Professional Documents
Culture Documents
Release 12
Inventory
Students Manual
Page 1 of 63
Table of Contents
1.
TERMINOLOGY..................................................................................................................................................... 3
2.
3.
4.
5.
DEFINE ORGANIZATION.................................................................................................................................. 10
4.
5.
DEFINE SUBINVENTORY.................................................................................................................................. 17
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
DELETION GROUPS....................................................................................................................................... 41
18.
19.
20.
21.
22.
CATEGORY SET.............................................................................................................................................. 45
23.
24.
25.
26.
27.
28.
29.
MISCELLANEOUS TRANSACTIONS.......................................................................................................... 59
30.
31.
32.
33.
Page 2 of 63
1. Terminology
Terms used in the conventional Inventory system and as referred in Oracle Inventory may be different. A brief
explanation of the Oracle Inventory terms vis--vis the existing terminology is provided the following
paragraphs. These terms are extensively used in documenting the Inventory - To Be flows and it is
recommended that the various users of this system. Get acquainted with the same.
Item Validation Organization: The organization that contains your master list of items. You define it by
setting the OE: Item Validation Organization profile option.
Logical organization: Business units that track items for accounting purposes but do not physically exist.
Organization: A business unit such as a plant, warehouse, division, department, and so on. Order
Management refers to Organizations as warehouses on all Order Management windows and reports.
Destination organization: An inventory organization that receives item shipments from a given Organization.
Workday calendar: A calendar that identifies available workdays for one or more organizations. Master
Scheduling/MRP, Inventory, Work in Process, and Capacity plan and schedule activities based on a
calendars available workdays.
Workday exception set: An entity that defines mutually exclusive sets of workday exceptions. For each
organization, you Can specify a workday calendar and exception set.
Primary unit of measure: The stocking unit of measure for an item in a particular organization.
Unit of measure: The unit that the quantity of an item is expressed.
Unit of measure class: A group of units of measure and their corresponding base unit of measure. The
standard unit Classes are Length, Weight, Volume, Area, Time, and Pack.
Unit of measure conversions: Numerical factors that enable you to perform transactions in units other than
the primary unit of the item being transacted.
Category: Code used to group items with similar characteristics, such as plastics, metals, or glass items.
Category set A feature in Inventory where users may define their own group of categories. Typical category
sets include purchasing, materials, costing, and planning.
Purchased item: An item that you buy and receive. If an item is also an inventory item, you may also be able
to stock it.
Standard item: Any item that can have a bill or be a component on a bill except planning items, option
classes, or models. Standard items include purchased items, subassemblies, and finished products.
Substitute item: An item that can be used in place of a component. Master Scheduling/MRP suggests
substitutes items on some reports.
Inventory item: Items you stock in inventory. You control inventory for inventory items by quantity and value.
Typically, the inventory item remains an asset until you consume it. You recognize the cost of an inventory
item as an expense when you consume it or sell it. You generally value the inventory for an item by
multiplying the item standard cost by the quantity on hand.
Item attribute control level: To maintain item attributes at the item master attribute level or the Organization
specific level by defining item attribute control consistent with your company policies. For example, if your
company determines serial number control at headquarters regardless of where items are used, you define
and maintain serial number attribute control at the item master level. If each organization maintains serial
number control locally, they maintain those attributes at the organization specific level.
Item attributes: Specific characteristics of an item, such as order cost, item status, revision control, COGS
account, etc.
Internal & Confidential
Page 3 of 63
Item master level attribute: An item attribute you control at the item master level as opposed to controlling at
the organization level.
Item status: Code used to control the transaction activity of an item.
Deletion constraint: A business rule that restricts the entities you can delete. A deletion constraint is a test
that must succeed before an item, bill, or routing can be deleted.
Current onhand quantity: Total quantity of the item onhand before a transaction is processed.
Onhand quantity: The physical quantity of an item existing in inventory.
Subinventory: Subdivision of an organization, representing either a physical area or a logical grouping of
items, such as a storeroom or receiving dock.
Locator: Physical area within a Subinventory where you store material, such as a row, aisle, bin, or shelf.
Locator control: An Oracle manufacturing technique for enforcing use of locators during a material
transaction.
Revision A particular version of an item, bill of material, or routing.
Revision control: An inventory control option that tracks inventory by item revision and forces you to specify
a revision for each material transaction.
Lot: A specific batch of an item identified by a number.
Lot control: An Oracle Manufacturing technique for enforcing use of lot numbers during material transactions
thus enabling the tracking of batches of items throughout their movement in and out of inventory.
Serial number: A number assigned to each unit of an item and used to track the item.
