r12 inventory management part2

R12 Oracle Inventory Management Fundamentals Volume II - Student Guide

D49489GC10

Edition 1.0

July 2007

D51693

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Copyright 2007, Oracle. All rights reserved. This document contains proprietary information and is protected by copyright and other intellectual property laws. You may copy and print this document solely for your own use in an Oracle training course. The document may not be modified or altered in any way. Except where your use constitutes "fair use" under copyright law, you may not use, share, download, upload, copy, print, display, perform, reproduce, publish, license, post, transmit, or distribute this document in whole or in part without the express authorization of Oracle. The information contained in this document is subject to change without notice. If you find any problems in the document, please report them in writing to: Oracle University, 500 Oracle Parkway, Redwood Shores, California 94065 USA. This document is not warranted to be error-free. If this documentation is delivered to the United States Government or anyone using the documentation on behalf of the United States Government, the following notice is applicable: U.S. GOVERNMENT RIGHTS The U.S. Governments rights to use, modify, reproduce, release, perform, display, or disclose these training materials are restricted by the terms of the applicable Oracle license agreement and/or the applicable U.S. Government contract. Oracle, JD Edwards, PeopleSoft, and Siebel are registered trademarks of Oracle Corporation and/or its affiliates. Other names may be trademarks of their respective owners.

Author

Tyra Crockett, Maneesha Nanda

Technical Contributors and Reviewers

Jennifer Sherman, Susan Flierl, Ronald Delong, David Nelson, Jean-Francois Guerrini

This book was published using: oracletutor

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Copyright Oracle Corporation, 2007. All rights reserved.

R12 Oracle Inventory Management Fundamentals Table of Contents i

Table of Contents

Overview of Oracle Inventory ........................................................................................................................1-1 R12 Overview of Oracle Inventory ...............................................................................................................1-3 Objectives ......................................................................................................................................................1-4 Overview .......................................................................................................................................................1-5 Inventory Capabilities....................................................................................................................................1-6 Inventory Capabilities (Cont) ........................................................................................................................1-7 Receipt to Issue Life Cycle............................................................................................................................1-8 Receiving Inventory ......................................................................................................................................1-9 Transferring Inventory...................................................................................................................................1-12 Issuing Inventory ...........................................................................................................................................1-14 Oracle Inventory Application Integration......................................................................................................1-16 Integration of Oracle Inventory to Financial Applications ............................................................................1-18 Summary........................................................................................................................................................1-19

Inventory Structure.........................................................................................................................................2-1 R12 Defining Inventory Organizations..........................................................................................................2-3 Objective........................................................................................................................................................2-4 Inventory Organizations ................................................................................................................................2-5 Inventory Organization Structure ..................................................................................................................2-6 Sample Inventory Organization.....................................................................................................................2-7 Multi-Organization Structure.........................................................................................................................2-8 Setting Up Locations .....................................................................................................................................2-9

Guided Demonstration - Setting up Locations...........................................................................................2-10 Defining Organizations..................................................................................................................................2-11 Inventory Parameters .....................................................................................................................................2-12 Costing Parameters ........................................................................................................................................2-13 Revision, Lot, Serial, and License Plate Number (LPN) Parameters ............................................................2-14 ATP, Pick, Item-Sourcing Parameters ...........................................................................................................2-15 Interorganization Parameters .........................................................................................................................2-16 Other Account Parameters.............................................................................................................................2-17 Warehouse Management Parameters.............................................................................................................2-18

Guided Demonstration - Setting Up Organizations ...................................................................................2-19 What is a Subinventory?................................................................................................................................2-24 What is a Subinventory (Cont) ......................................................................................................................2-25 Defining Subinventories ................................................................................................................................2-26

Guided Demonstration - Defining Subinventories.....................................................................................2-27 Practice - Creating Subinventories ............................................................................................................2-28 Solution - Creating Subinventories............................................................................................................2-29

Locator Control .............................................................................................................................................2-35 Dynamic and Static Locators.........................................................................................................................2-36 Subinventory-Locator Relationship...............................................................................................................2-37 Locator Flexfield Structure............................................................................................................................2-38

Guided Demonstration - Defining Locators ..............................................................................................2-39 Practice - Defining Locators ......................................................................................................................2-40 Solution Setting Up Locator Control ......................................................................................................2-41

