Understanding Direct Ship Orders Processing Direct Ship Orders by Ayman Refat - March 13, 20180 Understanding Direct Ship Orders Concept Outdoor equipment, such as lawn mowers and snow blowers, cannot be shipped containing oil and gas. Nor can the equipment, oil, and gas be shipped in the same truck due to government regulations. Instead of storing and shipping these items separately, the supplier for oil and gas can ship these items directly to the customer who originated the order. Direct ship orders enable you to get products to your customer quickly and in the most cost-effective manner. Procedure In this topic, you will learn the process for setting up and entering direct ship sales orders, the tables that the system updates, and how the system maintains integrity between the sales and purchase orders. Step Action This diagram illustrates the direct ship process. A customer places an order for an item. You enter a direct ship order for the item. The sales order uses a specific document type, SD, and line type, D, for direct ship orders. The system automatically creates the related purchase order for the supplier using document type OD. You send the purchase order to the supplier and request that the item be sent directly to the customer. The system notifies you that the item was shipped to and received by the customer. You create and send an invoice to the customer. You generate and send payment to the supplier. Step Action You should set up the JD Edwards EnterpriseOne Sales Order Management system for direct ship orders. Line type D is set up for direct ship orders. The Inv Interface field on the Line Type Constants Revisions form is set to D. The D value indicates that the line item is an inventory item, but does not affect availability or quantities. For non-stock items, you can select the Edit Item Master for Non-Stock Item field on the Line Type Constants Revisions form. The system validates the sales order line item against the Item Master table. Based on system setup, the system assigns these document types when you enter direct ship orders: • SD: Direct ship sales order • OD: Direct ship purchase order Verify that a supplier number is set up in the item branch/plant information. This enables the system to populate the supplier field in the detail line when you enter the item on a sales order. You can also enter the supplier number on the sales order during sales order entry. Set up a next number bucket for direct ship orders. In the Next Numbers program, use system 42 for the JD Edwards EnterpriseOne Sales Order Management system. Set up order activity rules for the document type and line type combinations. Step Action This table provides an example of order activity rules for direct ship sales orders: • 520: Enter sales order • 580: Print invoice • 620: Sales update • 999: Complete and ready to purge Order activity rules are user-defined, and you set up your order activity rules according to your business process. For example, for direct ship sales orders, you might set up your order activity rules to go from 520 (enter sales order) to 580 (print invoice), while other customers might set them up to go from 520 to 560 (confirm shipments) and then to 580. Step Action This table provides an example of order activity rules for direct ship purchase orders: • 220: Enter purchase order • 280: Print purchase order • 300: Record supplier acknowledgement • 400: Record purchase receipt • 999: Complete and ready to purge The processing options for the PO Receipts program (P4312) can be set to update the next status code on the sales order from 560 to 580. You can then generate an invoice when customers record the acknowledgement. When the supplier ships goods to the customer, the supplier can enter a receipt to indicate that the customer received the item. During receipts processing, any changes to the cost are updated to the corresponding sales order detail line, unless the standard costing method is used. Step Action Changing information on the sales order might affect purchase order processing. Likewise, changing the purchase order might affect sales order information. The system automatically updates the corresponding order if you change the information in these fields: • Status • Cost • Lot/Serial Number • Dates When you close or cancel either a purchase or a sales order, the system updates the status of the corresponding order. The system updates the sales order status when the supplier ships goods to the customer and the goods have been formally received. If a line is partially received, the system updates only the sales order status for the quantity of the items that was received. The remaining quantity remains at the current status level. The system maintains the original cost in the purchase order. The system does not update the cost on the purchase order when the cost on the receipt is different. However, any changes to the cost during receipt are updated to the sales order detail line, unless you use standard costing. When the supplier enters a receipt and specifies a lot or serial number, the system updates the sales order detail line with the lot and serial number information. For multiple items, the system splits the sales and purchase order for each lot and serial number. If you reverse a lot or serial number, the system issues a warning message indicating the reversal in the sales order. When the supplier ships the goods to the customer, the supplier enters the receipt date to indicate that the customer has received the item. The system updates the actual ship date in the sales order detail line. Step Action The system creates records in these tables when you enter a direct ship order: • Sales Order Header (F4201) • Sales Order Detail (F4211) • Purchase Order Header (F4301) • Purchase Order Detail (F4311) During direct ship order entry, the system verifies the item number in the Item Branch File table (F4102), and verifies the cost and price information in the Item Cost File (F4105) and Item Base Price File (F4106) tables. However, the system does not create inventory commitments or perform availability checks. Step Action Processing options for the Sales Order Entry program (P4210) must be set up for direct ship orders. You can create a new version of the program, or you can use version ZJDE0005 for direct ship orders. The Order Type processing option identifies the document type for direct ship sales orders (document type SD). The Line Type processing option identifies the line type the system uses to process direct ship items (line type D). The Purchase Order Entry Version processing option specifies which version of the Purchase Order Entry program (P4310) the system uses when you enter a direct ship item line type. The processing options for the Create Direct Ships (P42101) program are the same as those that you set up for entering basic sales orders. The P42101 program contains processing options that control how the system displays information and which version of the Sales Order Entry program (P4210) to use for processing direct ship orders. In summary, you enter a direct ship order to record the sale of an item that your supplier sends directly to your customer—a process that does not impact your inventory. End of Procedure.