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11i Inventory ManagementFundamentals

Volume 1 - Student Guide

D16356GC20

Edition 2.0

January 2005

D40249



Copyright © Oracle Corporation, 2005. All rights reserved.

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Author

Tyra Crockett, Yuvaraj Kandhaswamy

Technical Contributors and Reviewers

Jennifer Sherman, Alain Roth, Mary Hartman, Lata Sundar, Vanessa Graziano, April Nelson, Neeta Gera

This book was published using: oracletutor



Copyright © Oracle, 2005. All rights reserved.

11i Inventory Management Fundamentals Table of Contentsi

Table of Contents

11i Receipt to Issue..........................................................................................................................................1-1 11i Receipt to Issue........................................................................................................................................1-2 Objectives......................................................................................................................................................1-3

Agenda...........................................................................................................................................................1-4 Overview .......................................................................................................................................................1-5 Agenda...........................................................................................................................................................1-7 Receipt to Issue Life Cycle............................................................................................................................1-8 Agenda...........................................................................................................................................................1-10 Receiving Inventory ......................................................................................................................................1-11 Agenda...........................................................................................................................................................1-14 Transferring Inventory...................................................................................................................................1-15 Agenda...........................................................................................................................................................1-16 Issuing Inventory...........................................................................................................................................1-17 Agenda...........................................................................................................................................................1-19 Oracle Inventory Application Integration.....................................................................................................1-20 Integration of Oracle Inventory to Financial Applications ...........................................................................1-22 Agenda...........................................................................................................................................................1-23 Summary........................................................................................................................................................1-24

11i Defining Inventory Organizations............................................................................................................2-1 11i Defining Inventory Organizations...........................................................................................................2-2 Objective........................................................................................................................................................2-3 Agenda...........................................................................................................................................................2-4 Multi-Org Structure.......................................................................................................................................2-5 Organization Model.......................................................................................................................................2-6 Sample Organization Structure......................................................................................................................2-8 Enterprise Structure Considerations ..............................................................................................................2-10 Inventory Organizations ................................................................................................................................2-12 Inventory Organization Structure ..................................................................................................................2-13 Sample Inventory Organization.....................................................................................................................2-14

Agenda...........................................................................................................................................................2-15 Setting up Locations ......................................................................................................................................2-16 Defining Organizations..................................................................................................................................2-17 Organization Setup ........................................................................................................................................2-18 Additional Set Up Steps ................................................................................................................................2-20 Additional Organizational Setups..................................................................................................................2-21 Guided Demonstration: Creating an Inventory Organization ........................................................................2-22

Guided Demonstration - Setting Up Locations..........................................................................................2-23 Guided Demonstration - Setting Up Organizations...................................................................................2-24

Agenda...........................................................................................................................................................2-27 Summary........................................................................................................................................................2-28

11i Overview of Defining and Maintaining Items.........................................................................................3-1 11i Overview of Defining and Maintaining Items .........................................................................................3-2

Objective........................................................................................................................................................3-3 Agenda...........................................................................................................................................................3-4 Items ..............................................................................................................................................................3-5 Agenda...........................................................................................................................................................3-6 Oracle Organization.......................................................................................................................................3-7 Inventory Organizations ................................................................................................................................3-8 Defining Organizations..................................................................................................................................3-9 Agenda...........................................................................................................................................................3-10 Defining Items in Item Master.......................................................................................................................3-11




11i Inventory Management Fundamentals Table of Contentsii

Steps to Setup, Define, and Maintain Items..................................................................................................3-12 Defining Items...............................................................................................................................................3-13 Agenda...........................................................................................................................................................3-14 Item Attributes...............................................................................................................................................3-15 Item Statuses and Attributes..........................................................................................................................3-16 Item Attribute Groups....................................................................................................................................3-17 Agenda...........................................................................................................................................................3-18 Creating Item Templates ...............................................................................................................................3-19 Enabling Attributes in a Template.................................................................................................................3-20 Agenda...........................................................................................................................................................3-21 Organization Assignment and Organization Item..........................................................................................3-22 Agenda...........................................................................................................................................................3-23 Deletion Constraints and Deletion Groups ....................................................................................................3-24 Agenda...........................................................................................................................................................3-25 Summary........................................................................................................................................................3-26

11i Defining and Maintaining Items Fundamentals .......... .......... ........... ........... .......... ........... .......... .......... ..4-1 11i Defining and Maintaining Items Fundamentals.......................................................................................4-2 Objectives......................................................................................................................................................4-3 Agenda...........................................................................................................................................................4-4 Unit of Measure.............................................................................................................................................4-5 Units of Measure ...........................................................................................................................................4-7 Use of Units of Measure................................................................................................................................4-8 Defining UOM Classes..................................................................................................................................4-9 Units of Measure Conversions.......................................................................................................................4-10 Units of Measure Setup .................................................................................................................................4-11 Guided Demonstration Overview: Units of Measure ....................................................................................4-12

Guided Demonstration - Units of Measure................................................................................................4-13 Practice Overview: Units of Measure............................................................................................................4-15

Practice - Defining Units of Measure ........................................................................................................4-16 Solution – Defining Units of Measure.......................................................................................................4-18

Agenda...........................................................................................................................................................4-21 Item Statuses and Attributes..........................................................................................................................4-22 Item Status.....................................................................................................................................................4-23 Status Attributes ............................................................................................................................................4-24 Item Attribute Relationships..........................................................................................................................4-25 Status Attribute Interdependencies................................................................................................................4-26 Status Attributes and Functionality ...............................................................................................................4-29 Guided Demonstration Overview: Viewing Item Attributes .........................................................................4-31

Guided Demonstration - Viewing Item Attributes.....................................................................................4-32 Practice Overview: Viewing Item Attributes.................................................................................................4-33

Practice - Viewing Item Attributes ............................................................................................................4-34 Solution – Viewing Item Attributes...........................................................................................................4-35

Agenda...........................................................................................................................................................4-41 Defining the Item Master Organization.........................................................................................................4-42 Agenda...........................................................................................................................................................4-44 Defining Items...............................................................................................................................................4-45 Steps to Setup, Define, and Maintain Items..................................................................................................4-46

Defining Items...............................................................................................................................................4-47 Item Templates ..............................................................................................................................................4-48 Organization Assignment and Organization Item..........................................................................................4-49 Item Control Level.........................................................................................................................................4-50 Guided Demonstration: Defining Items.........................................................................................................4-52

Guided Demonstration - Define Item ........................................................................................................4-53 Practice Overview: Defining Items................................................................................................................4-54

Defining Items ...........................................................................................................................................4-55 Solution - Defining Items ..........................................................................................................................4-57




11i Inventory Management Fundamentals Table of Contentsiii

Agenda...........................................................................................................................................................4-61 Deletion Constraints ......................................................................................................................................4-62 Agenda...........................................................................................................................................................4-64 Profile Values ................................................................................................................................................4-65 Item Profile Options ......................................................................................................................................4-67 Agenda...........................................................................................................................................................4-69 Implementation Considerations.....................................................................................................................4-70 Agenda...........................................................................................................................................................4-71 Summary........................................................................................................................................................4-72

11i Inventory Controls Concepts....................................................................................................................5-1 11i Inventory Controls Concepts...................................................................................................................5-2 Objectives......................................................................................................................................................5-3 Agenda...........................................................................................................................................................5-4 Inventory Control Overview..........................................................................................................................5-5 Agenda...........................................................................................................................................................5-6 Subinventories Overview ..............................................................................................................................5-7 Agenda...........................................................................................................................................................5-8 Locator Control Overview.............................................................................................................................5-9 Agenda...........................................................................................................................................................5-10 Revision Control Overview...........................................................................................................................5-11 Agenda...........................................................................................................................................................5-12 Lot Control Overview....................................................................................................................................5-13 Agenda...........................................................................................................................................................5-14 Serial Number Overview...............................................................................................................................5-15 Agenda...........................................................................................................................................................5-16 Summary........................................................................................................................................................5-17

11i Inventory Controls Fundamentals ........... .......... ........... ........... ........... ........... .......... ........... ........... ..........6-1 11i Inventory Controls Fundamentals............................................................................................................6-2 Objectives......................................................................................................................................................6-3 Agenda...........................................................................................................................................................6-4 Inventory Control Overview..........................................................................................................................6-5 Agenda...........................................................................................................................................................6-6 Defining Subinventories................................................................................................................................6-7

Subinventory-Locator Relationship...............................................................................................................6-8 Locator Structuring........................................................................................................................................6-10 Locator Control Reports ................................................................................................................................6-11 Guided Demonstration Overview: Defining Subinventories.........................................................................6-12

Guided Demonstration - Creating Subinventories.....................................................................................6-13 Practice Overview: Defining Subinventories.................................................................................................6-14

Practice - Creating Subinventories ............................................................................................................6-15 Solution - Creating Subinventories............................................................................................................6-16

Guided Demonstration Overview Setting Up Locator Control......................................................................6-20 Guided Demonstration - Locator Control ..................................................................................................6-21

Practice Overview Setting Up Locator Control.............................................................................................6-23 Practice - Setting Up Locator Control .......................................................................................................6-24 Solution – Setting Up Locator Control ......................................................................................................6-26

Agenda...........................................................................................................................................................6-33 Revision Control............................................................................................................................................6-34 Agenda...........................................................................................................................................................6-36 Lot Control ....................................................................................................................................................6-37 Lot Number Purging......................................................................................................................................6-38 Maintaining Lot Information.........................................................................................................................6-39 Cycle Counts Under Lot Control...................................................................................................................6-40 Physical Inventory Under Lot Control...........................................................................................................6-41 Disabled Lots.................................................................................................................................................6-42 Lot Control Reports.......................................................................................................................................6-43




11i Inventory Management Fundamentals Table of Contentsiv

Agenda...........................................................................................................................................................6-44 Generating Serial Numbers............................................................................................................................6-45 Maintaining Serial Numbers..........................................................................................................................6-46 Serial Genealogy ...........................................................................................................................................6-47 Serial Number Control Reports .....................................................................................................................6-48 Guided Demonstration Overview: Revision, Lot, and Serial Controls..........................................................6-49

Guided Demonstration - Revision, Lot, and Serial Controls .....................................................................6-50 Practice Overview: Revision, Lot, and Serial Controls .................................................................................6-53

Practice - Revision, Lot, and Serial Controls.............................................................................................6-54 Solution – Revision, Lot and Serial Controls ............................................................................................6-56

Agenda...........................................................................................................................................................6-67 Locator Flexfield Structure............................................................................................................................6-68 Changing Locator Control.............................................................................................................................6-69 Transacting Controlled Items ........................................................................................................................6-70 Agenda...........................................................................................................................................................6-72 Summary........................................................................................................................................................6-73

11i Transacting Inventory Concepts..............................................................................................................7-1 11i Transacting Inventory Concepts..............................................................................................................7-2 Module Objectives.........................................................................................................................................7-3 Agenda...........................................................................................................................................................7-4 Inventory Structure........................................................................................................................................7-5 Overview .......................................................................................................................................................7-6 Agenda...........................................................................................................................................................7-7 Inventory Transactions ..................................................................................................................................7-8 Agenda...........................................................................................................................................................7-9 Transaction Types..........................................................................................................................................7-10 Transaction Source Types..............................................................................................................................7-11 Transaction Action ........................................................................................................................................7-13 Transaction Reasons......................................................................................................................................7-15 Transaction Managers....................................................................................................................................7-16 Agenda...........................................................................................................................................................7-17 Move Orders..................................................................................................................................................7-18 Agenda...........................................................................................................................................................7-19 Shortage Alerts and Notifications..................................................................................................................7-20 Agenda...........................................................................................................................................................7-21 Mobile Transactions ......................................................................................................................................7-22 Agenda...........................................................................................................................................................7-23 Summary........................................................................................................................................................7-24

11i Transaction Setup......................................................................................................................................8-1 11i Transaction Setup ....................................................................................................................................8-2 Objectives......................................................................................................................................................8-3 Agenda...........................................................................................................................................................8-4 Running Transaction Managers.....................................................................................................................8-5 Predefined Transaction Types .......................................................................................................................8-7 Guided Demonstration Overview: Defining a Customized Transaction .......................................................8-8

Guided Demonstration - Customized Transactions ...................................................................................8-9 Practice Overview: Defining a Customized Transaction ...............................................................................8-11

Practice - Defining a Customized Transaction ..........................................................................................8-12 Solution – Defining a Customized Transaction .........................................................................................8-13

Agenda...........................................................................................................................................................8-18 Inter–organization Shipping Network ...........................................................................................................8-19 Shipping Method ...........................................................................................................................................8-21 Agenda...........................................................................................................................................................8-22 Movement Statistics ......................................................................................................................................8-23 Movement Statistics Parameters....................................................................................................................8-25 Collecting and Reporting Movement Statistics .............................................................................................8-26




11i Inventory Management Fundamentals Table of Contentsv

Agenda...........................................................................................................................................................8-28 Account Aliases.............................................................................................................................................8-29 Agenda...........................................................................................................................................................8-30 Setting Up for Move Orders ..........................................................................................................................8-31 Setup Steps for Move Orders.........................................................................................................................8-33 Agenda...........................................................................................................................................................8-35 Material Shortage Alerts and Notifications ...................................................................................................8-36 Setting Up Shortage Alerts and Notifications................................................................................................8-38 Movement Statistics Reports .........................................................................................................................8-39 Transaction Reports and Inquiries.................................................................................................................8-41 Agenda...........................................................................................................................................................8-42 Transaction Profile Options...........................................................................................................................8-43 Agenda...........................................................................................................................................................8-49 Implementation Considerations.....................................................................................................................8-50 Implementation Considerations for Shortage Messages................................................................................8-51 Agenda...........................................................................................................................................................8-52 Summary........................................................................................................................................................8-53

11i Issue and Transfer Material .....................................................................................................................9-1 11i Issue and Transfer Material .....................................................................................................................9-2 Module Objectives.........................................................................................................................................9-3 Agenda...........................................................................................................................................................9-4 Transaction Flows..........................................................................................................................................9-5 Inventory Transactions ..................................................................................................................................9-6 Inventory Transactions Without Documents and Requisitions......................................................................9-7 Inventory Transactions With Documents and Requisitions...........................................................................9-8 Agenda...........................................................................................................................................................9-9 Control Options and Restrictions...................................................................................................................9-10 Agenda...........................................................................................................................................................9-11 Subinventory Transfer ...................................................................................................................................9-12 Guided Demonstration: Subinventory Transfer.............................................................................................9-13

