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Balaji

[email protected]

Oracle Inventory

Inventory

Oracle Inventory is one of Oracles enterprise applications products. Oracle Inventory enables companies to satisfy

business needs such as these:

Defining part numbers

Modeling organization structures

Tracing perpetual inventory

Maintaining accurate on!hand balances

"lanning material replenishments

#orecasting anticipated demand
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Implemenation of Inventory$ubmitted by %nonymous on $at& '()*+)*'', ! -://

Tag:

Inventory

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The first step in ventroy implemenation is to design the fle0 field structures.


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Of all the ey fle0field system items is the most important. Its used to store the item information.

Oracle Inventory Flexfields$ubmitted by %nonymous on #ri& '1)-2)*'', ! *':'1

Tag:

Inventory

)

Oracle Inventory provides the follo3ing fle0fields:

-. $ystem Items

*. Item 4atalogs

(. Item 4ategories

1. $toc 5ocators

/. %ccount %liases

. $ales Orders

Depending on your system6s setup& Inventory may also use some or all of the follo3ing

fle0fields provided by other Oracle products:

%ccounting 7Oracle 8eneral 5edger9


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$ales Ta0 5ocation 7Oracle eceivables9

Territory 7Oracle eceivables9

1. System Items

;ou can use the $ystem Items #le0field 7also called the Item #le0field9 for recording and reporting your item

information. ;ou must design and configure your Item #le0field before you can start defining items.

%ll Oracle %pplications products that reference items share the Item #le0field and support multiple!segment

implementations.


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!. Item Cateories

;ou must design and configure your Item 4ategories #le0field before you can start defining items since all items must

be assigned to categories."ou can define multiple structures for your Item Cateories Flexfield& each structure

corresponding to a different category grouping scheme. ;ou can then associate these structures 3ith the categories

and category sets you define.

#. Stoc$ %ocators

;ou can use the $toc 5ocators #le0field to capture more information about stoc locators in inventory. If you do not


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have Oracle Inventory installed& or none of your items have locator control& it is not necessary to set up this fle0field.

If you eep trac of specific locators such as aisle& ro3& bin indicators for your items& you need to configure your $toc

5ocators #le0field and implement locator control in your organization.

&his $ey flexfield supports only one structure.

'. (ccount (liases

This ey fle0field supports only one structure.


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). Sales Order

The $ales Order #le0field is a ey fle0field used by Oracle Inventory to uni>uely identify sales order transactions

Oracle Order Management interfaces to Oracle Inventory.

;our $ales Order #le0field should be defined asOrder *um+er, Order &ype, and Order Source. This combination

guarantees each transaction to Inventory is uni>ue. ;ou must define this fle0field before placing demand or maing

reservations in Oracle Order Management.

;ou must set up the OM: Source Codeprofile option to determine the source code you 3ill use in for the third

segment of this fle0field to guarantee that each transaction is uni>ue. 7Oracle Inventory defaults the value of the OM:

$ource 4ode profile option to 6OD? M%@%[email protected]

#or your value sets& you must use Dynamic Inserts. The Aalidation Type should be @one. Aalue e>uired should be

;es to improve performance of concurrent programs. The value set must be alphanumeric. The value set ma0imum

size must be 1'.

;ou should set the e>uired field to ;es in the Aalidation Information region 3hen enabling the fle0field segments.

$etting this field to ;es& improves performance 3hen updating e0isting demand or reservations by guaranteeing that

Oracle Order Management al3ays supplies a value.

$et ight!Bustify Cero!fill @umbers to @o so sales order numbers are not padded 3ith zeros.

Oracle Inventory defines a uni>ue ID for each order in MT5$%5?$OD?$ based on this fle0field. The Inventory

uni>ue ID& as opposed to the Order Management uni>ue ID& is used throughout Oracle Manufacturing applications.

Item Cateories$ubmitted by oracleugon Mon& '-)-,)*'', ! -+:'(

Tag:

Inventory

)
http://www.oracleug.com/users/oracleughttp://www.oracleug.com/users/oracleughttp://www.oracleug.com/category/modules/inventoryhttp://www.oracleug.com/users/oracleughttp://www.oracleug.com/category/modules/inventory


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Item Cateory Flexfield Structures$ubmitted by %nonymous on Tue& '-)*')*'', ! --:(-

Tag:

Inventory

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;ou can define multiple segment structures for the Item 4ategories #le0field. ?ach segment structure may have its

o3n display prompts and fields.

Ehen you install or upgrade Oracle Inventory or Oracle "urchasing& Oracle provides t3o category fle0field structures

by default: Item 4ategories and "O Item 4ategory.?ach segment structure can display prompts and fields that apply specifically to a particular naming convention. #or

e0ample& you might 3ant one of your category sets to use t3o segments for the names of categories. %nother item

grouping scheme might use Bust one segment for the names of categories. ;ou choose a fle0field structure for every

category set and category that you define.


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-. 5ets create an item category as "rocut Information 3ith three segment: "roduct 5ine ! "roduct @ame ! Grand

@ame

"roduct 5ine ! ?lectronics& Machine& #M8

"roduct @ame ! Mobile& TA& Gus ?ngine& $oap& Giscuit

Grand @ame ! 58& $amsung& 4ummins& Gritania

*. Define all the value sets as sho3n belo3.

(. Define the item category fle0 field.


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1. #illing up the value set of the stucture product information


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-efinin Item Cateories$ubmitted by %nonymous on Tue& '-)*')*'', ! --:/(

Tag:

Inventory

)

?nter a fle0field $tructure @ame& a uni>ue 4ategory 7value9 for each structure segment& and a uni>ue description for

the ne3 category. If you 3ant to mae a category inactive& enter a date you 3ant the category to be inactive on.

$ave your 3or.

If you choose a multiHsegment fle0field structure you can assign a specific meaning to each segment. #or e0ample in

our case the category Electronics.Mo+ile.Samsun means an item assinged to this category is a samusng brand

mobile device of elcetroincs product group.


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Cateory Sets$ubmitted by %nonymous on Tue& '-)*')*'', ! -*:'(

Tag:

Inventory

)

4ategory sets may be used as a means to develop custom lists of items on 3hich to report and sort. ;ou can also

create other category sets such as Johns "riority or Janes "riority& 3ith categories lie high& medium& and lo3.

The category set Inventory is seeded 3hen you install Oracle Inventory.

The category set "urchasing is seeded 3hen you install Oracle "urchasing.If you plan to use Order Managements group pricing functionality 3ith item categories& you must add the categories

to the Order ?ntry category set.

%ttention:

-. ;ou must use this 3indo3 to define valid categories for each purchasing category set before you can use Oracle

"urchasing.

*. #or the 4ontrolled %t level& if the item defining attribute of the functional area 7e.g. Inventorys is Inventory Item9 is

controlled at the Organization level& then the ne3 default 4ategory $et should also be controlled at the Organization

level.


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?nter a uni>ue category set @ame and Description. In the #le0 $tructure section& enter 3hich fle0field structure is to

be used. The categories assigned to the category set must have the same fle0field structure as the set itself. $elect

a control level and a default category.

;ou 3ill then need to select ?nforce 5ist of Aalid 4ategories if you 3ant validation of the categories at the time of

input. ;ou 3ill then enter in or select the valid categories for the category set.

(ssinin Items to Cateories$ubmitted by %nonymous on Tue& '-)*')*'', ! -*:(1

Tag:

Inventory

)

Ehen you enable an item in a functional area& the item is assigned to the default 7mandatory9 category set and

default category of the functional area. ;ou can override the category sets default category. In addition& you can

manually assign your item to an unlimited number of category sets. ;ou may optionally assign an item to more than

one category 3ithin a category set based on the category set definition.


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Ehen you assign your item to another organization Oracle Inventory copies Master level category sets& Organization

level default category sets& and the associated categories assigned in the Item Master organization. This means that

if you manually assign an Organization level category set to the item in the Master organization& Inventory does not

copy over that Organization level category set 3hen you assign that item to another organization.

%fter assigning an item to another organization you can disable the item for one or more functional areas in the ne3organization.


