SlideShare a Scribd company logo
1 of 207
Download to read offline
Training OnTraining On
Oracle InventoryOracle Inventory
Oracle Applications 11i
CompanyConfidential
2
 Introduction to Oracle inventory management
 Inventory Enterprise Structure
 Inventory Setup
 Creating and Maintaining Items
 Inventory Controls
 Inventory Transactions
 Inventory Accuracy Control
 Inventory Planning
Agenda
CompanyConfidential
3
Introduction to Oracle
inventory management
What is Inventory?
Stocking ,tracking and maintaining the level of
different items like Raw material, Finished Goods, etc in
an organization.
CompanyConfidential
4
Introduction to Oracle
inventory management
Oracle Inventory enables users to satisfy a company’s
business needs, area such as:
 Defining part numbers
 Modeling organization structures
 Tracking perpetual inventory
 Maintaining accurate on-hand balances
 Planning material replenishments
 Forecasting anticipated demand
CompanyConfidential
5
Inventory Integration with other modules
OracleOracle
PurchasingPurchasing
OracleOracle
InventoryInventory
External
Systems
OracleOracle
WIPWIP
Oracle CostOracle Cost
ManagementManagement
OracleOracle
EngineeringEngineering Oracle BillsOracle Bills
of Materialof Material
Oracle OrderOracle Order
ManagementManagement Oracle MasterOracle Master
Scheduling/MRPScheduling/MRP
OracleOracle
Flow ManufacturingFlow Manufacturing
OracleOracle
ShippingShipping
OracleOracle
ProjectProject
ManufacturingManufacturing
CompanyConfidential
6
Inventory Integration with finance modules
OracleOracle
AssetsAssets
OracleOracle
ReceivablesReceivables
OracleOracle
PayablesPayables
OracleOracle
GeneralGeneral
LedgerLedger
OracleOracle
InventoryInventory
External
Systems
CompanyConfidential
7
Introduction to Oracle inventory management
CompanyConfidential
8
Introduction to Oracle inventory
management
Item
 Item
An item is a part or service that are purchased, sold,
planned, manufactured, stocked, distributed, or
prototyped .
 Item Statuses and Attributes
Status attributes are item attributes that enable key
functionality for each item. An item status is defined by
selecting the value check boxes for the status attributes.
Both status attributes and item status can be controlled at
the item level or organization levels.
CompanyConfidential
9
Introduction to Oracle inventory
management
 Unit of Measure
 A unit of measure (UOM) is a term used along with a numeric
value, to specify the quantity of an item. For example, “each”
is a unit of measure that used to specify the number of units of
an item.
 A unit of measure class is a group of units of measure with
similar characteristics. For example, “weight” can be a unit of
measure class with units of measure such as kilogram, gram,
pound, and ounce.
 A unit of measure conversion is a mathematical relationship
between two different units of measure.
CompanyConfidential
10
Introduction to Oracle inventory management
Base UOM
Yes
No
No
UOM
lbs
kg
g
1 kg = 2.208 X lbs
1 g = 0.002208 X lbs
UOM Class = Weight UOM Conversion
UOM Interclass Conversion
Conversion
2Weightlbs
Item
Keyboard
Destination
Base UOM
Destination
UOM Class
Source
Base UOM
Source
UOM Class
QuantityEach
2 Each = 1 lb
CompanyConfidential
11
Introduction to Oracle inventory
management
Organization Calendar
 workday calendar must be defined in Inventory if the
following are to be performed :
inventory forecasting ,reorder-point planning, available-to-
promise analysis or cycle counting.
 Inventory automatically generates a workday pattern (the
base calendar) that includes all days, including non-
workdays, between the start and end dates specified.
 workday exceptions can be assigned to the base calendar to
denote holidays, schedule maintenance, or overtime.
CompanyConfidential
12
Introduction to Oracle inventory management
Categories and Category Sets
 Categories are logical groupings of items that have
similar characteristics.
 A category set is a distinct category grouping scheme
and consists of categories.
CompanyConfidential
13
Introduction to Oracle inventory management
Finished GoodFinished Good
SubassemblySubassembly
HardwareHardware
SoftwareSoftware
PCPC
OtherOther
Category Grouping
Inventory
Category Set
Purchasing
Category Set
Craig Category
Set
CompanyConfidential
14
Introduction to Oracle inventory management
Inventory Controls
 With Oracle Inventory locator, revision, lot, and serial
number control can be implemented.
