7Receiving

This chapter contains the following:

Receiving Parameters

Overview of Implementing Receiving

Oracle Fusion Receiving functionality lets you manage inbound logistics such as receiving, inspecting, and putting away material. You can set up receiving so that your users can manage inbound transactions in the warehouse. Define and maintain setup components for Receiving including receiving parameters, profile options, value sets, and descriptive flexfields.

This table describes the setup tasks in the Define Receiving task list.

Setup Task Required or Conditional Description

Manage Receiving Profile Options

Conditional

Define profile option settings and values to control receiving behavior such as Aging Period for Extended Receipt Settlement.

Manage Receiving Value Sets

Conditional

Create and edit receiving value sets.

Manage Receiving Descriptive Flexfields

Conditional

Define validation and display properties of descriptive flexfields for receiving. Descriptive flexfields are used to add user-defined attributes to entities.

Manage Receiving Parameters

Conditional

Configure receiving parameters to specify default receiving options for the organization.

Here are the steps to access the tasks for your Receiving setup:

  1. In the Setup and Maintenance work area, go to the following:

    • Offering: Manufacturing and Supply Chain Materials Management

    • Functional Area: Receiving

  2. On the Setup: Manufacturing and Supply Chain Materials Management page, select All Tasks from the Show drop-down list.

Common Tasks That You Perform for Receiving

Receiving requires that you perform the following common tasks:

  • Manage Profile Options

  • Manage Value Sets

  • Manage Descriptive Flexfields

These tasks are common to most Oracle applications. For details about how to perform them, see the Oracle SCM Cloud: Implementing Common Features for Oracle SCM Cloud guide.

Receiving parameters define receiving preferences at the organization level. General receiving parameters must be set up before you can use Oracle Fusion Receiving for recording and transacting receipts.

In the Setup and Maintenance work area, use the Manage Receiving Parameters task to set up your general receiving parameters:

  • Offering: Manufacturing and Supply Chain Materials Management

  • Functional Area: Receiving

  • Task: Manage Receiving Parameters

General Receiving Parameters

This table describes the general receiving parameters.

Receiving Parameter Display Name Effect

Ship-to Exception Action

Determines whether the supplier can put away to a receiving location that differs from the ship-to location. Select one of the following options:

  • None: The receiving location may differ from the ship-to location.

  • Reject: No receipts are permitted when the receiving location differs from the ship-to location.

  • Warning: A warning message is displayed, but receipts are permitted when the receiving location differs from the ship-to location.

ASN Control Action

Determines the action if receiving against purchase order shipments for which an advance shipment notice (ASN) exists. Select one of the following options:

  • None: Does not prevent or warn you when you receive against a purchase order shipment for which an ASN exists.

  • Reject: Gives you a message and prevents you from receiving against a purchase order shipment for which an ASN exists.

  • Warning: Gives you a message informing you that an ASN exists for the purchase order shipment. It lets you decide whether or not to receive against the purchase order shipment or its ASN.

Early Receipt Tolerance in Days

Sets the maximum acceptable days early for a receipt.

Late Receipt Tolerance in Days

Sets the maximum acceptable days late for a receipt.

Receipt Days Exceed Action

Determines the action for when receipts are earlier or later than the allowed number of days. Select one of the following options:

  • None: Receipts may exceed the allowed days early or late.

  • Reject: Rejects receipts when the receive date is outside the range defined by the early and late receipt tolerances.

  • Warning: Displays a warning message, but permits receipts outside the selected number of days early or late.

Over-Receipt Action

Determines how the application handles receipts that exceed the received quantity tolerance. Select one of the following options:

  • None: Receipts may exceed the selected tolerance. No over-receipt tolerance is enforced.

  • Reject: Rejects receipts that exceed the selected tolerance. You receive an error message and cannot receive quantities that exceed the order quantity by more than the over-receipt tolerance percent.

  • Warning: Receipts may exceed the selected tolerance with a warning. A warning message appears if you accept receipts over the quantity determined by the over-receipt tolerance percent. The application does perform the receipt.

Note: You can also set up quantity tolerances for the item at the purchase order level during purchase order creation. If tolerances are set up at both the purchase order level and the organization level, the tolerance settings at the purchase order level override the tolerance settings at the organization level.

Over-Receipt Tolerance

Enter the percentage of quantity that can be received in excess of the order quantity.

Receipt Routing

Sets the default receipt routing that you assign goods. You can override this option at receipt time by changing the destination type for specific suppliers, items, and orders if the Allow Routing Override user profile is enabled. Select one of the following options:

  • Direct Delivery: Receive shipments and put away to a specific location in one transaction.

  • Standard Receipt: Receive shipments and put away items in a separate transaction.