Guided Demonstration - Subinventory Transfers......................................................................................9-14 Miscellaneous Transaction (Account Receipt) ..............................................................................................9-15 Application of Miscellaneous Transactions...................................................................................................9-17 Inter-organization Direct Shipment ...............................................................................................................9-18 Interorganization Intransit Shipment .............................................................................................................9-20 Guided Demonstration Overview: Interorganization Transfer ......................................................................9-22

Guided Demonstration - Interorganization Transfer..................................................................................9-23 Practice Overview: Interorganization Transfer..............................................................................................9-24

Practice - InterOrganization Transfer ........................................................................................................9-25 Solution – InterOrganization Transfer.......................................................................................................9-26

Agenda...........................................................................................................................................................9-29 Managing Receipts ........................................................................................................................................9-30 Using Locations in Receiving........................................................................................................................9-31 Entering Receipt Lines ..................................................................................................................................9-32 Express Receipts and Receiving Transactions...............................................................................................9-34 Receiving Unordered Items...........................................................................................................................9-35 Direct Receipts ..............................................................................................................................................9-37

Inspecting Received Items.............................................................................................................................9-39 Guided Demonstration Overview: Receiving Items into Inventory ..............................................................9-41

Guided Demonstration - Receiving Stock into Inventory..........................................................................9-42 Practice Overview: Receiving Items into Inventory......................................................................................9-44

Practice - Receiving Material into Inventory.............................................................................................9-45 Solution – Receiving Material into Stock..................................................................................................9-46

Returns to Receiving .....................................................................................................................................9-51 Returns to Inventory ......................................................................................................................................9-52 Entering Returns............................................................................................................................................9-53




11i Inventory Management Fundamentals Table of Contentsvi

Guided Demonstration Overview: Receiving Returns to Inventory..............................................................9-55 Guided Demonstration - Receiving Returns..............................................................................................9-56

Agenda...........................................................................................................................................................9-57 Receiving Reports..........................................................................................................................................9-58 Agenda...........................................................................................................................................................9-59 Move Orders Process Flow............................................................................................................................9-60 Move Order Requisition Approval Process ...................................................................................................9-61 Benefits of Managed Material Flow in a Facility..........................................................................................9-63 Move Order Source Types.............................................................................................................................9-65 Move Order Components ..............................................................................................................................9-67 Move Order Allocating..................................................................................................................................9-69 Generate Move Orders...................................................................................................................................9-71 Item Allocation..............................................................................................................................................9-73 Transact Move Orders ...................................................................................................................................9-74 Guided Demonstration Overview: Transacting Move orders ........................................................................9-75

Guided Demonstration - Transacting Move Orders...................................................................................9-76 Practice Overview: Transacting Move orders................................................................................................9-78

Practice - Transacting Move Orders ..........................................................................................................9-79 Solution – Transacting Move Orders.........................................................................................................9-81

Agenda...........................................................................................................................................................9-91 Transactions Using a Mobile Device.............................................................................................................9-92

Guided Demonstration Overview: Mobile Transactions ...............................................................................9-94 Guided Demonstration - Mobile Application Inter-organization Transfer ................................................9-95

Practice Overview: Mobile Transactions.......................................................................................................9-96 Practice - Mobile Transactions ..................................................................................................................9-97 Solution – Mobile Transactions.................................................................................................................9-98

Agenda...........................................................................................................................................................9-103 Managing Shipments .....................................................................................................................................9-104 Agenda...........................................................................................................................................................9-105 Summary........................................................................................................................................................9-106

11i Replenishment Concepts...........................................................................................................................10-1 11i Replenishment Concepts .........................................................................................................................10-2 Objectives......................................................................................................................................................10-3 Agenda...........................................................................................................................................................10-4 Overview .......................................................................................................................................................10-5 Overview of Inventory Planning ...................................................................................................................10-6 Order Planning...............................................................................................................................................10-7 How Much to Order.......................................................................................................................................10-8 Replenishment Process for Intra-Org Supply Sources...................................................................................10-9 Replenishment Process for Supplier Supply Sources ....................................................................................10-10 Replenishment Process for Inter-Org Supply Sources...................................................................................10-11 Replenishment Process for Product Supply Sources .....................................................................................10-12 Agenda...........................................................................................................................................................10-13 Overview of Oracle Inventory Forecasting....................................................................................................10-14 Forecast Types...............................................................................................................................................10-15 Agenda...........................................................................................................................................................10-16 Oracle Inventory Replenishment Methods ....................................................................................................10-17

Replenishment Methods Levels.....................................................................................................................10-18 Safety Stock...................................................................................................................................................10-19 Economic Order Quantity..............................................................................................................................10-20 Overview of Reorder-Point Planning ............................................................................................................10-21 Overview of Min-max Planning ....................................................................................................................10-22 Overview of Kanban Replenishment.............................................................................................................10-23 Overview of Replenishment Counting ..........................................................................................................10-25 Overview of PAR Counting...........................................................................................................................10-26 Agenda...........................................................................................................................................................10-27




11i Inventory Management Fundamentals Table of Contentsvii

Mobile Replenishment Count Overview .......................................................................................................10-28 Agenda...........................................................................................................................................................10-29 Summary........................................................................................................................................................10-30

11i Replenishment Fundamentals ..................................................................................................................11-1 11i Replenishment Fundamentals.................................................................................................................11-2 Objectives......................................................................................................................................................11-3 Agenda...........................................................................................................................................................11-4

Overview .......................................................................................................................................................11-5 Agenda...........................................................................................................................................................11-6 Focus Forecasting..........................................................................................................................................11-7 Focus-Forecasting (continued) ......................................................................................................................11-8 Using Focus Forecasting ...............................................................................................................................11-10 Focus Forecasting Example...........................................................................................................................11-11 Statistical Forecasting....................................................................................................................................11-13 Exponential Smoothing Forecast (ESF) ........................................................................................................11-14 Trend-Enhanced Forecast (TEF) ...................................................................................................................11-16 Season-Enhanced Forecast (SEF)..................................................................................................................11-18 Trend- and Season-Enhanced Forecast (TSEF).............................................................................................11-20 Forecast Setup and Maintenance ...................................................................................................................11-22 Guided Demonstration Overview: Creating a Manual Forecast ....................................................................11-23

Guided Demonstration - Creating a Manual Forecast ...............................................................................11-24 Practice Overview: Creating a Manual Forecast ...........................................................................................11-26

Practice - Creating a Manual Forecast.......................................................................................................11-27 Solution – Creating a Manual Forecast......................................................................................................11-28

Agenda...........................................................................................................................................................11-31 Uses of Reorder-point Planning.....................................................................................................................11-32 Reorder-point Planning: Safety Stock ...........................................................................................................11-33 Reorder-Point Planning: Lead Time..............................................................................................................11-34 Reorder-Point Planning: Reorder Quantity....................................................................................................11-35 Reorder-Point Planning Steps........................................................................................................................11-37 Entering Item Planning Attributes.................................................................................................................11-38 Entering General Planning Attributes for Reorder-point Planning................................................................11-39 Entering Lead Times .....................................................................................................................................11-41 Entering Safety Stocks...................................................................................................................................11-42 Performing Reorder-point Planning...............................................................................................................11-44 Guided Demonstration: Reorder Point Planning ...........................................................................................11-46

Guided Demonstration - Reorder Point Planning ......................................................................................11-47 Agenda...........................................................................................................................................................11-48 Uses of Min-max Planning............................................................................................................................11-49 Min-max Planning.........................................................................................................................................11-50 Min-max Planning: When to Order? ............................................................................................................11-51 Min-max Planning: How Much to Order?....................................................................................................11-52 Min-max Planning Steps ...............................................................................................................................11-53 Item Planning Attributes................................................................................................................................11-54 Min-max Planning Setup Procedure..............................................................................................................11-55 Selecting a Planning Level ............................................................................................................................11-56 Entering Planning Attributes .........................................................................................................................11-57

Submitting the Min-max Planning Requests .................................................................................................11-58 Guided Demonstration Overview: Min-max Planning..................................................................................11-60

Guided Demonstration - Min-max Planning..............................................................................................11-61 Practice Overview: Min-max Planning..........................................................................................................11-63

Practice - Performing Min-max Planning..................................................................................................11-64 Solution – Performing Min-max Planning.................................................................................................11-65

Agenda...........................................................................................................................................................11-71 Uses of Replenishment Counting ..................................................................................................................11-72 Replenishment Planning Steps ......................................................................................................................11-73




11i Inventory Management Fundamentals Table of Contentsviii

Subinventories Window ................................................................................................................................11-75 Item Subinventories Window ........................................................................................................................11-76 Item Subinventories: Order Modifier Tab ....................................................................................................11-77 Replenishment Count Headers ......................................................................................................................11-78 Replenishment Count Lines...........................................................................................................................11-79 Processing Replenishment Counts................................................................................................................11-81 Practice Overview: Performing a Replenishment Count Using Forms..........................................................11-83

Practice - Performing a Replenishment Count Using Forms.....................................................................11-84 Solution - Performing a Replenishment Count Using Forms ....................................................................11-86

Practice Overview: Performing a Replenishment Count Using the Mobile Application...............................11-91 Practice - Performing a Replenishment Count Using the Mobile Application..........................................11-92 Solution - Performing a Replenishment Count Using the Mobile Application .........................................11-94

Processing PAR Counts.................................................................................................................................11-102 Reorder Quantity For PAR Count .................................................................................................................11-103 Agenda...........................................................................................................................................................11-105 Kanban Cards ................................................................................................................................................11-106 Kanban Planned Items...................................................................................................................................11-107 Kanban Cards ................................................................................................................................................11-109 Kanban Supply Status....................................................................................................................................11-111 Kanban Replenishment Sources ....................................................................................................................11-112 Kanban Card Printing....................................................................................................................................11-113

Guided Demonstration Overview: Generating Kanban Cards.......................................................................11-114 Guided Demonstration - Kanban ...............................................................................................................11-115

Practice Overview: Generating Kanban Cards ..............................................................................................11-116 Practice - Generating Kanban Cards..........................................................................................................11-117 Solution – Generating Kanban Cards ........................................................................................................11-118

Agenda...........................................................................................................................................................11-122 Available to Promise .....................................................................................................................................11-123 ATP Rules and ATP Checks..........................................................................................................................11-124 Uses of ATP in Oracle Inventory ..................................................................................................................11-125 Steps for Checking ATP................................................................................................................................11-126 ATP Rules Setup Steps..................................................................................................................................11-127 Defining Computation Options......................................................................................................................11-128 Specifying Supply and Demand Time Fences...............................................................................................11-130

Specifying Demand Sources..........................................................................................................................11-134 Specifying Supply Sources............................................................................................................................11-136 Setting Up Item and Bills for ATP Checking ................................................................................................11-137 ATP Checking ...............................................................................................................................................11-138 Viewing ATP Criteria....................................................................................................................................11-141 Agenda...........................................................................................................................................................11-142 Planning and Forecasting Profile Options .....................................................................................................11-143 Setting Up the Min-Max System Profile Value.............................................................................................11-145 Subinventory Setup Windows .......................................................................................................................11-146 Agenda...........................................................................................................................................................11-147 Min-Max Order Type and Order Source .......................................................................................................11-148 Replenishment Method Selection..................................................................................................................11-151 Agenda...........................................................................................................................................................11-152 Summary........................................................................................................................................................11-153

11i Inventory Accuracy Concepts ..................................................................................................................12-1 11i Inventory Accuracy Concepts..................................................................................................................12-2 Objectives......................................................................................................................................................12-3 Agenda...........................................................................................................................................................12-4 Overview of Inventory Accuracy ..................................................................................................................12-5 Agenda...........................................................................................................................................................12-6 ABC Analysis Overview ...............................................................................................................................12-7 Agenda...........................................................................................................................................................12-8




11i Inventory Management Fundamentals Table of Contentsix

Cycle Counting Overview .............................................................................................................................12-9 Agenda...........................................................................................................................................................12-10 Physical Inventory Overview ........................................................................................................................12-11 Why Perform Physical Inventories? ..............................................................................................................12-12 Agenda...........................................................................................................................................................12-13 Mobile Inventory Accuracy Overview ..........................................................................................................12-14 Agenda...........................................................................................................................................................12-15 Summary........................................................................................................................................................12-16

11i Inventory Accuracy Fundamentals..........................................................................................................13-1 11i Inventory Accuracy Fundamentals..........................................................................................................13-2 Objectives......................................................................................................................................................13-3 Agenda...........................................................................................................................................................13-4 Defining an ABC Analysis ............................................................................................................................13-5 Define and Run an ABC Compilation...........................................................................................................13-6 ABC Compilation Criteria.............................................................................................................................13-7 Agenda...........................................................................................................................................................13-9 ABC Valuation Scope ...................................................................................................................................13-10 Agenda...........................................................................................................................................................13-11 Defining ABC Groups ...................................................................................................................................13-12 Defining ABC Classes...................................................................................................................................13-13 ABC Item Assignments.................................................................................................................................13-14 Guided Demonstration Overview: Compiling an ABC Analysis ..................................................................13-16

Guided Demonstration - ABC Analysis ....................................................................................................13-17 Practice Overview: Compiling an ABC Analysis..........................................................................................13-19

Practice - Compiling an ABC Analysis .....................................................................................................13-20 Solution – Compiling an ABC Analysis....................................................................................................13-22

Agenda...........................................................................................................................................................13-28 Defining and Maintaining a Cycle Count ......................................................................................................13-29 Agenda...........................................................................................................................................................13-30 Cycle Count Approval Tolerance ..................................................................................................................13-31 Approval Tolerances......................................................................................................................................13-32 Hit/Miss Tolerance ........................................................................................................................................13-34 Measurement Errors ......................................................................................................................................13-35 Cycle Count Items .........................................................................................................................................13-36 Agenda...........................................................................................................................................................13-38 Automatic Scheduling ...................................................................................................................................13-39 Manual Scheduling........................................................................................................................................13-40 Count Requests..............................................................................................................................................13-41 Entering Cycle Counts...................................................................................................................................13-43 Cycle Count Open Interface ..........................................................................................................................13-44 Agenda...........................................................................................................................................................13-45 Count Adjustments and Approvals................................................................................................................13-46 Automatic Recounts ......................................................................................................................................13-47 Approving Cycle Counts and Adjustments ...................................................................................................13-48 Guided Demonstration Overview: Performing Cycle Counts .......................................................................13-50

Guided Demonstration - Cycle Counting ..................................................................................................13-51 Practice Overview: Performing Cycle Counts...............................................................................................13-54

Practice - Performing a Cycle Count .........................................................................................................13-55 Solution – Performing a Cycle Count........................................................................................................13-57

Practice Overview: Mobile Counting ............................................................................................................13-66 Practice - Mobile Counting........................................................................................................................13-67 Solution – Mobile Counting ......................................................................................................................13-68

Agenda...........................................................................................................................................................13-73 Summary........................................................................................................................................................13-74




11i Inventory Management Fundamentals Table of Contentsxi

Preface

Profile

Before You Begin This Course

Before you begin this course, you should have the following qualifications:

• Working experience with Oracle Applications.