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set to each of the follo3ing functional areas: Inventory& "urchasing& Order Management& 4osting& ?ngineering& and

"lanning. "roduct 5ine %ccounting is seeded 3ith the Inventory category set. Inventory maes the default category

set mandatory for all items defined for use by a functional area. If your item is enabled for a particular functional area

you cannot delete the items corresponding default category set assignment. Default category sets are re>uired so

that each functional area has at least one category set that contains all items in that functional area.

;ou can enable an item for each functional area by using that functional areas item defining attribute. %n item

defining attribute identifies the nature of an item. #or e0ample& 3hat designates an item as an Lengineering itemK is

the attribute ?ngineering Item. If a functional areas item defining attribute is controlled at the Organization level& then

that functional area may only have an Organization level default category set.

Ehen you enable an item for a certain functional area& Oracle Inventory automatically assigns the item to the default

category set of that functional area and the default category of that set. #or e0ample& if you set Inventory Item to ;es&

then Inventory automatically assigns the item to the Inventory functional areas default category set and default

category.

;ou may change a functional areas default category set under certain conditions. ;ou should ensure that every item

3ithin the functional area belongs to the ne3 default category set 73hich replaces the e0isting default category set9. If

the item defining attribute of the functional area is controlled at the Organization level then the ne3 default category

set should also be controlled at the Organization level.


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Item CatalogSubmitted by Anonymous on Wed, 01/21/2009 - 10:13

Tag:

Inventory

/

%n item catalog group is a standard set of descriptive elements to 3hich you assign items. ?0amples of catalog

descriptive elements are color& shape& length& and so on. #or e0ample& a te0tile manufacturer might define pattern

attributes such as color& size& te0ture& and style.

Usage: An eletronis om!any "say Samsung# an use t$e

atalog to inor!orate lengt$, breadt$ and $eig$t o% ea$

mobile it !rodues& As t$e om!any Samsung also !rodues

ot$er eletronis !roduts su$ as T', (e%rigerator and et&

We s$ould %irst reate an item ategory as mobile and t$enreate a atalog grou! as mobile-atalog )it$ t$ree atalogs

lengt$-breadt$ and $eig$t&

-efinin and sin Item Catalos

#ollo3 these steps to define and use item catalogs:

- Define the item catalog group.


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* Define descriptive elements 3ithin each catalog group.

( ?nter categories for the catalog groups.

Items belonging to the above category are attached 3ith the descriptive element of the catalog.


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$earch for items using descriptive elements as the search criteria.


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;ou use locators to identify physical areas 3here you store inventory items. Item >uantities can be traced by locator.

Items can also be restricted to specific locators.

-. %dd the segment values of the ## stoc locator.

@avigation : GL -> Financials -> Flexfields -> Key -> Values


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*. ?nter the ne3 locator in locator form 3hich can be accessed from belo3 navigation or on subinventory form.

Navigation : Inventory -> Set up -> Stock Locator


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1. %ocator &ype:Indicate the locator type available choices are as follo3s:ock oor! "eceiving! Inspection

Station, Storage Locator! #onsolidation Locator! Staging Lane! $acking Station% Doc doors are used in

Oracle Earehouse Management environments only.

*. Indicate the material status of this locator& 3hich controls the enabled transactions for all material in this locator.

The status is not overridden by the status of any ubinventory& lot or serial& 3ithin this locator. The statuses of those

obBects 3ill be considered 3hen

determining transactions that are not enabled. This field is used if you have Oracle Earehouse Managementinstalled.

(. ?nter the su+inventory 3here the locator resides.

1. ?nter a pic$in ordervalue indicating the priority for picing items from this locator relative to another locator. This

value is used by Oracle Earehouse Managment to se>uence picing tass. % picing order of - means that order

management functions pic items from this locator before other locators 3ith a higher number 7*& (& and so on9. If you

have Oracle Earehouse Management installed& this field determines the picing path through the 3arehouse and not

the order in 3hich material is allocated for a sales order.

/. ?nter a droppin order to indicate the priority for dropping items in this locator relative to another locator. Oracle

3arehouse management uses this value to se>uence tass.

. ?nter the inactive date for the locator. This is the date the locator becomes inactive.

-efinin (ccount (liases$ubmitted by %nonymous on Thu& '-)*,)*'', ! --:-'

Tag:

%ccount eceivables
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)

%n account alias is an easily recognized name or label representing a general ledger account number. ;ou can vie3&

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.

Inventory /eriod Close$ubmitted by %nonymous on #ri& -*)*/)*'', ! -1:-+

Tag:

Inventory

)

The period close process for perpetual costing enables you to

-. $ummarize costs related to inventory and manufacturing activities for a given accounting period.

*. Distribute those costs to the general ledger.

(. 4alculates ending period subinventory values.

1. 4loses the open period for Inventory and Eor in "rocess.


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8enerally& you should open and close periods for each separate inventory organization independently. Gy

eeping only one period open& you can ensure that your transactions are dated correctly and posted to the

correct accounting period. 7#or monthHend adBustment purposes& you can temporarily hold multiple open

periods.9

The accounting periods and the period close process in 4ost Management use the same periods& fiscal

calendar& and other financial information found in 8eneral 5edger.

Inventory and 3or in process transactions automatically create accounting entries. %ll accounting entries

have transaction dates that belong in one accounting period. ;ou can report and reconcile your transaction

activity to an accounting period and 8eneral 5edger. ;ou can transfer summary or detail transactions to

8eneral 5edger. ;ou can transfer these entries to 8eneral 5edger 3hen you close the period or perform

interim transfers.

Ehen you transfer to 8eneral 5edger& a general ledger 7859 batch ID and organization code are sent 3ith

the transferred entries. ;ou can revie3 and report the 85 batch number in 8eneral 5edger and re>uest

Inventory and Eor in "rocess reports by the same batch number. ;ou can also vie3 general ledger

transfers in Inventory and drill do3n by 85 batch ID into the inventory and EI" accounting distributions.

@ote: "urchasing holds the accounting entries for receipts into receiving inspection and for deliveries into e0pense

destinations. This includes any perpetual receipt accruals."urchasing also has a separate period open and close& and

uses

separate processes to load the general ledger interface.

Closes Open /eriod

The period close process permanently closes an open period. ;ou can no longer charge transactions to a closed

period. Once you close a period& it cannot be reopened. %s a precaution& you can do a 85 transfer 3ithout closing the

period.

&ransfers (ccountin Entries to the 0eneral %eder

If your inventory organizations parameter for Transfer to 85 is @one& perpetual accounting entries are not transferred

to the 8eneral 5edger. The other choices for the Transfer to 85 parameter are $ummary and Detail& indicating

3hether the period close process creates summary or detail transactions for posting to the general ledger. The period

closeprocess transfers the follo3ing information:

3or in process transactions

Bob costs and variances

period costs for e0pense nonHstandard Bobs

depending on the selected options& the remaining balances for

repetitive schedules

@ote: If you have chosen the ne3 "eriodic 4osting feature& 4ost Management 3arns you of the possibility of

inadvertently

posting both "eriodic and perpetual costed transactions to the 8eneral 5edger. The 3arning displays if there is at

least one

legal entityHcost type combination that has the "eriodic 4ost "ost ?ntries to 85 option checed& 3here the

organization

under that legal entity also has the perpetual cost 85 transfer enabled.

Calculates Endin /eriod Su+inventory alues

#or each subinventory& the period close adds the net transaction value for the current period to the prior periods

ending value. This& along 3ith values intransit& creates the ending value for the current period.

Inventory /eriod Close$ubmitted by %nonymous on #ri& -*)*/)*'', ! -1:-+

Tag:


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Inventory

)

The period close process for perpetual costing enables you to

-. $ummarize costs related to inventory and manufacturing activities for a given accounting period.

*. Distribute those costs to the general ledger.

(. 4alculates ending period subinventory values.

1. 4loses the open period for Inventory and Eor in "rocess.

8enerally& you should open and close periods for each separate inventory organization independently. Gy

eeping only one period open& you can ensure that your transactions are dated correctly and posted to the

correct accounting period. 7#or monthHend adBustment purposes& you can temporarily hold multiple open

periods.9

The accounting periods and the period close process in 4ost Management use the same periods& fiscal

calendar& and other financial information found in 8eneral 5edger.

Inventory and 3or in process transactions automatically create accounting entries. %ll accounting entries

have transaction dates that belong in one accounting period. ;ou can report and reconcile your transaction

activity to an accounting period and 8eneral 5edger. ;ou can transfer summary or detail transactions to

8eneral 5edger. ;ou can transfer these entries to 8eneral 5edger 3hen you close the period or perform

interim transfers.