  • Inspection Required: Requires quality assurance inspection after receipt and before put away.

Use quality inspection plan

If enabled, allows inspection through a quality inspection plan using the Quality Inspection pages.

Allow substitute receipts

If enabled, allows the receipt of defined substitutes in place of ordered items. You must define substitute items on the Item Relationships page before you can receive them. You can override this option for specific suppliers, items, and orders.

Allow unordered receipts

If enabled, allows receipt of an item without documentation. If you select this option, you can later match the unordered receipt to the appropriate document number. If you enable this option, you can override it for specific suppliers and items.

Enforce blind receiving

If enabled, the quantity due or quantity ordered for each shipment is not visible on the receipt. Blind receiving helps you ensure that receivers record the exact amount they receive. Oracle Fusion Receiving ignores all quantity receipt tolerances to help ensure that you can receive the exact amount that the supplier shipped.

Print receipt traveler

If enabled, allows automatic printing of summary reports of receipt performance.

Include closed purchase orders for receipts

If enabled, allows receiving of closed purchase orders.

Allow routing override

If enabled, allows overriding the receipt routing at receipt time. You can override this option at receipt time by changing the destination type for specific suppliers, items, and orders.

Process all lines together

If enabled, ensures that individual lines are processed if all expected lines do not arrive.

Print shipping documents for returns to suppliers

If enabled, requires the printing of shipping documents for return to supplier transactions. This calls a two-step return process in which you create the return to supplier transaction in Oracle Fusion Receiving and then the shipping agent must ship confirm the return shipment in Oracle Fusion Shipping.

Print shipping documents for drop ship orders

If enabled, requires the printing of shipping documents for drop ship orders. This option creates the shipments for drop ship orders after the supplier creates the ASN for the drop ship order.

Print shipping documents for return material authorizations

If enabled, requires the printing of shipping documents for return material authorizations. This option creates the shipments for return material authorization orders after RMAs are created in Oracle Fusion Order Management.

Publish transactional business events

If enabled, allows the publishing of all transactional events such as receipt, put away, correction, and return. Events are published at all times, even without internal integration needs.

Receiving parameters define receiving preferences at the organization level. Receipt number receiving parameters must be set up before you can use Oracle Fusion Receiving for recording and transacting receipts.

In the Setup and Maintenance work area, use the Manage Receiving Parameters task to set up your receipt number receiving parameters:

  • Offering: Manufacturing and Supply Chain Materials Management

  • Functional Area: Receiving

  • Task: Manage Receiving Parameters

Receipt Number Receiving Parameters

This table describes the receipt number receiving parameters.

Receiving Parameter Display Name Effect

Generation

Defines the receipt number generation method for receipt numbers. Choices include Automatic and Manual.

Type

Defines the receipt number type that you want to use for receipt numbers. Options include Numeric or Alphanumeric. If you select the manual receipt number generation option, you can select numeric or alphanumeric numbers. You can change the receipt number type from numeric to alphanumeric at any time. You can change the receipt number type from alphanumeric to numeric only if all of your current receipt numbers are numeric.

Note: These notes apply to the receipt number type:
  • If you select automatic receipt number generation, you can generate only numeric receipt numbers, but you can still import either numeric or alphanumeric values from another application.

  • If you have any alphanumeric documents in your application, you must select the alphanumeric option as your number type, regardless of your numbering method.

  • The ordering of numeric values in lists of values can appear random when you use the alphanumeric number type. If you are using alphanumeric numbering, consider entering all numeric values with the same number of digits. For example, if you can assume all numeric values contain six digits, you should enter the first value as 000001.

Next Number

Sets the starting value that you want to use for generating unique sequential receipt numbers if you select the automatic receipt number generation method. The application displays the next receipt number that will be used for a new receipt creation. You cannot enter this field if you select the manual receipt generation method.

Receiving parameters define receiving preferences at the organization level. Receiving parameters for return material authorizations (RMAs) must be set up before you can use Oracle Fusion Receiving for recording and transacting receipts.

In the Setup and Maintenance work area, use the Manage Receiving Parameters task to set up your RMA receiving parameters:

  • Offering: Manufacturing and Supply Chain Materials Management

  • Functional Area: Receiving

  • Task: Manage Receiving Parameters

RMA Receiving Parameters

This table describes the RMA receiving parameters.

Receiving Parameter Display Name Effect

Receipt Routing

Defines the default RMA receipt routing that you assign goods. Choices include Direct Delivery, Standard Receipt, or Inspection Required.

RMA Validate Lots

Determines restriction level for RMA. Choices include:

  • Restricted: Enter lot numbers that are mentioned on the RMA. If you enter lot numbers that are different than those on the RMA, the application displays an error message.