Interorganization Shipping Networks............................................................................................................2-43 Shipping Method ...........................................................................................................................................2-45 Additional Set Up Steps ................................................................................................................................2-46 Additional Organizational Setups..................................................................................................................2-47 Copying Inventory Organizations..................................................................................................................2-48 Organization Hierarchy .................................................................................................................................2-50 Organization Reports.....................................................................................................................................2-52 Organization Reports (Cont)..........................................................................................................................2-53

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R12 Oracle Inventory Management Fundamentals Table of Contents ii

Profile Options...............................................................................................................................................2-54 Implementation Considerations .....................................................................................................................2-55 Implementation Considerations (Cont)..........................................................................................................2-56 Summary........................................................................................................................................................2-61

Units of Measure..............................................................................................................................................3-1 R12 Units of Measure....................................................................................................................................3-3 Objectives ......................................................................................................................................................3-4 Units of Measure ...........................................................................................................................................3-5 Uses of Units of Measure ..............................................................................................................................3-6 Unit of Measure Class ...................................................................................................................................3-7

Guided Demonstration - Creating Units of Measure .................................................................................3-8 Guided Demonstration - Creating Unit of Measure Classes......................................................................3-9

Unit of Measure Conversions ........................................................................................................................3-10 Guided Demonstration - Defining Unit of Measure Conversions..............................................................3-11

Lot-Level Unit of Measure Conversions .......................................................................................................3-12 Units of Measure Setup .................................................................................................................................3-13

Practice - Defining Units of Measure ........................................................................................................3-14 Solution Defining Units of Measure .......................................................................................................3-16

Unit of Measure Reports................................................................................................................................3-20 Profile Options...............................................................................................................................................3-21 Organization Parameter Setup .......................................................................................................................3-22 Implementation Considerations .....................................................................................................................3-23 Summary........................................................................................................................................................3-24

Defining and Maintaining Items.....................................................................................................................4-1 R12 Defining and Maintaining Items Fundamentals .....................................................................................4-3 Objective........................................................................................................................................................4-4 What is an Item? ............................................................................................................................................4-5 Steps to Setup, Define, and Maintain Items...................................................................................................4-6 Defining Items ...............................................................................................................................................4-7

Guided Demonstration - Define Item ........................................................................................................4-9 Item Master Organization..............................................................................................................................4-10 Item Master....................................................................................................................................................4-12 Item Attributes...............................................................................................................................................4-13 Item Attribute Groups....................................................................................................................................4-14

Guided Demonstration - Viewing Item Attributes.....................................................................................4-15 Item Status .....................................................................................................................................................4-16 Unit of Measure Attributes ............................................................................................................................4-17 Item Statuses and Attributes ..........................................................................................................................4-19 Status Attributes and Functionality ...............................................................................................................4-20 Status Attribute Interdependencies ................................................................................................................4-23 Item Attribute Relationships..........................................................................................................................4-26

Practice - Viewing Item Attributes ............................................................................................................4-27 Solution Viewing Item Attributes...........................................................................................................4-28

Item Templates ..............................................................................................................................................4-36 Creating Item Templates ...............................................................................................................................4-37 Enabling Attributes in a Template .................................................................................................................4-38

Guided Demonstration - Creating Item Templates ....................................................................................4-39 Organization Assignment and Organization Items ........................................................................................4-40 Control Levels ...............................................................................................................................................4-41 Revision Control............................................................................................................................................4-43

Defining Items ...........................................................................................................................................4-45 Solution - Defining Items ..........................................................................................................................4-46

Restricting Items to Subinventories...............................................................................................................4-59 Guided Demonstration - Restricting Items to Subinventories ...................................................................4-60

Item Relationships .........................................................................................................................................4-61 Guided Demonstration -Establishing Item Relationships ..........................................................................4-62

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R12 Oracle Inventory Management Fundamentals Table of Contents iii

Categories and Category Sets ........................................................................................................................4-63 Assigning Items to Categories .......................................................................................................................4-64

Practice - Defining Categories...................................................................................................................4-65 Solution Defining Categories..................................................................................................................4-66

Item Catalogs.................................................................................................................................................4-70 Guided Demonstration - Setting up Catalog Groups .................................................................................4-71

