Monday, March 30, 2015

Back to Back Order

Back to Back Order Process is a common scenario for Wholesale Distributors who use Sell-Source-Ship business model.

1. Customer places the order with you
2. You place the order with supplier 
3. Supplier ships the product to you
4. You ship the product to customer

For eg. You order a Shoe Rack from Flipkart and Flipkart orders the same to the supplier. Once the goods are received by Flipkart they pack and ship the goods to customer.


Some of the reasons for following Back to Back order process is as follows
  • You have better transport network than supplier
  • Your supplier is a manufacturer but he is not good at marketing
  • Customer is closely located you
Create a new Item. Copy from ‘@Purchased Item’ template
Ensure Purchasable checkbox is enabled. Enter List Price.


Select ‘Buy’ option for ‘Make or Buy’ field under ‘General Planning’ TAB
Ensure ‘Build in WIP’ checkbox under ‘Work in Process’ TAB is selected
Ensure ‘Customer Orders Enabled’ and ‘Assemble to Order’ checkboxes are selected


Create a Sourcing Rule.
Check the value set for profile option ‘MRP:Default Sourcing Assignment Set’
Assign the Sourcing Rule to Assignment Set
Create a Sales Order with ‘Bk2Bk’ item which is created by us for our testing purpose.
Make sure the ‘Source Type’ is ‘Internal’ (it was ‘external’ for Drop Shipments as we have seen in our previous blog)


Click on ‘Book Order’ button to book the sales order.
Line status changes to ‘Supply Eligible’
Select the line. Right Click and choose ‘Progress Order’ option which will take you to another pop-up screen as shown below.


Line status changed to ‘External Req Requested’
Run ‘Requisition Import’ program to create a requisition based on the data that was inserted in Requisition Interface tables.
Requisition Import creates a requisition line and one or more requisition distributions for each row it finds in the interface table. It then groups these lines on requisitions according to parameters you define below.

Ensure the request got completed successfully.
Navigate to Purchasing > Requisitions > Requisition Summary and search for the requisition by selecting ‘CTO’ as ‘Import Source’
Note down the Requisition number which is 15906 in the below case.


Navigate Purchasing > Autocreate. Search with the ‘Requisition Number’ created. Through AutoCreate, A purchase requisition can be converted into a Purchase Order.




Select the Line and click on ‘Automatic’ to create a standard purchase order. Review the detail which got defaulted from Sourcing Rule and click on ‘Create’


You may modify the price and approve the PO.
Line status of Order line changes to ‘PO Open’
Navigate to Purchasing > Receiving > Receipts to complete the PO Receipt.
Ensure ‘Receiving Transaction Processor’ program completed successfully.
Line Status changes to ‘Awaiting Shipping’
From here onwards, it’s regular OM Process :
- Do Pickrelease
- Pick Confirmation
- Ship the goods
- Run ‘Interface Trip Stop’
- Complete Accounting
- Post the entries to GL

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