  • Restricted with warning: Enter lot numbers that are mentioned on the RMA. If you enter lot numbers that are different than those on the RMA, the application displays a warning message.

  • Unrestricted: Enter any lot number.

Validate Serial Numbers

If enabled, restricts the list of serial numbers displayed for an RMA line to valid serial numbers only.

We use fiscal documents for Brazil inventory organizations to document trade between suppliers and customers. The fiscal document serves as a bill of lading to detail the quantity of items transported from the supplier to the customer. It also serves as a proxy invoice from the supplier that documents the material costs, supplier charges, and taxes payable by the customer.

To support the fiscal document, Brazil organizations have several receiving parameters set by default. This table shows the receiving parameters that are set by default.

Parameter Setting

Receipt Routing

Automatically set to Standard receipt. You can update this option at receipt time to Inspection Required or Direct Delivery if the Allow Receipt Routing user profile is enabled.

In the Setup and Maintenance work area, use the following to enable this option:

  • Offering: Manufacturing and Supply Chain Materials Management

  • Functional Area: Receiving

  • Task: Manage Receiving Parameters

Allow unordered receipts

Not selected. You cannot change this option.

Print shipping documents for returns to suppliers

Automatically selected. You cannot change this option.

Receiving determines whether or not an organization is a Brazil organization by checking if the Fiscal Document Generation feature is enabled for a billing business unit. If the Fiscal Document Generation feature is enabled for an organization, it's implied that the organization is a Brazil inventory organization.

For more information about Brazil fiscal documents, see the Oracle SCM Cloud: Using Fiscal Document Capture guide.

Use these scenarios to understand how early and late receipt tolerances work for receiving items.

Receiving with an Early Receipt Tolerance

You enter 3 days as the early receipt tolerance. The promise date is Friday. Therefore, you can receive the item on Tuesday.

You enter 3 days as the early receipt tolerance. You set the Receipt Days Exceed Action parameter to None. You try to receive a receipt 5 days before the promise date. The application lets you receive the receipt because no receipt date action is enforced.

You enter 3 days as the early receipt tolerance. You set the Receipt Days Exceed Action parameter to Reject. You try to receive a receipt 5 days before the promise date, and the application rejects the receipt and displays an error.

You enter 3 days as the early receipt tolerance. You set the Receipt Days Exceed Action parameter to Warning. You try to receive a receipt 5 days before the promise date. You receive a warning message, but you are permitted to receive the receipt.

Note: Oracle Fusion Receiving uses regular calendar days (including weekends and holidays) in this calculation. If the promise date does not exist, the application uses the need-by date.

Receiving with a Late Receipt Tolerance

You enter 2 days as the late receipt tolerance. The promise date is a Monday. Therefore, you can receive the item on Wednesday.

You enter 2 days as the late receipt tolerance. You set the Receipt Days Exceed Action parameter to None. You try to receive a receipt 5 days after the promise date. The application lets you receive the receipt because no receipt date action is enforced.

You enter 2 days as the late receipt tolerance. You set the Receipt Days Exceed Action parameter to Reject. You try to receive a receipt 5 days after the promise date, and the application rejects the receipt and displays an error.

You enter 2 days as the late receipt tolerance. You set the Receipt Days Exceed Action parameter to Warning. You try to receive a receipt 5 days after the promise date. You receive a warning message, but you are permitted to receive the receipt.

Note: Oracle Fusion Receiving uses regular calendar days (including weekends and holidays) in this calculation. If the promise date does not exist, the application uses the need-by date.

Print Shipping Documents

You can select whether or not you want to print shipping documents for your customer returns. To print shipping documents for RMAs (return material authorizations), select the Print shipping documents for return material authorizations option on the Manage Receiving Parameters page.

To set access to the Manage Receiving Parameters page, in the Setup and Maintenance work area, use the Manage Receiving Parameters task:

  • Offering: Manufacturing and Supply Chain Materials Management

  • Functional Area: Receiving

  • Task: Manage Receiving Parameters

Note: The Print shipping documents for return material authorizations option is a onetime setup step for your organization. You don't set this up per transaction.

Print Shipping Documents

If shipping documents are required, your organization may select the Print shipping documents for return material authorizations option on the Manage Receiving Parameters page. For example, this can happen when your customer returns an item through a RMA (return material authorization). The return transaction is then completed in two steps as follows:

  1. Creation of a shipment upon receipt of the RMA in Oracle Fusion Receiving.

    Shipment lines are created for each item on the RMA order.

  2. Confirmation of the shipment in Oracle Fusion Shipping upon put away of the receipt in Receiving.

    This leads to the closure of the shipment. You can now generate shipping documents for the RMA order based on the shipment number.