Prerequisites

• There are no prerequisites for this course.

How This Course Is Organized

11i Inventory Management Fundamentals is an instructor-led course featuring lecture and hands-

on exercises. Online demonstrations and written practice sessions reinforce the concepts andskills introduced.




11i Inventory Management Fundamentals Table of Contentsxii

Related Publications

Oracle Publications

Title Part Number

Oracle Inventory User’s Guide A83507–08

Additional Publications

• None




11i Inventory Management Fundamentals Table of Contentsxiii

Typographic Conventions

Typographic Conventions in Text

Convention Element Example

Bold italic Glossary term (if there is a glossary)

The algorithm inserts the new key.

Caps and

lowercase

Buttons,

check boxes,

triggers,

windows

Click the Executable button.

Select the Can’t Delete Card check box.

Assign a When-Validate-Item trigger to the ORD block.

Open the Master Schedule window.

Courier new,

case sensitive

(default is

lowercase)

Code output,

directory names,

filenames,

passwords,

pathnames,

URLs,

user input,usernames

Code output: debug.set (‘I”, 300);

Directory: bin (DOS), $FMHOME (UNIX)

Filename: Locate the init.ora file.

Password: User tiger as your password.

Pathname: Open c:\my_docs\projects

URL: Go to http://www.oracle.com

User input: Enter 300

Username: Log on as scott

Initial cap Graphics labels

(unless the term is a

proper noun)

Customer address (but Oracle Payables)

Italic Emphasized words

and phrases,

titles of books and

courses,

variables

Do not save changes to the database.

For further information, see Oracle7 Server SQL Language

Reference Manual.

Enter [email protected], where user_id is the

name of the user.

Quotation

marks

Interface elements

with long namesthat have only

initial caps;

lesson and chapter

titles in cross-

references

Select “Include a reusable module component” and click Finish.

This subject is covered in Unit II, Lesson 3, “Working with

Objects.”

Uppercase SQL column

names, commands,

functions, schemas,

table names

Use the SELECT command to view information stored in the

LAST_NAME

column of the EMP table.

Arrow Menu paths Select File > Save.

Brackets Key names Press [Enter].

Commas Key sequences Press and release keys one at a time:[Alternate], [F], [D]

Plus signs Key combinations Press and hold these keys simultaneously: [Ctrl]+[Alt]+[Del]




11i Inventory Management Fundamentals Table of Contentsxiv

Typographic Conventions in Code

Convention Element Example

Caps and

lowercase

Oracle Forms

triggers

When-Validate-Item

Lowercase Column names,

table names

SELECT last_nameFROM s_emp;

Passwords DROP USER scottIDENTIFIED BY tiger;

PL/SQL objects OG_ACTIVATE_LAYER(OG_GET_LAYER (‘prod_pie_layer’))

Lowercase

italic

Syntax variables CREATE ROLE role

Uppercase SQL commands and

functions

SELECT useridFROM emp;

Typographic Conventions in Oracle Application Navigation Paths

This course uses simplified navigation paths, such as the following example, to direct you

through Oracle Applications.

(N) Invoice > Entry > Invoice Batches Summary (M) Query > Find (B) Approve

This simplified path translates to the following:

1. (N) From the Navigator window, select Invoice then Entry then Invoice Batches

Summary.

2. (M) From the menu, select Query then Find.

3. (B) Click the Approve button.

Notations:

(N) = Navigator

(M) = Menu

(T) = Tab

(B) = Button

(I) = Icon

(H) = Hyperlink

(ST) = Sub Tab




11i Inventory Management Fundamentals Table of Contentsxv

Typographical Conventions in Oracle Application Help System Paths

This course uses a “navigation path” convention to represent actions you perform to find

pertinent information in the Oracle Applications Help System.

The following help navigation path, for example—

(Help) General Ledger > Journals > Enter Journals

—represents the following sequence of actions:

1. In the navigation frame of the help system window, expand the General Ledger entry.

2. Under the General Ledger entry, expand Journals.

3. Under Journals, select Enter Journals.

4. Review the Enter Journals topic that appears in the document frame of the help system

window.




11i Inventory Management Fundamentals Table of Contentsxvi




11i Receipt to IssueChapter 1 - Page 1

11i Receipt to Issue

Chapter 1





11i Receipt to Issue





Objectives





Agenda





Overview





Agenda





Receipt to Issue Life Cycle

Receipt To Issue

Oracle Inventory uses the receipt to issue process to manage your inventory. The three main

pieces of the process are as follows:

Receiving

When you take delivery of inventory into your warehouse you receive it. You can receiveinventory using the following applications:

• Oracle Purchasing

• Oracle Work in Process

• Oracle Inventory

TransferringYou can transfer inventory within an organization and from one organization to another

organization using the following applications:

• Oracle Shipping

• Oracle Order Management







• Issuing

Issuing

When you send materials out of inventory you issue it. You use the following applications to

issue inventory:

• Oracle Order Management

• Oracle Purchasing







Agenda





Receiving Inventory

Receiving Inventory

There are different ways you can receive inventory into stock.

Purchasing

You can receive inventory from outside of your organization using Oracle Purchasing. The

ways you use Oracle Purchasing in relation to receiving stock are:

• Purchase Order Receipt

• Internal Requisition

• In-transit Receipt

• Return Material Authorization

• Unexpected Receipt

Work in Process

You can receive inventory from the manufacturing floor using Oracle Work in Process

• Component Return

• Negative Component Issue

• Assembly Return





Inventory

You may receive inventory into stock using Oracle Inventory in the following ways:

• Miscellaneous Account

• Receipt from Project

• User Defined

• Inter-organization receipt





Receiving Inventory





Agenda





Transferring Inventory

Transferring Inventory

Different applications can generate requests to transfer inventory.

Shipping

Oracle Shipping can generate a transfer to move stock from a finished goods area to a staging

to for shipping.

Order Management

Oracle Order Management can generate a transfer to move stock from a finished goods area to

a staging area for shipping.

Work in Process

Oracle Work in Process can generate a transfer to acquire components for a project.Inventory

Oracle Inventory transfers materials using the following methods:

• Transfer between Organizations

• Replenish materials

• Request transfers





Agenda





Issuing Inventory

Issuing Inventory

You can issue stock out of inventory using the following applications:

Order Management

Oracle Order Management can generate an inventory issue through:

• Sales Orders

• Internal Orders

Purchasing

Oracle Purchasing can generate an inventory issue for:

• Return to Vendor materials

Work in Process

Oracle Work in Process can generate an inventory issue through:

• Component Issue

• Assembly Return

Inventory

You can issue stock using Oracle Inventory in the following ways:





• User Defined

• Inter-organization Transfer

• Cycle Count Negative

• Request Issue





Agenda





Oracle Inventory Application Integration

Integration of Oracle Inventory to Manufacturing Applications

Oracle Inventory interacts with the other applications by sharing information:

• Oracle Cost Management receives cost information and transaction rates from Oracle

Inventory.

• Oracle Work in Process provides WIP activity and ATP supply information to OracleInventory and receives information regarding UOM, items, and on-hand quantity from

Oracle Inventory.

• Oracle Advanced Supply Chain Planning and Oracle Global Order Promising provide

ATP supply information and receive on-hand quantity and forecast information fromOracle Inventory.

• Oracle Bill of Materials receives UOM and item information from Oracle Inventory.

• Oracle Engineering provides engineering item information and receives UOM and item

information from Oracle Inventory.

• Oracle Order Management provides shipping, reservations, and demand information and

receives UOM, items, and ATP/on-hand quantity information from Oracle Inventory.





• Oracle Purchasing provides receipts/deliveries, ATP supply, and planning supply

information and receives UOM, items, requisition, and inter-org shipment informationfrom Oracle Inventory.





Integration of Oracle Inventory to Financial Applications

Integration of Oracle Inventory to Financial Applications

• Oracle General Ledger provides set of books and currency exchange rates and receives

transaction accounting summary and/or detail from Oracle Inventory.

• Oracle Payables receives UOM and Item information from Oracle Inventory.

• Oracle Receivables provides intercompany invoice information and receives UOM anditem information from Oracle Inventory.

• Oracle Assets receives UOM and item information from Oracle Inventory.





Agenda





Summary




11i Defining Inventory OrganizationsChapter 2 - Page 1

11i Defining InventoryOrganizations

Chapter 2





11i Defining Inventory Organizations





Objective





Agenda





Multi-Org Structure

Multi-Org

Multi-Org is an enhancement to Oracle applications that enables you to model multiple

business units in an enterprise using a single installation of Oracle applications. In a multi-org

architecture you can keep data secure and separate from each business unit.

The following are the benefits of multi-org:

• You can use a single installation of any Oracle Applications product to support any number

of business units, even if those business units use different set of books. Set of books is

explained in the following slide.

• Secure access to data so that users can access only information that is relevant to them.

• You can define a organizational model that best suits your business requirements.





Organization Model

Organization Model

The multi-org model provides a hierarchy that dictates how transactions flow through different

business units and how those business units interact. You define the organizations and the

relationships between them.

Business Group

This is an Organization that represents the consolidated enterprise, a major division, or an

operation company and has no accounting impact. The Business Group partitions Human

Resources information and the Purchasing Approval Hierarchy. If you request a list of

employees (in any module) you will see only those employees in the Business Group of whichyour Operating Unit is a part. Multiple Legal Entities can relate to a single Business Group.

You must have at least one Business Group. For a new installation, Oracle Applications provides a default business group called Setup Business Group. You can define additional business groups as required for your enterprise.

Set of Books

A set of books (SOB) is a financial reporting entity that shares the three Cs: a particular chart

of accounts (accounting flexfield structure), functional currency, and financial accounting





calendar. You create sets of books using the Set of Books window in Oracle General Ledger.

You define all other types of organizations using the Organizations window.

Legal Entity

A legal entity represents a legal company for which you prepare fiscal or tax reports. You

assign tax identifiers and other legal entity information to these types of organizations.

Operating Unit

An operating unit represents an organization that uses any Oracle subledger application, for

example, Order Management, Payables. It may be a sales office, a division, or a department.

An operating unit is associated with a legal entity. Information is secured by operating unit for

these applications. Each user sees information only for their operating unit. Responsibilities arelinked to a specific operating unit by the MO: Operating Unit profile option.

Inventory organizations are explained in detail in the following slides.





Sample Organization Structure

Organization Structure

Using Oracle Applications accounting, distribution, and materials management functions, you

define the relationships between inventory organizations, operating units, legal entities, and set

of books to create a multilevel company structure. Oracle Applications enables you to set up a

simple to complex organization structure. Analyze your current and future businessrequirements when making this decision.

The following points describe how the multi-org model relates organizations:

• A Business Group is the highest level of the structure and has no accounting impact. The

Business Group determines which employees will be available to Sets of Books andOperating Units related to that Business Group.

• Set of Books is the highest level which impacts the accounting side of business.

• Set of Books is associated with a single Business Group, multiple Sets of Books may be

associated with a single Business Group.

• Each Set of Books may have a different chart of accounts structure, calendar, or functional

currency.

• Each Legal Entity is associated with a single Set of Books, multiple Legal Entities may be

associated with a single Set of Books.





• Each Operating Unit is associated with a single Legal Entity, multiple Operating Units may

be associated with a single Legal Entity.

• An Inventory Organization may be associated with any Operating Unit within the same Set

of Books.





Enterprise Structure Considerations

Enterprise Structure Considerations

An inventory organization is an inventory location, which can have its own set of books,

costing method, workday calendar, and list of items.

Sets of Books

You can tie one Oracle General Ledger set of books to each inventory organization.

Costing Methods

You choose your costing method, which can be standard or average, at the organizational level.

The item attribute control level determines the costing organization.

Item Costs

Oracle Inventory keeps one standard cost per item per inventory organization.Movement Between Inventory Organizations

You can use intransit inventory for interorganization transfers.

Planning Method

You can perform reorder point planning at the organizational level, and you can perform min-

max planning at both the organization and subinventory level. Subinventories are explained inthe next slide.





In Multi-Org

You can tie one government reporting entity/legal entity to each inventory organization. Youcan also tie one operating unit to each inventory organization.

Forecasting

Oracle Inventory forecasts item usage at the organization level only.

Accuracy Analysis

You can perform a physical inventory, ABC classifications, and cycle counting at both theorganization and subinventory levels.





Inventory Organizations


An inventory organization is a facility in your enterprise where you store and transact your

inventory items. The items in an inventory organization can be in the form of raw materials,

semi-finished goods, or finished goods for varying periods of time.

Before you use Oracle Inventory, you need to define one or more inventory organizations.Inventory organizations represent distinct entities in your enterprise and can be one of the

following:

• A physical entity such as a manufacturing facility, warehouse, distribution center, or a

branch office.

• A logical entity such as an item master organization, which you can use just to define items

but no transactions. The item master organization is discussed in detail in the lesson titled“Defining and Maintaining Items Fundamentals.”

An inventory organization may have the following attributes:

• An inventory organization can have its own location with a set of books, a costing method,

a workday calendar, and a list of items.

• An inventory organization can share one or more of these characteristics with other

organizations.





Inventory Organization Structure

Inventory Organization Structure

An inventory organization, where you store and transact items can have one or more

subinventories. Subinventories are unique physical or logical separations of material inventory,

such as raw material inventory, finished goods inventory, or defective goods inventory. In

Oracle Inventory, all material within an organization is held in a subinventory. Therefore, youmust define at least one subinventory.

Item quantities can be tracked by subinventory. Items can also be restricted to specific

subinventories.

The subinventories in an inventory organization may be made up of one or more locators suchas row, rack, bin. You use locators to identify physical areas where you store inventory items.

Item quantities can be tracked by locator. Items can also be restricted to specific locators.





Sample Inventory Organization





Agenda





Setting up Locations

Setting up Locations

• Define information describing the physical locations of Employees and Organizations.

• Locations are shared between Inventory, Purchasing, and Human Resource Management.

Locations flagged as global locations are available to all Business Groups. Each

organization can be associated with only one location. One or more organizations can beassociated with the same location.





Defining Organizations


Classify the Organization

• Choose an organization classification to describe the general purpose of your organization.

• Examples of organization classifications are inventory organization, legal company, and

HR organization.

• Choose inventory organization as your organization classification to use your organizationfor inventory management.

Set of Books

• Tie each inventory organization to an operating unit. Each operating unit is associated to a

legal entity and a general ledger set of books.





Organization Setup

Organization Setup

Use the Organization Parameters window to complete your organization definition for

inventory purposes.

