Allow Negative Quantity functionality in Shipping Process in oracle apps

Purpose:

The purpose of this Document is to provide some troubleshooting guide for issue where sales orders are not getting backordered even though insufficient inventory is available.

Goal:

Book a sales order, Pick and ship confirm the order even if  the tem does not have the On hand quantity in the inventory.

Pre requisities:

1. The item must be set to NOT Reservable ( the Reservable flag in the Master Items form should be Unchecked).

Go to Organization Item form and uncheck the Reservable flag as below.

2. Negative balances must be allowed (Check the 'Negative Balances Allowed attribute in the Organization Parameters form) as below.

Go to Organization Parameters form, select your Inventory Org where you are performing the entire cycle and check Allow Negative Balances check box.

3. Setup a Default Sub-inventory for the item using the Item Transaction Default window.

Responsibility: Inventory.

Navigation:  Setup > Transactions > Item transaction Defaults.

Select the Item and default its sub-inventory for Shipping. (This setup is for shipping the order)

Apart from the above setups make sure the below Profile Options are there as below.

1. Set profile WSH: Over picking Enabled to YES
2. Set profile GMI: Allow Negative Inventory to YES

Mandatory Check:

Make sure that no On Hand Quantity is available for the Item in the sub-inventory as below.

Go to Material work bench in inventory responsibility and query the item and check the OHQ.

Exercise: Now let us perform the sales order flow and check the required functionality.

Step 1: Book the Order.

Go to Order management responsibility and book the order for 5 quantities as below.

Make sure that you are using the inventory (Ware house) which we have allowed negative balances.

Step 2: Release the Order as below by the sales order number.

Make sure the concurrent programs are running.

Now once the reports are done, check the Pick slip report.

You can now notice the item has released from the warehouse with Move order and Delivery numbers.

(Actually in the normal business flow items should have backordered as we do not have enough quantity in the inventory to fulfill.)

Check the Line status of the order where we can observe as picked.

Step 3: Ship Confirm the Order.

Now Ship Confirm the same by using shipping transaction form as below.

The order will be shipped. (Check the order Line status).

Step 4: Now Go to Inventory Responsibility and check the On Hand quantity for the Item.

We will be now able to see -5 quantities in the Sub-Inventory as below.

Additional Notes:

The Reservable attribute enables you to create material reservations for the item. You can reserve an item only when you have sufficient inventory.

Oracle Inventory has enhanced support for picking non-reservable items. This feature can be employed when on-hand quantities are not closely tracked and when inventory is often driven negative during shipment confirmation. When a line for a non-reservable item is pick released, the system will not attempt to generate allocations for the material; pick confirm will not be required. Instead, the line status is immediately changed to Released and the delivery line becomes eligible for shipment confirmation. The sub-inventory and locator on the delivery line, which will become the sub-inventory and locator from which the ship confirmation transaction issues the inventory, is taken from the Shipping Item Transaction Default for that item. If insufficient quantity is available in that location, and if negative quantities are enabled in that organization, the shipment confirmation will drive inventory negative. Reservation control for a sub-inventory overrides reservation control for an item. In other words, if an item is reservable but a sub-inventory is not, the item quantity in that sub-inventory is not reservable.

Note: If the reservable attribute is checked, Oracle Order Management allows reservation of the item during order entry. If material hasn't been reserved prior to pick release, pick release creates reservations for material when the pick wave move order is allocated.