 Any combination of the four controls (locator, revision,
lot, and serial number) can be implemented for each
item. Inventory controls are optional for all items.
 User can choose to implement inventory controls for
specific items.
CompanyConfidential
15
Introduction to Oracle inventory management
CompanyConfidential
16
Introduction to Oracle inventory management
Inventory Transactions
Transaction
 A transaction is an item movement into, within, or out of
inventory. A transaction changes the quantity, location, or
cost of an item. 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, and serial number) enabled for items.
CompanyConfidential
17
Introduction to Oracle inventory management
Material FlowMaterial Flow Business FlowBusiness Flow
Receive GoodsReceive Goods
Ship GoodsShip Goods
Move GoodsMove Goods
MRPMRP Order EntryOrder Entry
PurchasingPurchasing
InventoryInventory
WIPWIP
CompanyConfidential
18
 Introduction to Oracle inventory management
 Inventory Enterprise Structure
 Inventory Setup
 Creating and Maintaining Items
 Inventory Controls
 Inventory Transactions
 Inventory Accuracy Control
 Inventory Planning
Agenda
CompanyConfidential
19
Inventory Enterprise Structure
Inventory Enterprise Structure
The Oracle Applications organization models define
organizations and the relationships among them in
arbitrarily complex enterprises. This organization model
serves as the cornerstone for all of the Oracle Applications
products. It dictates how transactions flow through
different organizations and how those organizations
interact with each other.
CompanyConfidential
20
Inventory Enterprise Structure
LELELELE
Set of Books
IOIO
OUOU
OUOU
IOIO
IOIO
OUOU
IOIO
IOIO IOIO
BGOrganization Structure
CompanyConfidential
21
Inventory Enterprise Structure
Multi-org
 Multi-Org is a key component that provides secure
access to the different organizations of the
enterprise supports multiple organizations of the
enterprise structure in a single database.
 Operating Unit is the primary organization unit
through which user secures transaction data, but
also creates processes and reports on financial
applications data. An Operating Unit can be used to
model an autonomous business unit that performs
one or more business activities and creates
transactions with financial impact.
CompanyConfidential
22
Inventory Enterprise Structure
 Business Group
This is an Organization that represents
the consolidated enterprise, a major division, or
an operation company and has no accounting
impact. The Business Group partitions Human
Resources information and the Purchasing
Approval Hierarchy. If you request a list of
employees (in any module) you will see only
those employees in the Business Group of which
your Operating Unit is a part. Multiple Legal
Entities can relate to a single Business Group.
OU
Set of Books
Legal Entity
Business Group
Inventory
Organization
CompanyConfidential
23
Inventory Enterprise Structure
Set of Books
 Set of Books is the financial reporting
entity that secures financial entries and
account balances within the GL application.
SOB will be based on 3C’s (Currency,
Calendar, Chart of Accounts)
 A Set of Books is the highest level that
impacts accounting. A Set of Books is
associated with a single Business Group,
but multiple Sets of Books may be
associated with a single Business Group
OU
Set of Books
Legal Entity
Business Group
Inventory
Organization
CompanyConfidential
24
Inventory Enterprise Structure
GRE/Legal Entity
 The Legal Entity represents a legal
company for which the user prepares
fiscal or tax reports.
 Legal Entities are associated with a Set
of Books. One or more Legal Entities
may be associated with a single Set of
Books, and multiple Legal Entities may
be associated with a single Business
Group.
OU
Set of Books
Legal Entity
Business Group
Inventory
Organization
CompanyConfidential
25
Inventory Enterprise Structure
Operating Unit
– An operating unit represents an organization that uses
any Oracle subledger application, for example, Order
Management, Payables. It may be a sales office, a
division, or a department. An operating unit is associated
with a legal entity. Information is secured by operating
unit for these applications. Each user sees information
only for their operating unit.
Inventory Organizations
– An inventory organization is a facility in your enterprise
where you store and transact your inventory items. The
items in an inventory organization can be in the form of
raw materials, semi-finished goods, or finished goods for
varying periods of time.
– Inventory Organizations belong to an Operating Unit.