• You must specify the item master organization. The system defaults this field to the

organization for which parameters are being entered. It must be changed for anyorganization that is not an item master organization.

• The item master organization should be the first inventory organization for which

parameters are defined.

• You must define the control options and account defaults for your organization before youcan define items or perform any transactions.

• Define receiving parameters if you receive items on purchase orders, internal orders, and

in-transit interorganization shipments.

• You must assign a unique short code to your organization and use this code to identify theorganization with which you want to work.

• You must specify shipping parameters to specify whether the move order line allocation is

automatic or manual in Oracle Shipping Execution.





• Define the WIP parameters if you are using Oracle Work in Process.

• You must define project parameters if the organization is classified as a projectmanufacturing organization.

• Define and update default inventory and costing parameters for your organization.





Additional Set Up Steps

Setting Up Employees and Planners

Entering Employees

Employees who perform cycle and physical inventory counts.

Defining Planners

Identify persons responsible for planning items or groups of items.

Defining Freight Carriers

Allows assignment of a general ledger account to one or more carriers to collect costs

associated with their use.

A carrier can be assigned to each inter-organization transfer.





Additional Organizational Setups

Material Shortage Parameters

Define the parameters for the system to determine when unsatisfied demand exceeds available

quantity of incoming supply. This condition can be used by the system to trigger shortage

alerts and notifications.

Organization Access

This controls access to organizations based on the user responsibility assigned to a user by the

system administrator.

When implemented for one user responsibility, it is then required for all other user

responsibilities accessing the same organization.





Guided Demonstration: Creating an Inventory Organization





Guided Demonstration - Setting Up Locations

Responsibility = Inventory, Vision Operations USA

1. (N) > Setup > Organizations > Locations.

2. Define a Location using the following information:

− Name: M12 Orlando MFG

3. Select the Address field.

4. Enter the following address information:

− Address Line 1: 100 Buena Vista Drive

− City: Orlando

− State: FL

− Zip Code: 32803

−

County: Orange− Country: United States

− Telephone: (407) 828-5000

5. (B) OK.

6. Save and Close form.





Guided Demonstration - Setting Up Organizations

Responsibility: Inventory, Vision Operations USA

1. (N) > Setup > Organizations >Organizations.

2. Set up a new organization using the following information:

− Name: M12 Orlando MFG

− Type: Plant

− Location: M12 Orlando MFG

3. (M) File > Save.

4. Under Organisation Classifications, choose 'Inventory Organization' in the Name field and

select the Enabled checkbox.

5. (M) File > Save.

6. (B) Others > Accounting Information.

7. Enter the following accounting information:

− Set of Books: Vision Operations

− Legal Entity: Vision Operations

− Operating Unit: Vision Operations

8. (M) File > Save.

9. (B) Others > Inventory Information > (T) Inventory Parameters

10. Enter the following inventory parameters:

− Organization Code: M12

− Item Master Organization: Vision Operations

− Calendar: Vision01

− Locator Control: Determined at Subinventory Level

11. (T) Costing Information

12. Click the flexfield button in the Material field. The Operations Accounting Flex windowopens.

13. Click the OK button in the Operations Accounting Flex window.

14. Enter the following details in the Operations Accounting Flex window:

− Department: No Department

− Account: Inventory Material Value

15. (T) Other Accounts





16. Click the flexfield button in the Purchase Price Variance field. The Operations Accounting

Flex window opens.



− Department: M1, Seattle Manufacturing Plant

− Account: Purchase Price Variance

19. Click the flexfield button in the Invoice Price Variance field. The Operations Accounting

Flex window opens.




− Account: Invoice Price Variance

22. Click the flexfield button in the Inventory AP Accrual field. The Operations AccountingFlex window opens.




− Account: Accounts Payable Clearing

25. Click the flexfield button in the Sales field. The Operations Accounting Flex window opens.




− Account: Hardware

28. Click the flexfield button in the Cost of Goods Sold field. The Operations Accounting Flex

window opens.



− Department: M1, Seattle Manufacturing Plant− Account: Cost of Sales

31. (M) File > Save.

32. (M) File > Close Form.

33. (B) Others > Receiving Information





34. Enter the following receiving options:

− Receipt Date, Days Early: 5

− Receipt Date, Days Late: 5

− Over Receipt Control, Tolerance: 5%

35. Click the flexfield button in the Receiving Inventory Account field. The Receiving Accrual

Account window opens.

36. Click the OK button in the Receiving Accrual Account window.

37. Enter the following details in the Receiving Accrual Account window:



38. Click the flexfield button in the Clearing Account field. The Clearing Account window

opens.

39. Click the OK button in the Clearing Account window.

40. Enter the following details in the Clearing Account window:









Agenda





Summary




11i Overview of Defining and Maintaining ItemsChapter 3 - Page 1

11i Overview of Defining andMaintaining Items

Chapter 3





11i Overview of Defining and Maintaining Items





Objective





Agenda





Items

What is an Item?

An item is a part or service you:

• Purchase

• Sell

• Plan

• Manufacture

• Stock

• Distribute

• Prototype





Agenda





Oracle Organization







An inventory organization is an inventory location with its own set of books, costing method,

workday calendar, and list of items. An organization can be a company, subsidiary, or a

warehouse.

Consider the following when you plan your enterprise structure:

• Sets of Books: You can tie one Oracle General Ledger set of books to each inventory

organization.

• Costing Methods: You set your costing method (Standard or Average) at the organizational

level. The item attribute control level determines the costing organization.

• Item Costs: Oracle Inventory keeps one cost per item per inventory organization.

• Movement Between Inventory Sites: You can use intransit inventory for interorganization

transfers.

• Planning Method: You can choose how to plan your items.

• Forecasting: You can forecast your items.

• Accuracy Analysis: You can perform a cycle count or a physical inventory.







Classify the Organization

• Choose an organization classification to describe the general purpose of your organization.

• Examples of organization classifications are inventory organization, legal company, and

HR organization.

• Choose inventory organization as your organization classification to use your organizationfor inventory management.

Set of Books

• Tie each inventory organization to an operating unit. Each operating unit is associated to a

legal entity and a general ledger set of books.Inventory Parameters

• Use the Organization Parameters window to complete your organization definition for

inventory purposes.

• Define receiving parameters if you receive items on purchase orders, internal orders, andintransit interorganization shipments.





Agenda





Defining Items in Item Master

Item Master

Always define items in the master organization. When you define an item, Oracle

automatically changes your current organization to the master organization. You may enable

your new items in as many child organizations as needed.





Steps to Setup, Define, and Maintain Items

Steps to Define and Maintain Items

Following are the steps for creating and maintaining items:

1. Create the item templates.

2. Use the templates and existing items to define items.

3. Enter values for additional item attributes.

4. Assign a status to the item.

5. Assign categories to the item.

6. Enable the item in other organizations.

7. Update the organizational-level attributes values.

8. Define the item relationships.

9. Search for items.

10. Delete items.





Defining Items





Agenda





Item Attributes

Item Attributes

Item attributes are the collection of information about an item.





Item Statuses and Attributes


You define an item status by selecting the value check boxes for the status attribute. You can

control status attributes and item status at the item level or organization level.





Item Attribute Groups





Agenda





Creating Item Templates





Enabling Attributes in a Template





Agenda





Organization Assignment and Organization Item


You can enable your item in all child organizations under your master organization or you can

choose to enable your item in specific child organizations. You can use the master item

window, in each organization, to enter or change organization-level attribute values for items

that are enabled in the organization. For example you can select Reorder Point planning for anitem in one child organization and select Min-Max planning for the same item in another child

organization.





Agenda





Deletion Constraints and Deletion Groups

Deletions Constraints and Deletion Groups

You cannot delete an item if you have on-hand quantity or have performed any type of action

on the item.





Agenda





Summary




11i Defining and Maintaining Items FundamentalsChapter 4 - Page 1

11i Defining and MaintainingItems Fundamentals

Chapter 4





11i Defining and Maintaining Items Fundamentals





Objectives





Agenda





Unit of Measure

Unit of Measure

A unit of measure (UOM) is a value that specifies the quantity of an item. For example, “each”

is a unit of measure that you would use to specify the number of units of an item.

Unit of Measure Class

A unit of measure class is a group of units of measure with similar characteristics. For example, “weight” can be a unit of measure class with UOMs such as kilogram, gram, pound,

and ounce.





Unit of Measure





Units of Measure

Explaining Units of Measure

Each item you define in Oracle Inventory must have a primary unit of measure, and each item-

transaction you perform in Oracle Applications must have a unit of measure associated with

the transaction quantity and a conversion defined back to the primary unit of measure.





Use of Units of Measure

Some Uses of Units of Measure

Planning Products

• Forecasting and consumption

• Master scheduling

• Material requirements planning

Work in Process

• Shop floor moves

• Resource transaction

• Completion and return transactions

• Inquiries and reports

Bills of Material and Engineering

• Defining bills of material

• Defining engineering items





Defining UOM Classes


You need to define unit of measure classes and the base unit of measure for each class. Unit of

measure classes represent groups of units of measure with similar characteristics such as

volume or length. Oracle Inventory uses the base unit of measure to perform conversions

between units of measure in each class and between two different unit of measure classes.





Units of Measure Conversions

Units of Measure Conversions

A unit of measure conversion is a mathematical relationship between two different units of

measure. For example, 16 ounces = 1 pound, or 2.2 pounds = 1 kilogram. If you want to

transact items in units of measure belonging to classes other than their primary UOM class,

you must define conversions between the base units of measure in different UOM classes.





Units of Measure Setup





Guided Demonstration Overview: Units of Measure





Guided Demonstration - Units of Measure


Units of Measure Classes

1. (N) > Setup > Units of Measure > Classes.

2. (M) File > New.

3. Enter the following unit of measure information:

− Name: 00-Metric

− Description: 00-Metric Class

− Base Unit 00-Meter

− UOM: 00M

4. (M) File > Save.

5. Choose Units of Measure.

6. (M) File > New.

7. Create two units of measure using the following information

− Name: 00-Centimeter

− UOM: 00C

− Description: 00-Centimeter

− Name: 00-Kilometer

− UOM: 00K

− Description: 00-Kilometer.

8. (M) File > Save.


Unit of Measure Conversions

10. (N) Setup > Units of Measure > Conversions

11. (M) File > New.

12. Select 00-Centimeter from the list of values.

13. Enter 0.01 in the conversion field.

14. (M) File > New.

15. Select 00-Kilometer from the list of values.





16. Enter 1000 in the conversion field.







Practice Overview: Units of Measure





Practice - Defining Units of Measure

Overview

In this lab you will be doing the following:

• Defining Units of Measure Classes

• Defining Units of Measure

• Setting Up Units of Measure Conversions

Assumptions

• You are skilled in Oracle Navigation

• You must have access to an Oracle Application Vision database or comparable trainingor test instance at your site on which to complete this practice.

Tasks


Define a unit of measure class using your team number (##) to uniquely identify your class fromthe other team’s in the classroom. The UOM class information to enter is as follows:

• Description: ##-Quantity Class

• Base Unit: ##-Each

• UOM abbreviation ##E

Defining UOMs

Define the following UOM’s for your class. Be sure to use your team number to uniquely

identify your class from the other team’s in the classroom.

• Dozen

• Gross

• Case

UOM Conversions

Set up Standard conversion for your UOMs. Be sure to use your team number to uniquely

identify your class from the other team’s in the classroom.





Note: A Gross = 144 each, and a case = 24 each.





Solution – Defining Units of Measure



1. Navigate to the UOM Classes window.

• (N) Setup > Units of Measure > Classes

2. The application prompts you to select an organization if it is a first-time access to the

database. Select M1 Seattle Manufacturing from the list of values.

3. (M) File > New.

− Name ##-QTY

− Description ##-Quantity Class

− Base Unit ##-Each

− UOM (abbreviation) ##E

4. (M) File > Save.

5. (M) File >Close Form.

Defining UOMs

6. Define multiple units of measure for you UOM class.

• (N) Setup > Units of Measure > Units of Measure

7. (M) File > New.





− Name: ##-Dozen

− Abbreviation: ##D

− Description: Team ## Dozen U of M

− Class: The U of M class you created in Step 1

8. Repeat step 6 to create units of measure for ##-Gross and ##-Case using the same

conventions.

9. (M) File > Save.

10. (M) File > Close form.

UOM Conversions

11. Set up Standard conversions for your units of measure.

• (N) Setup > Units of Measure > Conversions

12. (M) File > New (make sure your conversion type is “Standard” conversion).

− UOM: ##-Dozen

− Class: ##-Quantity

− Conversion: 12

−

Base Unit: ##-Each

13. Create Standard Conversions for Case and Gross UOMs.

− ##-Gross = 144 ##-Each

− ##-Case = 24 ##-Each






15. (M) File >Close Form.





Agenda







You define an item status by selecting the value check boxes for the status attribute. You can

control status attributes and item status at the item level or organization level.





Item Status

Explaining Item Status

The Item Status attribute has a defined set of yes/no values for the status attributes. You apply

the values to the status attributes when you choose an item status code when you define an

item. For example, in the beginning of a product development cycle you set the Item Status

attribute to Prototype with all of the status attributes defaulted to yes except for Customer Orders Enabled. When the item is ready, you change the Item Status attribute to Active to

enable all item functions.

You can assign one or more pending statuses for an item, to be implemented on future dates.These statuses become effective on their assigned effective dates. You can view the status

history of an item if needed.

More detailed information see the online help:(Help) Oracle Inventory > Setting Up > Item Set Up and Control > Status Attributes and ItemStatus





Status Attributes

Status Attributes Help

For more information on status attributes, refer to the online help:

(Help) Oracle Inventory > Setting Up > Item Set Up and Control > Status Attributes and Item

Status Control





Item Attribute Relationships

Explaining Item Attribute Relationships

Required Attributes

You must enter a value for the attribute based on the settings for other related attributes.

Interdependent Attributes

You can only enter certain values depending on other attribute values.

Updateable Attributes

You can update values under certain conditions.

Control Level Dependencies

You can update the control level of some attributes only under special conditions and with

certain consequences.





Status Attribute Interdependencies





Status Attributes and Functionality

Status Attributes and Functionality Help

For more information on this table, refer to the online help:

(Help) Oracle Inventory > Setting Up > Item Set Up and Control > Status Attributes and Item

Status Control

(Help) Oracle Inventory > Setting Up > Item Set Up and Control > Relationships betweenAttributes





Status Attributes and Functionality





Guided Demonstration Overview: Viewing Item Attributes





Guided Demonstration - Viewing Item Attributes

Responsibility: Oracle Inventory, Vision Operations USA

1. (N) Items > Master Items.

2. (M) View > Query by Example > Enter.