Ehen you transfer to 8eneral 5edger& a general ledger 7859 batch ID and organization code are sent 3ith

the transferred entries. ;ou can revie3 and report the 85 batch number in 8eneral 5edger and re>uest

Inventory and Eor in "rocess reports by the same batch number. ;ou can also vie3 general ledger

transfers in Inventory and drill do3n by 85 batch ID into the inventory and EI" accounting distributions.

@ote: "urchasing holds the accounting entries for receipts into receiving inspection and for deliveries into e0pense

destinations. This includes any perpetual receipt accruals."urchasing also has a separate period open and close& and

uses

separate processes to load the general ledger interface.

Closes Open /eriod

The period close process permanently closes an open period. ;ou can no longer charge transactions to a closed

period. Once you close a period& it cannot be reopened. %s a precaution& you can do a 85 transfer 3ithout closing the

period.

&ransfers (ccountin Entries to the 0eneral %eder

If your inventory organizations parameter for Transfer to 85 is @one& perpetual accounting entries are not transferred

to the 8eneral 5edger. The other choices for the Transfer to 85 parameter are $ummary and Detail& indicating3hether the period close process creates summary or detail transactions for posting to the general ledger. The period

close

process transfers the follo3ing information:

3or in process transactions

Bob costs and variances

period costs for e0pense nonHstandard Bobs

depending on the selected options& the remaining balances for

repetitive schedules

@ote: If you have chosen the ne3 "eriodic 4osting feature& 4ost Management 3arns you of the possibility of


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inadvertently

posting both "eriodic and perpetual costed transactions to the 8eneral 5edger. The 3arning displays if there is at

least one

legal entityHcost type combination that has the "eriodic 4ost "ost ?ntries to 85 option checed& 3here the

organization

under that legal entity also has the perpetual cost 85 transfer enabled.

Calculates Endin /eriod Su+inventory alues

#or each subinventory& the period close adds the net transaction value for the current period to the prior periods

ending value. This& along 3ith values intransit& creates the ending value for the current period.

&ransfer &ransactions to 0eneral %eder$ubmitted by %nonymous on #ri& -*)*/)*'', ! -:''

Tag:

Inventory

)

;ou can perform the general ledger transfer at any time during an open periodNnot Bust at period close. Interimtransfers allo3 you to reconcile and transfer information 3eely& maing the monthHend period close process much

simpler and

faster.

The general ledger transfer loads summary or detailaccounting activity for any open period into the general ledger

interface& including bothinventory and 3or in process entries. Ehen more than one period is open& the transfer

selects transactions from the first open period& up to the entered transfer date& and passes the correct accounting

date and financial information into the general ledger interface.

#or e0ample& 3hen you transfer detail entries& the transaction date is the accounting date 3ith a line for line transfer.

Ehen you transfer summary entries 3ith t3o periods open and enter a transfer date in the second period& the transfer

process assigns the period one end date for all the summarized transactions in period one and assigns the entered

transfer date for the summarized transactions in period t3o.

#or each inventory organization& 4ost Management transfers transactions to the general ledger interface table& line

for line. If you transfer summary information& 4ost Management groups transactions by0% +atch& byournal

cateory& by currencycode& and by account.

%ttention: Transfer in detail only if you have lo3 transaction volumes. Transferring large amounts of detail

transactions can

adversely affect 8eneral 5edger performance.

#or both detail and summary transfers& 4ost Management passes the organization code& 85 batch number& batch

description& and batch date. Ehen you transfer in detail& you also pass the material or 3or in process transaction

number. In 8eneral 5edger& you can see the transferred information& as follo3s:


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4ost Management uses the Bournal source Inventory for both inventory and 3or in process transactions.

The Bournal categories Inventory and Eor in "rocess distinguish bet3een inventory and 3or in process

transactions.

=sing Journal Import and "ost Journals processes in 8eneral 5edger& you can then post this information to the

general ledger.

/eriod Summari3ation /rocess

$ummarization of transaction records for the open period is the last step in period close. ;ou have the option to

perform this process automatically or manually using the profile option& 4$T:"eriod $ummary. If the profile option is

set to %utomatic& the period is closed and summarized 3hen you change the period status from Open to 4losed.

If the profile option is set to Manual& you can delay summarization H but you must summarize these delayed periods

in accounting period order. #or e0ample& if you delay summarization for a given period& the follo3ing period cannot be

summarized until the previous period is summarized. In situations 3here summarization is delayed& the longer the

delay H the larger the number of transaction records needed for reconciliation purposes. This situation can cause

summarization to tae

more time to complete.

If you do not choose to summarize periods& set the period status to 4losed not $ummarized.

The "eriod 4lose econciliation report is used to compare account balances 3ith inventory value at period end. ;ou

can run the report in simulation mode by generating it for an open period. The report can be generated at any time

during the period.

Inventory /endin &ransaction$ubmitted by %nonymous on #ri& '()*2)*'', ! -1:1'


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nprocessed Shippin &ransactions

L"ending TransactionsK in the =nprocessed $hipping Transactions zone indicate there are transactions in the

E$


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1. Enter all transactions.

Ge sure you enter all transactions for the period. "erform all issues&receipts& and adBustments. Aerify that no hard

copy records e0ist or are 3aiting for data entry& such as pacing slips in receiving.

2. Chec$ Inventory and 4or$ in /rocess transaction interfaces.;ou can set up the material and move transaction

managers to e0ecute transactions immediately& then submit an immediate concurrent re>uest to e0ecute& or submit a

concurrent re>uest periodically at a time interval you specify. If you do not use immediate processing& or interface

e0ternal transactions& chec the Inventory material transaction manager and the Eor in "rocess move transaction

manager before closing the period.

!. Chec$ Cost Manaement cost interfaces.

4ost Management processes your inventory and 3or in process accounting transactions as a concurrent re>uest&

using a specified time interval. Gefore you close the period& you should chec that the 4ost Manager is active.

#. Chec$ Order Manaement transaction processes.If you use Order Management& ensure that all sales order

transaction processes complete and transfer successfully to Inventory.

'. 5evie6 Inventory transactions.

Gefore you close a period& revie3 all of the transactions using theMaterial %ccount Distribution eportfor the period

3ith a high dollar value and)or a high transaction >uantity. 4hec that you charged the proper accounts. 4orrecting

improper account charges before you close a period is easier than creating manual Bournalentries.

). 7alance perpetual inventory.

4hec that your ending perpetual inventory value for the period being closed matches the value you report in the

general ledger. "erpetual inventory value normally balances automatically 3ith the general ledger. uantity decreased& the monthHend inventory

valuation reports 3ill not e>ual the general ledger account balance.

H Transactions after period end reports. This occurs 3hen you run the end of month inventory valuation reportsbefore you complete all transactions for the period.

If you do not run the inventory reports at period end& you can also run these eports:

H Inventory Aalue eport

H Material %ccount Distribution Detail eport

H Material %ccount Distribution $ummary eport

H "eriod 4lose $ummary eport

H "eriod 4lose econciliation report

H Inventory $ubledger eport 7%verage 4osting Only9

In a organization using "roBect Manufacturing %verage 4osting& if there is more than one cost group& the follo3ing

valuation reports should not be used for reconciliation purposes because these reports list the average value across

cost groups.

H Transaction historical $ummary eportH eceiving Aalue eport

H %ll Inventories Aalue eport

H ?lemental Inventory Aalue eport

H $ubinventory %ccount Aalue eport

H Item 4ost eport

8. alidate 4or$ in /rocess inventory.

If you use Eor in "rocess& chec 3or in process inventory balances against transactions 3ith the EI" %ccount

Distributioneport.


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9. &ransfer transactions in advance of closin period optional;.

If time permits& run the general ledger transfer process up to the period end date before closing the period.

4losing a period e0ecutes the general ledger transfer automatically.


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4reating unit of measure classes is the first step in unit of measure management. ?ach unit of measure you

define must belong to a unit of measure class.

?ach class has a base unit of measure. The base unit of measure is used to perform conversions bet3een

units of measure in the class. #or this reason& the base unit of measure should be representative of the

other units of measure in the class& and generally one of the smaller units. #or e0ample& you could use 4=

7cubic feet9 as the base unit of a class called Aolume.