Deletion Constraints and Deletion Groups ....................................................................................................4-74 Deletion Constraints ......................................................................................................................................4-75 Deletion Constraints (Cont)...........................................................................................................................4-76 Item Reports ..................................................................................................................................................4-77 Item Reports (Cont) .......................................................................................................................................4-78 Profile Options...............................................................................................................................................4-80 Profile Options (Cont) ...................................................................................................................................4-81 Implementation Considerations .....................................................................................................................4-86 Implementation Considerations (Cont)..........................................................................................................4-87 Summary........................................................................................................................................................4-88

Lot and Serial Control ....................................................................................................................................5-1 R12 Lot and Serial Control............................................................................................................................5-3 Objective........................................................................................................................................................5-4 Lot Control Overview....................................................................................................................................5-5 Child Lots ......................................................................................................................................................5-6 Setting up Lot Control (Organization Parameters) .......................................................................................5-7

Guided Demonstration - Setting Up Organizations ...................................................................................5-8 Lot Number Uniqueness ................................................................................................................................5-12 Setting up Lot Control (Item Attributes) ......................................................................................................5-13 Managing Lots...............................................................................................................................................5-15 Expired Lots ..................................................................................................................................................5-16 Disabled Lots.................................................................................................................................................5-17

Guided Demonstration - Generating Lots..................................................................................................5-18 Guided Demonstration - Maintaining Grades............................................................................................5-21 Guided Demonstration - Maintaining Lot Actions ....................................................................................5-23 Practice - Using the Lot Master .................................................................................................................5-24 Solution Using the Lot Master................................................................................................................5-25

Lot Number Purging......................................................................................................................................5-32 Cycle Counts Under Lot Control ...................................................................................................................5-33 Physical Inventory Under Lot Control...........................................................................................................5-34

Guided Demonstration - Revision, Lot, and Serial Controls .....................................................................5-35 Serial Number Overview ...............................................................................................................................5-38 Generating Serial Numbers............................................................................................................................5-39 Serial Uniqueness ..........................................................................................................................................5-40 Maintaining Serial Numbers..........................................................................................................................5-42

Practice - Generating and Maintaining Serial Numbers ............................................................................5-43 Solution Generating and Maintaining Serial Numbers ............................................................................5-44

Lot Genealogy ...............................................................................................................................................5-49 Guided Demonstration - Viewing Lot Genealogy .....................................................................................5-50

Serial Genealogy ...........................................................................................................................................5-51 Lot and Serial Reports ...................................................................................................................................5-52 Lot and Serial Reports (Cont)........................................................................................................................5-53 Profile Options...............................................................................................................................................5-55 Profile Options (Cont) ...................................................................................................................................5-56 Implementation Considerations .....................................................................................................................5-57 Implementation Considerations (Cont)..........................................................................................................5-58 Summary........................................................................................................................................................5-59

Transaction Setup............................................................................................................................................6-1 R12 Transaction Setup...................................................................................................................................6-3 Objectives ......................................................................................................................................................6-4

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R12 Oracle Inventory Management Fundamentals Table of Contents iv

Overview .......................................................................................................................................................6-5 Inventory Transactions ..................................................................................................................................6-6 Move Orders..................................................................................................................................................6-7 Transaction Source Types..............................................................................................................................6-8 Transaction Action ........................................................................................................................................6-10 Transaction Reasons ......................................................................................................................................6-12 Transaction Types..........................................................................................................................................6-13

Guided Demonstration - Creating Customized Transactions.....................................................................6-14 Predefined Transaction Types .......................................................................................................................6-16 Transaction Managers....................................................................................................................................6-17 Running Transaction Managers.....................................................................................................................6-18 Creating Picking Rules ..................................................................................................................................6-20

Guided Demonstration - Creating Picking Rules.......................................................................................6-22 Account Aliases.............................................................................................................................................6-23 Accounting Periods........................................................................................................................................6-24

Guided Demonstration - Opening Accounting Periods .............................................................................6-25 Material Shortage Alerts and Notifications ...................................................................................................6-26 Setting Up Shortage Alerts and Notifications................................................................................................6-28 Setting Up for Move Orders ..........................................................................................................................6-29 Setup Steps for Move Orders.........................................................................................................................6-31 Profile Options...............................................................................................................................................6-33 Profile Options (Cont) ...................................................................................................................................6-34 Implementation Considerations for Shortage Checks....................................................................................6-39 Implementation Considerations for Move Orders ........................................................................................6-40 Summary........................................................................................................................................................6-41