3. Enter item %AS18947.

4. (M) View > Query by Example > Run.

5. (T) Inventory.

6. Choose the Master radio button from the Display Attributes zone.

7. Choose the Org radio button from the Display Attributes zone.






Practice Overview: Viewing Item Attributes





Practice - Viewing Item Attributes

Overview

In this lab you will learn how to view item attributes.

Assumptions

• You are skilled at Oracle navigation.

• Responsibility: Inventory, Vision Operations USA.


Tasks

Viewing Item Attributes

1. Find item # AS18947 and answer the following questions

• What is the BOM Item Type for the part? _______What is the control level? ______

• Is this item under Revision Control? _____ What is the control level? ____

2. Find item # AS54888 and answer the following questions about the item's attributes.

• What is the Item Status? _______________ What is the control level? ______

• Is a Bill of Material allowed for this item? ______ What is the control level? ______

• Can I build this item in WIP? ________________ What is the control level? _____

• Are customer orders enabled for this item? _________What is the control level? _____

• Is Invoicing Enabled for this item? ______________ What is the control level? _____

• Are Internal Orders enabled for this item? _______ What is the control level? ______

• Is this item transactable in Inventory? ____________ What is the control level? ______

• Is this item purchasable from a Vendor? ___________ What is the control level? _____

• Is this item stockable in Inventory? _______________ What is the control level? _____

• In how many Organizations can this part be used?





Solution – Viewing Item Attributes

Viewing Item Attributes


1. Navigate to the Master Items Window.

• (N) Items > Master Items

2. Query Item # AS18947.

• (M) View > Query by Example > Enter

− Enter AS18947% in the Item field.

• (M) View > Query by Example > Run





3. BOM Item Type for AS18947 is Standard, and Master controlled.





4. Item AS18947 is not under revision control or lot control. These attributes are organization

controlled.

5. Find Item AS54888.

• (M) View > Find





• Select Find.

6. Item AS5488 Item Status is active, and master controlled.

7. A Bill of Material is allowed for this item, and the attribute is master controlled.

8. Customer orders are enabled for this item, and the attribute is master controlled.





9. Invoicing is enabled for this item, and the attribute is master controlled.

10. This item is transactable, and the attribute is master controlled.





11. The item is stockable, and the attribute is master controlled.

12. In how many Organizations can this part be used?

13. Close Forms.





Agenda





Defining the Item Master Organization

Item Master Organization

An item master organization is a logical entity that you can use just to define items. The other

organizations (child organizations), where inventory is stored and transacted, refer to the item

master organization for item definition. After you define an item in the item master, you can

assign it to any number of other organizations.

There is no functional or technical difference between the item master organization and other

organizations. However, for simplicity it is recommended that you limit the item master to just

an item definition organization.

It is also recommended that you do not define multiple item masters. This can make itemdefinition and maintenance confusing. You can even use the same item master for child

organizations across different set of books. In addition, multiple item masters are distinctentities with no relationship to each other. You cannot associate items in one item master organization with another item master organization. You cannot copy items across item master

organizations.

Defining the Item Master Organization

Creating the item master organization is similar to creating the inventory organizations:





• Use the Organization window to create the organization you want to use as the Item

Master.

• Use the Organization Parameters window to specify the organization as the Item Master.

You can also assign child organizations to an item master in this window. Note that the

item master uses itself as its item master.





Agenda





Defining Items

Defining Items

Define only the information you need to maintain the item. You cannot define an item at the

organization level. Oracle Inventory automatically switches to the Master Item window when

you define a new item.





Steps to Setup, Define, and Maintain Items

Steps to Define and Maintain Items

Following are the steps for creating and maintaining items:

1. Create the item templates.

2. Use the templates and existing items to define items.

3. Enter values for additional item attributes.

4. Assign a status to the item.

5. Assign categories to the item.

6. Enable the item in other organizations.

7. Update the organizational-level attributes values.

8. Define the item relationships.

9. Search for items.

10. Delete items.





Defining Items





Item Templates

Templates

Oracle Inventory has several predefined templates that you can use to define and update items

or you can create your own templates.

If you regularly define many items that share the same values for a number of attributes, you

may want to define item templates to avoid duplicating effort. You can only use “Copy” oncewhen adding an item. You can predefine templates with relatively few attributes enabled

because you can apply more than one template to define one item.

Attributes in Templates

You can enable attributes and assign them values in each template that you create. When youapply a template to an item, Oracle Inventory updates only the attributes that are enabled for

the template. The order in which templates are applied is extremely important.

Further Item Templates Help

For more information on item templates, refer to the online help:

(Help) Oracle Manufacturing Applications > Oracle Inventory > Setting Up > Item Setup and

Control > Item Templates







You can enable your item in all child organizations under your master organization or choose

child organizations where you use the item. Oracle Inventory propagates your item to all

organizations in which you want to define it. You can enter or change organizational attributes

for item attributes which are enabled in that organization. For example, go to an organizationto choose reorder point planning for an item, and then go to another organization and choose

Min-Max planning for the same item.





Item Control Level

Master-Level Control

An attribute you maintain at the master level has identical values across all organizations that

use the item.

Organization-Level Control

An attribute you maintain at the organization level may have different values for eachorganization that uses it.

Attribute Control

Some attributes can be maintained at only the Master level or the Organizational Level.

Unit of Measure must be entered at the Master level.

If using multiple organizations, the Min-Max attribute should be maintained at the organizationlevel.

Technical Note

Master-Level Control

For example, suppose you want to ensure that items defined in two organizations aretransactable at the same time in both organizations. If you make the item not transactable in

one organization, you want the same item to become not transactable in the other organization.





Organization-Level Control

Suppose only one of the two organizations in your Oracle Inventory implementation performsmanufacturing operations, while the other organization is strictly a distribution warehouse.

For a finished good item used in both organizations, you would want the flexibility to select the

Build in WIP status attribute check box in the manufacturing organization, and clear the Build

in WIP status attribute check box in the distribution organization.





Guided Demonstration: Defining Items





Guided Demonstration - Define Item


1. (N) > Items > Master Items.

2. Define an item using the following information.

− Item: AS18456

− Description: Lap Top Assembly

3. (M) Tools > Copy From.

4. Select Finished Good template from LOV.

5. Select Apply.

6. Select Done.

7. (M) File > Save.

8. (M) Tools > Organization Assignment.

9. Enable the Item in M1 Seattle.







Practice Overview: Defining Items





Defining Items

Overview

In this practice you will learn how to define items, assign item attributes, and enabled items in

organizations.

Assumptions

• You are skilled in Oracle navigation.

• Responsibility: Inventory, Vision Operations USA.


TasksCreating Item Templates

1. Create an item template and enable the following item attributes

• BOM Item Type: Standard

• Build in WIP

• Costing Enabled

• Customer Ordered

• Inventory Asset Value

• Inventory Item

• Invoiceable Item

• Stockable

• Transactable

• Cycle count enabled

• Shippable

• User Item Type: Finished Good





Create Items

Create an item using the template you created in the previous task. Create 5 items using the

Finished goods template with the following descriptions:

• No Inventory Controls

• Locator Control ON

• Revision Control ON

• Lot Control ON

• Serial Number Control ON

Note: Use the following naming convention for your items, ##Item, and be sure to enable

your items in M1 Seattle and M2 Boston.





Solution - Defining Items


Creating Item Templates

1. Navigate to the Item Template Window.

• (N) Setup > Items > Templates

2. (B) New.

− Template = ##-Template

− Description = Team ## Finished Goods Template

− Organization = Leave Blank

3. Select the appropriate attribute groups from the Show dropdown list. Enable the following

item attributes:

• BOM Item Type: Standard

• Build in WIP

• Costing Enabled

• Customer Ordered





• Inventory Asset Value

• Inventory Item

• Invoiceable Item

• Stockable

• Transactable

• Cycle count enabled

• Shippable

• User Item Type: Finished Good

4. Save and Close the form.

• (M) File > Save

• (M) File > Close Form

Creating Items

5. Create an item using the template you created in the previous task.

• (N) Items > Master Items

− Item: ##-Item01

− Description: Team ## - Item created from template





6. (M) Tools > Copy from

• Select the LOV

• Select the template you created in the previous task (##-Template)

• Select the Apply Button

• Select the Done Button.

7. (M) Save.

8. (M) Tools > Organization Assignment

• Select the Assigned box next to M1 Seattle.

• Select the Assigned box next to M2 Boston.





9. (M) File > Save.

10. (M) File > New.

11. Repeat Steps 5-10 using the following item numbers and descriptions.

− Item: ##-Item02

−

Description: ##-No Inventory Controls− Item: ##-Item03

− Description: ##-Locator Control ON

− Item: ##-Item04

− Description: ##-Revision Control ON

− Item: ##-Item05

− Description: ##- Lot Control ON

− Item: ##-Item06

− Description: ##-Serial Number Control ON

12. Save and Close window.

• (M) File > Save.

• (M) File > Close Form.





Agenda





Deletion Constraints





Deletion Constraints

Deletion Constraints Help

For more information on deleting items, or to review a list of entities that Oracle Inventory

checks before deleting an item, refer to the online help:

(Help) Oracle Manufacturing Applications > Oracle Inventory > Items > Item Deletion





Agenda





Profile Values

Profile Values

Profile values are one of the methods used to specify how Oracle Inventory processes and

controls access to data. In general, profile values can be set at one or more of the following

levels:

• User

• Organization

• Server

• Responsibility

• Application

• SiteSetting Profile Values

System administrators use the System Profile Values window to set profile options for their

users. System administrators can set values for user profile options at each profile level.

Site: Option settings pertain to all users at an installation site.

Application: Option settings pertain to all users of any responsibility associated with theapplication.





Responsibility: Option settings pertain to all users currently signed on under the responsibility.

Server: Option settings pertain to an individual server.

Organization: Option settings pertain to a particular organization.

User: Option settings pertain to an individual user, identified by their application username.

When a profile option may be set at more than one level, site has the lowest priority,

superseded by application, then responsibility, with user having the highest priority. For example, a value entered at the site level may be overridden by values entered at any other

level. A value entered at the user level has the highest priority, and overrides values entered at

any other level.

System Administrators can use the hierarchy type enhancement to group and set profile optionsaccording to the business needs. There are three types of hierarchy - security, server, and

organization. Profiles that use the Security hierarchy type follow the hierarchy: Site >

Application > Responsibility > User. Profiles using the Server type use the hierarchy: Site >Server >User. Profiles using the Organization type use the hierarchy: Site > Organization >

User. System administrators can further control security by assigning a set of books to a

responsibility, application, or site.

As application users, you can use the Personal Profile Values window to set your own personal profile options at the user level. Not all profile options are visible in the Personal Profile

Values window, and some profile options though visible might not be updatable. Required

profiles have no default; they require input from you or the system administrator. Optional profiles have defaults that may be accepted or manually overridden.





Item Profile Options

Profile Option

INV: Default Item Status: Indicates the default item status for new items you define.

INV: Default Primary Unit of Measure: Indicates the default primary unit of measure for new

items you define.

INV: Item Master Flexfield: Indicates which flexfield is used to define items inMTL_SYSTEM_ITEMS.





Item Profile Options

Profile Option

INV: Updateable Customer Item: Indicates if you can change the customer item number.

INV: Updateable Item Name: Indicates whether you can update the item flexfield.





Agenda





Implementation Considerations


You should set all costing attributes at the organizational level because costing is most

commonly done at organizational level. WIP requires costing at org level to set up WIP

accounting classes. Costing of individual items is specific to individual organizations because

of location and other considerations.

Costing Method

Costing method is chosen and set at the inventory organization level. Within a set of books,

an enterprise can have multiple cost methods specified at each organization level. For

example, a company may have one average cost org and one standard cost org. Availablecosting methods are as follows:

• Standard

• Weighted

• Average

• FIFO

• LIFO





Agenda





Summary




11i Inventory Controls ConceptsChapter 5 - Page 1

11i Inventory ControlsConcepts

Chapter 5





11i Inventory Controls Concepts





Objectives





Agenda





Inventory Control Overview

Item Control Overview

Within Oracle Inventory you can implement locator, revision, lot, and serial number control for

your items. Inventory controls are optional for all items. You can implement any combination

of the four controls for each item.





Agenda





Subinventories Overview

What is a Subinventory?

You define one or more subinventories for each inventory organization. A subinventory is a

physical or logical grouping of inventory such as raw material, finished goods, defective

material, or a freezer compartment. A subinventory can be the primary place where items are

physically stocked. You must specify the subinventory for every inventory transaction.





Agenda





Locator Control Overview

Locator Control Overview

Stock locators are structures within subinventories and are the third level in the enterprise

structuring scheme of Oracle Inventory. Locators may represent rows, aisles, or bins in

warehouses. You can transact items into and out of stock locators.





Agenda





Revision Control Overview

Revision Control Overview

A revision is a particular version of an item, bill of material, or routing. You use a revision

when you change the form, fit, or function of an item. Use a number or letter to signify the

number of times you change an item.





Agenda





Lot Control Overview

Lot Control Overview

A lot identifies a specific batch of an item you receive and store in your organization. Lot

control is a technique for enforcing the use of lot numbers during material transactions, thus

enabling the tracking of batches of items throughout their movement in and out of inventory. If

lot control is turned on for an item, you must indicate the lot number to perform a transaction.Oracle Inventory provides complete lot number support for inventory transactions.





Agenda





Serial Number Overview

Serial Numbers Overview

A serial number is an alphanumeric piece of information you assign to an individual unit of an

item. You use serial numbers to track individual item units. Serial number control is a system

technique for enforcing the use of serial numbers during a material transaction. You can use

serial numbers to track items over which you want to maintain very tight control. One serialnumber is assigned to per unit of an item.

For more information on setting up serial number control, refer to the online help:

(Help) Oracle Manufacturing Applications > Oracle Inventory > Items > Lot and Serial

Number Control > Setting Up Serial Number Control





Agenda





Summary




11i Inventory Controls FundamentalsChapter 6 - Page 1

11i Inventory ControlsFundamentals

Chapter 6





11i Inventory Controls Fundamentals





Objectives





Agenda





Inventory Control Overview

Item Control Overview

You can implement locator, revision, lot, and serial number control for your items. Inventory

controls are optional for all items. You can implement any combination of the four controls for

each item.





