In Oracle Order Management, Back-To-Back Order process automates the creation of supply order (PO) when a Sales Order (SO) is booked. The Sales Order and the supplying Purchase Order are very closely linked, usually one PO is tied to one SO.
In an environment where lead times are often only a matter of 24 hours, by closely linking the Sales Order and the Purchase Order together, the Back-To-Back Order process improves efficiency of the three steps:
- Customer orders items.
- Purchase those items from vendor and then receive them into the warehouse.
- Deliver those items to the customer.
Back-To-Back Order process is also called the "Supply To Order" Process.
In next posts, we will describe how to implement this Process in Oracle Business Suite.