Set Up a Drop Shipment Validation Organization

The supply planning process uses a special organization called drop shipment organization for drop ship demands and supplies.

Use the drop shipment validation organization to get various item organization attributes, such as lead times and time fences, for drop ship items. You must specify a drop shipment validation organization for each source system that supports drop shipments. Specify the drop shipment validation organization value on the Manage Organizations page in the Maintain Supply Network Model task.

Caution: Supply Planning sources all demands against the drop shipment validation organization with drop shipment planned orders. For this reason, the drop shipment validation organization should not be a standard inventory organization with transactions, as there could be unexpected results.

Use the drop shipment validation organization for the following purposes:

• As the source for organization-item attributes when creating drop shipment planned orders.

• As a proxy for the organization for drop shipment forecasts and manual demands.

• As a proxy for the organization during the collections of drop shipment sales orders and drop shipment history.

Specify the drop shipment validation organization when you generate a forecast or create a manual demand. Drop shipment sales order bookings and shipments history are collected with the drop shipment validation organization when items are shipped from the warehouse. Demand forecasting can create forecasts for the drop shipment validation organization and release the forecasts for planning supplies. The drop shipment validation organization can be the item master for a source system, but it's not required.

The drop ship validation organization can be the item master for a source system, but it's not required.

Note: The drop shipment validation organization must be an item organization. When you set up the drop shipment validation organization, if the item master holds any transactions, create a new drop shipment validation organization.

To set up a drop shipment validation organization:

1. Define an item organization in the Product Information Management work area.

2. Enable the new item organization for collection from the Oracle Fusion source system.

3. Run collections to collect organization entities.

4. Perform the following steps in a Supply Chain Planning work area to complete the drop shipment sourcing setup:

   1. Navigate to a Supply Chain Planning work area.

   2. Click the Tasks panel tab.

   3. In the Tasks panel, click Maintain Supply Network Model.

      Note: You can enable only one organization for each source system as the drop shipment validation organization.

   4. In the Organizations region, select the Drop Ship Validation Organization option.

   You have completed the drop shipment validation organization setup.