Not Printing Shipping Documents

If shipping documents aren't required, don't select the Print shipping documents for return material authorizations option on the Manage Receiving Parameters page. Your customer return is completed in one step and you don't have to confirm the shipment in Shipping.

Critical Choices for Printing Shipping Documents for Drop Ship Orders

You can select whether or not you want to print shipping documents for drop ship orders. To print shipping documents for these transactions, select the Print shipping documents for drop ship orders option on the Manage Receiving Parameters page.

In the Setup and Maintenance work area, use the following:

  • Offering: Manufacturing and Supply Chain Materials Management

  • Functional Area: Receiving

  • Task: Manage Receiving Parameters

Note: The Print shipping documents for drop ship orders option is a one-time setup step for your organization. You do not set this up per transaction.

Print Shipping Documents

If shipping documents are required for your drop ship orders, then your organization selects the Print shipping documents for drop ship orders option on the Manage Receiving Parameters page. For example, you might select this option when the supplier for your organization creates an advance shipment notice (ASN) for the drop ship order. This option is a one-time setup step for your organization and can't be changed for individual transactions. The drop ship order is then completed in two steps as follows:

  1. Creation of the ASN by the supplier in the Supplier Portal. Alternatively, a warehouse manager can enter an ASN by clicking the Create ASN task from the task panel of the Inventory Management work area.

  2. Confirmation of the shipment by the shipping manager for the drop ship order. This confirmation leads to the closure of the shipment and creation of the shipping documents.

Note: The shipping paperwork for a drop shop order is similar to that of a regular sales order.

Not Printing Shipping Documents

If shipping documents are not required, do not select the Print documents for drop ship orders option on the Manage Receiving Parameters page. Your drop ship order is completed in one step and you don't have to confirm the shipment

You can select whether or not you want to print shipping documents for your return to supplier transactions. To print shipping documents for these transactions, select the Print Shipping Documents for Returns to Suppliers option on the Manage Receiving Parameters page.

To set access to the Manage Receiving Parameters page, in the Setup and Maintenance work area, use the Manage Receiving Parameters task:

  • Offering: Manufacturing and Supply Chain Materials Management

  • Functional Area: Receiving

  • Task: Manage Receiving Parameters

Note: The Print Shipping Documents for Returns to Suppliers option is a one time setup step for your organization. You don't set this up per transaction.

Print Shipping Documents

If shipping documents are required, or if several people are involved in the process to ship the product back to the supplier then your organization may select the Print Shipping Documents for Returns to Suppliers option on the Manage Receiving Parameters page. For example, this can happen when your organization's customers return the item to your organization, and then you must return the items to the supplier. This is a one time setup step for your organization and it can't be changed for individual transactions. The return to supplier transaction is then completed in two steps as follows:

  1. Creation of the return to supplier transactions in Oracle Fusion Receiving.

  2. Confirmation of the return to supplier shipment in Oracle Fusion Shipping. This leads to the closure of the shipment and creation of the shipping documents.

Not Printing Shipping Documents

If shipping documents aren't required, don't select the Print Shipping Documents for Returns to Suppliers option on the Manage Receiving Parameters page. Your return to supplier transaction is completed in one step and you don't have to confirm the shipment in Shipping.

When you need to return items to the supplier, you may choose to print shipping documents for transporting the returned items back to the supplier. Returns may be needed when a customer rejects an item from their received shipment, a defect is found internally, and so forth. To print shipping documents for the return, follow the two-step return process that starts in Oracle Fusion Receiving and continues through to Oracle Fusion Shipping.

Settings That Affect Return to Supplier Transactions

To print shipping documents for your return to supplier transactions select the Print Shipping Documents for Returns to Suppliers option on the Manage Receiving Parameters page.

Note: The Print Shipping Documents for Returns to Suppliers option is a one-time setup step for your organization. You do not set this up per transaction.

How Return to Supplier Transactions Are Processed

Return to supplier transactions are processed in two steps:

  1. Create the return to supplier transaction in Oracle Fusion Receiving.

    The receiving agent has an offline interaction with the supplier to obtain the return material authorization number for the return. Then, the receiving agent creates the return to supplier transaction by providing details such as the returned quantity and return material authorization (RMA) number. Finally, the receiving agent submits the transaction for processing and the transaction moves to Shipping.

