Set Up Financial Flows for Drop Ship

Set up your financial flow to create cost accounting distributions that track costs and ownership liability each time a transfer happens between parties, including the supplier, one or more organizations, and the customer.

Oracle Financial Orchestration controls the change in ownership for each item that it processes during a drop ship flow. For example, to transfer ownership from the selling business unit to the requisition business unit. It also creates an intercompany invoice for each internal ownership transfer, when necessary.

You can specify more than one requisition business unit to manage and own more than one transaction that requests the item. You can also specify the selling business unit in the legal entity that sells the item.

Here's how it works.

1. Receive events. Financial Orchestration captures the physical supply chain event each time one happens in the drop ship flow. For example, when the supplier sends the advance shipment notice to indicate that they shipped the item.

2. Identify the financial flow to run. Financial Orchestration uses your set up details to identify the financial flow to use.

   • Purchase order for the drop ship

   • Sales order details that it gets from source documents

   • Selling business unit and buying business unit

   • Financial orchestration qualifiers

   • Priority of the financial orchestration flow

3. Run the financial flow.

The flows that Financial Orchestration runs depends on the number of business units that are involved.

Number of Business Units	Description
One	The selling business unit and the requisition business unit are the same unit, and Financial Orchestration uses only one financial flow for the drop ship.
More than one	Financial Orchestration might run through more than one business unit that involves procurement financial flows and shipment financial flows.

Set it Up

1. Make sure you have the privileges that you need to administer Order Management.

2. Go to the Setup and Maintenance work area, then go to the task.

   • Offering: Manufacturing and Supply Chain Materials Management

   • Functional Area: Supply Chain Financial Flows

   • Task: Manage Drop Ship Financial Flows

3. On the Manage Drop Ship Financial Flows page, in the search results, click Actions > Create.

4. On the Create Drop Ship Financial Flow page, set the values.

   Attribute	Description
   Name	Drop Ship Flow for Vision Operations You can use any text.
   Priority	1

5. Set the attribute.

   Attribute	Description
   Supplier Ownership Change Event	Specify when to start the ownership change. ASN From Supplier. Change ownership when the supplier sends an advance shipment notice (ASN) to the financial flow for the drop ship order. AP Invoice Match. Change ownership when the supplier sends an invoice to the financial flow for the drop ship order. For details, see Indicate an Ownership Change During Drop Ship.

6. In the Selling BU to Receiving BU Relationships area, click Actions > Add Row, then specify the relationship.

   For details, see Specify Business Units for Drop Ship Flows.

7. Repeat these steps for each selling business unit that your enterprise contains.

8. Click Save and Close.