Monthly Archives: August 2017

Drop Shipment in Oracle Fusion


Drop shipment is a process where the products are shipped from an organization’s supplier directly to the customer without physically receiving the materials into the organization facility.


  1. Your customer places and order with you
  2. The oracle Fusion system automatically places an order with your supplier
  3. Your supplier ships directly to customer

Functional Flow

  • A sales order is created and scheduled on DOO workbench.
  • A fulfillment line is sent for promising.
  • Order promising engine determines drop-ship as the fulfillment option based on sourcing rules and availability, buy from sourcing rules that are assigned to a customer or assigned to a geographical region are interpreted as drop-ship sourcing rules.
  • DOO creates the requisite drop-ship purchase order with the PO having drop ship customer and drop ship customer site populated.
  • Drop Ship PO Schedule Number is populated on the fulfillment line which indicates that the purchase order is reserved to the fulfillment line under consideration.
  • Purchase order is sent to Supplier for fulfillment.
  • Fulfillment Line status is Awaiting Shipping.
  • Supplier ships goods against the purchase order and creates advance shipment notice (ASN).
  • Receiving records a logical receipt for ASN and notifies Order Management.
  • Order Management gets details about the shipment from Receiving.
  • Fulfillment Line status is Shipped.
  • Order Management sends request to Receivables to bill the customer.
  • Fulfillment Line status is Awaiting Billing.
  • Receivables creates an invoice and notifies Order Management.
  • Fulfillment Line status is Billed.
  • Order Management closes the fulfillment line once customer is billed.

Setup Tasks

  • Manage Items


Item must be purchasable in requisition organization and list price must be defined if there is no Blanket agreement.

  • Manage Sourcing Rules


Sourcing Rule must be type global and mention the supplier details withing Buy From source type.

  • Manage Drop Ship Financial Flows


Controls communication of ownership change by specifying Supplier ownership change event and associate Selling BU with Receiving trade organization.

  • Item Validation Organization for Drop Ship

For any source system which supports drop shipments, a drop ship validation organization must be specified. Only one drop ship validation organization can be specified for each source system.


Drop ship validation organization must be the item master for a source system

  • Mange Order Management Parameters


You need to define preparer/buyer name for procurement activities. Parameter required for sending purchase request to Procurement..

  • Manage Suppliers and Supplier Sites


Define your requisitioning business unit at supplier and specify the purchasing business function this supplier site provides to client business unit.

  • Manage Agreements


Define Blanket Purchase agreement and enable to automate purchase order creation from requisition and submission for approval.

  • Once the Drop Ship setup tasks are completed you have to refresh the GOP data store by running below processes sequentially:
  1. Run ESS job the “Collect Planning Data” to collect data for scheduling.
  2. Run the ESS job “Refresh and Start the Order Promising Server “

Drop Ship execution

Create a sales order in Order management using “Create Order”. Navigate to Fulfillment Lines and schedule the sales order. Based on Order promising engine’s recommendations, Order Management will create a drop ship purchase order.



Sales Order Creation in Fusion

Core Transaction Flow

Sales Order Creation:

Sign in to Fusion Financials application


R11 Landing Page


Navigator > Order Managment

Click on Order Management3

Create Order

Click on create order4

Enter Customer details in the sales order form5

Enter Sales Person


In Order Lines Search for the Item Add Quantity and click on Add to add the item to Order Lines


Add the Item to Order lines


Once the Lines are added to the order Go to Shipping Details

In General Tab enter the required mandatory fields


Shipping Tab


In Supply tab Select the Warehouse from LOV


Go to Billing and Payment Details

Select Bill To Location, Bill To Contact and Payment Terms


Click on the down arrow in the lines and select Edit Accounting and Invoicing Rules


Accounting Rule = Immediate

Invoice Rule = Advance Invoice


Once all the details are entered in the Sales Order click Submit

Notice that the Status is changed to Created in Order Lines15


To Check the Process

Go to task -> Manage Orchestration Process  Search with the Order Number to see the Orchestration Process


Once clicked on Search the page will display all the details of the Order Process  To see the Orchestration Process Click on the Orchestration Process Number


Clicking on Orchestration Process Number will take you to the Orchestration Process where we can notice the Task and Status of the Order


The above order status shows Task Progress is completed for Schedule and Reserve and the Next Step is Ship

Shipping Process

To do Shipping goto Go to Warehouse Operations and Select Pick Wave


Click on Create Pick Wave

In Create Pick Wave

Enter Order Type = Sales Order

Order = 11003 (Search from LOV)

Enter Shipping Method and Click on Release Now


Once Release now is clicked a pop up opens with Pick Wave Confirmation Details stating Number of Pick Slips generated.21


To see the Pick Slip go to Scheduled Process and select Print Pick Slip Report process and check the output


Confirm the Pick Slips

Go to Pick Slips and Click on Pick Slip Number


Select the Line for Ready to Confirm and then select Confirm and go to Ship Confirm


Ship Confirm

Enter the Shipping Method, Gross Weight and Volume

Check the Line details and click Ship Confirm


Once Ship Confirm is clicked a pop up shows the Confirmation for the same


Ship Confirm triggers 2 more reports in Scheduled Process i.e. Print Packing Slip Report and Print Bill of Lading Report


Once the Ship Confirm is done Navigate to Order Management and check the status of the Sales Order

Status will be in Awaiting Billing, if the status is in Shipped Click on Refresh and that will update the status


Create Invoice

Once the Sales Order is Shipped now Invoice needs to be created for the same, to Create the Invoice go to Scheduled Process

Navigator -> More -> Scheduled Process



Select Distributed Order Orchestration in Transaction Source


Enter a Specific Sales Order number if required


After the Successful run the output can be found in import AutoInvoice Execution Report


Once the Import AutoInvoice Ran successfully without errors we can go to Receivables Bill to check the created Invoice

View Invoice

Navigation Receivables -> Billing



In Manage Transactions Search with Date or Transaction Source


And find for the Invoice using the Reference number i.e. Sales Order Number