=nit of measure classes are not organization!specific. Default unit of measure classes are not provided.

-. ?nter a uni>ue name for the unit of measure class.

*. Define the base unit of measure for this class.

(. Define a uni>ue abbreviation for the base unit of measure.


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-efine a OM in OM form

@avigate to the =nits of Measure 3indo3.

-. ?nter a uni>ue name for the unit of measure.

*. ?nter a uni>ue abbreviation for the unit of measure 3ith a ma0imum length of three characters.

#or e0ample& ?% for each or


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=nit of measure conversions are numerical factors that enable you to perform transactions in units other than the

primary unit of the item being transacted. ;ou can define:

% conversion common to any item 7$tandard9

% conversion for a specific item 3ithin a unit of measure class 7Intra!class9

% conversion for a specific item bet3een unit of measure classes 7Inter!class9

=nit of measure conversions are not organization!specific.

;ou must define a conversion bet3een a non!base unit of measure and the base unit of measure before you

can assign the non!base unit of measure to an item

Specifyin 4hich Conversion to se

Ehen you define an item you decide 3hich type of unit of measure conversion to use:

-. Itemspecific: Only uses unit of measure conversions uni>ue to this item. If none e0ist& you can only transact

this item in its primary unit of measure.

*. $tandard: =ses standard unit of measure conversions for this item if an item!specific conversion is not

available.

(. Goth: =ses both item!specific and standard unit of measure conversions. If both e0ist for the same unit of

measure and item combination& the item!specific conversion is used.

nit of Measure Conversions -urin &ransactionsEhenever you enter an item6s >uantity& the default is the primary unit of measure for the item. The list of values for

the unit of measure field displays all units of measure for 3hich you have defined standard and)or item!specific

conversions from the primary unit of measure.

Transactions are performed in the unit of measure you specify. The conversion happens automatically and item

>uantities are updated in the primary unit of measure of the item.

Important: Inventory transactions and on hand balance supports decimal precision to / digits after the decimal point.

Oracle Eor in "rocess supports decimal precision to digits. Other Oracle %pplications support different decimal

precision. %s a result of the decimal precision mismatch& transactions another Oracle %pplication passes may be

rounded 3hen processed by Inventory. If the transaction >uantity is rounded to zero& Inventory does not process the


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transaction.

It is therefore suggested that the base unit of measure for an item is set up such that transaction >uantities in the

base unit of measure not re>uire greater than / digits of decimal precision.

-efine a Standard conversion for any item

In standrad conversion you specify ho6 one unit of mesaure is related to the primary unit of measure in the

same class.

In standrad conversion you cant do the follo3ing

;ou cant specify any sort of intra class conversion

elationship bet3een t3o =OMs not invloving primary =OM

@avigate to the =nit of Measure 4onversions 3indo3 S $elect the $tandard tabbed region.

- ?nter a unit of measure.

* ?nter the conversion factor by 3hich the unit of measure is e>uivalent to the base unit of measure established for

this class.

#or e0ample& if one DC 7this unit of measure9 is e>uivalent to -* ?% 7base unit9& the conversion factor is -*. Or& if ?%

is e>ual to one!t3elfth of a DC& the conversion factor is '.'+(((.

-efine a conversion for a specific item 6ithin a unit of measure class Intra?class;

Ee have seen in standard conversion 3e can only do convesrion from one =OM to primary =OM.

$uppose 3e have defined a =OM convsrion rule for a unit of measure =OMR;C as =OMR;C 0 "rimary =OM

but for a particular item the vonvsrion rate is not in that case 3e define a intra class convesrion for a particular itemand 3hen ever that item is transacted system 6ll pic the convesrion rate from either intra class or standrad

convesrion depending upon IT?M master set up.

*otes

Ee can do intra class conversion bet3een t3o =OMs for a particular item only for a single class 3hich is the =OM

class of the primary =OM of the item.

#or e0ampe $uppose IT?M''- has a primary =OM as ?a and =OM ?a belongs to class Uuantity then 3e can define

intra class conversion for the item IT?M''- bet3een t3o =OMs in the class Uuantity.

3e cant define intra class convesrion bet3een any other =OMs belonging to a differnt =OM class.


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-efinin nit of Measure Conversions$ubmitted by %nonymous on Mon& '1)*')*'', ! -*:(2

Tag:

Inventory

)

=nit of measure conversions are numerical factors that enable you to perform transactions in units other than the

primary unit of the item being transacted. ;ou can define:

% conversion common to any item 7$tandard9

% conversion for a specific item 3ithin a unit of measure class 7Intra!class9

% conversion for a specific item bet3een unit of measure classes 7Inter!class9

=nit of measure conversions are not organization!specific.

;ou must define a conversion bet3een a non!base unit of measure and the base unit of measure before you

can assign the non!base unit of measure to an item

Specifyin 4hich Conversion to se

Ehen you define an item you decide 3hich type of unit of measure conversion to use:

-. Itemspecific: Only uses unit of measure conversions uni>ue to this item. If none e0ist& you can only transact

this item in its primary unit of measure.

*. $tandard: =ses standard unit of measure conversions for this item if an item!specific conversion is not

available.

(. Goth: =ses both item!specific and standard unit of measure conversions. If both e0ist for the same unit of

measure and item combination& the item!specific conversion is used.


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- ?nter a unit of measure.

* ?nter the conversion factor by 3hich the unit of measure is e>uivalent to the base unit of measure established for

this class.

#or e0ample& if one DC 7this unit of measure9 is e>uivalent to -* ?% 7base unit9& the conversion factor is -*. Or& if ?%

is e>ual to one!t3elfth of a DC& the conversion factor is '.'+(((.

-efine a conversion for a specific item 6ithin a unit of measure class Intra?class;

Ee have seen in standard conversion 3e can only do convesrion from one =OM to primary =OM.

$uppose 3e have defined a =OM convsrion rule for a unit of measure =OMR;C as =OMR;C 0 "rimary =OM

but for a particular item the vonvsrion rate is not in that case 3e define a intra class convesrion for a particular item

and 3hen ever that item is transacted system 6ll pic the convesrion rate from either intra class or standrad

convesrion depending upon IT?M master set up.

*otes

Ee can do intra class conversion bet3een t3o =OMs for a particular item only for a single class 3hich is the =OM

class of the primary =OM of the item.

#or e0ampe $uppose IT?M''- has a primary =OM as ?a and =OM ?a belongs to class Uuantity then 3e can define

intra class conversion for the item IT?M''- bet3een t3o =OMs in the class Uuantity.

3e cant define intra class convesrion bet3een any other =OMs belonging to a differnt =OM class.


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1. ?nter the conversion factor by 3hich the unit of measure is e>uivalent to the base unit of measure established for

this class.

#or e0ample& if one 5G 7this unit of measure9 is e>uivalent to - OC 7base unit9& the conversion factor is -.

-efine a conversion for a specific item +et6een unit of measure classes Inter?class;

Inter class conversion is used to convert an item from one primary =OM in one class to another primary =OM in a

differnt class for a particular item.

@avigate to the =nit of Measure 4onversions 3indo3 and $elect the Inter!class tabbed region.

-. $elect an item.

*. $elect the destination base unit of measure of the class to 3hich you are converting a unit of measure.

(. ?nter the conversion factor by 3hich the source base unit is e>uivalent to the destination base unit.

#or e0ample& if one M5 7source base unit9 is e>uivalent to one 8 7destination base unit9& the conversion factor is

one.

%ot?Specific nit of Measure Conversions

5ot specific conversions enable you to perform a specific inter!class conversion for a given lot. This enables you to

establish more granular control over the transactional >uantities of a lot. #or e0ample& the standard inter!class

conversion for a lot controlled item is one gallon e>uals -/ poundsF ho3ever& 3hen you receive a particular lot of the

item& - gallon e>uals - pounds. ;ou can create a lot specific unit of measure for this instance.

;ou can create lot!specific unit of measure conversions for on!hand lots or lots 3ith a zero balance. If you create a

lot!specific conversion for a lot 3ith on!hand >uantities& you can automatically update the >uantities in the system to

more accurately reflect the on!hand >uantity.

;ou can also vie3 the history of changes made to the lot unit of measure conversion& and the corresponding >uantity

changes.