Agenda





Defining Subinventories

Defining Subinventories

You define subinventories by organization. Each subinventory must contain the following

information:

• Unique alphanumeric name

• Status

• Cost Group (feature enabled if you have WMS installed)

• Parameters

• Lead times

• Sourcing information

• Account information

For more information on defining subinventories see:

(Help) Oracle Manufacturing Applications > Oracle Inventory > Setting Up > Inventory

Structure > Defining Subinventories





Subinventory-Locator Relationship

Explaining Locator Structuring

You can structure Oracle Inventory in such a way that some of the subinventories and items

have locator control while others do not. If locator control is turned on at the item level, you

must specify a locator when transacting the item into or out of a subinventory. If locator

control is turned on at the subinventory level, you must specify a locator when transacting anyitem into or out of that subinventory. Each stock locator you define must belong to a

subinventory, and each subinventory can have multiple stock locators. The possible locator

control types are:

• None

• Prespecified

• Dynamic entry

• Item Level

For more information on setting up Locator Control, refer to the online help:


Structure > Defining Subinventories






Structure > Defining Stock Locators





Locator Structuring

Locator Structuring

You can restrict specific item numbers to a specific Stock Locator. For example you may stock

an item that is too large to fit into a standard locator. You can specify this item to be stocked in

an oversized locator only.





Locator Control Reports

Locator Control Reports

Locator Quantities Report

You use the Locator Quantities Report to identify items and their quantities stored in the

specified stock locators. If the stock locator has a zero on-hand quantity, then the locator is not

included in the report.

Locator Listing Report

You use the Locator Listing Report to list stock locators you defined. You also use this report

to review volume and weight allowed in a location before transacting items.





Guided Demonstration Overview: Defining Subinventories





Guided Demonstration - Creating Subinventories


1. (N) Setup > Organizations > Subinventories

2. (M) File > New

3. Enter the following subinventory information:

− Name: Raw

− Description: Raw Materials

4. (M) File > Save.


Verifying Subinventories

6. (N) Change Organization.

7. Select M2 Boston Manufacturing.

8. (N) Setup > Organizations > Subinventories

9. (M) View > Find.

10. Note that subinventory Raw is not available in M2.






Practice Overview: Defining Subinventories





Practice - Creating Subinventories

Overview

In this practice you will learn how to create two subinventories.

Assumptions

• You are skilled in Oracle navigation.

• Responsibility > Inventory, Vision Operations USA


Tasks

If you are not already in Seattle, change Organization to Seattle (M1).

Create four subinventories for your team. Create one subinventory for your finished goods (FGI)

stock, a subinventory as your Main inventory, a subinventory for Raw Materials, and asubinventory for Low Value items. Your Low Value subinventory must be a non-tracked

subinventory. Use the following naming convention to differentiate your team from other teams

i.e. ##FGI where the pound sign represents your team number.

After completing the lab, answer the following questions.

1. In which organization are your new subinventories?

2. Change to the Boston (M2) organization and ascertain if there is an FGI subinventory in that

organization.





Solution - Creating Subinventories


1. Change Organization to M1 Seattle.

• (N) Change Organization

• Choose Seattle Manufacturing

• Select OK

2. Navigate to the Sub-inventories window

• (N) Setup > Organizations > Subinventories

3. (M) File > New.

− Name: ##FGI− Description: ## Finished Goods Inventory

− Organization: M1





4. (M) File > Save

5. (M) File > New.

− Name = ##Main

− Description = ## Main Stores


6. (M) File > Save.

7. (M) File > New.

− Name = ##RM

− Description = ## Raw Materials


8. (M) File > Save.

9. (M) File > New

− Name = ##LV

− Description = ##Low Value Inventory






10. Clear the Quantity Tracked check box to make this a non-tracked

inventory.



• (M File > Close Form.

12. In which organization are your new subinventories? M1 Seattle Manufacturing

Verifying Subinventories

13. Does a subivnentory called FGI exist in M2 Boston Manufacturing? Yes.

14. (N) Change Organization.

• Select M2 Boston Manufacturing.





15. (N) Setup > Organizations > Subinventories.

16. (M) View > Find.






Guided Demonstration Overview Setting Up Locator Control





Guided Demonstration - Locator Control


Setting Up Subinventories for Locator Control

1. (N) Setup > Organizations > Subinventories.

2. (M) View > Find.

3. Select a Subinventory.

4. (B) Open.

5. Choose Item Level as the locator control level.

6. (M) File > Save.

7. (M) File > Close Form

Setting Up Locator Control for Items

8. (N) Items > Organization Items.

9. Find an Item.

10. (T) Inventory

11. Choose Dynamic entry as the locator control level.

Note: You cannot change the locator control for items for which on-hand quantity exists.



Setting Up Stock Locators

14. (N) Setup > Organizations > Stock Locators.

15. Choose New.

16. Enter a new Row Rack and Bin.

Note: Locators must be unique across an organization.

17. Enter a Description.

18. Enter the Subinventory.







Transacting Locator Controlled Items

21. (N) Transactions > Miscellaneous Transaction

22. Select Miscellaneous receipt as the transaction type.

23. Select Miscellaneous as the Account type from the LOV.

24. Choose Transaction Lines.

25. Enter the following transaction information:

− Item: The item for which you enabled locator control

− Subinventory: The subinventory for which you enabled locator control

− Locators: Select the locator that you created from the list of values

− Quantity: 5







Practice Overview Setting Up Locator Control





Practice - Setting Up Locator Control

Overview

In this lab you will learn how to set up locator control for subinventories and items.

Assumptions

• You are skilled in Oracle Navigation


Tasks

Setting up Subinventories for Locator Control.

1. Change the locator control in your ##FGI subinventory to Item Level.

2. Change the locator control in your ##Main subinventory to Dynamic Entry.

Setting up Items for Locator Control

3. Change the locator control of ##-Item03 to Dynamic Entry.

Defining Stock Locators

4. Define some stock locators for your ##FGI subinventory and your ##Main subinventory.

For this exercise use the following convention:− Row: (your team #) ## ##

− Rack: 01 01

− Bin: 01 02

− Subinventory: ##FGI

− Row: ## ##

− Rack: 02 02

− Bin: 01 02

− Subinventory: ##Main

Receiving Locator Controlled Items

5. Receive the following items into ##FGI subinventory using a miscellaneous receipt.

− ##-Item02 Quantity 100

− ##-Item 03 Quantity 25

6. Receive the following item into ##Main subinventory using a miscellaneous receipt.

− ##Item02 Quantity 25





7. Your Main subinventory is set up to require locator control for all items that are transacted

in it. Your FGI subinventory is not set up to require locator control for all items that aretransacted in it. Why, then were you prompted for a locator when you received ##-Item03

into the FGI subinventory?





Solution – Setting Up Locator Control

Setting up Subinventories for Locator Control.


1. Navigate to the Subinventories window

• (N) Setup > Organizations > Subinventories

2. Find your ##FGI subinventory

• (M) View > Find

3. Open your ##FGI subinventory and make the following change:

− Locator Control: Item Level

4. (M) File > Save.





5. Find your ##Main subinventory

• (M) View > Find

6. Make the following change to the ##Main subinventory

− Locator Control: Dynamic Entry

7. Save your work.

• (M) File > Save


Setting up Items for Locator control

8. Find Item ##-Item03 Locator control on.

• (N) Items > Organization Items.

• Enter the item number and select Find.





9. Change the Locator control for ##-Item03.

• (T) Inventory

− Locator Control: Dynamic Entry






11. (M) File > Close Form

Defining Stock Locators

12. Navigate to the Stock Locators window.

• (N) Setup > Organizations > Stock Locators.

• Select New.

13. Enter the following new locators using the following information:

− Row: (your team #) ##

− Rack: 01

− Bin: 01

− Description: Anything you want


− Locator Status: Active

− Row: ##

− Rack: 01

− Bin: 02








− Row: ##

− Rack: 02

− Bin: 01


− Subinventory ##Main− Locator Status: Active

− Row: ##

− Rack: 02

− Bin: 02


− Subinventory ##Main


14. Select (M) File > Save.

15. Select (M) File > Close.

Receiving Locator Controlled Items

16. Navigate to the Miscellaneous Transactions window.

• (N) Transactions > Miscellaneous Transaction.

− Date: Today’s Date





− Type Miscellaneous Receipt

− Account: Select Miscellaneous from the LOV.

• Select Transaction Lines

17. Enter the following information in the subsequent fields:

− Item: ##-Item02


− Quantity: 100

−

Item: ##-Item02− Subinventory: ##Main

− Locator: ##.2.1 (Row ##, Rack 2, Bin 1)

− Quantity: 25

− Item: ##-Item03


− Locator: ##.1.2

− Quantity: 25





18. Your Main subinventory is set up to require locator control for all items that are transacted

in it. Your FGI subinventory is not set up to require locator control for all items that are

transacted in it. Why, then were you prompted for a locator when you received Item03?

19. You set your FGI subinventory to item level locator control, and you changed Item03

locator control to dynamic entry.

20. Save and Close form.

• (M) File > Save






Agenda





Revision Control

Revision Control

A revision is a particular version of an item, bill of material, or routing. Use the revision

quantity control option to track item quantities by item revision and specify a revision for each

material transaction.

Enable revision quantity control for items you must track version changes or changes that aresignificant enough to track but do not affect the function and feature of the item.

You cannot change the revision control item attribute when an item has quantity on hand. If

revision control is controlled at the Master Item level, the check for on-hand quantity is against

the sum of on-hand quantity in all child organizations. If revision control is controlled at theorganizational level, the check for on-hand quantity is against the sum of on-hand quantity in

that organization.Use letters, numbers, and characters such as A, A1, 2B, and so on to define revision numbers.Letters are always in upper case and numbers may include decimals. To ensure revisions sort

properly, decimals should always be followed by a number. Revisions are sorted according to

ASCII rules, therefore each revision must be greater than the previous revision. For example,you cannot use revision 10 after revision 9 because, according to ASCII sorting, 10 precedes 9.

For more information on setting up Revision Control, refer to the online help:





(Help) Oracle Manufacturing Applications > Oracle Inventory > Items > Defining Item

Revisions





Agenda





Lot Control

Lot Control

Turn on lot control at the item level. For items under lot control, assign lot numbers to each

receipt into inventory and reference the same lots for each material transactions. This enables

you to have tight control over batches of items in your inventory.

You can split an inventory receipt into several lots as necessary. You can add quantities toexisting lot number, and Oracle Inventory uses the default lot generation method to generate

default lot numbers.

For more information on setting up Lot Control, refer to the online help:

(Help) Oracle Manufacturing Applications > Oracle Inventory > Items > Lot and Serial Number Control > Setting Up Lot Control





Lot Number Purging





Maintaining Lot Information

Lot Expiration

You can use the Item Lots window to update the expiration date of lots for items under lot

expiration (shelf-life) control. If you attempt to transact an item, to or from an expired lot,

Oracle Inventory displays a warning but does not prevent you from transacting the lot.

You can determine whether a lot has an expiration date by assigning a number of lot controlshelf life days or by entering a lot expiration date at the item level. The expiration date controls

the availability of the lot for transacting and planning purposes.

An expired lot is not considered as on-hand supply when performing min-max, reorder point,

or MRP planning calculations. It cannot be reserved for a date beyond the expiration date,however, it can be transacted and is included in on-hand quantities. An expired lot is included

in all inquires and reports, cycle count, count entry, physical inventory, tag entry, andadjustments in both cycle counting and physical inventory are allowed.





Cycle Counts Under Lot Control





Physical Inventory Under Lot Control





Disabled Lots

Disabled Lots

• Are included in available to transact, available to promise, and available to reserve

calculations.

• Are included as on-hand supply when performing min-max, reorder point, or MRP

planning calculations.

• Are included as on-hand in all inquiries and reports, including inventory valuation

reports.

• Can be transacted with Inventory functions and the Transaction Open Interface.

• Can be reserved.





Lot Control Reports

Lot Control Reports

Lot Transactions Register

You can use the Lot Transactions Register to report comprehensive lot number material

transaction detail within a specific date range. You can run the report for a range of lots, items,

transactions types, transaction reasons, and subinventories. You can also specify a specificcategory set and display transaction quantities in their primary or transacted unit of measure.

Supplier Lot Trace Report

You can use the Supplier Lot Trace Report to trace a specific lot to its supplier lots. You can

run the report for a range of lot numbers and items and a specific supplier lot number. Thereport shows you the lot material transactions related to the selected items as lot numbers,

transaction dates, and transaction quantities.

Expired Lots Report

You can use the Expired Lots Report to show lots in your organization that expire on or beforethe date you specify. You can run the report for a range of items or for a specific item only.





Agenda





Generating Serial Numbers

Serial Number Generation

How you set up serial number control at the master item level determines serial number

generation. If you specify No Control as the serial number control type, then the system does

not enforce serial number control. If you specify Predefined as the serial number control type,

then you must predefine serial numbers for that item. If you select At inventory receipt or At sales order issue, then you can optionally predefine serial numbers for the item.

Oracle Inventory uses the starting serial number prefix and the starting serial number you

specify in the Item window to load the number of predefined serial numbers you request. Youcan load as many serial numbers as you want for any item under serial number control.

The process of generating serial numbers is done through a concurrent report. This process

does not assign numbers to units in inventory, it simply reserves specific serial numbers for anitem for later use.

For more information on setting up serial number control, refer to the online help:

(Help) Oracle Manufacturing Applications > Oracle Inventory > Items > Lot and Serial

Number Control > Setting Up Serial Number Control





Maintaining Serial Numbers





Serial Genealogy





Serial Number Control Reports

Serial Number Control Reports

Serial Number Transactions Register

You can use the Serial Number Transactions Register to report comprehensive serial number

material transaction detail within a specific date range. You can run the report for a range of

serial numbers, items, transaction types, transaction reasons, and subinventories. You can alsospecify a specific category set and display transaction quantities in their primary or transacted

unit of measure.

Serial Number Detail Report

You can use the Serial Number Detail Report to report on information about current serializedunits in your organization for a specific source type or serialized unit status. Oracle Inventory

enables you to run the report for a range of serial numbers, items, suppliers, and supplier serialnumbers.





Guided Demonstration Overview: Revision, Lot, and SerialControls





Guided Demonstration - Revision, Lot, and Serial Controls


Creating New Revisions

1. If you are not in M1 organization, change your organization to M1.

• (N) Change Organization.

• Select M1 Seattle Manufacturing from the organization list.



4. (T) Inventory.

5. Select the Revision Control check box.

6. (M) Tools > Revisions.

7. (M) File > New.

8. Enter the following revision information:

− Revision: B

− Revision Label: B

− Description: Lap Top Assembly Revision

−

Effective Date: Today's Date.

9. (M) File > Save.


Enabling Lot Control


12. Find item AS18456.

13. (T) Inventory.

14. Select Full Control in the Lot alternative region.

15. Enter the starting lot prefix.

16. Enter the lot starting number.







Enabling Serial Control



21. (T) Inventory.

22. Select Predefined from the Serial alternative region:

− Starting Prefix: AS

− Starting Number: 000001



Generating Serial Numbers

25. (N) On-hand, Availability > Generate Serial Numbers.