Serial numbers control: A manufacturing technique for enforcing use of serial numbers during a material
transaction.
Minmax planning: An inventory planning method used to determine when and how much to order based on
a fixed userentered minimum and maximum inventory levels.
Reorder point planning: An inventory planning method used to determine when and how much to order
based on customer service level, safety stock, carrying cost, order setup cost, lead time and average
demand.
Safety stock: Quantity of stock planned to have in inventory to protect against fluctuations in demand and/or
supply.
ABC classification: A method of classifying items in decreasing order of importance, such as annual dollar
volume or your companys transaction history.
Cycle counting: An inventory accuracy analysis technique where inventory is counted on a cyclic schedule
rather than once a year.
Physicals inventory: A periodic reconciliation of item counts with system onhand quantities.
Account alias: An easily recognized name or label representing an account charged on miscellaneous
transactions. You may view, report, and reserve against an account alias.
Interorganization transfer: Transfer of items from one inventory organization to another you can have
freight charges and transfer credits associated with interorganization transfer. You can choose to ship items
directly or have them go through intransit inventory.
Material transaction: Transfer between, issue from, receipt to, or adjustment to an inventory organization,
sub inventory, or locator. Receipt of completed assemblies into inventory from a job or repetitive schedule.
Issue of component items from inventory to work in process.
Transaction cost: The cost per unit at which the transaction quantity is valued.
Internal & Confidential
Page 4 of 63
Transaction interface: An open interface table through which you can import transactions.
Transaction manager: A concurrent program that controls your manufacturing transactions.
Receipt: A shipment from one supplier that can include many items ordered on many purchase orders.
Return to supplier: A transaction that allows you to return to the supplier items from a fully or partially
received purchase order and receive credit for them.
Supplier: Provider of goods or services.
Accounting period: The fiscal period a company uses to report financial results, such as a calendar month
or fiscal period.
Average costing: A costing method which can be used to cost transactions in both inventory only and
manufacturing (inventory and work in process) environments. As you perform transactions, the system uses
the transaction price or cost and automatically recalculates the average unit cost of your items.
Standard costing: A costing method where a predetermined standard cost is used for charging material,
resource, overhead, period close, job close, and cost update transactions and valuing inventory. Any
deviation in actual costs from the predetermined standard is recorded as a variance.
Page 5 of 63
Page 6 of 63
Click on the SAVE icon and Close the Window. Click on Dates Button on the Screen workday Calendar.
Click on Exception List Button. Click on Load Button. Load Exceptions Window appears.
Page 7 of 63
Click on OK. Close the Calendar Window. Click on Shifts Button on screen workday Calendar. Shift
Window for TXX-CAL opens
Click on SAVE icon. Close the window. Click on Times Button for 1st Shift. Shift Times (under Shifts).
Click on SAVE icon. Close the window. Shifts Window (first blank line)
Page 8 of 63
Click on SAVE icon. Close the window. Click on Times Button for 2nd Shift. Shift Times (under Shifts).
Click on SAVE icon. Close the Shift times window. Close Shifts window.
In the Workday Calendar window review you calendar dates by clicking on the Dates button.
While still in the Workday Calendar Window, run the calendar build process
Tools Menu: Build
Verify your requested job has completed
View: Requests: Find
Verify your calendar built correctly
Setup: Organization: Calendar: View Menu: Find
4. Define Location
Locations are shared across Business Groups in HRMS and with two other Oracle applications: Inventory and
Purchasing. HRMS does not use some of the fields in the Location window. These fields are disabled for
HRMS users. For example, the Legal Address check box is read-only and supports future functionality in
Oracle Financials. Set up and name a location for your organization
Navigation: Setup: Organizations: Locations
Page 9 of 63
5. Define Organization
Navigate to the Organization window and select the new button to create a new organization.
Navigation: Setup: Organizations: Organizations: Click on New
Page 10 of 63
To determine the purpose and use of each organization you create, you give it one or more classifications.
The setup information you enter for an organization depends in large part on its classification
1. Enter the classification for your organization in the Name field.
2. Enable the classification by checking the Enable box. This allows you to use and enter the essential
additional information for your organization.
3. Save the classification details.
4. You can either enter additional information for the classification type or enter another classification.
Click on others button and select accounting information. Give accounting information as vision operations.
Click on ok and save. Go to organization classification window and again select others and give inventory
information.
1. Enter organization code.
2. Enter item master organization.
3. Enter calendar for the organization.
4. Enter move order time out action.
5. Enter locater control.
Internal & Confidential
Page 11 of 63
Page 12 of 63
Page 13 of 63
Page 14 of 63
Go to other accounts tab. Select receiving accounts, profit and loss accounts, and other accounts.