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-. ?nter the item number in the Item field.

*. ?nter the lot number in the 5ot @umber field.

(. $elect the destination base unit of measure of the class to 3hich you are converting the unit of measure.

1. ?nter the conversion factor by 3hich the source base unit is e>uivalent to the destination base unit.

#or e0ample& if - pounds 7source base unit9 is e>uivalent to - 8allon 7destination base unit9& the conversion factor is

-.

/. Optionally& enter an inactive date for the conversion. This is the date 3hen the unit of measure conversion for the

lot reverts bac to the standard inter!class conversion.

. Optionally& enter a transaction reason for the conversion.

5ules

/ic$in 5ules

Ehen you define an item you choose a picing rule to determine the order in 3hich revisions& lots& subinventories&

and locators are piced for sales order. Oracle $hipping ?0ecution submits re>uests to Oracle Inventory& 3hich uses

the information you enter in the "icing ules 3indo3 to generate pic lists for sales orders.

If you choose @one for any of the criteria fields& Inventory ignores that criterion. #or e0ample& if you choose @one for

evision& Inventory pics units of an item 3ithout regard to revision levels.

Oracle Inventory loos at the picing criteria in the order in 3hich they appear in the "icing ules 3indo3. Then&Inventory loos at the options 7e0cept for @one options9 for each criterion in the order in 3hich they appear beneath

each criterion.

&o define a pic$in rule


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-. @avigate to the "icing ules 3indo3.

*. ?nter a uni>ue name for the rule.

(. $elect an option for revision order:

evision: "ic most recent revision.

?ffective Date: "ic earliest revision effective date.

@one: Do not consider revision levels in the picing process.

1. $elect an option for lot order:

?0piration Date: "ic earliest lot e0piration date.eceipt Date: "ic earliest lot receipt date& the date you received items into their current location.

5ot @umber: "ic lo3est lot number.

@one: Do not consider lot numbers in the picing process.

/. $elect an option for subinventory order:

$ubinventory:"ic by order defined for each subinventory.

eceipt Date: "ic earliest subinventory receipt date.

@one: Do not consider subinventories in the picing process.

. $elect an option for locator order:

5ocator: "ic items according to the picing order defined for each locator.

eceipt Date: "ic items according to the earliest locator receipt date.

@one: Do not consider locators in the picing process.

&o delete a pic$in rule

;ou can delete a picing rule if there are no references to it.

&ransaction Flo6$ubmitted by %nonymous on #ri& -*)*/)*'', ! -2:(2

Tag:

Inventory


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)

MT5T%@$%4TIO@$I@T?#%4? table is the Interface bet3een non!Inventory applications and the Inventory

Transactions module. In other 3ords any other module other than Inventory that 3ants to update Inventory has to

come through this table. Modules such as EI" 7Eor In "rogress9 and O? 7Order ?ntry9 first pass their records to

the MT5T%@$%4TIO@$I@T?#%4? 7MTI9for validation.

There is an Interface Manager called the Transactions Manager 7I@4T4M9 3hich reads records from this table&

validates them and moves the successful transactions onto MT5M%T?I%5T%@$%4TIO@$T?M"& and submits

Transaction 3orers 7sub!processes ! I@4T4E9 3hich then processes these records through inventory. This process

consists of data derivation& validation& and transfer of records from MT5T%@$4TIO@$I@T?#%4?&

MT5T%@$%4TIO@$5OT$I@T?#%4? and MT5$?I%5@=MG?$I@T?#%4? into their respective

T?M" 7temporary9 tables from 3here the transactions processor processes them.

Goth the 5ots and $erial number tables above are used 3hen items being updated are under 65ot6 or 6$erial6 number

control. ?0ample :! In the case of an $ales Order& the item is being shipped to a client so the lot and serial number if

being used& this needs to be updated to sho3 that it is no longer available in Inventory stoc.

It is important to note that in general the processors 3ill not move the transactions from this table if the follo3ing fields

are not set as follo3s.5O4#5%8 *

"O4?$$#5%8 -

transactionmode (

Once the transactions have been passed to this table after initial validation by the Transactions Manager 7I@4T4M9

from the MT5T%@$%4TIO@$I@T?#%4? a Bob id is attached and a Transactions Eorer 7I@4T4E9 is submitted

by the I@4T4M process in order to the get the records processed and moved to the

MT5M%T?I%5T%@$%4TO@$ table.

This table is also used by Inventory Module and "urchasing module 3hich 3rites directly onto this table for any

transactions entered 3ithin itself and each transaction in turn through a process of strict validation.

Inventory Module #orms lie Miscellaneous transactions 3rites directly into this table. The transactions 3hich are

done through these form are on!line processing. It is from here that the inventory >uantities finally get

updated&serial)lot numbers get mared as being used.

Enterprise Structure

Inventory

)


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;ou must plan ho3 Oracle Inventory represents your companys inventory sites and business units. This includes

defining organizations& locations& subinventories& and locators depending on your company structure. ;ou also must

plan ho3 to implement certain parameters and 3hat level of the structure controls them.

Multi?oroften refers to an Oracle %pplications setup used to enable multiple business units in a single install. Eith

multi!org& a business enterprise may set up multiple business units 3ith differing sets of boos& operating units& and

legal entities all 3ithin a single instance. Eith multi!org& goods my be sold out of one operating unit or legal entity

and shipped out of another& and the system 3ill process an intercompany sale to properly account for it.

Multi!org& ho3ever& should not be mistaen for installs 3ith multiple inventory organizations. ;ou do not have to use

Oracle %pplications multi!org to support multiple inventory organizations if all the inventory organizations share the

same set of boos& operating unit& and legal entity.

%ocation: % location is simply a name and address& and is assigned to an organization or used to indicate deliveryinformation on a purchase order. ;ou may define as many locations as you lie& but only one location may be

assigned to an inventory organization.

7usiness roupis a group of companies that does business in different marets under common administrative or

financial control 3hose members are lined by relations of interpersonal trust on the bases of similar personal ethnic

or commercial bacground a business group.

Set of 7oo$s SO7;:The financial entity that represents the chart of accounts& fiscal calendar& and base currency.

The $OG is set up in the 8eneral 5edger.


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%eal Entity Orani3ation:%n entity used to represent a legal company. #iscal and ta0 reporting are done at the

5egal ?ntity level.

% legal employer is a legal entity that is responsible for employing people in a particular country. Therefore& if you

employ people in a country& then you must have at least one organization classified as a legal entity and a legal

employer.

The 4onfiguration Eorbench classifies an organization as a 8?)5egal ?ntity 3here your enterprise operates in a

country& and classifies it as an ?mployer if you employ people in that country also. #or e0ample& you can have a legal

entity in a country 3here you do business& but do not employ people in that country.

Operatin nit Orani3ation:% business unit that shares a common "urchasing& %ccounts "ayable& Order ?ntry

and %ccounts eceivable setup. %n operating unit may consist of multiple inventory organizations& 3ith multiple

manufacturing sites& distribution centers& and sales offices& but they share a common sales order and purchase order

system. #or e0ample& a sales order may have lines shipping from different inventory organizations or a purchase

order may have lines destined for different inventory organizations.

Inventory Orani3ation: %n entity used to represent a manufacturing or distribution site. Inventory organizations

are 3here a user tracs on!hand balances& manufactures goods& and transacts the daily ins and outs of material

movement. %n inventory organization is the lo3est level entity for costing goods& planning material re>uirements& and

securing system access. Only a single address may be assigned to an Inventory Organization. %n inventory

organization is assigned a $et of Goos 3hich determines the chart of accounts& fiscal calendar& and base currency

for all financial and value added activities that occur 3ithin the organization.

Inventory Organizations are also assigned to a 5egal ?ntity Organization and an Operating =nit Organization.

% variation on the inventory organization is the master item organization. 8enerally& 3ith Oracle %pplications a single

inventory organization is created and designated at the master organization. Items are defined first in the master

organization& then enabled in other inventory organizations as necessary. $ome of the item attributes are set as

controlled at the master organization and therefore the attribute values cannot be updated 3ithin individual inventory

organizations. 4ategory sets may also be designated as master organization level. 4ross!references are also

master level only or master level optional as 3ell.