OU
Set of Books
Legal Entity
Business Group
Inventory
Organization
CompanyConfidential
26
Inventory Organization Structure
CompanyConfidential
27
Inventory Enterprise Structure
Inventory Organization Structure
Organization
Subinventories
Locators
CompanyConfidential
28
Inventory Enterprise Structure
Inventory Enterprise Structure
 Organizations
– An inventory organization is a facility in your enterprise where
you store and transact your inventory items. The items in an
inventory organization can be in the form of raw materials, semi-
finished goods, or finished goods for varying periods of time.
– A physical entity such as a manufacturing facility, warehouse,
distribution center, or a branch office.
– A logical entity such as an item master organization, which you can
use just to define items but no transactions. The item master
organization is discussed in detail in the lesson titled “Defining and
Maintaining Items Fundamentals.
CompanyConfidential
29
Inventory Enterprise Structure
– Subinventory
Subinventories are unique physical or logical separations of
material inventory, such as raw material inventory, finished
goods inventory, or defective goods inventory. In Oracle
Inventory, all material within an organization is held in a
subinventory. Therefore, you must define at least one
subinventory.
– Locator
You use locators to identify physical areas where you store
inventory items. Item quantities can be tracked by locator.
Items can also be restricted to specific locators
CompanyConfidential
30
Review Question
What are the 3 C’s in Set of Books?
 Currency
 Calendar
 Chart of Account
CompanyConfidential
31
 Introduction to Oracle inventory management
 Inventory Enterprise Structure
 Inventory Setup
 Creating and Maintaining Items
 Inventory Controls
 Inventory Transactions
 Inventory Accuracy Control
 Inventory Planning
Agenda
CompanyConfidential
32
Inventory Setup
Required Setup Steps
Step
1
2
3
4
5
6
7
Level *
Global
Global
Global
Global
Global
Global
Organization
Activity
Define Item Flexfield
Define Item Categories Flexfield
Define Item Catalog Group Flexfield
Define Stock Locators Flexfield
Define Account Aliases Flexfield
Define Sales Orders Flexfield
Define Organizations
* Defined Once Globally or for each organization
CompanyConfidential
33
Inventory Setup
Required Setup Steps
* Defined Once Globally or for each organization
Step
8
9
10
11
12
13
14
Level *
Organization
Global
Global
Organization
Global
Either Level
Either Level
Activity
Organization access
Defining Intercompany Relations
Define Unit of Measure Classes
Define Subinventories
Define Item Attribute Controls
Define Categories
Define Category Sets
CompanyConfidential
34
Inventory Setup
Required Setup Steps
* Defined Once Globally or for each organization
Step
15
16
17
18
19
Level *
Global
Global
Global
Global
Global
Activity
Define Default Category Sets
Define Statuses
Define Cost Types
Define Accounting Periods
Set Profile Options
CompanyConfidential
35
Inventory Setup
Flexfield Definitions
Flexfield Name Table Name Comment
1
Account Aliases MTL_GENERIC_DISPOSITIONS It supports just one structure
2
Item Catalogs MTL_ITEM_CATALOG_GROUPS It supports only one structure
3
Item Categories MTL_CATEGORIES This should be defined before defining
items. There Can be multiple structures
per instance
4 Sales Orders MTL_SALES_ORDERS Defined as Order Number, Order Type,
and Order Source to make each
transaction unique. It’s defined before
placing demand /reservations
5 Stock Locators MTL_ITEM_LOCATIONS Used to capture more information
about stock locators and items
6 System Items (Items
Flexfield)
MTL_SYSTEM_ITEMS This should be configured before
defining items. OE: Item Flexfield
profile option should be set to specify
the Item Flexfield structure that will be
used for Oracle applications.
* Refer System Administrator & AOL training for Flexfield set up
CompanyConfidential
36
Inventory Setup
• Oracle Inventory users use the Personal Profile Values
window to set profile values only at the user level.
• System administrators use the System Profile Values
window to set profile values at the site, application,
responsibility, and user levels.
• Required profiles have no default; they require input
from a user or an administrator. Optional profiles have
defaults which may be accepted or manually
overridden.