Issuing and Transferring Material.................................................................................................................7-1 R12 Issue and Transfer Material....................................................................................................................7-3 Module Objectives.........................................................................................................................................7-4 Overview of Inventory Transactions .............................................................................................................7-5 Inventory Transactions ..................................................................................................................................7-6 Inventory Transactions Without Documents and Requisitions......................................................................7-7 Inventory Transactions with Documents and Requisitions............................................................................7-8 Control Options and Restrictions...................................................................................................................7-9 Miscellaneous Transactions...........................................................................................................................7-10

Practice - Processing Miscellaneous Receipts ...........................................................................................7-12 Solution Processing Miscellaneous Receipts..........................................................................................7-13

Subinventory Transfer ...................................................................................................................................7-24 Guided Demonstration - Performing Subinventory Transfers ...................................................................7-25 Practice - Processing Subinventory Transfers ...........................................................................................7-26 Solution Processing Subinventory Transfers ..........................................................................................7-27

Inter-Organization Direct Shipment ..............................................................................................................7-31 Inter-organization Intransit Shipment............................................................................................................7-32

Guided Demonstration - Performing Interorganization Transfers .............................................................7-34 Practice - Performing Interorganization Transfers.....................................................................................7-35 Solution Performing Interorganization Transfers ...................................................................................7-36

Managing Receipts ........................................................................................................................................7-41 Express Receipts and Receiving Transactions...............................................................................................7-43 Direct Receipts ..............................................................................................................................................7-44 Standard Receipt............................................................................................................................................7-45 Inspection Receipt .........................................................................................................................................7-46

Guided Demonstration - Receiving Stock into Inventory..........................................................................7-47 Practice - Receiving Material into Inventory.............................................................................................7-49 Solution Receiving Material into Stock..................................................................................................7-50

Move Orders..................................................................................................................................................7-57 Move Orders Process Flow............................................................................................................................7-58 Move Order Requisition Approval Process ...................................................................................................7-59

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R12 Oracle Inventory Management Fundamentals Table of Contents v

Benefits of Managed Material Flow in a Facility ..........................................................................................7-61 Move Order Source Types.............................................................................................................................7-63 Move Order Components ..............................................................................................................................7-65 Generate Move Orders...................................................................................................................................7-67 Move Order Allocating..................................................................................................................................7-69 Item Allocation..............................................................................................................................................7-71 Transact Move Orders ...................................................................................................................................7-72

Practice - Transacting Move Orders ..........................................................................................................7-73 Solution Transacting Move Orders.........................................................................................................7-74 Guided Demonstration - Defining Subinventories.....................................................................................7-80

Mobile Transactions ......................................................................................................................................7-81 Guided Demonstration - Mobile Application Interorganization Transfers ................................................7-83 Practice - Performing Mobile Transactions ...............................................................................................7-84 Solution Mobile Transactions.................................................................................................................7-85

Managing Shipments .....................................................................................................................................7-90 Transactions Reports .....................................................................................................................................7-91 Transactions Reports (Cont) ..........................................................................................................................7-92 Summary........................................................................................................................................................7-96

On-hand and Availability................................................................................................................................8-1 R12 On-hand and Availability.......................................................................................................................8-3 Objectives ......................................................................................................................................................8-4 Overview of On-hand Quantity .....................................................................................................................8-5 Overview of Reservations..............................................................................................................................8-6 Overview of Availability ...............................................................................................................................8-7 Reservation Versus Allocation ......................................................................................................................8-8 Material Workbench ......................................................................................................................................8-9 Display Options .............................................................................................................................................8-10 Viewing Available Items ...............................................................................................................................8-12 Material Workbench Transactions.................................................................................................................8-13

Guided Demonstration - Using the Material Workbench ..........................................................................8-14 Practice - Using the Material Workbench..................................................................................................8-15 Solution Using the Material Workbench ................................................................................................8-16

Available to Promise .....................................................................................................................................8-20 What are Supply and Demand? .....................................................................................................................8-21 Uses of ATP in Oracle Inventory ..................................................................................................................8-22 ATP Rules Setup Steps..................................................................................................................................8-23 Defining Computation Options......................................................................................................................8-24 Specifying Supply and Demand Time Fences ...............................................................................................8-26 Specifying Demand Sources..........................................................................................................................8-30 Specifying Supply Sources ............................................................................................................................8-32 Setting Up Item and Bills for ATP Checking ................................................................................................8-33 ATP Checking ...............................................................................................................................................8-34

