O2C Process and Setups

 

							Order to Cash Cycle
	O2C Process																			O2C Accounting Entries					Source of Accounts
	>> O2C Process starts from once we receive the order from customer and ends when we receive payment from customers																			Entering and booking Sales Order
						This is called as			This is called as				This is called as							No Entry (Since it is internal process)
						Oracle Fusion Order Management (OR)			Oracle Fusion Accounts Receivables (AR)				Oracle Fusion General Ledger (GL)							Pick Release
	This is called as																			Inventory stage Clearing			Debit
	Oracle fusion Inventory																			Inventory Finished Goods			Credit
																				Ship Confirmation
																				Cost of Goods Sold			Debit		Inventory Organisation parameters
																				Inventory Organisation			Credit		Inventory Organisation parameters
																				Ship Execution
																				Differed Cost of goods sold			Debit
																				Stage Clearing Account			Credit
																				While Creating AR Transaction
Receivables Department						*	Sales Dept will receive the order							Common Department						Receivables			Debit		Accounts derived on AR AutoAccounting Rules
*	When we receive the payment						Sales Order (SO)		Receive/Record (SO)					*	This will collect the information					Revenue			Credit		Accounts derived on AR AutoAccounting Rules
	then the receivables dept will					*	Book Sales Order (SO)								from all the departments and					Tax			Credit		Accounts derived on AR AutoAccounting Rules
	record it as Sales Invoice					*	This means that we are giving confirmation								prepare Financial Reports					Freight			Credit		Accounts derived on AR AutoAccounting Rules
*	Whenever the receivables dept						to the customer that we are having the desired													Recognition of Cost of goods sold (COGS)
	receive the payments they will						stock.													Cost of Goods Sold (COGS)			Debit		COGS	workflow
	record the same and it is called as					*	Whenever the goods are moved from subInventory					This is called as								Differed Cost of goods sold (COGS)			Credit		Inventory Org parameters
	Receipt						to staging it is called as Pick Release.					Oracle Fusion Cash Management (CM/CE)								Receipts (Received money from the customer)
						*	So whenever the inventory dept will ship the goods to													Cash Clearing			Debit
							customer location it will communicate to sales dept and					Primary Applications in O2C Process								Receivables			Credit
							the same is called as Ship Confirmation.					*	Oracle Fusion Inventory							Reconcile Receipt in Cash management
						*	When there is a damage in the goods then customer					*	Oracle Fusion Order Management							Cash/Bank			Debit
Cash Department							will return those goods and the same is called as					*	Oracle Fusion Accounts Receivable				Sales Order Statues			Cash Clearing			Credit
*	Bank Statement						Sales Returns.										1	Schedule
*	Bank Account Reconciliation																2	Reserve
*	Receivables dept will share																3	Shipped
	receivables information to cash dept																4	Awaiting Billing
																		In the awaiting billing status we have to run
Customer has placed an order of 100 moblies and the order will be received by sales department. The sales dept will check with inventory whether the stock is avaiable or not. If stock is avaiable then																		"Import AutoInvoice" ESS Job with source called
they will ship the order to the customer				and say for example the inventory dept was having the stock of 1000 moblies then the sales dept have to give the confirmation to the customer														"Distributed Order Orchestration"
Business Flow
Sales Guy creates sales quotation---> this is converted into sales order (SO)---> SO is booked/picked/packed and then shipped---> AR invoice is created---> Revenue is recognized---> AR receipt---> Reconcile receipts in Cash Management
Oracle Fusion Order Management Setups Cycle Order To Cash (O2C)
Setups