  2. Create and confirm the return to supplier shipments in Oracle Fusion Shipping.

    Shipping treats the items on the return to supplier transaction as a noninventory shipment and stages the items without creating a shipment. Noninventory shipments do not generate inventory transactions or affect on-hand balances. Therefore, the application skips actions such as backorder, cycle count, pick release, and record serials, since these actions are not applicable to noninventory shipments. The shipping manager searches for the return transactions, assigns the return to supplier lines to shipments, and performs ship confirm. Upon ship confirm, Shipping generates the shipping documents for the customer, and creates and sends the automatic shipment notices (ASNs) automatically to the supplier.

Corrections to Return to Supplier Transactions With Shipping Documents

You can make corrections to return to supplier transactions. The corrections are reflected on shipping documents up until the returned products are shipped within the Shipping application. If you make corrections after the products are shipped, the changes are still accepted in Receiving. Receiving maintains automated interfaces with Oracle Fusion Payables, Oracle Fusion Cost Management, and Oracle Fusion Purchasing to share the corrected quantity information The table explains when changes are allowed within the Shipping application based on the type of correction to the return to supplier transaction and the associated shipment status.

Action Status of Shipment in Shipping Shipping Response

The return to supplier transaction sends an update with an increase in quantity.

Shipped

An increase in the quantity is accepted at the end of shipping and a new delivery line is created.

The return to supplier transaction sends an update with an increase in quantity.

Not shipped

Updates are accepted in Shipping.

The return to supplier transaction sends an update with an increase in quantity.

Partially shipped

Updates are accepted in Shipping for the unshipped lines. Updates for the lines already shipped are not accepted.

The return to supplier transaction sends an update with a decrease in quantity.

Shipped

No updates are accepted in Shipping.

The return to supplier transaction sends an update with a decrease in quantity.

Not shipped

Updates are accepted in Shipping.

The return to supplier transaction sends an update with a decrease in quantity.

Partially shipped

Updates are accepted in Shipping for the unshipped lines. Updates for the lines already shipped are not accepted.

The return to supplier transaction sends an update that reduces the quantity to zero.

Shipped

No updates are accepted in Shipping.

The return to supplier transaction sends an update that reduces the quantity to zero.

Not shipped

Shipping accepts the change, but setting the quantity to zero cancels the shipment in Shipping.

The return to supplier transaction sends an update that reduces the quantity to zero.

Partially shipped

Updates are accepted in Shipping for the unshipped lines. Other lines are not accepted because that part of shipment is canceled.

The return to supplier transaction makes further updates after setting the quantity to zero.

Canceled

You cannot make further updates to a transaction that is already canceled. You must create a new return to supplier transaction.

Example

When your organization's customer initiates a return, they return the item to your organization. Your organization must then send the items back to the outsourced manufacturer or supplier. Therefore, instead of your customers returning the items directly to the suppliers, your customer's items are routed through your organization to your organization's suppliers. In this instance, you must create shipping documents for transporting the items back to the suppliers.

Integrate with 3PL and Warehouse Management Systems

Third-Party Logistics and Warehouse Management Systems

A third-party logistics (3PL) provider typically specializes in integrated operation, warehousing, and transportation services that can be scaled and configured to customer need based on market conditions. A warehouse management system (WMS) is a software application designed to support warehouse or distribution center management and staff. This application facilitates management of available resources to move and store materials into, within, and out of a warehouse, while supporting staff in material movement and storage.

Oracle Fusion Applications provide a central integration framework that coordinates communication with a 3PL system or WMS to support purchase order receipts, returns to suppliers, internal material transfers, inventory transactions, and sales order shipments. Using Simple Object Access Protocol (SOAP)-based web services, Oracle Fusion Inventory Management communicates receiving advice and shipment requests to a 3PL provider or external WMS for processing. After completion of processing in the 3PL system or WMS, Inventory Management accepts receipt confirmations, shipment confirmations, and inventory transactions from the 3PL system or WMS.

Overview of Inventory Management Integration with 3PL and Warehouse Management Systems

Oracle Fusion Inventory Management supports a central integration framework for working with third-party logistics (3PL) providers and warehouse management systems (WMS). The inventory management suite of products include Oracle Fusion Receiving, Oracle Fusion Inventory Management, and Oracle Fusion Shipping.

The following figure illustrates how Inventory Management integrates with 3PL and WMS systems. The subsections following the figure provide more detail for this integration.

High-level overview of Inventory Management integration
with 3PL and WMS systems

Receiving Integration

Receiving integration addresses the following points:

  • Sends a receipt advice to the WMS for the various documents, such as purchase order (POs), advanced shipment notices (ASNs), and return material authorizations (RMAs).

  • Receives and processes receipt confirmations to acknowledge the receipt of material, updates the source documents and on-hand details for quantities and other related information, such as lots, serials, and external packing units, and the return of rejected material.

Shipping Integration

Shipping integration addresses the following points:

  • Sends the shipment requests to the WMS for the various documents, such as sales orders and transfer orders.