Guided Demonstration - Creating an ATP Rule ........................................................................................8-35 Reservation Types .........................................................................................................................................8-36 Supply Types .................................................................................................................................................8-37 Demand Types...............................................................................................................................................8-38 Reserving Material ........................................................................................................................................8-39 Reservation Management- Transfer Supply ..................................................................................................8-41 Reservation Management- Transfer Demand ................................................................................................8-42

Guided Demonstration - Creating Reservations ........................................................................................8-43 Practice - Creating Reservations................................................................................................................8-45 Solution Creating Reservations ..............................................................................................................8-46

On-hand and Availability Reports .................................................................................................................8-48 Profile Options...............................................................................................................................................8-49 Profile Options (Cont) ...................................................................................................................................8-50 Implementation Considerations .....................................................................................................................8-51

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R12 Oracle Inventory Management Fundamentals Table of Contents vi

Summary........................................................................................................................................................8-52 Material Status Control ..................................................................................................................................9-1

R12 Material Status .......................................................................................................................................9-3 Objectives ......................................................................................................................................................9-4 Material Status...............................................................................................................................................9-5 Material Status Control Levels ......................................................................................................................9-6 Material Status Transactions..........................................................................................................................9-7 Cumulative Effective Status ..........................................................................................................................9-8 Material Status Examples ..............................................................................................................................9-9 Setting Up......................................................................................................................................................9-10 Defining Item Material Status Control ..........................................................................................................9-11 Assigning Material Status Control to Subinventories and Locators ..............................................................9-12 Assigning Planning Statuses..........................................................................................................................9-13 Disabling Material Statuses ...........................................................................................................................9-14

Practice - Setting up Material Status Control ............................................................................................9-15 Solution Setting up Material Status Control ...........................................................................................9-16

Material Status Reports .................................................................................................................................9-24 Profile Option ................................................................................................................................................9-25 Implementation Considerations .....................................................................................................................9-26 Summary........................................................................................................................................................9-27

Inventory Replenishment................................................................................................................................10-1 R12 Replenishment Fundamentals ...............................................................................................................10-3 Objectives ......................................................................................................................................................10-4 Overview of Inventory Planning ...................................................................................................................10-5 Order Planning...............................................................................................................................................10-6 How Much to Order.......................................................................................................................................10-7 Replenishment Process for Intra-Org Supply Sources...................................................................................10-8 Replenishment Process for Supplier Supply Sources ....................................................................................10-9 Replenishment Process for Inter-Org Supply Sources...................................................................................10-10 Replenishment Process for Product Supply Sources .....................................................................................10-11 Replenishment Methods ................................................................................................................................10-12 Overview of Inventory Forecasting ...............................................................................................................10-13 Forecast Types...............................................................................................................................................10-15 Forecast Setup and Maintenance ...................................................................................................................10-16

Guided Demonstration - Creating a Manual Forecast ...............................................................................10-17 Oracle Inventory Replenishment Methods ....................................................................................................10-19 Replenishment Methods Levels.....................................................................................................................10-20 Safety Stock...................................................................................................................................................10-21 Economic Order Quantity..............................................................................................................................10-22 Overview of Reorder-Point Planning ............................................................................................................10-23 Uses of Reorder-Point Planning ....................................................................................................................10-24 Reorder-Point Planning Steps........................................................................................................................10-25 Performing Reorder-Point Planning ..............................................................................................................10-26

Guided Demonstration - Setting up Reorder Point Planning .....................................................................10-28 Overview of Min-Max Planning....................................................................................................................10-30 Uses of Min-Max Planning............................................................................................................................10-31 Min-Max Planning.........................................................................................................................................10-32 Min-Max Planning: How Much to Order? ....................................................................................................10-33 Min-Max Planning Steps ...............................................................................................................................10-34 Item Planning Attributes................................................................................................................................10-35 Min-Max Planning Setup Procedure..............................................................................................................10-36 Selecting a Planning Level ............................................................................................................................10-37 Entering Planning Attributes .........................................................................................................................10-38 Submitting the Min-Max Planning Requests.................................................................................................10-39

Guided Demonstration - Setting up Min-Max Planning............................................................................10-41 Practice - Performing Min-Max Planning..................................................................................................10-43

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R12 Oracle Inventory Management Fundamentals Table of Contents vii