Su+inventory:"hysical or logical locations for storing inventory. $ubinventories are generally defined to represent

the main stores area as 3ell as stocing points on the production floor. %dditional subinventories may be used to

specify supply closets or cabinets and the cage area for discrepant material. $ubinventories are flagged as to

availability for planning 7nettable9& reservations& and available to promise checs& thereby determining the availability

of the material stored in the subinventory. $ubinventories are assigned material asset account numbers. %s goodsmove in and out of a subinventory a transaction posts to the asset account.

Stoc$ %ocator: % physical area 3ithin a stocroom. The stoc locator is a ey fle0field that is often defined as a

multiple segment fle0field 3ith the segments representing the physical layout of a stocroom. #or e0ample& a

stocroom may be laid out in ro3s of shelves 3ith bins on the shelves& each numbered so that a ro3)shelf)bin

combination 3ould direct someone to a particular material storage compartment. $uch an implementation 3ould

define a locator fle0field as a ( segment fle0field 3ith segments for ro3& shelf& and bin.

(ttachment of %E@O@I* 6ith 70

Ee never attach any 5?)O=)I@A 3ith G8 in front end...but its available in uestion is from 3here it comesV

#irst 3e create a Gusiness 8roup. Ehen ever 3e create a business group the system creates an organization 3ith

type businessgroup and attach a business group ID 6*A 3hich is same as the organization ID for that Gusiness group.

%fter that 3e attach the business group to a responsibility through the profile option B5 : 7usiness 0roup.

@e0t 3e create 3henever 3e create a ne3 5?)O=)Inv 3ith one responsibility the system 6ll attach the Gusiness 8roup

3hich is attached 3ith the


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-efinin /lanners$ubmitted by %nonymous on Mon& '1)*2)*'', ! '-:-1

Tag:

Inventory

)

;ou can define and update material planners or planning entities for the current organization and assign them to

inventory items at the organization level.

To define and update material planners or planning entities:

-. @avigate to the "lanners 3indo3.

*. ?nter a uni>ue planner name.% planner can be a person or an entity& such as a department or a division.

(. ?nter the electronic mail address of the planner.

1. Optionally& enter a date on 3hich the planner becomes inactive. #rom this date on& you cannot assign this plannerto an inventory item.


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-efinin %ocations$ubmitted by %nonymous on Eed& '-)*-)*'', ! -*:*1

Tag:

Inventory

)

=se the 5ocations 3indo3 to define shipHto& bill!to& receiving& office site& internal site S other location information for

"urchasing documents.


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5ocations are shared across Gusiness 8roupsin


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#ontact:Optional contact name for the location @ame.

S&ip'(o Location: Its the receving doc.=sually the same as the location @ame. ;ou could select a separate&

previously defined $hipHTo 5ocationNfor e0ample& if you 3anted to create a location @ame& Office %& and specify

eceiving Doc % as its $hipHTo 5ocation. @ote& ho3ever& that once you specify a separate $hipHTo 5ocation& you

can no longer enable the location @ame as a $hipHTo $ite. In this e0ample& eceiving Doc % is the shipHto site for

Office %F therefore& Office % itself cannot also be the shipHto site.

Ship&o Site:Is this location is a receving doc.$elect this option to mae the location @ame a valid shipHto

organization on a purchase order or re>uisition.

7ill&o Site: $elect this option to mae the location @ame a valid billHto site. The GillHTo $ite& 3hich is used by

"ayables& is specified on a purchase order header.

5eceivin Site:$elect this option to mae the location a valid receiving 5ocation 3hen creating a receipt or receiving

transaction.

Office Site:$elect this option to indicate that this location @ame is an office site& such as a field office.

Internal Site:$elect this option to mae the location a valid internal shipHto location3hen creating an internal

re>uisition.

Other -etails

Inventory Organization: $elect an inventory organization 3ithin 3hich this location 3ill be available in the list of values

on a "urchasing document. Gy selecting no inventory organization& this location becomes available on "urchasing

documents

in all organizations.


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?DI 5ocation: If you use ?lectronic Data Interchange 7?DI9 to receive %dvance $hipment @otices 7%$@s9 or %$@s

3ith billing information 7%$G@s9& enter a defined location. This location should match the ship!to location specified on

an %$@ or %$G@

Orani3ation$ubmitted by %nonymous on Eed& '-)*-)*'', ! -(:'(

Tag:

Inventory

)

Define the follo3ing organizaions as per the re>uirement of business

i. 7usiness roup

ii. %eal Entity

iii. Operatin nits

iv. Orani3ation

?0ternal organizations7for e0ample& ta0 offices& insurance carriers& disability organizations& benefit carriers& or

recruitment agencies9Internal organizations7for e0ample& departments& sections or cost centers9

Creatin an Orani3ation

1. ?nter a name for your organization in the @ame field. % chec is performed to see if organizations 3ith the same

name already e0ist.

%ll Oracle applications you install share the information entered in the Organization 3indo3. Therefore organization

names must be uni>ue 3ithin a business group& and business group names must be uni>ue across your applications

net3or.

;ou can create t3o organizations 3ith the same name in different business groups but this can cause confusion later&

if the


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'. ?nter internal or externalin the Internal or ?0ternal field. ;ou cannot assign people to an e0ternal organization.

?0amples of e0ternal organizations that may re>uire entry are disability organizations& benefits carriers& insurance

carriers& organizations that employees name as beneficiaries of certain employee benefits& and organizations that are

recipients of third party payments from employees6 pay.

Inventory : Setup ?D Orani3ations ?D Orani3ation

Enter Orani3ation Classifications (dditional Information

1. 7usiness 0roup


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Gusiness 8roup Information.

Gudget Aalue Defaults.

Eor Day Information.

Genefits Defaults.

"TO Galance Type.

ecruitment Information.

"ayslip Information.

$elf $ervice "reference Information.

2. (ttachin Set of 7oo$s to %eal Entity


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!. (ttachin Set of 7oo$s %eal Entity to Operatin nit


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#. (ttachin Operatin nitto orani3ation


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Su+inventories$ubmitted by %nonymous on Thu& '-)**)*'', ! -*:*1

Tag:

Inventory

)

$ubinventories are uni>ue physical or logical separations of material inventory& such as ra3 inventory& finished goods&

or defective material. %ll material 3ithin an organization resides in a subinventory. There are t3o types of

subinventories 3ithin Earehouse Management& storage and receiving.

Storae subinventories are intermediate or final put a3ay locations for material. Material that resides in a storage

subinventory appears in on hand >uantity& and is traced by the system. The system can boo orders against& and

use manufacturing processes on material that resides in a storage subinventory. ;ou must define at least one storage

subinventory for your implementation.

Optionally& you can create receiving subinventories to trac material in the receiving area. ;ou use receivin

su+inventories3hen you 3ant to trac the material as soon as it enters the 3arehouse before an operator puts it

a3ay. eceiving subinventories enable managers to see 3here the material resides as soon as it enters the

3arehouse. Material located in a receiving subinventory does not appear in on hand >uantity& and the system cannot

reserve the material.


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%n operator can also only specify a receiving subinventory if they are using a mobile device to receive the material.

@ote: Operatorscannot transfer material from a storage subinventory to a receiving subinventory.

%ll material 3ithin an organization is held in a subinventory therefore& you must define at least one subinventory.


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4hen you create a ne6 su+inventory the su+inventory is only availa+le to the inventory orM1 in a+ove pic;

6here you are creatin it.

&a+le : M&%SECO*-(5"I*E*&O5IES

-efine ne6 Su+inventory$ubmitted by %nonymous on Thu& '-)**)*'', ! -(:'(

Tag:

Inventory

)

$elect a source type for item replenishment.

Beader

-. ?nter a uni>ue alphanumeric name.

*. Indicate the material status of this subinventory& 3hich controls the enabled transactions for all material in this

subinventory. The status is not overridden by the status of any locator& lot or serial& 3ithin this subinventory. The


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statuses of those obBects 3ill be considered 3hen determining transactions that are not enabled. This field is

used if you have Oracle Earehouse Management installed.

(. Indicate the default cost group for this subinventory. If the cost group assignment rules fail to identify a cost group

for ne3ly received material& this cost group 3ill be assigned. This cost group 3ill remain 3ith the material& even

through subinventory transfers& until you perform a cost group change transaction. This feature is available if you

have Oracle Earehouse Management installed& and you are 3oring 3ith a EM$ enabled organization.