Profile Options
CompanyConfidential
37
Profile Option
INV: Allow Expense to Asset Transaction
INV: Default Item Status
INV: Default Primary Unit of Measure
INV: Dynamic Precision Option
INV: Inter-Organization Currency Conv
INV: Item Master Flexfield
INV: MinMax Reorder Approval
Default
Yes
Active
Each
-9,999,999.00
Corporate
No Default
Approved
Req’d
No
No
No
No
No
Yes
No
These profiles are updateable at all levels:
Inventory Setup
CompanyConfidential
38
Profile Option
INV: Proj Misc Trans Expenditure Type INV:
RC Line Failure
INV: Requisition Approval
INV: Save Search Items
INV: Updateable Customer Item
INV: Updateable Item Name
TP:INV: Cycle Count Approvals Form
Default
User Entered
Continue
Processing
Approved
No
No
No
Concurrent
Processing
Req’d
No
No
No
No
No
No
No
These profiles are updateable at all levels:
Inventory Setup
CompanyConfidential
39
Profile Option
TP:INV: Cycle Count Entries Form
TP:INV: Enter Replenishment Count Form
TP:INV: Inter-Organization Transfer Form
TP:INV: Misc Issue and Receipt Form
TP:INV: Transaction Processing Mode
TP:INV: Transfer Between SubInv Form
TP:INV: Update Average Cost Form
Default
Concurrent
Processing
Concurrent
Processing
Online
Processing
Online
Processing
Immediate Con-
current Processing
Online
Processing
Online
Processing
Req’d
No
No
No
No
No
No
No
These profiles are updateable at all levels:
Inventory Setup
CompanyConfidential
40
Profile Option
TP:INV: Server Side Online Processing
INV: CCEOI Commit Point
INV: Override Negative Qty for Backflush
INV: Order Transact Form
INV: Purchasing by Revision
INV: Debug Trace
INV: Debug File (Include complete path)
Default
Concurrent
Processing
No Default
No
Online
Processing
Yes
No Default
No Default
Req’d
No
Yes
No
No
No
Yes
Yes
These profiles are updateable at all levels:
Inventory Setup
CompanyConfidential
41
Inventory Setup
Profile Option
INV: FIFO for Original Receipt Date
INV: Debug Level
INV: Detail Serial Numbers
Default
No
No Default
No
Req’d
No
Yes
No
These profiles are updateable at all levels:
CompanyConfidential
42
Profile Option
INV: Accounting Category Set
INV: Capable to Promise
INV: External ATP
INV: Use Catalog Name in Item Desc.
INV: Minimum Number of Quantity Trees
INV: CCEOI Workers
INV: Detect Truncation on UOM Conversn
Default
No Default
No Default
No Default
No
500
No Default
No Default
Req’d
Yes
Yes
Yes
No
No
Yes
Yes
These profiles are updateable only at the Site level:
Inventory Setup
CompanyConfidential
43
Inventory Setup
Organization Setup
 Before using Oracle Inventory, one or more organizations
need to be defined. Organizations represent distinct entities
in a company and can include separate manufacturing
facilities, warehouses, distribution centers, and branch
offices.
 Organizations can be classified and connected to model the
overall enterprise structure. The classifications include:
- Business Groups
- Legal Entities (LE) / Government Reporting Entities (GRE)
- Operating Units
- Inventory Organizations
CompanyConfidential
44
Inventory Setup
Organization Setup
 (N)> Inventory>Setup>Organizations>Locations
physical locations of Employees
and Organizations. Locations are
shared between Inventory,
Purchasing and Human
Resources. Each organization
can be associated with only one
location. One or more
organizations can be associated
with the same location
Flagged as global,
locations are
available to all
Business Groups
CompanyConfidential
45
Inventory Setup
Organization Setup
 (N)>setup>Organizations> Organizations
organization classification is used
to describe the general purpose of
organization. Examples are
Inventory Org, GRE / Legal Entity,
and HR Organization. Inventory
Organization classification is used
for inventory management.
Organization location field links a location to
an organization to a location. This is a must for
Legal Entity organizations
CompanyConfidential
46
Inventory Setup
Organization Setup
 (N)>setup>Organizations> Organizations
Link Between Organization
& Legal entity/Set of Books
& Operating Unit.
CompanyConfidential
47
Inventory Setup
Using an Item Master Organization
Item Master Organization is usually the first Inventory
organization that is set up. Its single purpose is for entering
items. It has no subinventories and is not used for inventory
transactions. Items are entered in an item master
organization and then assigned to be used in child
organizations.
Child Organization is an inventory organization with at least
one subinventory that is set up for processing inventory
transactions. It is not used to enter items. It gets a list of
items from the master.