Solution Performing Min-max Planning.................................................................................................10-44 Overview of Replenishment Counting ..........................................................................................................10-50 Uses of Replenishment Counting ..................................................................................................................10-51 Replenishment Planning Steps ......................................................................................................................10-52 Subinventories Window ................................................................................................................................10-54 Item Subinventories Window ........................................................................................................................10-55 Item Subinventories: Order Modifier Tab .....................................................................................................10-56 Replenishment Count Headers ......................................................................................................................10-57 Replenishment Count Lines...........................................................................................................................10-58 Processing Replenishment Counts.................................................................................................................10-60 Mobile Replenishment Count Overview .......................................................................................................10-62

Practice - Performing a Replenishment Count Using Forms .....................................................................10-63 Solution - Performing a Replenishment Count Using Forms ....................................................................10-65 Practice - Performing a Replenishment Count Using the Mobile Application ..........................................10-72 Solution - Performing a Replenishment Count Using the Mobile Application .........................................10-74

Overview of PAR Counting...........................................................................................................................10-82 Processing PAR Counts.................................................................................................................................10-83 Reorder Quantity for PAR Count ..................................................................................................................10-84 Overview of Kanban Replenishment.............................................................................................................10-86 Kanban Cards ................................................................................................................................................10-88 Kanban Planned Items ...................................................................................................................................10-89 Kanban Cards ................................................................................................................................................10-91 Kanban Supply Status....................................................................................................................................10-93 Kanban Replenishment Sources ....................................................................................................................10-94 Kanban Card Printing ....................................................................................................................................10-95

Guided Demonstration - Performing Kanban Replenishment ...................................................................10-96 Practice - Performing Kanban Replenishment...........................................................................................10-97 Solution Performing Kanban Replenishment .........................................................................................10-98

Planning and Replenishment Reports ............................................................................................................10-101 Planning and Replenishment Reports (Cont).................................................................................................10-102 Profile Options...............................................................................................................................................10-103 Profile Options (Cont) ...................................................................................................................................10-104 Implementation Considerations .....................................................................................................................10-105 Implementation Considerations (Cont)..........................................................................................................10-108 Summary........................................................................................................................................................10-109

Inventory Accuracy .........................................................................................................................................11-1 R12 Inventory Accuracy Fundamentals ........................................................................................................11-3 Objectives ......................................................................................................................................................11-4 Overview of Inventory Accuracy ..................................................................................................................11-5 ABC Analysis Overview ...............................................................................................................................11-6 Defining an ABC Analysis ............................................................................................................................11-7 Define and Run an ABC Compilation ...........................................................................................................11-8 ABC Compilation Criteria.............................................................................................................................11-9 ABC Valuation Scope ...................................................................................................................................11-11 Defining ABC Groups ...................................................................................................................................11-12 Defining ABC Classes...................................................................................................................................11-13 ABC Item Assignments .................................................................................................................................11-14

Guided Demonstration - Compiling an ABC Analysis..............................................................................11-16 Practice - Compiling an ABC Analysis .....................................................................................................11-18 Solution Compiling an ABC Analysis....................................................................................................11-20

Cycle Counting Overview .............................................................................................................................11-26 Defining and Maintaining a Cycle Count ......................................................................................................11-27 Cycle Count Approval Tolerance ..................................................................................................................11-28 Approval Tolerances......................................................................................................................................11-29 Hit/Miss Tolerance ........................................................................................................................................11-31 Measurement Errors ......................................................................................................................................11-32

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R12 Oracle Inventory Management Fundamentals Table of Contents viii

Cycle Count Items .........................................................................................................................................11-33 Automatic Scheduling ...................................................................................................................................11-35 Manual Scheduling ........................................................................................................................................11-36 Count Requests ..............................................................................................................................................11-37 Entering Cycle Counts...................................................................................................................................11-39 Cycle Count Open Interface ..........................................................................................................................11-40 Count Adjustments and Approvals ................................................................................................................11-41 Automatic Recounts ......................................................................................................................................11-42 Approving Cycle Counts and Adjustments ...................................................................................................11-43

Guided Demonstration - Performing a Cycle Count..................................................................................11-45 Practice - Performing a Cycle Count .........................................................................................................11-48 Solution Performing a Cycle Count........................................................................................................11-50

Mobile Inventory Accuracy Overview ..........................................................................................................11-60 Practice - Mobile Counting........................................................................................................................11-61 Solution Mobile Counting ......................................................................................................................11-62