1. $elect the subinventory type from the drop do3n list. The available choices are as follo3s:

Storae:Designates the subinventory as a $torage subinventory.

5eceivin:Designates the subinventory as a receiving subinventory& and lins it to a receiving location. This

subinventory type is used only for receiving material. Material in this type of subinventory cannot be onHhand& or

reserved.

*ull:@o subinventory designation

/arameters

#ollo3ing are the important parameters that 3e must define

1. Guantity trac$edIndicate 3hether each transaction for this subinventory updates the >uantity on hand for the

subinventory 7Uuantity Traced9.

If you leave this option uncheced& onHhand balances are not maintained and you cannot chec or update the %sset

Inventory& Include in %T"& eservable& or @ettable options. ;ou can update this value only if there is no onHhand>uantity& no pending transaction& or no uncosted transaction for the subinventory.

2. (sset Su+inventory: Indicate 3hether to maintain the value of this subinventory on the balance sheet 7%sset

$ubinventory9. ;ou can update this value only if there is no onHhand >uantity for the subinventory.

!. Include in (&/:Indicate 3hether to include items in this subinventory in %T" calculations.

#. -eprecia+le:Indicate 3hether to designate items in this subinventory as depreciable.

This data is needed to support depreciable and location information in the $ubinventory $etup from the Oracle

@et3or 5ogistics product.

'. (llo6 5eservation: Indicate 3hether to include this subinventory 3hen you perform availableHtoHreserve

calculations.

) *etta+le: Indicate 3hether the planning process uses the onHhand balance of these subinventory items as

available inventory 7@ettable9.

8. %/* Controlled:Indicate if material may be paced into an 5"@ in the subinventory. If this is uncheced& all 5"@s

transacted into this subinventory 3ill be automatically unpaced& and 5"@s cannot be paced into this subinventory.

This feature is available if you have Oracle Earehouse Management installed& and you are 3oring 3ith a EM$

enabled organization

9. Select a type of locator control.

;ou can select an option only if you selected locator control as Determined at subinventory level in the 5ocator

4ontrol field in the Organization "arameters 3indo3. ;ou can only update this option if there is no onHhand >uantity

for the subinventory.*one:Inventory transactions 3ithin this subinventory do not re>uire locator information.

/respecified:Inventory transactions 3ithin this subinventory re>uire you to enter a valid predefined locator for each

item.

-ynamic entry:Inventory transactions 3ithin this subinventory re>uire you to enter a locator for each item. ;ou may

choose a valid predefined locator& or define a locator dynamically at the time of transaction.

Item level: Inventory transactions use locator control information that you define at the item level.

,. Optionally& enter aninactive datefor the subinventory.


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%ttention: This feature does not restrict access once the user is in the product. =sers 3ith access to functions that

cross multiple organizations 7such as %T"& InterHorganization Transfers& Item $earch& MultiHorganization Uuantity

eport& and so on9 can still specify any valid organization 3hen running these functions.

Orani3ation /arameters$ubmitted by %nonymous on Eed& '-)*-)*'', ! -2:'

Tag:

Inventory

)

;ou can define and update default inventory and costing parameters for your current organization in the follo3ing

areas:

-. Inventory "arameters

*. 4osting Information

(. Other %ccount "arameters

1. evision& 5ot& $erial& 5"@ "arameters

/. %T"& "ic& ItemH$ourcing "arameters


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depending on 3hether you select %pprove automatically or eBect automatically in the Move Order Timeout

%ction field. If you 3ant to bypass the move order approval process and automatically approve move order

re>uisitions& enter ' days in the Move Order Timeout "eriod field and select %pprove automatically in the

Move Order Timeout %ction field.

). Select a move order timeout action

Approve automatically:%fter the second timeout period& move order re>uisitions are automatically approved.

$elect this option and set the Move Order Timeout "eriod to ' if you 3ant to bypass the move order

approval process and automatically approve move order re>uisitions.

Reject automatically:%fter the second timeout period& move order re>uisitions are automatically reBected.

8. Select a locator control option:

None:Inventory transactions 3ithin this organization do not re>uire locator information.

Prespecified only:Inventory transactions 3ithin this organization re>uire a valid& predefined locator for each

item.

Dynamic entry allowed: Inventory transactions 3ithin this organization re>uire a locator for each item. ;ou

can choose a valid& predefined locator& or define a locator dynamically at the time of transaction.

Determined at subinventory level:Inventory transactions use locator control information that you define at

the subinventory level.

Indicate 3hether to allo6 neative +alances. Determines 3hether inventory transactions can drive the

inventory balance of an item negative.

)ttention: If insufficient >uantity on hand e0ists in a supply subinventory to satisfy bacflush demand&

Oracle Eor in "rocess forces the supply subinventory balance negative& ignoring this option setting.

(uto delete allocation at Move Order cancellation

Indicate 3hether this organization is an Oracle 4arehouse Manaementenabled organization. ;ou can

use EM$ features such as 5"@s& tas management& 3arehouse e0ecution rules and cost

groups in this organization. 5ocator control must be enabled in order to enable EM$. Once this has been

enabled and transactions have been entered in this organization& this bo0 cannot be uncheced.

Indicate 3hether this organization is enabled for Guality inspection.

Indicate 3hether this organization is an Oracle Enterprise (sset Manaement enabled Organization.

?nter a total load 3eight and unit of measure for this organization.

?nter a total volume and unit of measure for this organization.

*e6 Features in 512

-. $elect a Default On!hand Material $tatus tracing option. This step is optional.

%ttention: ;ou cannot update this field for e0isting organizations. To enable this field& you must submit the %ctivate

Onhand 5evel Material $tatus Tracing concurrent program.

*. Indicate 3hether locator aliases must be uni>ue across the organization.


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-efinin Costin Information$ubmitted by %nonymous on Eed& '-)*-)*'', ! -2:1'

Tag:

Inventory

)

The costing organization that controls the costs in your current organization and the costing method are displayed.

;ou cannot mae changes to these fields.


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The standard cost update process can be performed on the cost cutoff date. ;ou can restart cost processing by

changing the cutoff date to blan& or a future date.

). -efault Material Su+ element

#or standard costing& select a material subHelement that this organization uses as a default 3hen you define item

costs. #or average costing& the default material subHelement you select can be used for cost collection 3hen "roBect

4ost 4ollection ?nabled is set.

8. Material Over head Su+ element

Optionally& select a Default Material Overhead $ubH?lement from the list of values. During the $upply 4hain ollup

process& 3hen costs are merged from another organization& marup and shipping costs 3ill use this value.

The supply chain cost rollup 3ill complete successfully& regardless of 3hether this field is populated. If the 4ost

ollup identifies an organization 3ith a default material overhead subHelement not set up& a corresponding 3arning

message 3ill be printed in the log file.

9. -efault Cost 0roup

Indicate the default cost group for the organization. This 3ill default into the Default 4ost 8roup field for each

subinventory. If the EM$ cost group rules engine fails to find a cost group& this cost group 3ill be used.

,. Aaluation %ccounts;ou choose a default valuation account 3hen you define organization parameters. =nder standard costing& these

accounts are defaulted 3hen you define subinventories and can be overridden. =nder average costing& these

accounts 7e0cept for ?0pense9 are used for subinventory transactions and cannot be updated. #or a detailed

discussion of cost

elements.

Material%n asset account that tracs material cost. #or average costing& this account holds your inventory

and intransit values. Once you perform transactions& you cannot change this account.

Material Overhead%n asset account that tracs material overhead cost.

5esource%n asset account that tracs resource cost.

Overhead%n asset account that tracs resource and outside processing overheads.

Outside processin%n asset account that tracs outside processing cost.

ExpenseThe e0pense account used 3hen tracing a nonHasset item.

Other (ccounts$ubmitted by %nonymous on Thu& '-)**)*'', ! -':'2

Tag:

Inventory

)


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Encum+rance:%n e0pense account used to recognize the reservation of funds 3hen a purchase order is approved.

Inventory (@/ (ccrual :The liability account that represents all inventory purchase order receipts not matched in

%ccounts "ayable& such as the uninvoiced receipts account.

/urchase /rice ariance :The variance account used to record differences bet3een purchase order price and

standard cost. This account is not used 3ith the average cost method.

