundry Debtors A/c Debit Rs.240
To, Local Sales A/c Credit Rs.240

Step 12: Creating of Purchase Invoice

Navigation: Oracle PayablesInvoicesEntryInvoices

Put the PO Number, Invoice Date, Party Invoice Number and Invoice amount as
1.00, payment method Now Click on Match button

Select the PO Line and click on Match button Again

Now change the Invoice Amount with matched PO amount + Tax (if any)
Now save the Invoice
The Status of Invoice will
become Validated

Now Choose Actions1 Validate

Now again choose Actions1Pay in Full (To Initiate the Payment) and Create
Accounting (any choice to complete the accounting of PO based Invoice)
Now supply required information regarding payment like Payment Date, Bank
Account, Payment Process Profile etc to complete the payment.

Now view the accounting process

Navigation: ToolsView Accounting Events

Click on View Journal Entries to view the detailed

accounting

Entries are:
Inventory AP Accrual A/c Debit 120
Inventory AP Accrual A/c Debit 1.20
(For CST) To Sundry Creditors A/c
Credit 121.20