Physical Inventory Overview ........................................................................................................................11-67 Why Perform Physical Inventories? ..............................................................................................................11-68 Defining Physical Inventories........................................................................................................................11-69 Physical Inventory Tags ................................................................................................................................11-70 Inventory Snapshots ......................................................................................................................................11-72 Entering Physical Inventory Counts ..............................................................................................................11-74 Voiding Tags .................................................................................................................................................11-76 Approval Tolerances......................................................................................................................................11-77 Physical Inventory Adjustments ....................................................................................................................11-78 Accuracy Reports ..........................................................................................................................................11-79 Accuracy Reports (Cont) ...............................................................................................................................11-80 Profile Options...............................................................................................................................................11-85 Implementation Considerations .....................................................................................................................11-86 Implementation Considerations (Cont)..........................................................................................................11-87 Summary........................................................................................................................................................11-89

Table Information............................................................................................................................................12-1 R12 Table Information ..................................................................................................................................12-3 Objective........................................................................................................................................................12-4 Organization Tables.......................................................................................................................................12-5 Subinventories and Locator Tables................................................................................................................12-7 Item Master Tables ........................................................................................................................................12-9 Item Status Tables .........................................................................................................................................12-11 Item Categories Tables ..................................................................................................................................12-13 Item Reservation Tables ................................................................................................................................12-15 Inventory Transaction Tables ........................................................................................................................12-17

Guided Demonstration - Accessing eTRM................................................................................................12-19 Summary........................................................................................................................................................12-20

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R12 Oracle Inventory Management Fundamentals Table of Contents ix

Preface

Profile

Before You Begin This Course

Working experience with Oracle Applications

Prerequisites

There are no prerequisites for this course.

How This Course Is Organized

R12 Oracle Inventory Management Fundamentals is an instructor-led course featuring lecture and hands-on exercises. Online demonstrations and written practice sessions reinforce the concepts and skills introduced.

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R12 Oracle Inventory Management Fundamentals Table of Contents x

Related Publications

Oracle Publications Title Part Number

Oracle Inventory Users Guide B31547-02

Additional Publications

System release bulletins

Installation and users guides

Read-me files

International Oracle Users Group (IOUG) articles

Oracle Magazine

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R12 Oracle Inventory Management Fundamentals Table of Contents xi

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 Cant 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 names that 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]

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R12 Oracle Inventory Management Fundamentals Table of Contents xii

Typographic Conventions in Code Convention Element Example Caps and lowercase

Oracle Forms triggers

When-Validate-Item

Lowercase Column names, table names

SELECT last_name FROM s_emp;

Passwords DROP USER scott IDENTIFIED 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 userid FROM 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

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R12 Oracle Inventory Management Fundamentals Table of Contents xiii

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.

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R12 Oracle Inventory Management Fundamentals Table of Contents xiv

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Issuing and Transferring Material Chapter 7 - Page 1

Issuing and Transferring Material Chapter 7

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R12 Issue and Transfer Material

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Module Objectives

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Overview of Inventory Transactions

Transactions

A transaction is an item movement into, within, or out of inventory. A transaction changes the quantity, location, planning responsibility, and 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 Inventory automatically generates. All transactions validate the various controls (revision, locator, lot number, serial number and secondary unit of measure) you enable for items. See Overview of Inventory Transactions, Oracle Inventory Users Guide for more information.

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Inventory Transactions

Inventory Transactions

You can perform the following inventory transactions: Receive items into your organization from a general ledger account number. Issue items from your organization to a 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.

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Inventory Transactions Without Documents and Requisitions

Inventory Transactions Without Documents and Requisitions

You can perform Inter-organization transfers without using an internal requisition or internal sales order.

You can use miscellaneous receipts to receive material without a purchase order number. Use miscellaneous issues to issue material without approvals or a document number. Use subinventory transfers to transfer the location of material without a document number.

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Inventory Transactions with Documents and Requisitions

Inventory Transactions with Documents and Requisitions

You can use internal requisitions and internal sales orders as an approval mechanism and to provide a document to track when you transport material between warehouses or transfer material across inventory organizations. Within a single warehouse or inventory organization:

Use move orders with a Move Order Issue transaction type to approve a transaction and to provide a document to track the issue of the material. Previously, sales orders with approvals in the order cycle were used to issue the material and track the movement.

Use move orders with a Subinventory Transfer transaction type to approve a transfer and to provide a document to track the transfer of the material.