Invoice /rice ariance :The variance account used to record differences bet3een purchase order price and invoice

price. This account is used by %ccounts "ayable to record invoice price variance.

Cost of 0oods Sold:The profit and loss 7income statement9 account that tracs the default cost of goods sold

account.

Sales:The profit and loss 7income statement9 account that tracs the default revenue account.


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/roect Clearance (ccount:Ehen performing miscellaneous issues to capital proBects& the proBect clearance

account is used to post the distributions.

(verae Cost ariance: =nder average costing 3ith negative >uantity balances& this account represents the

inventory valuation error caused by issuing your inventory before your receipts.

@ote: #or standard costing& only the "urchase "rice Aariance& Inventory %)" %ccrual& Invoice "rice Aariance&?0pense& $ales and 4ost of 8oods $old accounts are re>uired. The other accounts are used as defaults to speed

your set up.

@ote: #or average costing& only the Material& %verage 4ost Aariance& Inventory %)" %ccrual& Invoice "rice Aariance&

?0pense& $ales and 4ost of 8oods $old accounts are re>uired. The other accounts are used as defaults or are not

re>uired.

5evision, %ot, Serial, %/* /arameters$ubmitted by %nonymous on Thu& '-)**)*'', ! -':/

Tag:

Inventory

)


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Item?Sourcin -efault

Select a source type for item replenishment.

Inventory:eplenish items internally from another subinventory in the same organization or another organization.

$upplier: eplenish items e0ternally& from a supplier you specify in Oracle "urchasing.

@one:@o default source for item replenishment.

Select the orani3ation used to replenish items.

;ou must enter a value in this field if you selected Inventory in the Type field.

Select the su+inventory used to replenish items.

;ou must enter a value in this field if you selected your current organization in the Organization field. ;ou cannot

enter a value in this field if you selected $upplier in the Type field.

-ynamic entry for %ocators$ubmitted by %nonymous on #ri& '1)-2)*'', ! *':-2

Tag:

Inventory

)

If 3e select the dynamic entry for locators then 3e can directly create the locators 3hile do any transactions. To allo3

dynamic entery allo3ed for locators 3e need to do follo3ing t3o setups.

-. Mae the stoc locator as dynamic entery either at oraganization parameter or subinventory or at item level.

*. %llo3 dynamic insert should be enabled for the stoc locator structure.

@o3 3hen 3e do a transaction 3e can put a predefined stoc locator or can a ne3 combination if re>uired.


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InterOrani3ation Information$ubmitted by %nonymous on #ri& '()*2)*'', ! -(:(1

Tag:

Inventory

)


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Select an InterOrani3ation &ransfer Chare option.@one: Do not add transfer charges to a material transfer bet3een organizations.

"redefined percent: %utomatically add a predefined percent of the transaction value 3hen you perform the interH

organization transfer.

e>uested value: ?nter the discrete value to add 3hen you perform the interHorganization transfer.

e>uested percent: ?nter the discrete percentage of the transfer value to add 3hen you perform the interH

organization transfer.

Interorani3ation cost accounts

?nter default interHorganization cost accounts. These accounts are defaulted 3hen you set up shipping information in

the

InterHOrganization $hipping @et3ors 3indo3

InterOrani3ation Shippin *et6or$$ubmitted by %nonymous on Thu& '-)*,)*'', ! --:/'

Tag:

Inventory

)


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=se the InterHOrganization $hipping @et3or 3indo3 to define accounting information and the relationships that e0ist

bet3een shipping and destination organizations. ;ou can specify 3hether an organization is a shipping organization&

a destination organization& or both.

1. From?&O orani3ation

Determine if the organization displayed is the To Organization& #rom Organization& or the #rom or To Organization.

Item is transfered from the 6#rom6 organization to the 6To6 Organization.

2. &ransfer &ype:7Intransit)Direct9

#or each organization relationship you create& you must indicate 3hat type of shipment is used. If you choose to use

intransit inventory& Oracle Inventory moves material to intransit inventory before it reaches the destination

organization 3hen you perform an interHorganization transfer. Typically& you transfer material through intransit

inventory 3hen transportation time is significant. If you do not choose intransit inventory& Oracle Inventory moves your

material directly to the destination organization 3hen you perform an interHorganization transfer.

#or direct transfer type the #OG S receipt routing is disabled.

!. FO77$hipment)eceipt9Determines the o3nership of the materail. If it is shipment then the o3ner ship goes to 6To7receving96 organization at

the point of shipping. If it is receipt then the o3nership is transfered from the 6#rom7$ending96 organization to the

6To7receving96 organization 3hen the materail is received at the receving organization.

#. 5eceivin routin

If you selected Intransit in the Transfer Type field& select a receipt routing option:

$tandard:eceive this item first& then deliver 3ithout inspection.

Direct:%t receipt& deliver this item directly to its location.

Inspection: eceive this item first& inspect it& then deliver.


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'. Interanl orders ena+led

;ou must also specify 3hether internal orders are re>uired from the destination organization to perform interH

organization

transfers. Oracle Inventory does not allo3 you to perform interHorganization transfers using the Transfer Get3een

Organizations 3indo3 to an organization that re>uires internal re>uisitions.

. interHorganization transfer charge

$elect the interHorganization transfer charge type for calculating transfer charges:

@one:Do not add transfer charges.

"redefined "ercent:%utomatically add a predefined percent of the transaction value.

e>uested Aalue:?nter a discrete value to add.

e>uested "ercent:?nter a discrete percentage of the transfer value to add.

The default value is the value you defined in the Organization "arameters 3indo3 for the shipping organization.

8. -efine account information

%lso& you must provide general ledger accounts to record debits and credits involved in an interHorganization

transfer.W

-. ?nter the general ledger transfer credit accountused to collect transfer charges for the shipping organizationThe default value is the value you defined in the Organization "arameters 3indo3 for the shipping

organization.

*. ?nter the general ledger account used to collect thepurchase price variancefor interHorganization receipts

into standard cost organizations. ;ou must enter an account if your receiving organization is using standard

costing.

(. ?nter the general ledger receivables accountused as an interHorganization clearing account for the shipping

organization.


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1. The interHorganization receivable account for the shipping organization should e>ual the interHorganization

payables accountfor the receiving organization.

9. Intransit lead time

$elect $hipping Methods on the Tools menu to open the InterHorg $hipping Methods 3indo3.

?nter the shipping method for 3hich you 3ant to associate an intransit lead time for the displayed from and

to organizations and enter the intransit lead time in days.

Defining Intercompany RelationsSubmitted by Anonymous on T$u, 01/29/2009 - 1 :1.

Tag:

Inventory

/

=se the Intercompany elations 3indo3 to define& >uery& and update intercompany relations bet3een t3o operating

units in a multiHorganization environment. These operating units are either the shipping organization and the selling

organization& or the receiving and purchasing organization.

Ehen a sales order is entered in an operating unit& the shipping organization is often part of a separate operating

unit& belonging to a separate set of boos. Once the sales order is shipped to the customer& the inventory asset

account for the shipping organization is credited and the cost of goods sold account is debited. On the other hand&

sales revenue must be recognized in the order entry organization. If the t3o organizations belong to different

operating units& the system must perform accounting distributions to record the intercompany revenue& receivable&

and payable entries.


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Oracle Inventory and Oracle eceivables must be installed before you can define intercompany relations. If Oracle

"ayables is not installed& the fields in the %" Invoicing for $elling region are not re>uired.


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Shortae /arameters$ubmitted by %nonymous on Thu& '-)**)*'', ! -/:1-

Tag:

Inventory

)

;ou can enable the system to send material shortage alerts and shortage notifications 3hen a material shortage

occurs in an organization. % material shortage occurs 3henever unsatisfied demand e0ceeds available >uantity for

incoming supply of material.


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Chec$ Shortaes: Indicates that the material shortage chec is enabled for EI".

Ho+s and Schedules reions:

5eleased:Indicates that all Bobs)schedules 3ith status eleased& 3hose scheduled start date is overdue& are

included in the material shortage chec. This parameter is separately controlled for Bobs and schedules.

nreleased:Indicates that all Bobs)schedules 3ith status =nreleased& 3hose scheduled start date is overdue& are

included in the material shortage chec. This

inventorybalaji

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