Drop Ship Sales Order

Drop Ship Sales Order
Drop shipping functionality enables you to take an order from your customer and fulfill it directly from your supplier's site. Order Management enables you to enter drop ship sales orders and lines for standard, model and kit, and configured items, although you currently cannot perform a drop shipment for Ship Model Complete (SMC) PTO's.
You can receive orders for items that you do not stock or for which you lack sufficient inventory, and have a supplier provide the items directly to your customer

The supply and demand details for drop ship orders are
not visible to Oracle Planning applications. Therefore, it is recommended that you associate a separate logical (dummy) organization for shipping drop ship orders; the logical organization should not be included in your planning processes.

When processing drop shipments for orders that contain models or kits, you can drop ship individual items within non SMC PTO configurations from different vendors or even ship several components from your own inventory.

In Oracle Order managementg we have Attribute Source Type, a value Source Type ='External' means it is Drop Ship. we can default Source Type from organizational item attribute,"Default SO Source Type", please note that If the value of this attribute is NULL, Order Management will default the value Internal.

Oracle Order Management seeded constraints will not enable you to perform changes to the Source Type value if the branch on source type workflow activity within the Create Supply - Line workflow subprocess has completed.


Features of Drop Ship Order lines -

Reservations
Once an order line has been specified as an External order, Order Management does notallow reservations to be placed against the order line.

Scheduling
When performing drop shipments of models or kits or standard items, the scheduled ship date is defaulted from the order line request date, and Oracle Global ATP calculations are ignored (demand for drop ship orders are not visible to Oracle Planning products).

Drop Shipment orders cannot consume forecast demand for standard items, ATO items, and models and their respective components.

Return
Use standard Order Management functionality to process return material authorizations (RMAs). Your customers can return drop shipped items to you or to your supplier. If you receive the return into your inventory, you can retain it or ship it to your supplier.

Mass Change and order line attribute Source Type
You can perform a Mass Change for the order line attribute Source Type. The order line attribute Source Type is available (as a field) within the Shipping Tab of the Mass Change window

Note: If the buyer makes changes to the requisition or purchase order in Oracle Purchasing after Purchase Release has been run, or modifies the sales order after the PO has been created, use the Order Management Sales Order and Purchase Order Discrepancy Report to note differences between the original sales order and its associated purchase order.

Confirmation of Shipment and Receipt
Standard Oracle Purchasing functionality confirms that your supplier has completed the drop shipment. Confirmation may be as simple as a phone call, or it may include Electronic Data Interchange (EDI) documents, such as an Advance Shipment Notice (ASN) and an Advance Shipping and Billing Notice (ASBN).
When you receive shipment confirmation, enter a receipt in Oracle Purchasing, even if the drop shipped item is not transactable. This creates inbound and outbound material transactions in your system for accounting purposes. Drop shipment orders can be processed across Ledgers, operating units, or legal entities.