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Control Options and Restrictions

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Miscellaneous Transactions

Miscellaneous Transactions

Miscellaneous Transactions enable you to issue material to individuals or projects that are not in inventory, receiving, or work in process. These could include a research and development group or an accounting department. You can also make manual adjustments to the general ledger by receiving material from one account to inventory, and then issuing that material from inventory to another account. For more information see Performing Miscellaneous Transactions Oracle Inventory Users Guide

Miscellaneous Transactions Applications With miscellaneous transactions you can:

Load items when you implement Oracle Inventory Scrap items by issuing them to scrap accounts Issue items to individuals, departments, or projects Receive items that were acquired without purchase orders

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Enter adjustments and corrections to system quantities due to theft, vandalism, loss, shelf-life expiration, or inaccurate record keeping

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Practice - Processing Miscellaneous Receipts

Overview

In this lab you perform a miscellaneous receipt to receive the items you created in the define items lab.

Assumptions

You completed the Defining Items practice.

You completed the Creating Subinventories practice.

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

Perform a miscellaneous receipt for the items you created in the Defining Items practice.

1. Receiving the following eight items where ## represent you team number. If the item has associated inventory controls such as a lot or serial, generate a new lot or serial for the item.

##-Item-01

##-Item-02

##-Item-03

##-Item-04

##-Item-05

##-Item-06

##-Item-07

##-Item-08

Verify the Transactions Processed

2. Use the Material Transactions window to verify the transaction processed.

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Solution Processing Miscellaneous Receipts

Responsibility = Inventory, Vision Operations (USA)

1. Navigate to the Miscellaneous Transactions window.

(N) Transactions > Miscellaneous Transactions

2. Enter the following information: Type: Miscellaneous receipt Account: 01-580-7740-0000-000

3. (B) Transaction Lines Enter the following information for item ##item-01: Item: ##-Item-01 Subinventory: ##FGI Quantity: 1000

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4. (M) > New

5. Enter the following information for ##-Item02: Item: ##-Item02 Subinventory: ##FGI Locator: ##.1.01 Quantity: 1000

6. (M) File > New

7. Enter the following information for ##-Item03: Item: ##-Item03 Subinventory: ##FGI Revision: A Quantity: 1000

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8. (M) File > New

9. Enter the following information for ##Item04: Item: ##-Item04 Subinventory: 00FGI Quantity: 1000

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10. (B) Lot/Serial

11. (B) Generate Lot

12. Enter the following lot information: Quantity: 500

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13. (M) File > New



16. (B) Done

17. (M) File > New

18. Enter following information for ##Item05: Item: ##Item05 Subinventory: ##FGI Quantity: 1000 Lot: Select an existing lot from the list of values

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19. (M) File >New

20. Enter the following information for item ##-Item06: Item: ##-Item06 Subinventory: 00FGI Quantity: 1000

21. (B) Lot/Serial


23. Enter the following information: Lot Quantity: 1000

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24. (M) File > New

25. Enter the following information for item ##-Item07: Item: ##-Item07 Subinventory: 00FGI Quantity: 500

26. (B) Lot/Serial

27. Enter a range of serial numbers.

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28. (B) Done

29. (M) File > New

30. Enter the following information for ##-Item08: Item: ##-Item08 Subinventory: 00FGI Quantity: 1000

Note: Because of the defaulting rule you selected during setup, the secondary quantity appears automatically.

31. (B) Lot/Serial



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34. (B) Done

35. (M) File >Save

36. (M) File > Close Form


Verify the Transactions Processed

38. Navigate to the Material Transactions window.

(N) Transactions > Material Transactions

39. Verify todays date appears in the Transactions Dates fields.

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40. (B) Find

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41. What is the Source Type for item ##-Item03? ________________________________

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Subinventory Transfer

Subinventory Transfer

Some of the uses of subinventory transfers are: Transferring between asset and expense subinventories Transferring between tracked and non-tracked subinventories

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Guided Demonstration - Performing Subinventory Transfers

Responsibility: Inventory, Vision Operations USA

1. (N) > Transactions > Subinventory Transfer

2. Enter Subinventory Transfer as the Type.

3. (B) Transaction Lines

4. Enter the following transfer information: Item: AS18947 Subinventory: FGI Quantity: 45 To Subinventory: Stores

5. (M) File > Save


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r12 inventory management part2

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