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Purpose:This document provides an overview of features and enhancements included in Release 12. It is intended solely to help you assess the business benefits of upgrading to Release 12.
This document in any form, software or printed matter, contains proprietary information that is the exclusive property of Oracle. Your access to and use of this confidential material is subject to the terms and conditions of your Oracle Software License and Service Agreement, which has been executed and with which you agree to comply. This document and information contained herein may not be disclosed, copied, reproduced or distributed to anyone outside Oracle without prior written consent of Oracle. This document is not part of your license agreement nor can it be incorporated into any contractual agreement with Oracle or its subsidiaries or affiliates.
This document is for informational purposes only and is intended solely to assist you in planning for the implementation and upgrade of the product features described. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described in this document remains at the sole discretion of Oracle.
Due to the nature of the product architecture, it may not be possible to safely include all features described in this document without risking significant destabilization of the code.
Release 12 Transfer of InformationOracle Process Manufacturing
Process Logistics - Order Management and Purchasing integration
Functional Overview
Purchasing and Order Management Integration
This TOI will be made available to CUSTOMERS, PARTNERS and EMPLOYEES.
Internal – only information should be added after the “Additional Information for Employees” Title Slide.
You should provide speaker notes for each slide. These notes should expand on your slide and provide more detail, explanation or examples.
This is the generic title slide – substitute the following for their appropriate values:• Release Number (eg. 11i10, R12.0, Family Pack x)• Product Family (eg. Oracle Financials, Oracle Supply Chain Management)• Topic/Product Name (eg. Oracle General Ledger, Oracle Demand Planning, Procure to Pay)• Session Title – if a project spans more than one presentation, use this to indicate the sub-project
covered in this presentation. (eg. Cash Positioning, Tax Reporting, Profile Option Change Tracking)
• Oracle Applications Documentation will be available through the Online Documentation CD and alsoavailable on Oracle MetaLink.
The software delivery mechanism for Oracle Applications, Release 12 is different from 11i10 or prior 11i releases. Customers must procure the Rapid Install bundle either by downloading it from Oracle E-Delivery (also known as EPD - Electronic Product Download) or by ordering from the Oracle Store.
Note: A separate maintenance pack will not be available on Oracle MetaLink.
Oracle Applications Documentation will be available through the Online Documentation CD, and also available on Oracle MetaLink.
• Setup and Process– How to set up the features– How to use the features
• Dependencies and Interactions• Summary
Objectives: The objective of this presentation is to describe each new or changed feature from a functional perspective. We would first look at an overview of the Oracle Purchasing Integration for OPM and look at the benefits that customers can achieve. We would then look at the necessary set ups and processes and follow it up with a discussion on Dependencies and Interactions.
• Oracle Purchasing modified to use the converged Inventory for Process Manufacturers
• Support for new transactions– Open Interfaces– Vendor Managed and Consigned Inventory– Shared Services/Global Procurement
• Integration with OPM Quality• Mobile Supply Chain and WMS• PO Special charges replaces Acquisition Costs
As you would be aware, OPM would use the Oracle Inventory application from release 12. This replaces the OPM Inventory application. Oracle Purchasing application has been modified to ensure that Process Manufacturing enabled organizations would also use the Oracle Inventory application.
With the adoption of a common Inventory model, newer transactions are now available for Process Manufacturers such as Open Interfaces, Vendor Managed Inventory, also called as VMI and Consigned Inventory and Global Procurement.
We would also look at the enhancements around receiving Inspection and MSCA applications. The Acquisition cost functionality that was used to capture freight and other additional costs in Purchasing has been replaced with PO Special Charges functionality.
Oracle Purchasing Integration for OPM Support for Grade in Purchase Order
Continue to support
grade and Dual UOM
Oracle Purchasing will continue to support dual quantities in the Purchasing and Receiving areas. You will be able to create requisitions and purchase orders with 2 quantities and an optional preferred grade. Additionally, you will be able to receive against these orders using both units of measure.
