Friday, 15 March 2013

Sales Order Types

Oracle Applications

Drop Shipment Orders & Back To Back Sales Order

(Beginners Guides)
Drop Shipment Order  

-In the Drop shipment order types the customer receives the product directly from the manufacturer. 
-No need to store items in a warehouse and also expenses of hiring employees to ship the product are nullified.
- This method is commonly used by smaller retail shops and internet-only stores
- The source type in line information should be External.
Back to Back Sales Order

-Scenario: Often customers order products that you do not typically stock and also do not manufacture. You may want to purchase that item specifically for this order, have the supplier ship it to you, and then combine it with other items you may have purchased or stocked to create one shipment to the customer.
-This type of orders commonly used by Wholesale Distributors who use the Sell-Source-Ship (S3) business model.
-Also called as Procure-To-Order.

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