  • Receives and processes shipment confirmations to acknowledge the shipment of material and updates the source documents.

  • Updates the on-hand details for quantities and other related information, such as lots and serials and splitting of the unfulfilled portions.

Inventory Management Integration

Inventory Management integration addresses the following points:

  • Receives and processes various inventory transactions that can happen within a WMS that might affect the material location and on-hand details. Such inventory transactions include adjustments, miscellaneous receipts and issues, and transfers.

  • Receives and processes inventory balance updates for solving inventory reconciliation challenges.

Inventory Management Integration with 3PL and Warehouse Management Systems Process Flow

Oracle Fusion Inventory Management integration with third-party logistics (3PL) and warehouse management systems (WMS) provides you the ability to outsource part or all of your supply chain management functions.

Using this integration, you can:

  • Improve customer service by minimizing total delivery time and costs using a 3PL provider

  • Improve visibility to expected shipment and receipt detail to better plan import and customs clearance by way of web service payloads

  • Accept returns from your customers with authorization from the manufacturer by way of receipt advices

  • Maintain tighter controls between Inventory Management and the execution system for greater transparency for 3PL or WMS activities

  • Monitor inventory accuracy

The following figure shows a high-level overview of this integration process flow. Details of this flow are provided following the figure.

Inventory Management integration with 3PL and WMS
systems process flow, diagram of

The web service Send Receipt Advice, available by way of Oracle Fusion Receiving, enables Inventory Management to communicate expected shipment lines sent to and received by a 3PL system or WMS. Then, the 3PL system or WMS, by way of the Receive Receipt Confirmation web service in Receiving, communicates confirmation and receipt details of the expected shipment lines.

The web service Material Shipment Line, available by way of the GenerateShipmentRequest operation in Oracle Fusion Shipping, enables inventory management users to send shipment requests to a 3PL system or WMS. The 3PL system or WMS can accept and confirm the shipment requests by way of the CreateandConfirm operation on the Material Shipment web service in Shipping.

Also, within Shipping, you can use the tasks in the Inventory Management work area in the Manufacturing and Supply Chain Materials Management offering so that you can send a shipment request directly from the Inventory Management work area. Additionally, when shipment confirmation errors occur from the 3PL system or WMS, you can select a task in the Inventory Management work area to view the error in a spreadsheet, correct the error, and reprocess the shipment. This action brings the confirmation details into the shipping tables.

The web service Inventory Transaction Manager enables you to receive material transaction updates made by the 3PL system or WMS to keep on-hand balances synchronized with Inventory Management.

Supported Roles for Inventory Management Integration with 3PL and WMS Systems

The features for Inventory Management integration with 3PL and WMS systems are predefined, and you can access them through the following existing job roles:

  • Warehouse manager

  • Receiving and inspection manager

  • Shipping manager

The users roles associated with this feature are:

  • Warehouse operator

  • Receiving agent

  • Shipping agent

Implementation Decision Points and Setup Best Practices for 3PL and Warehouse Management Systems Integration

Oracle provides services required to integrate Oracle Fusion Inventory Management, Oracle Fusion Receiving, and Oracle Fusion Shipping to a third-party logistics (3PL) provider or external warehouse management system (WMS). These product areas work together cohesively to support transfer orders, inventory transactions, reconciliation of inventory balances, and so forth.

Decision Points

Before implementing your external systems integration, consider the following points.

  • If you plan to receive material using a 3PL provider or WMS, then use the predefined scheduled processes to generate a receipt advice.

  • If you plan to ship material using a 3PL provider or WMS, then use the predefined scheduled processes to generate shipment requests.

Setup Best Practices

The following setup best practices are recommended before integrating with external systems.

  • Use a 3PL provider or WMS at the inventory organization level. By representing the 3PL provider or WMS as an inventory organization, virtual tracking and visibility of inventory at the 3PL or WMS location is available to users in real time.

  • For simplicity, set up a receiving subinventory and one subinventory for each material status used in the implementation of Oracle Fusion Inventory Management. For example, you might set up subinventories for receiving, quality assurance, rejected, and available inventory.

  • Use security rules to control access to transactions performed in the 3PL or WMS organization.

Additional Considerations

Keep in mind the following additional considerations when planning your 3PL or WMS implementation.

  • Don't track locator and packing unit information because this data isn't tracked in Inventory Management.

  • Process inventory transactions only when the item status has changed or the item is received into or issued out of Inventory Management. For example, when a third party performs material transactions within locations or packing units at their facility, these transactions aren't tracked in Inventory Management.