26. Enter the following information to generate serial numbers:

− Item: AS42001

− Quantity: 1000

27. Choose Submit.

Transacting Locator Controlled Items.

28. (N) Transactions > Miscellaneous Transactions.

29. Enter the following transaction information:

− Type: Miscellaneous receipt

− Account: Miscellaneous

30. Choose Transaction Lines.

31. Enter the following receipt information:

−

Item: AS18456− Revision: B

− Subinventory: FGI

− Quantity: 10

32. Choose Lot /Serial.

33. Choose Generate.





− Lot Quantity: 10

34. Choose Done.

35. (M) File > New.

36. Enter the following receipt information:

− Item: AS42001

− Subinventory: FGI

− Quantity: 15

37. Choose Lot /Serial.

38. Select the first available serial number from the list of values.

Note: The End Serial Number field populates automatically according to the transaction

quantity.

39. Choose Done.







Practice Overview: Revision, Lot, and Serial Controls





Practice - Revision, Lot, and Serial Controls

Overview

In this lab you will learn how to update your revision, lot, and serial control for your items. You

will also learn how to receive items into stock that have revision, lot, and serial control. You willuse the items you created in the defining items lab.

Assumptions

• You are skilled in Oracle Navigation.

• You have completed the Define Items Lab.

• You must have access to an Oracle Application Vision database or comparable training

or test instance at your site on which to complete this practice.

Tasks

Revision Control

1. Find item ##-Item04, and enable revision control for this item.

2. Create two revisions for this item with the following information

− Revision: B

− Effective Date: Today

− Revision: C

− Effective Date: 1st of next month

3. Notice that a revision record already exists for this item (Revision A). Why is there already a

revision for this item? ______________________________________

Lot Control

4. Update ##-Item05 to enable lot control using the following information.

− Lot Expiration (Shelf Life) Control: User defined

− Lot Control: Full control

− Starting Prefix: ## (team number)


Serial Number Control

5. Update ##-Item06 to enable serial control using the following information.

− Serial Number Generation: Predefined

− Starting Serial Prefix: T##





− Starting Serial Numbers: 0001

6. Predefine a range of serial numbers using the following information:

− Item: ##-Item06

− Quantity to define: 1000

Note: Please note your request ID.

Receiving Revision, Lot, and Serial Controlled Items

7. Use a miscellaneous receipt transaction to receive item ##-Item04 into stock as follows:

− Item: ##-Item04 ##-Item04 ##-Item04

− Revision: A B C

− Subinventory: ##FGI ##FGI ##FGI

− Quantity 200 10 5


− Item: ##-Item05


− Quantity 50

− Expiration Date: Two Months from today

− Quantity 50


− Item: ##-Item06


− Quantity 40

− Entry Type: Ranges

10. Verify that the transactions have taken place.





Solution – Revision, Lot and Serial Controls

Revision Control


1. Find Item ##-Item04.


• Enter your item number.

• Select Find.

2. Enable the Revision Control attribute.

• (T) Inventory

• Select the Revision Control Attribute.


3. Create two revisions for ##-Item04.

• (M) Tools > Revisions.





− Revision: B

− Revision Label: B

− Effective Date: Today

− Revision: C

− Revision Label: C

− Effective Date: 1st

of next month

4. Save and Close Item.

• (M) File >Save.


5. Notice that a revision record already exists for this item (Revision A). Why is there already a

revision for this item?

The starting revision for organization M1 is set as A. Therefore, the first revision record(Revision A) is created by default for revision-controlled items in M1. You can define and

update default values for revision, lot, and serial parameters at the organization level using

the Organization Parameters window.

(N) Setup > Organizations > Parameters.





Lot Control

6. Find ##-Item05.

• (N) Organization Items

• Enter ##-Item05

• Select Find

7. Update ##-Item05 to enable lot control.

• (T) Inventory

− Lot Expiration (Shelf Life) Control: User Defined

− Lot Control: Full Control

− Starting Prefix: ## (team number)



• (M) File >Save.







9. Find Item ##-Item06.


• Enter your item number.

• Select Find.

10. Enable serial number control for ##-Item06.

• (T) Inventory

− Serial Number Generation: Predefined

− Starting Serial Prefix T##

− Starting Serial Numbers: 0001


• (M) File >Save.


12. Predefine a range of serial number.

• (N) On-hand, Availability > Generate Serial Numbers.





• Enter ##-Item06.

• Select OK.

• Enter 1000 as the quantity to define.

• Select OK.





• Select Submit.

Receiving Revision, Lot, and Serial Controlled Items

13. Navigate to the Miscellaneous Transaction window.


− Transaction Type: Miscellaneous Receipt

− Account: Miscellaneous

• Select Transaction Lines.

14. Receive ##-Item04 into stock as follows:

− Item: ##-Item04 ##-Item04 ##-Item04

− Revision: A B C

− Subinventory: ##FGI ##FGI ##FGI

− Quantity 200 10 5


− Item: ##-Item05


− Quantity 50





• Select the Lot/Serial Button.

• Enter the following Lot information. (The Lot number is displayed automatically when

you click in the Expiration Date field).

− Expiration Date: Two Months from today

− Quantity 50

• Select Done.


− Item: ##-Item06


− Quantity: 40

• Select the Lot/Serial button.

− Entry Type: Ranges

− Select the Starting Serial Number from the LOV. The End Serial Number populates automatically.





• Select Done.





17. Save and Close the Miscellaneous Receipt window to receive your items.

• (M) File >Save.


18. Verify that the transactions have taken place.

• (N) Transactions > Material Transactions

• Enter your ##FGI subinventory in the subinventory field.

• Ensure that the date of your transaction falls within the dates shown in the TransactionDates field.





• Select Find.






Note: You can also verify that the items have been received into stock using the

Materials Workbench.

• (N) On-hand, Availability > On-hand Quantity.





Agenda





Locator Flexfield Structure

Locator Flexfield Structure

Locator flexfield structure is common across all organizations. For Example if you set up Row

1A Rack 1A and Bin 1A in M1 Seattle, the same structure appears in M2 Boston. For more

information see the Oracle Applications Flexfields Guide.





Changing Locator Control

Changing Locator Control

You may change the locator control for an item even if you have on-hand balances for the

item. However, this is not encouraged unless the items are expired, damaged, or unusable.





Transacting Controlled Items

Transacting Controlled Items

If an item is controlled in one subinventory and you move it to another subinventory, the

destination subinventory must have item control.

Locator Control

During a material transaction, Oracle Inventory checks the locator control options youspecified. If locator control is enabled, you must enter a valid locator into which to receive or

from which to issue the item you are transacting.

Lot Control

You can optionally assign expiration dates to items. If you enable lot control for an item, youmust assign lot numbers when you receive the item into inventory. Thereafter, when you

transact the item, you must provide a lot number.


If you enable serial number control for an item, you must provide a serial number when youtransact it.

Revision Quantity Control





You can define and enforce revision quantity control for any item to track quantities by

revision. If you enable revision quantity control for an item, you must provide a revisionnumber when you transact it.





Agenda





Summary




11i Transacting Inventory ConceptsChapter 7 - Page 1

11i Transacting InventoryConcepts

Chapter 7





11i Transacting Inventory Concepts





Module Objectives





Agenda





Inventory Structure

Inventory Structure

Oracle Inventory is one of Oracle’s enterprise applications products. Oracle Inventory enables

companies to satisfy business needs such as these:

• Defining part numbers

• Modeling organization structures

• Tracking perpetual inventory

• Maintaining accurate on-hand balances

• Planning material replenishments

• Forecasting anticipated demand





Overview

Transactions

A transaction is an item movement into, within, or out of inventory. A transaction changes the

quantity, location, planning responsibility, and/or cost of an item.

Oracle Inventory supports a number of predefined and user-defined transaction types. Every

material movement has a corresponding set of accounting transactions that Oracle Inventoryautomatically generates.

All transactions validate the various controls (revision, locator, lot number, and serial number)

you enable for your items.

You can choose your own transaction processing methods to use available computingresources most effectively.

(Help) Oracle Manufacturing Applications > Oracle Inventory >Transactions > Overview





Agenda





Inventory Transactions

Inventory Transactions

• Receive items into your organization using a general ledger account number.

• Issue items from your organization using general ledger account number.

• Transfer items from a subinventory in your organization to another subinventory in the

same organization.

• Transfer items directly between organizations.

• Transfer items between organizations by way of intransit.

• Reserve items for a specific account or temporarily prevent the release of items onto the

shop floor.

(Help) Oracle Manufacturing Applications > Oracle Inventory >Transactions > Overview





Agenda





Transaction Source Types

Transaction Source Type

Oracle Inventory uses a transaction source type with a transaction action to uniquely identify

the type of transaction performed. Oracle Inventory provides the following predefined

transaction source types. You can define additional source types. Predefined transaction types

are as follows:

• Purchase Order

• Account Alias

• Account

• Move Order

• Internal Order • Standard Cost Update

• Internal Requisition

• Sales Order

• Cycle Count

• Periodic Cost Update

• Physical Inventory





• RMA (Return Material Authorization)

• Inventory

• Job or Schedule

(Help) Oracle Manufacturing Applications > Oracle Inventory > Setting Up > Transaction

Setup > Defining and Updating Transaction Source Types





Transaction Action

Transaction Action

You use transaction actions with a source type. A transaction action identifies a transaction

type. Oracle Inventory provides the following transaction actions:

• Assembly completion

• Issue from stores

• Subinventory transfer

• Direct organization transfer

• Cycle count adjustment

• Physical inventory adjustment

• Intransit receipt

• Intransit shipment

• WIP assembly scrap

• Cost update

• Receipt into stores

• Negative component issue





• Delivery adjustments

• Negative component return

• Assembly return

• Staging Transfer





Transaction Reasons

(Help) Oracle Manufacturing Applications > Oracle Inventory > Setting Up > TransactionSetup > Defining Transaction Reasons





Transaction Managers

(Help) Oracle Manufacturing Applications > Oracle Inventory > Setting Up > TransactionSetup > Transaction Managers





Agenda





Move Orders

Move Orders

Move orders are requests for the movement of material within a single organization. They

formalize the process to request the movement of material within a warehouse or facility for

purposes like replenishment, material storage relocations, and quality handling.

Move orders are generated manually or automatically depending on the source type used.

Move orders are restricted to transactions within an organization. Transfers between

organizations require an internal requisition.

Move Order Requisitions

A manually generated request, available for subinventory and account transfers.

These requests can optionally go through a workflow based approval process before they become move orders that are ready to be sourced and transacted.





Agenda





Shortage Alerts and Notifications

Shortage Alerts and Notifications

A material shortage occurs whenever outstanding demand exceeds the available quantity for

incoming supply of material. Oracle Inventory can check, during a receipt transaction, to see if

the material received is needed elsewhere in the organization. If a shortage exists, the system

can notify you either by a real–time material shortage alert or a workflow–based notification.Shortage messages configure real time alerts/notifications. During a material transaction,

Oracle Inventory checks to see if the material is needed elsewhere in the organization. Again, if

a shortage exists, the system notifies you either by a real-time material shortage alert or by aworkflow-based notification. You can use this technology to increase the product flow through

your warehouse, streamline order fulfillment, and reduce unnecessary material handling.

Alerts are real-time messages sent to a window before a transaction is committed, allowing youto immediately redirect delivery. Notification messages are workflow-based notifications that

may be created by business events or periodic processes and require that you initiate action to

address the identified shortages.

(Help) Oracle Manufacturing Applications > Oracle Inventory >Transactions > Shortage Alerts and Shortage Notifications





Agenda





Summary




11i Transaction SetupChapter 8 - Page 1

11i Transaction Setup

Chapter 8





11i Transaction Setup





Objectives





Agenda





Running Transaction Managers

Running Transaction Managers

Cost Manager

The material cost transaction manager costs material transactions in Oracle Inventory and

Oracle Work in Process in the background.

Lot Move Transaction Manager

The resource cost transaction manager processes resource transactions in Oracle Work inProcess and resource transactions you import from barcode readers, payroll systems, time

cards, routing sheets, and custom data entry forms using the Open Resource Transaction

Interface.

Material Transaction Manager

The material transaction manager immediately executes a material transaction after you save

your changes in a transaction window. By starting the transaction manager, you can determine

how to execute transactions: immediately through immediate concurrent request submissions,or through periodic concurrent request submissions. You define this transaction mode for

individual transaction windows in the Personal Profile Values window.

Move Transaction Manager





The move transaction manager processes move transactions in Oracle Work in Process and

move transactions you import from devices such as portable bar code readers or your customdata entry forms using the Open Move Transaction Interface.





Predefined Transaction Types

Predefined Transaction Types

Oracle predefines transaction types in the system. The table in the slide contains a few

examples of predefined transaction types. For more information on Predefined Transaction

types see:

(Help) Oracle Manufacturing Applications > Oracle Inventory > Setting Up > TransactionSetup > Transaction Types





Guided Demonstration Overview: Defining a CustomizedTransaction





Guided Demonstration - Customized Transactions


Setting Up Source Types

1. (N) Setup > Transactions > Source Types

2. Select the User tab.

3. (M) File > New.

4. Use the following information to define a source type.

− Name: Charitable Donation

− Description: Charitable Donation

5. (M) File > Save.


Setting Up Transaction Types

7. (N) Setup > Transactions > Types.

8. Select the User tab.

9. (M) File > New.

10. Use the following information to define a transaction type.

− Name: Goodwill Donation

− Description: Goodwill Donation

− Source Type: Charitable Donation

− Action: Issue from Stores



Setting Up Transaction Reasons

13. (N) Setup > Transactions > Reasons

14. (M) File > New.

15. Use the following information to define a transaction reason.

− Name: Goodwill

− Description: Charitable donation to Goodwill





Practice Overview: Defining a Customized Transaction





Practice - Defining a Customized Transaction

Overview

In this lab you will learn how to define a customized transaction.

Assumptions

• You must have access to an Oracle Application Vision database or comparable training

or test instance at your site on which to complete this practice.

Tasks

Define a Transaction Source

Define a Transaction Source using the following information:

−

Name: ##-Donations− Description: Donation source type for team ##

− Validation Type: None

Define a Transaction Type

Define a Transaction type and associate it with your newly created Source type using the

following information:

− Name: ##-Donation

− Description: ##-Goodwill Transaction

− Transaction Source Type: ##-Donations

−

Transaction File: Issue from Stores

Define a Transaction Reason

Define a Transaction Reason using the following information:

− Name: ##-Reason


Processing a Customized Transaction

Process a miscellaneous transaction using your customized transaction.





