Drop Ship Items That Use Dual Units of Measure

Set up Oracle Order Management so your supplier can drop ship a sales order to your customer and invoice it according to the primary quantity or the secondary quantity that your supplier ships on the order line.

As an option, create a blanket purchase agreement (BPA) to procure the item from your supplier at a predefined price, then price it according to the secondary measure:

• Set the Supplier attribute on the Create Agreement dialog when you create the agreement.

• If the blanket purchase agreement exists, then Oracle Purchasing automatically creates a purchase order for the sales order, and sets the quantity and unit of measure on the Blanket Purchase Agreement page according to the item's primary measure regardless of the order line's measure.

If you capture the actual quantity that your fulfillment system ships in the secondary measure, then Order Management will automatically adjust the extended amount on the order line. For example, if you drop ship the item, then you can use the Advance Shipment Notice (ASN) from your supplier to determine the quantity that your supplier shipped in the secondary measure, then automatically adjust the extended amount on the order line.

Note

• You can't use AP Invoice with dual measures. You must use an Advance Shipment Notice as the event that starts the transfer of ownership.

• If you use AP Invoice, and if the flow creates the invoice, then you can't revise or cancel the order line.