CompanyConfidential
48
Inventory Setup
CompanyConfidential
49
Inventory Setup
Organization Setup
 (N)>setup>Organizations> Parameters
This must be the first organization to be
defined as this is a required field in
parameters. Later it can be changed. There
can be any number of Item masters in an
instance but it is advised that there is only
one item master unless absolutely
necessary.
Item master can be common across
operating units, legal entity & SOB. It can
be optionally common across business
groups also. It is also advised that there are
no transactions carried in an item master
For forecasting, planning, available-
to-promise analysis, or cycle
counting, workday calendar must be
defined. This calendar is entered in
the parameters screen in order to be
used by the above functions. When
defining a calendar system assumes
a workday pattern that includes all
days, between the start and end
dates unless specified.
CompanyConfidential
50
Inventory Setup
Organization Setup
 (N)>setup>Organizations> Parameters
Decides Whether the inventory
balance in the organization can
go below zero. If enabled ,does
allow the inventory to go below
zero.
Locator control option
determines at which level
the locator is controlled.
Options are None, Pre
specified, Dynamic &
Controlled at subinventory
CompanyConfidential
51
Inventory Setup
Organization Setup
 (N)>setup>Organizations> Parameters
Costing organization determines
which is the costing organization for
the organization in question. However
for an average costing organization
the costing organization is the same
organization i.e. the costs cannot be
shared.
Determines the costing
method used in the
organization. Options are
Standard costing,
Average costing, FIFO &
LIFO
Valuation accounts for the
organization. Once any
transaction takes place in
an organization ,these
accounts cannot be
changed in an Average
costing scenario.
Indicate whether all transactions
are posted in detail or summary to
the general ledger.
CompanyConfidential
52
Inventory Setup
Organization Setup
 (N)>setup>Organizations> Parameters
Enforces unique lot numbers across
items, if set. The options are Across
items & None
option for lot number
generation. It can be generated
at item level, org level or User
defined
option for serial number uniqueness.
Options are Within organization, Within
inventory & items Across organizations
Can be generated at org
level or at item level
CompanyConfidential
53
Inventory Setup
Organization Access
This setup controls access to
organizations based on the user
responsibility assigned to a user by
the system administrator. If
implemented for one user
responsibility, it is then required for
all other user responsibilities
accessing the same organization.
CompanyConfidential
54
Inventory Setup
Organization Setup
Organization
Subinventory
Locator
Inventory Organizations are made up of one or more
subinventories which can be made up of one or more
locators
CompanyConfidential
55
Inventory Setup
Subinventory set up
A subinventory is a physical or logical grouping of
inventory, such as raw material, finished goods, defective
material, or a freezer compartment.
The subinventory is the primary place where items are
physically stocked. A subinventory must be specified for
every inventory transaction
Subinventories can be further divided into areas
designated as locators.
CompanyConfidential
56
Inventory Setup
Subinventory set up
(N) INV> Setup>Organizations>Subinventories
Indicates whether
to include items in
this subinventory in
ATP calculations.
Indicates whether to maintain
the value of this subinventory
on the balance sheet
Indicates whether each
transaction for this
subinventory updates
the quantity on hand
for the subinventory
Indicates whether to
include this subinventory
while performing available
to reserve calculations.
CompanyConfidential
57
Inventory Setup
Subinventory set up
(N) INV> Setup>Organizations>Subinventories
Indicate whether the planning
process uses the on–hand
balance of these
subinventory items as
available inventory
Can only be selected if
locator control is set as
Determined at subinventory
level in the Organization
Parameters window
indicates the priority with which items
are picked from this subinventory,
relative to another subinventory,
where a given item resides.
CompanyConfidential
58
Inventory Setup
Subinventory set up
(N) INV> Setup>Organizations>Subinventories
These valuation
accounts are used
in a standard
costing scenario.
For average costing
org, system picks
up the accounts
from org level
CompanyConfidential
59
Inventory Setup
Workday Calendar
Workday calendar can be defined both in Inventory and
Bills of Material.
It defines which days are “ON” within an organization and
which shifts are available to be worked. The workday
calendar is the Oracle term for a manufacturing calendar.
The workday calendar is separate from the Oracle General
Ledger calendar.
Each organization references a workday calendar.