Solution – Defining a Customized Transaction

Define a Transaction Source


1. Navigate to the Transaction Source Type window.

• (N) Setup > Transactions > Source Types.

• (T) User

2. Create a New Transaction Source type.

• (M) File > New

− Name: ##-Donations

− Description: Donation source type for team ##

− Validation Type: None

3. Save and close the window.







Define a Transaction Type

4. Navigate to the Transaction Type Window.

• (N) Setup > Transactions > Types

• (T) User

5. Define a Transaction Type and associate it with the new Source Type.

• (M) File > New

− Name: ##-Donation

− Description: ##-Goodwill Transaction

− Transaction Source Type: ##-Donations

− Transaction File: Issue from Stores

6. Save and Close the window.



Define a Transaction Reason

7. Navigate to the Transaction Reason window.

• (N) Setup > Transactions > Reasons.





8. Define new transaction reason.

• (M) File > New

− Name: ##-Reason





Processing a Customized Transaction

10. Navigate to the miscellaneous transactions window.


11. Enter a customized transaction.

− Type: ##-Donation

− Account: Select one from LOV





12. Select Transaction Lines.

13. Enter the transaction information:

− Item: ##-Item02


− Quantity: 5

− Reason: ##-Reason





Agenda





Inter–organization Shipping Network

Inter-organization Shipping Network

An inter-organization shipping network describes the relationships and accounting information

between a shipping organization and a destination organization. You must define a shipping

network between organizations before you can conduct inter-organization transfers. For each

organization relationship, you must indicate what type of shipment is used. If you choose touse intransit inventory, Oracle Inventory moves material to intransit inventory before it reaches

the destination organization when you perform an interorganization transfer. If you do not

choose intransit inventory, Oracle Inventory moves your material directly to the destinationorganization when you perform an inter-organization transfer.

You can specify if transfers will go through intransit. If so, you can also determine:

• Shipping methods• GL accounts to use in transit

• Material ownership during transfers

• Planning lead-times

• Transfer charges

• Default receipt routing





• Whether internal orders are required

For more information see: (Help) Oracle Manufacturing Applications > Oracle Inventory >Setting Up > Transaction Setup > Inter-organization Shipping Network





Shipping Method

Shipping Method

A Quick Code used to define specific shipping methods. For example: Ground, Express, or

Air.





Agenda





Movement Statistics

Movement Statistics

You can collect statistics to satisfy the European Union’s reporting requirements for

INTRASTAT, the declarations for imports and exports between countries belonging to the

European Union, and EXTRASTAT, the declaration for imports and exports between a country

belonging to the European Union and a country external to the European Union.

Navigation to the Movement Statistics Window

You can navigate to the Movement Statistics window from the Inter-organization Transfer

window. Use the Tools menu to navigate to the Movement Statistics window from the Inter-

organization transfer window. You can also navigate to the Movement Statistics window fromthe navigator.

(N) Transactions > Movement Statistics

Country-Specific List of Values

• Oracle Inventory supports a country-specific list of values.

• Certain lists of values are seeded with a country prefix.

• The prefix used is the two-character upper case ISO code of the country.

Confirm Shipment (Oracle Order Management)





(N) Shipping > Confirm Shipments-Departures (B) Delivery

Movement statistics entered through the Oracle Order Management Confirm Shipment windoware linked automatically to the corresponding accounts receivable invoice.

You can use the Invoices window to link movement statistics entered in the Receipts window

to the accounts payable invoices.

(Help) Oracle Manufacturing Applications > Oracle Inventory > Transactions > Overview of

Movement Statistics

../ Entering and Maintaining Movement Statistics

../ Automatically Generating Movement Statistics





Movement Statistics Parameters

Movement Statistics Parameters

(N) Setup > Transactions > Movement Statistics > Parameters

You use a specific rate type to convert foreign currency transactions to the currency of the

legal entity. You can record the appropriate rate type for this conversion. You define currency

conversion rate types in the Oracle General Ledger.

For more information see:


Movement Statistics > Setting Up Movement Statistics

and

(Help) Oracle Manufacturing Applications > Oracle Inventory > Setting Up > TransactionSetup > Defining Movement Statistics Parameters





Collecting and Reporting Movement Statistics

Collecting and Reporting Movement Statistics

Define Movement Statistics Parameters

Use the Movement Statistics Parameters window to define the parameters for gathering

movement statistics. Oracle Inventory uses this information to validate the entry of statistical

movement transactions and to properly report the information. You define parameters toautomate the movement statistics functionality in the Movement Statistics Parameters and

Economic Zones windows.

Enter Movement Statistics Information

You can manually enter movement information associated with material transactions such asfixed assets that Oracle Inventory and Purchasing do not capture.

Link Movement Statistics to Financial Documents

Movement statistics records link automatically to various financial documents based on

transaction types. For example purchase order receipts link to payables invoices and sales order shipments link to receivables invoices.

Report and Review Movement Statistics





You can generate both summary and detail reports for movement statistics, including hard

copies for government agencies and your own files.

Freeze Movement Statistics

The Movement Statistics Reports run time parameter allows you to freeze movement

information for official INTRASTAT and EXTRASTAT reporting.


Movement Statistics





Agenda





Account Aliases

Aliases

An account alias is an easily recognized name or label representing a general ledger account

number. You can view, report, and reserve against an account alias. During a transaction, you

can use the account alias instead of an account number to refer to the account.

You must create an inventory account alias for each GL account if you wish to use an alias for that GL account in inventory transactions. Oracle Inventory does not honor GL account aliases.





Agenda





Setup Steps for Move Orders

Setup Steps for Move Orders

Set Up Planner

Define a planner for the item in the General Planning tabbed region of the Items window.

Designate a Planner

You designate a planner in the Master Item window when you define an item. If you do not

designate a planner, the move order is automatically approved.

Notification List

When you approve or reject the move order, the system sends a courtesy e-mail to the

Engineering Change Order (ECO) approval list (which is used here as a notification list). It is

attached to the move order source and destination subinventory. You do not need to haveOracle Engineering to use this feature.

Define Picking Rules

Move orders use the standard picking rules of Oracle Inventory to source material. In a WMS

organization, move orders use wms picking rules.

Locator Defaults





Agenda





Material Shortage Alerts and Notifications

Material Shortage Alerts and Notifications

A material shortage occurs whenever outstanding demand exceeds the available quantity for

incoming supply. During a receipt transaction, Oracle Inventory checks to see if the material

received is needed elsewhere in the organization. If a shortage exists, the system notifies you

either by a real–time material shortage alert or a workflow–based notification. Set up shortage parameters to enable the system to send material shortage alerts and notifications. For more

information see:

(Help) Oracle Manufacturing Applications > Oracle Inventory > Setting Up > InventoryStructure > Defining Shortage Parameters

The following receipt transaction forms can generate shortage alerts and notifications.

• Receipts

• Receiving Transactions

• Miscellaneous Transactions

• WIP Material Transactions

• WIP Completions





• Work–Orderless Completions - This occurs only if you have used workflow notification

for the transaction.

Shortage Alerts

The shortage alert appears in the window during the transaction with the option to go to the

View Potential Shortages form, showing where the shortage exists. Alerts are automatic once

they are set up. Notifications are optional and can be sent to a pre–specified list of individuals.

Sources of Demand

When generating shortage alerts and notifications, the system considers one or more of the

following to be sources of demand:

• WIP jobs

• WIP schedules

• Sales order lines that have been pick released and detailed but for which adequate

quantity was not sourced

Supply Types

The system considers the transaction types you select as supply for the unsatisfied demand.Shortage alerts and notifications are triggered for system or user defined transaction types with

transaction actions of:

• Receipt into stores

• Intransit receipt

• Direct organization transfer

• Assembly completion

• Negative component issue





Setting Up Shortage Alerts and Notifications

Setting Up Shortage Alerts and Notifications

• Define the shortage parameters the system will use to detect material shortages.

• Define the transaction types that will trigger shortage alerts and notifications.

• Define which items in the system will trigger a shortage alert or notification when they

are in demand.

• Define the individuals to be notified.





Movement Statistics Reports

All Reports

Oracle Inventory provides both summary and detail reports for movement statistics. Use these

reports to validate information and identify missing or incomplete entries. You may make

corrections before freezing the information.

The Movement Statistics Report provides a run-time parameter that allows you to freezemovement information for official INTRASTAT reporting. This Official/Summary option,

updates the database with any information calculated at report run time to provide a complete

history of information reported. This option also allows you to assign a reference number for the information processed by the particular run of the report.

If you identify a mistake after the information has been frozen, you can either reverse the

freeze (nullifying the official report) or enter a movement adjustment entry to record theappropriate change.

(N) Reports > Movement Statistics

(Help) Oracle Manufacturing Applications > Oracle Inventory >

Reports and Processes

../ Movement Statistics Exception Report





../ Movement Statistics Processor

../ Movement Statistics Report

../ Movement Statistics Reset Status Report





Transaction Reports and Inquiries

Reports and Inquiries

(N) Reports > Transactions

(Help) Oracle Manufacturing Applications > Oracle Inventory > Transactions > Transaction

Reports





Agenda





Transaction Profile Options


Cycle Count Approvals Form

Indicates the processing control of cycle count approvals in the Cycle Count Approvals

window. Available values are:

• Background Processing- Upon commit returns control immediately to you, and allowsyou to continue working. The cycle count transaction execute on a periodic basis.

• On-line processing- Processes your cycle count transactions while you wait, and returns

control to you once transaction processing is complete.

Cycle Count Entries Form

Indicates the processing control of cycle count entries in the Cycle Count Entries window.Available values are:

• Background Processing- Upon commit returns control immediately to you, and allows

you to continue working. The cycle count transaction execute on a periodic basis.

• On-line processing- Processes your cycle count transactions while you wait, and returnscontrol to you once transaction processing is complete.

Enter Replenishment Count Form





Indicates processing control in the Enter Replenishment Count window. Available values are:

• Background processing- Upon commit, control returns to you immediately and allowsyou to continue working. The replenishment count transaction executes on a periodic

basis.

• Concurrent processing- Upon commit, Oracle Inventory spawns the concurrent process

and returns control to you immediately, and allows you to continue working. It displays

the concurrent request number that represents the concurrent process that executes thereplenishment count transactions.







Transaction Processing Mode

Indicates the processing control for transacting items. Available values are as follows:

• On-line processing- Processes transactions while you wait, and returns control to you

once transaction processing completes.

• Background processing- Upon commit, control returns to you immediately and allowsyou to continue working. The transactions execute on a periodic basis.

• Immediate concurrent processing- Upon commit, Oracle Inventory spawns the concurrent

process and returns control to you immediately and allows you to continue working. Itdisplays the concurrent request number of the concurrent process executing the

transaction.

• Form level processing- Processes transactions using the processing control option you

choose for the particular transaction. You must also set the Inventory profile options for Inter-Organization Transfer, Miscellaneous Issue and Receipt, Receive Customer Return,

Return to Customer, and Transfer Between Subinventories. If you use Oracle Work-in

Process, you must set the following WIP profile options: Completion Material





Processing, Completion Transaction From, Material Transaction Form, Move

Transaction, Operation Backflush Setup, and Shop Floor Processing.

The value you choose for this profiles overrides values you set for individual transactions

unless you choose Form level processing.

Miscellaneous Issue and Receipt

Indicates the processing control of miscellaneous issues and returns on the Miscellaneous Issue

window. Available values are:

• Background processing- Upon commit, control returns to you immediately and allows

you to continue working. The miscellaneous issue and receipt transactions execute on a

periodic basis.


and returns control to you immediately and allows you to continue working. It displays

the concurrent request number that represents the concurrent process that executes themiscellaneous issue and receipt transactions.

• On-line processing- Processes the miscellaneous issue and receipt transactions while you

wait and returns control once transaction processing completes.

Server Side On-line ProcessingIndicates if Oracle Inventory and Work-In-Process transactions that use on-line processing are processed on the server or client side.

Transfer Between Subinventories Form

Indicates the processing control of transferring items between subinventories in the

Subinventory Transfer window. Available values are:

• Background processing- Upon commit, control returns to you immediately and allows

you to continue working. The transfer between subinventories execute on a periodic

basis.


and returns control to you immediately and allows you to continue working. It displaysthe concurrent request number that represents the concurrent process that executes thetransfer between subinventories.

• On-line processing- Processes subinventory transfers while you wait and returns control

once transaction processing completes.







Update Average Cost Form

Indicates the processing control for updating average costs. Available values are:

• Background Processing- Upon commit, control returns immediately to you, allowing you

to continue working. The update average costs transactions execute on a periodic basis.

• Concurrent Processing- Upon commit, Oracle Inventory spawns the concurrent processand returns control immediately to you, allowing you to continue working. It displays the

concurrent request number representing the concurrent process executing the update

average costs transactions.

• On-line processing- Processes your update average costs transactions while you wait, and

returns control once transaction processing completes.

Transaction Date Validation

Controls the date you can enter for transactions. Available values are:

• Allow date in any open period- Allows entry of a past date if it is in an open period.

• Do not allow past date- Does no allow entry of a date before the current date.

• Do not allow date in past period- Allows entry of dates in the current period only.





• Provide warning when date in past period- Allows entry of dates in prior periods after a

warning.

Move Order Transact Form

Indicates the move order transaction mode. Available values are:

• Background Processing- Upon commit, control returns immediately to you, allowing you

to continue working. The move order transactions execute on a periodic basis.

• Concurrent Processing- Upon commit, Oracle Inventory spawns the concurrent process

and returns control immediately to you, allowing you to continue working. It displays the

concurrent request number representing the concurrent process executing the move order

transactions.

• On-line processing- Processes your move order transactions while you wait, and returns

control once transaction processing completes.





Agenda







Item Restrictions

On the master item you can indicate if the item has subinventory and locator restrictions. If you

choose to implement subinventory and locator restrictions, you must indicate which

subinventories and locators can store the item. Transactions honor these restrictions and youcannot transact to other locations.

Receipt Transaction Default

The subinventory and locator default from the transaction defaults. More importantly, if you

create an internal requisition to ship material between two organizations where the shippingnetwork is direct, you cannot indicate on the requisition the locator of the destination. If the

destination is locator controlled, the receipt transaction attempts to use the time transactiondefault for receiving. If one does not exist, your shipment will fail.





Implementation Considerations for Shortage Messages


Answer the following questions to determine which of the following demand sources should be

considered potential shortages.

• Which inventory organizations should be checked for shortages?

• Which type and statuses of WIP jobs/schedules should be checked for shortages?

Answer the following questions to determine the individuals and the method for deliveringshortage messages.

• Should workflow alerts and notifications be generated when actual shortages exist?

• Who should be notified?

• How frequently should notifications be sent?





Agenda




11i Transaction SetupCh 8 P 3

Summary