1. Add Order Management offering to Implementation Project				Path	Implementation Project >> Add Order Management Offering to Implementation Project
2. Assign Inventory to BU using System options				Task	Manage Receivables System Options
3. Setup Order Management Parameters				Task	Manage Order Management Parameters		*Here Select Item Validation Organisation and select our Business Unit and assign Inventory Organisation to this Business Unit
4. Create Release Sequence Rules (RSR)				Task	Manage Release Sequence Rules		*Here Select Sales Order Radio Button is Ascending
5. Create Pick Slip Grouping Rules				Task	Manage Pick Slip Grouping Rules
6. Define Ship Confirm Rules				Task	Manage Ship Confirm Rules
7. Create Picking Rules				Task	Manage Picking Rules
8. Picking Rule Assignments				Task	Manage Picking Rule Assignments
9. Create Pick Wave Release Rules				Task	Manage Pick Wave Release Rules
10. Create Staging SubInventory (Optional)				Task
11. Configure Shipping Parameters				Task	Manage shipping Parameters
12. Create Collector				Task	Manage Collectors
13. Create Payment Terms				Task	Manage Receivables Payment Terms
14. Create Statement Cycles				Task	Manage Statement Cycles
15. Create Customer Profile Class				Task	Manage Receivables Customer Profile Class
16. Create Customer & Addresses (Site)				Task	Create Customers
17. Setup Customer Account Description				Path	Receivables >> Billing >> Taskpane >> Manage Customers
*Provide Account Description here				Task	Manage Customers
18. Assign Reference Data Set to Business Unit				Task	Manage Business Unit Set Assignment
19. Assign Pricing, Order Management Roles To User				Path	Tools >> Security Console >> Users
20. Provide Data Access For User				Task	Manage Data Access Set Data Access for Users
21. Run LDAP Job				Path	Tools >> Scheduled Processes >> LDAP
Pricing Related Setups
22. Create Price List				Path	Navigator >> Order Management >> Pricing Administration >> Taskpane >> Manage Price Lists
23. Create Pricing Segment (value) (Standard Lookups)				Task	Manage Standard Lookups			Search Lookup Type: ORA_QP_CUST_PRICING_SEGMENTS
24. Create Pricing Strategy				Path	Navigator >> Order Management >> Pricing Administration >> Taskpane >> Manage Pricing Strategies
25. Create Customer Pricing Profile				Task	Navigator >> Order Management >> Pricing Administration >> Taskpane >> Manage Customer Pricing Profiles
26. Create Pricing Segments				Task	Navigator >> Order Management >> Pricing Administration >> Taskpane >> Manage Pricing Segments
27. Create Pricing Strategy Assignment				Task	Navigator >> Order Management >> Pricing Administration >> Taskpane >> Manage Pricing Strategy Assignments
28. Create Carriers(Shipping Methods)				Task	Manage Carriers
29. Create Planning Source System				Task	Navigator >> Supply Chain Planning >> Plan Inputs >> Taskpane >> Manage Planning Source Systems
30. Run "Collect Planning Data"				Path/ESS Job	Navigator >> Supply Chain Planning >> Plan Inputs >> Taskpane >> Collect Planning Data							Task	Collect Planning Data
31. Create Sourcing Rules				Path	Navigator >> Order Management >> Global Order Promising >> Taskpane >> Manage Sourcing Rules
32. Setup Sourcing Assignment Set				Task	Navigator >> Order Management >> Global Order Promising >> Taskpane >> Manage Assignment Sets
33. Set Profile Options : MSP_DEFAULT_ASSIGNMENT_SET				Task
34. Create ATP Rules
35. Run "Collect Planning Data"
36. Run "Refresh and Start the Order Promissing Server"
37. Disable Credit Check for Customer
Process
1. Create Sales Order (SO)							Path	Navigator >> Order Management >> Order Management >> Create Order
2. Validate Sales Order (SO)
3. Book Sales Order (Submit)
4. Pick Release
5. Confirm Pick Release
6. Confirm Shipping (Ship Confirmation)
7. System Interfaces Sales Order (SO) Information to AutoInvoice Interface
8. Import Sales Order Information into AR as AutoInvoice
*	Run "Import AutoInvoice" Programm
Roles
Pricing Related Roles
1	Pricing Administrator
2	Pricing Manager			Assign BU to Roles
3	Pricing Analyst
Order Management Related Roles
1	Order Manager			Assign BU to Roles