Oracle Purchasing for OPM Centralized Sourcing and Buying Using
International Subsidiaries
Ireland
China
United States
Spain
Request Source Buy Pay
Intercompany Invoicing
• Yet another model for centralized procurement involves multiple shared service centers.
• Shared Service Center 1 is responsible for negotiation of the source document, while Shared Service Center 2 is deemed the most favorable operating unit to create the purchase order.
• The buying organization is still responsible for payment to the supplier, however, enhancements have been made to intercompany-invoicing process to simplify the financial reconciliation between the requesting organization and the buying organization.
• There are 3 requesting organizations that can utilize this global agreement: Vision Operations, Vision Services R+D, and Vision Services
• You should notice that the Purchasing organization for Vision Services R+D is Vision Operations and the supplier site is Dallas-ERS. So for requisitions created in Vision Services R+D, the purchase order will be created in Vision Operations and the supplier site on the purchase order will be Dallas-ERS.
• When Vision Services creates a requisition that references this global agreement, they will be creating purchase orders for themselves as they are the designated purchasing org
Oracle Purchasing Integration for OPM Receiving: Additional Functionality
• Update Lot Attributes during receiving– Create multiple lots (feature from 11i.10 OPM Logistics)– Ability to enter the received grade for a lot
• Integration with OPM Quality• Mobile Supply Chain and WMS
In the next few slides, we would look at a few additional functionality enhanced in Relase 12:
-Update Lot Attributes during receiving which includes ability to generate multiple lots which was also available in 11i.10 OPM Logistics. This is now included in Oracle Receiving too.
-You can also enter the grade of the lot that is being received
-We will then look at the enhancements to OPM Quality and then look at the changes to MSCA and WMS applications
Oracle Purchasing Integration for OPM Receiving: Lot Entry
Generate Parent and
Child lot numbers
Supplier lot number
and attributes
This screen shot shows the Lot Entry form available in Receiving. This shows the Paren Lot and Lot numbers and the ability to enter the supplier Lot number.
From this form, there is also the menu option to generate several lots, similar to functionality we introduced in 11i.10.
Oracle Purchasing Integration for OPM Receiving: Quality Integration
• Reflect OPM Quality requirements while receiving Process items– View sample acceptability along with visual inspection
results• Leverage Oracle Quality integration with Purchasing
– Define skip receipt parameters and sampling plan criteria based on ANSI/ASQC standards or user-defined rules
– Enforce visual inspection while completing receipt via desktop or mobile interfaces
• Complete the loop from OPM Quality to Purchasing– Accept/reject quantities based on sample group
disposition before inventorying
The Receiving process has been enhanced to reflect the OPM Quality requirements while receiving Process items such as the ability to view sample acceptability along with visual Inspection results. We have leveraged upon the integration of Receiving with Oracle Discrete Quality to define skip receipt parameters and sampling plan criteria based on ANSI/ASQC standards or using user defined rules. You can also enforce visual inspection while completing a receipt transaction, via a desktop interface or mobile itnerfaces.
The sample group disposition information is used to decide on the Accept/Reject quantities before moving the goods to Inventory.
Oracle Purchasing Integration for OPM Enhanced Receiving Inspection Flow
IncomingReceipt
Quality Results Entry
Delivery to Inventory
Sample Analysis
Accept and RejectQuantities
Visual Inspection
Inspection Required
Sample Creation Workflow
Sample Group
Disposition
This graphic shows the visual representation of the Enhanced Reveiving Inspection flow in Release 12. You can see that the Visual inspection and/or Sample analysis results are used to decide on the Accept/Reject quantities.
Oracle Purchasing Integration for OPM Receiving Inspection Results Entry
Visual Inspection Sample
Analysis
This screen shot shows the Quality Results form. This shows that both the Visual Inspection and the sample disposition results are used for the Inspection result.
Oracle Purchasing Integration for OPM Receiving: MSCA and WMS
• MSCA transactions enhanced to support process features of secondary quantity and grade
• Integration of Receiving with WMS– Ability to receive LPN’s– Use Putaway rules
The existing MSCA transactions have been enhanced to support the process features such as secondary quantity and UOM and grade.
