Oracle Order Management - Shipping Additional Quantity at no extra Charge on Invoice

Oracle Order Management: Issues and Resolution - Oracle Shipping

Issue:

You sell them 5000 units at £50 per unit. You need to give them 75 units more at no cost as these additional units replace the warranty. The customer's PO is for 5000 units but you need to ship 5075; the extra 75 units to replace any broken product. The total shipped amount is 5075 on the order but you need to invoice the customer for just 5000 units.

You currently do this via a workaround. You ship the 75 extra units at the same $50/unit. Invoice the customer and then issue a credit memo for this amount. You do not want to do this workaround any longer. 

Resolution:

1) Using OM Super User. Navigate: Setup--System Parameters--Values
Scroll down the choices until you reach Overshipment Invoice Basis.
Then set the value = Invoice Ordered Quantity

2) Set the profile option WSH: Overpicking Enabled to Yes at the Site level. 
This will enable overpicking. Overpicking uses the pick confirm transaction to pick more than the requested quantity (up to the overshipment tolerance). 
You will need to pick release with the Auto Pick Confirm parameter set to No. Then Pick Confirm (transact the move order) manually using the Oracle Inventory Transact Move Order form.

3) Set the over shipment tolernace for this specific customer and item combination.
OM Super User: Setup--Shipping Tolerances
Query for the Customer and enter the item.
Set the Over Shipment Tolerance as a percentage of the ordered qty.
(Since you give an addtional 75 away for every 5000, that equates to approximatley 1.5%)