CompanyConfidential
60
Inventory Setup
(N) INV> Setup>Organizations>Calendar
Workday Calendar
workday calendar consists of a start date, and
end date, and on and off days that follow one
or more defined workday patterns. A workday
calendar can also include shift information and
exception dates, such as holidays/scheduled
down time. Workday exceptions identify
deviations to the workday calendar. Shift
exceptions identify deviations for a shift.
Attention: Shift exceptions take precedence
over workday exceptions.
Note: Before using a calendar it must
be built using tools>build option
CompanyConfidential
61
Inventory Setup
Units of Measure
Units of measure (UOM) are defined for tracking/moving/storing
& counting items. Each item defined in Inventory must have a
primary UOM. Each transaction performed in Inventory must have
a UOM associated with the transaction quantity and a conversion
defined back to the primary UOM.
Multiple related UOMs are grouped together in a class with a
base unit of measure Inventory uses the base UOM to perform
conversions between units of measure in each class and between
two different unit of measure classes.
CompanyConfidential
62
Define UOM classes
Define multiple non base
UOMs for each class
Define intraclass
conversions
Define interclass
conversions
Define one base UOM
for each UOM class
Inventory Setup
Perform the following steps to define multiple UOMs and
set up conversions:
Units of Measure
CompanyConfidential
63
Inventory Setup
Units of Measure Classes
(N) Inventory>Setup>Units of Measure>Classes
CompanyConfidential
64
Inventory Setup
Units of Measure (UOM)
A unit of measure (UOM) is
a term used along with a
numeric value, to specify
the quantity of an item. For
example, “each” is a unit of
measure used to specify
the number of units of an
item.
(N) Inventory>Setup>Units of Measure>Units of Measure
CompanyConfidential
65
Inventory Setup
Units of Measure Conversions
unit of measure conversion
is a mathematical
relationship between two
different units of measure.
For example, 10 Kilograms
= 1 Each, or 2.2 pounds = 1
kilogram.
If items are
transacted in UOM
belonging to classes
other than their
primary UOM class,
conversions between
the base units of
measure in different
UOM classes must
be defined
(N) Inventory>Setup>Units of Measure>Conversions
CompanyConfidential
66
 Introduction to Oracle inventory management
 Inventory Enterprise Structure
 Inventory Setup
 Creating and Maintaining Items
 Inventory Controls
 Inventory Transactions
 Inventory Accuracy Control
 Inventory Planning
Agenda
CompanyConfidential
67
Creating and Maintaining Items
Setting up item Definition
Define
Items
Choose Item Attribute Control Levels
Define
Categories
and
Category
Sets
Create
Templates
Define
Statuses
3
Define
Catalogs
1
2
Define
Status
Control
Levels
Define
UOMs
CompanyConfidential
68
Creating and Maintaining Items
Item Attributes
Item attributes are fields in the item table used to store specific
characteristics of an item, such as item status, unit of measure,
revision control, etc.. These can be controlled at either the
master or the organization level.
Attributes Controlled at the Master Level
An item has the same value for such attributes in all
organizations in which it is defined.
Master-level attributes can be only updated by using the
Master Item window.
 Inventory reflects your changes in all organizations that carry
the item.
CompanyConfidential
69
Creating and Maintaining Items
Item Attributes
Attributes Controlled at the Organization Level
An item may have different values for such attributes in each
organization in which it is defined.
When defining items in the item master, defaults for
organization-level attributes can be specified.
Values of organization-level attributes can be updated only
by using the Organization Item form in each organization that
carries the item.
CompanyConfidential
70
Creating and Maintaining Items
Item Attributes
(N) Inventory>Setup>Items >Attribute Controls
Control level can be
determined using this
field
CompanyConfidential
71
Creating and Maintaining Items
Status Attributes
Each status attribute
is dependent on at least one
other attribute. For example
Stockable attribute cannot be
set to yes if Inventory Item
attribute is set to No.
Defaults Value: Value of this attribute defaults when assigning the status to an item. Can
be changed.
Not Used: Use neither default nor status control.
Sets Value: Value of this attribute defaults when assigning the status to an item. Once
assigned the default cannot be changed.
