Drop Shipment Order Fulfillment Integration in Procurement

When drop shipment order fulfillment (drop ship) is enabled, you can process procurement transactions for drop ship items.

In drop ship orders, the supplier ships goods directly to your company's customer.

Important aspects of drop ship integration in procurement transactions include the following:

How procurement fits into the drop ship order fulfillment flow.
How the drop ship request to purchasing is transmitted.
What drop ship order details are provided in a purchase requisition (requisition).
What drop ship order details are provided in a purchase order (PO).

Procurement Role in Drop Ship

The general flow for the procurement role in drop ship order fulfillment is summarized as follows:

The supply recommendation to meet a drop ship sales order is to purchase the item from a supplier.
Oracle Fusion Cloud Order Management calls the Purchase Request Web Service to send a request to Oracle Fusion Cloud Procurement for a drop ship customer item.
The Purchase Request Web Service accepts the request to create an externally managed requisition for the item.
A PO is generated from the requisition, either automatically or manually.
The PO is communicated to the supplier using the communication method set up for the supplier site.

Drop Ship Details in Requisitions

You can't see the externally managed, drop ship requisition information in Oracle Self Service Procurement. You can see the information in Oracle Purchasing, if the requisition isn't automatically converted into a PO.

You can search for drop ship requisitions requiring manual processing on the Process Requisitions page. Customer Sales Order and Ship-to Party are available for use as search criteria on the Process Requisitions and View Requisition Lines pages. Use the Advanced Search function to add the fields to the search. When you review drop ship requisitions, in addition to the usual requisition information you can also see these details:

Information icon for the requisition line, with display text stating, "Requested goods are to be shipped to a third party." The display text is a link, click it to open the Customer Sales Order dialog.
Item.
Ship-to Party.
Ship-to Location, which displays the customer location from the sales order.
Deliver-to Location, which displays the customer location or other external delivery location from the sales order.
Information icon for the locations, with display text indicating the location is a third-party location.
Customer Sales Order number is displayed as a link. Click it to open a dialog displaying these customer sales order and customer purchase order details:
- Customer Sales Order Line.
- Customer Sales Order Schedule.
- Customer Purchase Order.
- Customer Purchase Order Line.
- Customer Purchase Order Schedule.
- Customer Item.
- Customer Item Description.
- Ship-to Party name, Address and Contact.
- Deliver-to Party name, Address, and Contact if different from the ship-to party.
Destination type is Drop Ship, to distinguish the request from an inventory replenishment request.

Note: Do not manually split requisition lines for externally managed requisitions such as for drop shipments.

Drop Ship Details in Purchase Orders

The drop ship requisition can be converted to a PO, either automatically or manually. You can search for the PO by Customer Sales Order number and Ship-to Party. On the Manage Orders page, Schedules tab, use the Advanced Search function to add the fields to the search. Similar to the requisition, you can see the following drop ship information in the PO:

Information icon for the PO schedule, with display text stating, "Scheduled goods are to be shipped to a third party." The display text is a link. Click it to open the Customer Sales Order dialog.
Item is the customer item.
Ship-to Party.
Ship-to Location, which displays the customer location from the sales order.
Deliver-to Location, which displays the customer location or other external location from the sales order.
Location names are displayed as a link. Click it to open a dialog displaying the Ship-to Party name, Address and Contact information. The Deliver-to Party name, Address and Contact information is also displayed, if different from the ship-to party.
Information icons for the locations, displaying text indicating the location is a third-party location.
Customer Sales Order number is displayed as a link. Click it to open the Customer Sales Order dialog. Information displayed in the dialog is the same information as for the requisition.
Destination type is Drop Ship, to distinguish the order from an inventory replenishment order.

Restricted Changes to Drop Ship Purchase Orders

If the drop ship sales order contains models, kits, or ship sets, then you won't be able to change any of these attributes on the drop ship purchase order:

Supplier and supplier site
Quantity
UOM

Additionally, you can't add new lines, split schedules, or cancel schedules or documents from Oracle Purchasing Cloud. You should initiate these changes from Oracle Order Management Cloud.

You must group all lines that are part of a configured item, kit, or shipment set into a single purchase order. You can't spread them across different purchase orders.

For example, assume your sales order has these order lines:

Sales Order Line	Item	Shipment Set
1	AS54888, Standard Desktop Computer	S1
2	AS9000, Standard Laptop Computer	S1
3	PTO54222, Phone	S1

In the example, all the lines are in the same shipment set, so you must include AS54888, AS9000, and PTO54222 in the same purchase order.

Note: A buyer can use the Purchase Orders work area to release a purchase order hold and freeze initiated by Oracle Order Management, which could result in stuck sales orders. However, you can't release the hold and unfreeze such POs unless you have the Release Purchase Order Hold and Freeze Initiated by Requester privilege.