  • Track inventory transactions for lot and serialized items in Inventory Management. This tracking is a requirement when lot and serialized items are issued out of inventory to support install base and product genealogy.

Receipt Advice and Receipt Confirmation Processes for External Systems Integration

This topic describes the receipt advice and receipt confirmation integration flow between Oracle Fusion Inventory Management and external systems, such as third-party logistics (3PL) and warehouse management systems (WMS).

Inventory Management communicates receipt advices to the 3PL system or WMS for processing. After completion of the processing in the 3PL system or WMS, Inventory Management accepts the receipt confirmations from the 3PL system or WMS.

For receiving, the web service Send Receipt Advice enables Inventory Management to communicate expected shipment lines to be received by a 3PL system or WMS. Then the Receive Receipt Confirmation service enables the 3PL system or WMS to communicate confirmation and receipt details of the expected shipment lines that were communicated with the Send Receipt Advice web service.

The following figure shows this flow.

Receipt advice and receipt confirmation process
flow for 3PL and WMS integration

Explanation of callouts:

  1. The scheduled process Generate Receipt Advice publishes an event to notify the 3PL system or WMS that receipt advices are ready to be interfaced. The web service Send Receipt Advice provides the ability for the 3PL system or WMS to receive the actual receipt advices with the expected shipment lines for purchase orders (POs), transfer orders, and return material authorizations (RMAs).

  2. After the 3PL system or WMS receives the receipt advices, the 3PL system or WMS performs receiving-related processes including receiving, inspection, and put away.

  3. The web service Receive Receipt Confirmation is initiated, and receipt confirmation is sent to Inventory Management. This web service provides the ability for the 3PL system or WMS to send the material and receiving details for the expected shipment lines received. This service also interprets and transforms the message, and creates the necessary records in Inventory Management. These records carry all the reference information from the external system to easily identify them for performing any future returns or corrections.

  4. Inventory Management validates and processes the receiving transactions by processing the receipt confirmation messages and by updating the release status and integration status.

You can use the scheduled process Manage Receiving Transactions to automatically validate and process the transactions received. If an error occurs while processing the transactions, you can review and correct pending and error transactions using the Review Receipts Interface task in the Inventory Management work area, and resubmit the transactions for processing. When the transactions have successfully processed, the associated document is updated accordingly. For example, the status on an associated purchase order document is updated to Closed for Receiving.

You can use the scheduled process Generate Changed Receipt Advice to manage changes. For example, if there was a change to a purchase order line that was already interfaced but not confirmed, the service sends a changed receipt advice to communicate the associated change to the 3PL system or WMS.

You can use the Receive Expected Shipments page in the Inventory Management work area in the Manufacturing and Supply Chain Materials Management offering to perform receiving of expected shipment lines to record various details, such as integration status. Integration status values include Ready to Interface, Interfaced, and Confirmed.

.

Shipment Request and Shipment Confirmation Processes for External Systems Integration

This topic describes the shipment request and shipment confirmation flows between Oracle Fusion Inventory Management and external systems, such as third-party logistics (3PL) and warehouse management systems (WMS).

The following figure shows this flow.

Shipment request and shipment confirmation processes
for external systems integration

Explanation of callouts:

  1. The outbound shipment request integration process between Oracle Fusion Inventory Management and a 3PL system or WMS starts with a shipment request. The scheduled process Generate Shipment Request enables inventory management users to manually send shipment lines to the 3PL system or WMS using the task Create Outbound Shipment request in the Shipping UI, or they can automate the process using a scheduled process. The shipment request service Material Shipment Line uses the existing pick wave release rules to provide the criteria for selecting the shipment lines.

    Alternatively, the 3PL system or WMS can initiate the shipment request service voluntarily at specified intervals to retrieve shipment requests from Inventory Management.

  2. After the 3PL system or WMS receives the shipment request, the pick, pack, and ship processes are performed.

  3. The web service Material Shipment, when initiated with the required input, receives and processes the shipment confirmation messages. This service interprets and transforms the message, and creates the necessary records in the shipping open interface tables. This transformation provides the mechanism for the 3PL system or WMS to send the material and shipping details for the shipment lines fulfilled.

The scheduled process Perform Shipping Transactions processes the pending transaction records received into the open interface tables. The process validates the data on the transaction records received from the 3PL system or WMS before processing them. Any errors from the validation step are recorded, and the transaction records remain in the open interface tables. The interface records with errors are available for users to view, edit, or resolve the errors, or reprocess.

In the event an error occurs while processing the shipment confirmation messages, users can access the Manage Shipping Transaction Corrections in Spreadsheet task to manage pending transactions by way of a spreadsheet interface using Application Development Framework Desktop Integration (ADFdi) technology. This interface supports management of interface transactions and corresponding errors related to shipment confirmations received from 3PL system and WMS. You can access this task in the Inventory Management work area of the Manufacturing and Supply Chain Materials Management offering.