With the use of Commmon Inventory, process customers can use Receiving with Warehouse Management System and gain functionalities such as Receiving License Plate Numbers (LPNs) and use Putaway rules defined in WMS.
The OPM Integration for Oracle Purchasing has been enhanced to use the converged Inventory model. Necessary changes have been made to Oracle Purchasing and Receiving to support all the functionalities offered by OPM Integration to Purchasing in earlier releases
Benefits
• Supports a wide variety of Purchasing types• Increase efficiency by using a common Inventory model
Oracle Purchasing has been enhanced to support the process specific features and work with the common Inventory model. Functionality that existed in earlier releases in OPM Integration are now available as part of Oracle Purchasing and Receiving.
• Setup and Process– How to set up the features– How to use the features
• Dependencies and Interactions• Summary
Now lets look at the Order Management integration with OPM. The objective of this presentation is to describe each new or changed feature from a functional perspective. We would look at some of the new and changed functionality and understand the set ups and processes. We would then look at the dependencies and interactions.
Oracle Order Management Integration for OPM Reservations: Batch or Online
• Use Reservation Form to enter reservations for an order line
• Reserve Orders concurrent request creates high-level reservations for multiple orders– Use Fair-Share, Percentage or Partial reservations– For any group of sales orders– Selectable criteria
With the adoption of the common Inventory model, users can now reserve material directly from the sales order pad. OPM now supports both High Level and detailed reservations.
The Reserve Orders concurrent request creates high-level reservations for multiple orders using the various algorithms: Fair-Share, percentage or partial reservations. This can be done for multiple orders that can be selected through a selectable criteria.
This slide summarizes the different reservation strategies. It assumes one person is reserving for lines that request 300 items, but only 100 are available.
Notice that Fair Share rounds down. This means there can be remaining qty. As long as there is enough supply for each line to get at least one piece, every line gets a reserved qty.
For Percentage mode, each line gets the specified percentage as long as supply exists. In this example, the first four lines get 40% of the requested qty. But there is not enough inventory for the fifth line to get 40%. So it gets as much as possible of the 40%. The next line would not get any reservation. This is why you will want to use Order By, to ensure that the lines you care about most get the reservations.
For Partial, the system attempts to reserve the requested qty. But as you can see, full supply is not available on line 2, so it gets a partial reservation.
Oracle Order Management Integration for OPM WMS Integration
• Use of LPN’s• Advanced Picking Rules• Integration with Task Management for Picking
The following are some of the functional gains to OPM customers through the use of Common Inventory that is integrated with Warehouse Management System (WMS)
Oracle Order Management Integration for OPM International Drop Shipments
Physical Flow SOB – Set Of BooksFinancial Transaction Flow OU – Operating Unit
Legend
Factory Central Procurement Organization
GlobalSupplier
Speaker NotesEnhanced Intercompany Support for Central Procurement:
OPM now supports the International Drop Shipments functionality, which is a typical scenario in a Central Procurement environment. Demand is generated in the factory for goods needed to build finished assemblies. The factory creates a requisition for the material.
Based on a global agreement, the Central Procurement Organization then places a PO on behalf of the factory, with a ship to location of the factory. The Central Procurement Organization owns the purchase contract, and is liable to the supplier for payment.
The supplier builds the product and ships directly to the requesting organization.
Upon receipt of the material in the factory, ownership for the material automatically transfers through the Central Procurement Organization, and then to the factory. The supplier invoices the Central Procurement Organization, who in turn invoices the factory. The internal invoice can be done at either the PO price or a transfer price.
Oracle Order Management Integration for OPM Summary
OPM Integration to Order Management has been enhanced to support a common Inventory model. Existing OPM-specific functionality, such as “pick lots” has been replaced by equivalent functionality in Oracle Order Management and Oracle Shipping
Benefits
• Leverages Common Inventory and Shipping processes• Support for new transactions
The OPM Integration to Oracle Order Management has been enhanced to support a common Inventory model. OPM specific functionalities such as “pick lots” and support for grade and secondary UOM are now available in Oracle Order Management and Shipping.
