What is Oracle Inventory?

An Oracle Inventory Module is a facility where you store and transact

items. Before you can use Oracle Inventory, you must define one or more
inventory organizations.
What is the need for Inventory Module in Oracle?
Oracle Inventory meets the following business needs of an organization:

Building the enterprise structure

Creating item numbers

Monitoring inventory on an ongoing basis

Maintaining accurate on-hand balances

Planning material replenishments

Forecating demand
A simple Inventory Organization structure is below for reference:

Lets see the setup procedure in detail by following the below summary.
SUMMARY:

Adding inventory responibility to the Buisness Group

Enabling Profile Options

Defining Locations, working calenders

Creating Master Org, Inventory Org

Creating Sub Inventories

Creating Locators for the subinventories

Below basket of funtions has to be enabled to fullfill Inventory module setups
in short.

Before going head make sure you have completed the multiorg structure
properly with Buisness Group, General Ledger, Operating Unit.
For the below setup,

Buisness Group/User : IPHONE

General Ledger : IPHONE LED

Operating Unit: IPHONE 5

STEP 1: Adding inventory responibility to the Buisness Group

Invoking : System AdministratorSecurityResponsibilityDefine

Press F11 and query for Inventory, Vision Operations (USA) and rename
to your wish.

Now add the responsibility to the user,

Invoking : System AdministratorSecurityUserDefine

Query for your user and add the Inventory responsibility.

STEP 2: Enabling Profile Options

Lets enable the profile options for the inventory responsibility.

Invoking: System AdministratorProfileSystem

In Profile field enter these features:

%GL%Led%NA%
%HR%User%, %HR%Sec%, %HR%Bus%
%MO%Oper%Unit%, %MO%Defaul %, %MO%Sec%
So that the final output will appear as below.

STEP 3: Defining Locations, Workday Calender

Now Login to Inventory Responsibility,

Lets create two locations for 2 different Inventory org locations, one for
Master Org Inventory & other for Inventory, under the Operating Unit
IPHONE5
Invoking: InventorySetupOrganizationLocation
First Location Name: IPHONE 5 Loc1

Second Location Name : IPHONE5 LOC2

Now lets create workday calender

Invoking: InventorySetupOrganizationCalender
We have created Workday Calender with name IPN WC, Complete the
workday pattern, shifts, dates accordingly as per Buisness Standards.

On the same page of Workday Calender,

Select ToolBiuldCalender(To update the calender we created)

Now we are done with creating location for inventories & Workday
Calender, lets attach both while creating Inventory Organizations.

STEP 4: Creating Master Org, Inventory Org

Before creating Inventory org its mandatory to create a master org.

Invoking: InventorySetupOrganizationOrganization
Lets create a Master Org with the name IPHONE MASTER ORG
Add the funtion Inventory Organization under name and check the
Enabled option as below.

Click on others, below pop up window opens

Lets update Accounting Information, Inventory Information alone for

Master Org.
Click on Accounting information from above.
Fill Primary Ledger : IPHONE LED1137(USD) (Created Before)

Legal Entity : IPL(Created Before)

Operating Unit : no need for Master Org

After updating click on others again, select Inventory Information as

below.

Inventory information is very important and we have to fill carefully all

the mandatory fields as below.
Organization code 5MO (Our Choice) is just an unique code given by us.

Calender: we are pasting the workday calender (IPN WC) which we

created before.

Item Master Organization acts as a server or Admin or Master for all

inventories under specific Operating unit.

Here We have updated IPHONE MASTER ORG as Item Master Org as

below.

In Costing Information below we have updated IPHONE MASTER ORG

that we created and the account 09 that we set before for legal entity.

For all other tabs follow the below screenshots correspondingly.

After filling all the mandatory fields save the dialog box, which
completes Master Org.
Now Create a new Inventory as below.

Invoking: InventorySetupOrganizationOrganization
Select the location we have created before for the inventory and we
have Named Inventory as : IPHONE INVENTORY

Click on others:

Here mention the operating unit for the inventory we have created.

After saving, Click on others button again, Click on Inventory

information as below.

Atatch the IPHONE MASTER ORG in the Item Master Org.

change the charge line of the account if needed.

Now click on Inventory-Reciveing information, will take you to the

web page as below.

Fill all the mandatory (*) blanks as below.

Give the account number with the Legal Entity created before(09)

Save the above dialog box

If you like to create another inventory you can follow the above steps or else
you can even copy the inventory organainzation to create a new as
below.
Invoking: InventorySetupOrganizationsOrganization CopyMaintain

Interface

Now select InventorySetupOrganizationsOrganization

CopyLaunch Organization Copy

Provide the Model Organization (Source) & Group Code (Just created) so
that all the details of Model Organization is copied to the new one.

Click on submit to run the concurrent program, which will create new
inventory.

Hence we have completed creating

Master Org

IPHONE Inventory 1

SECOND IPHONE Inventory

STEP: 5 Creating Sub Inventories & Locators

Lets create Subinventory for respective Inventories.

Select Change Organization from inventory responsibility
It will list all the inventories created, lets select IPHONE Inventory, so that we
can create sub inventory, stock locators in this inventory.

Invoking: SetupOrganizationSub inventories.

Select new, create a Sub inventory of our choice.

Here we are creating sub inventory as IMAC

Make sure in Main tab, Quantity tracked & Asset Sub Inventory checked
as below.

In Account Tab select Account (09) depending upon charted accounts.

Save the above screen and select on locators

Select the locators and fill the fields as ROW Q, RACK 4, BIN B as
below of your choice.

Save and close the form which completes the sub inventory and stock
locators basic.

Similarly we can create n number of sub inventories respectively.

Below is the flowchart of the setup we created for better understanding.

Now after completing all the above, switch the responsibility to system
administrator.

Click on ViewRequestSubmit a New Request-Single RequestOK

Run :Replicate seed data as below.

Check the status ViewRequest

Which completes all essential setups for the Inventory Organization.

Incase you have not created any Operating Unit or General Ledger, as
an optional step, you can query the organization Vision Operations and
check that it is classified as both a Legal Entity and Operating Unit as well as
an Inventory Organization. If you check the Inventory Organization
Parameters for Vision Operations you will notice that the organization code
is defined as V1. The master org is itself.
Conclusion:

You must plan how Oracle Inventory represents your company's

inventory sites and business units. This includes defining organizations,
locations, subinventories, and locators.
This completes Inventory Org Basic Setup In Oracle EBS R12.