After the shipment lines are successfully confirmed, the integration status and shipment status are updated accordingly.

Inventory Transaction Processes for External System Integration

All internal material transactions that occur within a third-party logistics (3PL) or warehouse management system (WMS) must be integrated appropriately to keep the inventory picture accurate in Oracle Fusion Inventory Management.

You can use the web service Transaction Manager to maintain inventory accuracy in Inventory Management with the 3PL system or WMS for the following:

  • Miscellaneous account alias issues and receipts

  • Subinventory transfers

  • Interorganization transfers

  • Cycle count adjustments

  • Physical inventory adjustments

  • Material status updates

This service inserts data into the applicable transaction interface tables and calls the transaction manager to process the rows that are ready for processing. If the transaction manager completes successfully, you can view the completed transaction on the Review Completed Transactions page. If the transaction processing fails, you can view the error details as well as transaction data on the Manage Pending Transaction page. From this page, you can correct the data and resubmit to the manager for reprocessing. You can access these pages in the Inventory Management work area in the Manufacturing and Supply Chain Materials Management offering.

Inventory Balances Integration with External Systems

Using Oracle Fusion Inventory Management's inventory balances integration capabilities, you can outsource warehousing and manufacturing processes to efficiently lower costs, service local markets, reduce cycle times, and so on.

A central integration framework across Oracle Purchasing Cloud, Oracle Fusion Order Management, and Inventory Management tracks interactions between the various external systems. You can receive inventory balance details from external systems, such as third-party logistics providers, warehouse management systems, or contract manufacturers and use this information to reconcile inventory balances. Inventory on-hand details can include subinventory, locator, lot, serial number, and external packing unit.

The inventory balances integration feature enables you to:

  • Use the Inventory Balance Transactions service to post inventory balance messages from an external system

  • Import inventory balance messages in bulk using a SaaS spreadsheet

  • Enable users to resolve any processing exceptions

  • Purge inventory balance messages periodically

Note: This feature is automatically available and is included with the shipped job roles (warehouse manager and inventory manager).

Use the following processes and task to interface with external systems to improve tracking and visibility across your supply chain, including partners:

  • Manage Inventory Balances Processes

  • Manage Inventory Balance Messages in Spreadsheet (ADFdi)

  • Manage Inventory Transaction Process

  • Purge Inventory Balance Messages Process

Manage Inventory Balances Process

This scheduled process processes the imported inventory balance messages in the interface tables.

Manage Inventory Balance Messages in Spreadsheet (ADFdi)

Use this task, in the Inventory Management work area in the Manufacturing and Supply Chain Materials Management offering, to review and resolve any exceptions while processing the inventory balance messages.

Manage Inventory Transaction Process

This scheduled process processes the necessary adjustment transactions to reconcile the inventory balances.

Purge Inventory Balance Messages Process

Use this scheduled process to purge the historical balance inventory messages collected over time in the interface tables. Using the processing status parameter, you can purge error, successful, or all messages between a date range.

FAQs for Integrating with 3PL and Warehouse Mangement Systems

Can I synchronize master data with third-party logistics or warehouse management systems?

Yes. Oracle Fusion Product Hub, Oracle Fusion Purchasing, and the Oracle Sales Cloud integration solutions work together to provide integration capabilities to support automated integration for items, suppliers, and customers.

Self-Service Receipts

Enable Self-Service Receiving on the Behalf of Others

You can create receipts for requisitions when you're not the requester or preparer.

To enable users to create self-service receipts on the behalf of others, complete these steps:

  1. Click Navigator > Tools > Security Console.

  2. Click the Create Role button.

  3. Enter a value for the Role Name.

    For example, enter Self Service Receiving All Requisitions.

  4. Enter a value for the Role Code.

    For example, enter SELF_SERVICE_RECEIVING_ALL_JOB.

  5. Select SCM Job Roles as the Role Category.

  6. Enter the Role Description.

    For example, enter Job role to receive self-service receipts for all procurement requesters.

  7. Click Next.

  8. Click Add Function Security Policy.

  9. Add Function Security Policy:

    • Function Security Policy: Create Self-Service All Requisition Receiving Receipt

    • Description: Allows creation of self-service receipts by any other person apart from the requisition requester or preparer

  10. Click the Add Privilege to Role button.

  11. Click Next.

  12. On the User's Step, click the Add User button.

  13. Select the appropriate user to add to the newly created job role.

  14. Click the Add User to Role button.

  15. Click the Save and Close button on the last step of the process.