Page 15 of 63
Page 16 of 63
5. Define Subinventory
You define one or more subinventories for each inventory organization. A Subinventory is a physical or logical
grouping of your inventory, such as raw material, finished goods, defective material, or a freezer
compartment.
Navigate to the Subinventories
SUBINVENTORIES.)
Summary
folder
window.
(NAV:
SETUP:
ORGANIZATIONS:
Click New. The Subinventories window appears. Enter a unique name and description. Indicate the material
status of this subinventory. Indicate the default cost group for this subinventory. Select the subinventory type
from the drop-down list.
Select the Main tabbed region. Indicate whether each transaction for this subinventory updates the quantity
on hand for the subinventory (Quantity Tracked). If you leave this option unchecked, on-hand balances are
not maintained and you cannot check or update the Asset Inventory option.
You can update this value only if there is no on-hand quantity, no pending transaction, or no uncosted
transaction for the subinventory.
Indicate whether to maintain the value of this subinventory on the balance sheet (Asset Subinventory). You
can update this value only if there is no on-hand quantity for the subinventory. Indicate whether this
subinventory is depreciable.
Indicate if Periodic Automatic Replenishment (PAR) is enabled. If you select this check box you cannot
perform min-max planning for this subinventory. Select a type of locator control.
You can select an option only if you selected locator control as Determined at subinventory level in the
Locator Control field in the Organization Parameters window. You can only update this option if there is no
on-hand quantity for the subinventory.
None: Inventory transactions within this subinventory do not require locator information.
Prespecified: Inventory transactions within this subinventory require you to enter a valid predefined
locator for each item.
Internal & Confidential
Page 17 of 63
Dynamic entry: Inventory transactions within this subinventory require you to enter a locator for each item.
You 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.
Indicate the default locator status of the locators in this subinventory. Enter a picking order value for use by
Oracle Warehouse Management to sequence picking tasks.
This value indicates the priority with which you pick items from this subinventory, relative to another
subinventory, where a given item resides. If you have Oracle Warehouse Management installed, this field
determines the picking path through the warehouse and not the order in which material is allocated for a sales
order. Enter a dropping order value for use by Oracle Warehouse Management to sequence material drops.
Optionally, enter an inactive date for the subinventory. Enter a location for the subinventory. If the
Subinventory type is receiving, this field is mandatory.
Indicate the picking unit of measure used to store material in this subinventory. It is used by the WMS rules
engine to divide picks across subinventories in the warehouse. This feature is available if you have Oracle
Warehouse Management installed, and you are working with a WMS enabled organization.
Select the appropriate Default Replenishment Count Type from the drop down list. This field defaults the
default count type on the Replenishment Lines window. It does not affect existing Default Count Type
headers.
Indicate if this you can create locator aliases for locators within this subinventory. If you enable this
parameter, you must create locator aliases for locators within this subinventory. Indicate if the locator aliases
are unique across the subinventory.
NOTE: You can also set this parameter at the organization level. If set at the organization level, and you click
Enable Locator Alias, you cannot update this parameter.
Optionally, enter pre-processing, processing, and post-processing lead times for items in this subinventory.
These lead times are used when you use min-max planning at the subinventory level.
Select a source type for item replenishment.
Select the organization used to replenish items in this subinventory. You must enter a value in this field if you
entered Inventory in the Type field. The organization you select must have a shipping network defined. Select
the subinventory used to replenish items in this subinventory. You must enter a value in this field if you
entered your current organization in the Organization field.
Page 18 of 63
Page 19 of 63
Page 20 of 63
Page 21 of 63
Page 22 of 63
Page 23 of 63
Inter class tab. Enter item, base unit, class, conversion and source base unit and class.
Page 24 of 63
Page 25 of 63
2.
3.
4.
5.
6.
7.
Page 26 of 63
Direct: Inter-organization transfers move inventory directly from the shipping organization to the
destination organization.
Intransit: Inter-organization transfers move inventory to in transit inventory first. You can track this
inventory until it arrives at the destination organization.
8. If you selected Intransit in the Transfer Type field, select the FOB terms:
Receipt: The shipping organization owns the shipment until the destination organization receives it.
Shipment: The destination organization owns the shipment when the from organization ships it (and
while the shipment is in transit).
9. If you selected Intransit in the Transfer Type field, select a receipt routing option:
Page 27 of 63
Page 28 of 63
Inventory Page:
1.
2.
3.
4.
5. Select a workday calendar. This is required when Oracle Master Scheduling/MRP and Oracle Supply
Chain Planning is installed. Optionally, select a demand class.
