PTO - Pick to Order PTO Model : Allows flexibility to pick the components from the configurator, so in the BOM you can choose certain components are optional. The BOM Item type here is Model
PTO Kit: Here all the components are mandatory in the BOM. You can choose 'Optional'. The BOM item type in Standard.
Scenario:
- The PTO Kit or Model needs to be planned at the kit/model level, this means the forecast needs to be entered at the top level and the requirements need to be exploded to the components
- The functionality of having all the components available in SO lines by only specifying the Model/Kit during the Order Entry.
- Shipping should be allowed only if all the components are available
- Invoicing should be allowed only if shipped complete or all components are available
- All the shipping documents need to have the PTO items included
Requirement #1: The PTO Kit or Model needs to be planned at the kit/model level, this means the forecast needs to be entered at the top level and the requirements need to be exploded to the components
Solution: The issue here is that the moment you check the box "Pick Components" for PTO, it does not allow you to select any planning method in the planning tab. So you need to leave it as 'Not planned'. And ASCP planning would consider only those items with a planning method.
Even though the PTO Model/Kit is not planned,
- The components under it can be set to relevant planning methods.
- For the PTO Model we need to have the forecast method as consume & derive. This will ensure that the forecast of the PTO models is consumed and derived to forecasts for the next levels.
- In the ASCP Planning Options the "Explode Forecast" check box need to checked. Then the system will check for any Models and explode the forecast to the components level.
- Enter the forecast for the PTO Model.
- ASCP shall plan supplies for the components within the Model. (Those components having a planning method selected in the Item master).
- However, ASCP plans only models and it cant plan Kits as it has standard BOM
Requirement #2: The functionality of having all the components available as SO lines by only specifying the Model/Kit during the Order Entry.
This is a PTO Kit functionality. Wherein all the components are included/mandatory items of the BOM
However, in this case, due to planning constraints of the PTO Kits, they cant be used. However, by defining the PTO Model and ensuring that none of the included items are optional, we can have the same desired behavior as in a KIT.
Impact on Pricing:
- However, this means that SO pricing happens at the model level. Also Only the model is available in the receivables Invoice.
- To have component level pricing, they need to be checked as optional in the BOM.
Requirement #3: Shipping should be allowed only if all the components are available.
- The reason behind this requirement is that the pricing is happening at the model level and not at the line level so tracking is not possible if line level shipping is allowed
There are three options which make this requirement possible:
- The "Ship Model Complete" in the Item Master under the OM tab
- Required to Ship: Indicates whether the component is required to ship the order. You can only update this check box if the Assemble to Order item attribute for the assembly item in the Define Item window is disabled. This attribute only affects PTO included items (not ATO items or configurations).
- Select Enforce Ship Sets and Ship Models to enforce that all lines in the Ship Set or Ship Model are released together.
- If you select the Enforce Ship Sets and Ship Models check box, delivery lines for ship sets and ship models are validated during picking. All order lines in ship sets are either released completely or auto-backordered during pick release. If any portion is not available, then all lines in the entire ship set are backordered
Requirement #4 & #5: "Invoicing should be allowed only if shipped complete or all components are available" & "All the shipping documents need to have the PTO items included"
The above two features can be achieved by using the below "Shipping Details Fields" in the BOM definition of the PTO Model
- Include on Ship Docs: Indicates whether Oracle Order Management prints the components on external shipping documents, such as pack slips and commercial invoices. The default is off. This can be used to print non-shippable items on the external shipping documents to make it easier for the customers to match orders/pack slip/invoice.
- Required to Ship:
Identifies whether an item is required to ship the order. This information prints on the pick slip. If you entered Yes for the Assemble to Order item attribute for the assembly item in the Define Item window, Oracle Order Entry/Shipping displays No and skips this field. Choose one of the following.No This component is not required when you ship the order. Yes You must include this component when you ship the order. Attention: This attribute only affects PTO included items (not ATO items or configurations), and is only effective if your OE: Reservations profile option is set to No. If OE: Reservations is set to Yes, then the Ship Model Complete inventory attribute and the Ship Set feature in Oracle Order Entry/Shipping control what is required to ship, and will print on the pick slip.
- Required for Revenue:
Required for Revenue components prevent their parent item from invoicing until the component is shipped. For example, if you have an model with a non-optional component with the Required for Revenue attribute set to Yes, then the model will not be invoiced until the non-optional component has shipped. This attribute is recognized by the Receivables Interface.
If you entered Yes for the Assemble to Order item attribute for an item in the Define Item window, Oracle Order Entry/Shipping displays No and skips the field.Attention: This attribute does not affect mandatory or optional components for an ATO item or configuration.
