Once proof of shipment for drop-shipped orders has been received from the vendor, use Oracle Purchasing to enter a receipt. Proof of shipment can be manual, such as a fax or phone call, or by ASN (advance shipment notice) through EDI Gateway. Items are received into the receiving location of the receiving organization against the PO related to the drop-ship. Upon receipt, the drop-ship sales order line status will be updated to either Partial or Confirmed, depending on whether the received quantity is the same as the ordered quantity. If it is under received, the status will be Partial. If it is completely received, the status will be Confirmed. Oracle Order Entry does not handle over shipment, so if more product is shipped than ordered, the situation must be handled manually. Manual invoices can be created to bill the surplus quantity—or, you can ask the customer to return the surplus.
When the status of the purchase release becomes Partial or Confirmed, your drop-shipment order lines are ready for invoicing and the cycle action Receivables interface—which pushes the order/return information towards Oracle Receivables—has an Eligible result. The Receivables interface program can be run manually from Order Entry, or you can set it to run at particular intervals or at a certain time of the day. Follow the navigation path Orders, Returns : Receivables Interface. This program should be run at least once prior to running auto invoice, which is run in Oracle Receivables to create the actual invoices. If the Receivables interface is not run in Oracle Order Entry, then no invoices of source Order Entry will be picked up when auto invoice is run in Oracle Receivables. The Receivables interface works the exact same way for drop-ship orders as it does for regular orders.
Once the Receivables interface is completed, your drop-shipment order information can be closed. It should have reached the following order cycle action and result: Complete Order and Eligible at the order level, and Complete Line and Eligible at the line level. All order cycles must be set up correctly, and all lines must be completed and closed out or the order will not complete or close.
You can run the Close Orders program manually from Oracle Order Entry, or it can be set to run at particular intervals or at a certain time of the day. Follow the function patch Orders, Returns : Close Orders. The Close Orders program speeds up the various forms and greatly reduces printed lines on some standard Oracle reports by closing the ready to be closed open orders/lines. However, if all lines and the order/return are closed, then you cannot add items or make any changes.