Demand classes segregate scheduled demand and production into groups, and allow you to track and
consume those groups independently. Oracle Master Scheduling/MRP and Oracle Supply Chain Planning
Internal & Confidential
Page 29 of 63
uses this demand class during forecast consumption, and shipment and production relief. See Demand
Classes, Oracle Master Scheduling / MRP and Oracle Supply Chain Planning User's Guide.
6. In the Move Order Time-out Period field, enter the maximum number of days a move order requisition can
wait for approval.
The workflow approval process sends a notification to the item planner when a move order requisition
requires approval. After the first time-out period, if the recipient has not approved or rejected the order,
the system sends a reminder notice. After the second time-out period, the system automatically rejects or
approves the order depending on whether you select Approve automatically or Reject automatically in the
Move Order Time-out Action field.
7. Select a Move Order Time-out Action:
Approve automatically: After the second time-out period, the system automatically approves move
order requisitions. Select this option and set the Move Order Time-out Period to 0 if you want to
bypass the move order approval process and automatically approve move order requisitions.
Reject automatically: After the second time-out period, the system automatically rejects move order
requisitions.
None: Inventory transactions within this organization do not require locator information.
Prespecified only: Inventory transactions within this organization require a valid, predefined locator for
each item.
Dynamic entry allowed: Inventory transactions within this organization require a locator for each item.
You 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 you define at
the subinventory level.
Page 30 of 63
Note :You can only enable WCS for Warehouse Management organizations.
16. Indicate whether this organization is an Oracle Enterprise Asset Management enabled Organization.
Indicate whether this organization is an Oracle Warehouse Management enabled organization. You can
use Warehouse Management features such as LPNs, task management, warehouse execution rules, and
cost groups in this organization.
You must enable locator control in order to enable Warehouse Management. After you process
transactions within the organization, you cannot change the value of this parameter.
17. Enter a total load weight and unit of measure for this organization.
18. Enter a total volume and unit of measure for this organization.
Page 31 of 63
Costing Page:
Check Costing Enabled, Inventory Asset Values, Include in Rollup. Enter COGS
Purchasing Page:
Check Purchased, Purchasable, Invoice Matching, RFQ Required, Enter List Price, Expense Account Number
Physical Attributes:
Enter Physical Attributes
Page 32 of 63
MPS/MRP Planning:
Enter Planning Method, Forecast Control
Page 33 of 63
Order Management:
Check Customer Ordered, Customer Orders Enabled, Internal Ordered, Internal Orders Enabled, Shippable,
OE Transact able, and ATP Rules
Item Costs
1. Navigate to the Item Costs Summary folder window.
2. Enter search criteria in the Find Item/Cost Type window. The Item Costs Summary folder window displays
costing information for the item for all cost types.
3. Do one of the following:
Choose the New button to define new cost information, or the Open button to review existing cost
information. The Item Costs Details window appears.
To view item cost details, choose the Views button. After you select an inquiry, the Item Costs
Summary window appears.
To define or maintain item cost information, choose the Costs button. The Item Cost window appears.
Page 34 of 63
Last PO Price - displays the Purchase Order Price for the last receipt of this item including nonrecoverable tax, if any.
Invoice Price - displays the invoice price for the last AP Invoice of this item excluding taxes
Page 35 of 63
Page 36 of 63
Substitute: One item is a substitute for another. To define the parameters for substitute item relationships,
select the Planning Details button and see defining details for substitute item relationships below.
Attention :The Planning Details button is enabled only for the item relationship type Substitute.
Cross-Sell: This relationship indicates that one item may be sold in lieu of another item.
Up-Sell: This relationship indicates that a newer version of the item exists, and can be sold in place of the
older item.
Service: This relationship establishes service items for a repairable item.
Prerequisite: This relationship indicates that you must possess one of the items as a requirement to
possessing the other item.
Collateral: This relationship indicates collateral, such as marketing brochures, that you possess for an
item.
Superseded: This relationship indicates that one item has replaced another item that is no longer
available.
Complimentary: This relationship indicates if a customer purchases one item, the other item is received
for free.
Impact: This relationship is used to relate items to each other but only under special conditions.
Conflict: This relationship indicates that these items may never be used together.
Mandatory Charge: This relationship indicates a mandatory charge if the customer purchases both items.
Optional Charge: This relationship indicates an optional charge if the customer purchases both items.
Promotional Upgrade: This relationship enables a customer to upgrade from one item to another item or
equal or higher value, without an additional charge.
Split: This relationship enables you to split support for an item so you do not have to manually split
support at contract renewal. To use this relationship, you must be in a planning enabled organization.
