Phase Sales order line source

Back to back Sales order line ORDER SOURCE should be internal

Drop shipment Sales order line ORDER SOURCE should be External

Import purchase requisitions

Drop Ship requisition data is NOT immediately pumped into Back to back requisition data is immediately pumped into requisition interface table after PROGRESS ORDER action in requisition interface table after PROGRESS ORDER action in sales order. Workflow background process needs to be run sales order to insert data into requisition interface tables Back to back purchase requisition is reserved to the sales order in MTL_RESERVATIONS table. Same process is following by oracle for all sales order reservations. Drop ship requisition is reserved to the sales order in special table called OE_DROP_SHIP_SOURCES. This is a unique process followed only for drop shipment

Reservations

Purchase orders Purchase order delivery location

It does not have Drop Ship tab in the PO Shipments form It has Drop Ship tab in the PO Shipments form Deliver To location in purchase order shipment is set to the internal warehouse address Deliver to location in purchase order shipment is set to Customer Ship To address

Line status changes on Progress Order, Requisition Creation, Line status does NOT change on Progress Order and Purchase Order Approval & Purchase order receipts Purchase Order Approval. Sales order line status e.g. Requisition Requested, Requisition Open, PO Open Viewing PO reservations PO receipt Flow of purchased material Available in sales order line-Actions>Reservation details screen Physical receipt of the material happens E.g. Awaiting Receipts only status until PO is received

After receipt

Sales order delivery lines/delivery

Available in Sales order line->Actions->Additional Line information Only logical receipt of the material Material is never received in the warehouse, it is shipped Material is received inside the warehouse and then shipped directly from supplier to the customer Stock of the goods received increases, stock gets reserved to Stock is received and immediately shipped out by the the sales order automatically system. Sales order status changes directly to Shipped Sales order status changes to Awaiting Shipping No delivery lines are created, since shipping process in the Delivery lines are created in shipping when PO is received system is skipped

Back to back flow - A business scenario where the material is specially purchased for a particular sales order and the material needs to be received into one of the warehouses of the selling group of companies, is referred as "Back to back" cycle. Back to back Purchase order is hard linked to the sales order until it is received. Please note highlighted words here. Since, the material is received into the warehouse, the sales order needs to follow additional picking/packing/shipping process only after which the goods are sent to the customer. Drop Shipment flow - A business scenario where the material is specially purchased for a particular sales order and the material is directly sent from the supplier to the customer, is referred as "Drop Shipment" cycle. Drop shipment purchase order is also hard linked to the sales order until is received. However, in this case the material is never received in the internal warehouse. Also, no additional picking/packing/shipping is involved by the selling company. Hence, when such purchase order is received it is directly shipped without any physical shipping process.