Merge: This relationship enables rules based consolidation of contracts. You may use the earliest or
latest target end date for consolidation. This allows you to choose how contracts are consolidated. To use
this relationship, you must be in a planning enabled organization.
Migration: During contact renewal you are given the option of renewing contracts based on new licenses,
or old licenses. To use this relationship, you must be in a planning enabled organization.
Repair to: You use the Repair to item relationship with field service operations that use spares
management functionality. If a part has been superseded by another part, the Repair to item relationship
determines the replacement part.
Page 37 of 63
Page 38 of 63
Page 39 of 63
5. Enter a subinventory to use as the default transaction subinventory for the item. If you restrict the item to
specific subinventories using either the Subinventory Items window or the Item Subinventories window,
you can only choose those subinventories in this field. Save your work.
Page 40 of 63
Page 41 of 63
You can choose between centralized and decentralized control of item attributes. The control level you define
for an attribute applies to all items. Defining attribute controls does not determine the value of an attribute,
only the level at which It is controlled. You assign values to the attributes when you define an item. Just
review the Attribute controls, which have only two values of control:
1. Master Level
2. Organization Level
Below are set up as per the business requirements. Navigate to the Item Attribute Controls window.
2. Scan the information displayed in the Group Name and Attribute Name fields to locate the desired attribute.
The Group Name field displays the name for a group of attributes. Attributes are grouped by function, such as
Main, Inventory, and Receiving. When you define or update items, define templates, or view item attributes,
you can display the attributes for a particular group. This makes it easier to locate a specific attribute.
3. Select a control level for the attribute.
Master Level: Define and maintain this attribute at the Master level. For the same item, the values of this
attribute are identical across all organizations.
Org Level: Define and maintain this attribute at the Organization level. For the same item, each
organization may define a different value for this attribute.
Attention: Some attributes can only be set at a specific level. In these cases, you have only one option
4. Choose a status setting for each status attribute.
Defaults Value: Value of this attribute, as defined by the status code, defaults when you assign the status
to an item. You can change this default value.
Not Used: Use neither default nor status control.
Sets Value: Value of this attribute, as defined by the status code, defaults when you assign the status to
an item. Once assigned, you cannot change the default.
5. Save your work.
Page 42 of 63
Notice the effect of item status code by doing the following steps:
Navigation: Items: Master Items
Page 43 of 63
Step 2: Create the Category Codes with new values defined above
Navigation: Setup: Item: Categories: Category Codes
Click on new Button. Enter structure name, category and description. Click on save icon and close the
Window.
Page 44 of 63
Page 45 of 63
Page 46 of 63
Page 47 of 63
Assign Item: TXX-10001008 to M1, M2 and TXX Organization. Click on save icon
Step 2: Perform a Miscellaneous Transaction with the item defined above
Before performing a miscellaneous transaction, please check whether your accounting periods for M1
organization are open
Navigation: Accounting Close Cycle: Inventory Accounting periods (Check whether Period in which you are
transacting is open)
Navigation: Transactions: Miscellaneous Transaction (Choose M1 Org)
Page 48 of 63
Page 49 of 63
Page 50 of 63
Page 51 of 63
Press Done
Screen: Master Items
Page 52 of 63
Page 53 of 63
Page 54 of 63
Press on done button then master item window will pop up give necessary information and Save your work.
Go to Tools: Organization Assignment
Assign Item: TXX-10001011 to M1, M2 and TXX Organization
Page 55 of 63
Press Done
Internal & Confidential
Page 56 of 63
Page 57 of 63
Page 58 of 63
Page 59 of 63
You can transfer material within your current organization between subinventories, or between two locators
within the same subinventory. You can transfer from asset to expense subinventories, as well as from tracked
to non-tracked subinventories. If an item has a restricted list of subinventories, you can only transfer material
from and to subinventories In that list. Oracle Inventory allows you to use user-defined transaction types when
performing a subinventory transfer.
Step 1: Perform a Sub Inventory Transaction with Serial Controlled item TXX-10001011
Navigation: Transactions: Sub Inventory Transfer (Choose M1 Org)
Page 60 of 63
Move orders are requests for the movement of material within a single organization.
Manage all material requisition and request processes within an organization by manually or
automatically creating, Approving, and transacting a move order.
Used for movement of material within a warehouse or facility for purposes like replenishment, material
storage Relocations and quality handling.
1. Enter Description, Transaction Type, Source Sub Inventory and Destination Sub Inventory
Internal & Confidential
Page 61 of 63
Page 62 of 63
Page 63 of 63