CompanyConfidential
72
Creating and Maintaining Items
Functional AreaFunctional Area FunctionalityFunctionality
Stockable
Purchasable
Transactable
Build in WIP
Inventory
Allows to store the item in
an asset subinventory
Inventory, Order
Management,
Purchasing, WIP
Allows to transact the
item Inventory, OM, PO
and WIP
Purchasing Allows to place the
item on a purchase
order
Work in Process
Allows to build the item
on a discrete job and/or a
repetitive schedule
Status Attribute
Status Attributes and Functionality
CompanyConfidential
73
Creating and Maintaining Items
Internal Orders
Enabled
BOM Allowed
Customer Orders
Enabled
Invoice Enabled
Functional AreaArea Functionality
Order Management
Inventory, Order
Management,
Purchasing
Bills of Material
Receivables
Allows to create an
invoice for the item
Allows to create a bill
of material for the item
Allows to create an
internal sales order for
the item
Allows to place the
item on a sales order
Status Attribute
Status Attributes and Functionality
CompanyConfidential
74
Creating and Maintaining Items
Item Status
When defining an item, status must be given by using the Item
Status attribute. The Item Status attribute has a user defined set
of yes/no values for the status attributes. The values are applied
to the status attributes when an item status code is chosen when
defining an item.
For example, in the beginning of a product development cycle
Item Status attribute is set to Prototype with all of the status
attributes defaulted to yes except for Customer Orders Enabled.
When the item is ready the Item Status attribute is set to Active to
allow all functions for the item.
CompanyConfidential
75
Creating and Maintaining Items
Item Status
(N) Inventory>Setup>Items>Status Codes
CompanyConfidential
76
Creating and Maintaining Items
Item Attributes
Status Control
An unlimited number of status codes can be defined by the
user.
One or more of these status codes can be assigned to an Item
for implementation on a future date. The status codes then
automatically change on their user specified effectivity dates.
CompanyConfidential
77
Creating and Maintaining Items
Item Templates
Templates are defined sets of attributes that can be used
over and over to create many similar items. Templates make
initial item definition easier and more consistent.
Templates can be applied at any time after the item is
created. Multiple templates can be applied to a single item.
Templates can hold a complete set of attributes or a partial
set. If a partial set, then only values stored in the template
overwrite those on the item
CompanyConfidential
78
Creating and Maintaining Items
Item Templates
Users can define their own templates or predefined templates
include:
ATO Model ATO Item Kit
PTO Model Phantom Item Purchased
Subassembly Freight ATO Option Class
Finished Good Outside Processing Item PTO Option Class
Planning Item Reference Item Supply Item
Product Family
CompanyConfidential
79
Creating and Maintaining Items
Item Templates
(N) Inventory>Setup>Items>Templates
CompanyConfidential
80
Creating and Maintaining Items
Item Categories
A category is a logical classification of items that have similar
characteristics.
A category set is a distinct grouping scheme and consists of multiple
categories.
Some application modules, Inventory , for example require that all items are
assigned to a category. The user specifies a default category for this
purpose in each of these modules. Categories and category sets are used to
group items for various reports and programs.
CompanyConfidential
81
Creating and Maintaining Items
Item Categories - Setup
Define the Flexfield structures for the item categories Flexfield.
Define categories.
Define category sets and assign the categories to the sets. Each set can
use a different Flexfield definition if required.
Assign default category sets to each functional area, like Purchasing,
Planning and Inventory
Assign items to categories. An item can be assigned to only one category
within a set.
CompanyConfidential
82
Creating and Maintaining Items
Item Categories - Define Categories
(N) Inventory>Setup>items>Categories>Category Codes
CompanyConfidential
83
Creating and Maintaining Items
Item Categories - Define Category sets
(N) Inventory>Setup>items>Categories>Category sets
Category is assigned to category
set from here.
This option should only be
enabled for user defined
category sets. Functional
category sets cannot have
same item with multiple
categories within itself.
CompanyConfidential
84
Creating and Maintaining Items
Item Categories - Assign items to Categories
(N) Inventory>Setup>items>Categories>Category sets>Assign
CompanyConfidential
85
Creating and Maintaining Items
Defining Items
With the Master Item window, items and the attributes
associated with them (such as description, unit of measure or
lot control) can be defined and updated.
Much of the information for an item is optional. Only the
information needed to maintain the item are defined.
An item cannot be defined at the Organizational level.
Oracle will automatically switch to the Master Item window
when defining a new item.
CompanyConfidential
86
Creating and Maintaining Items
Defining Items
An item is a part or service that is purchased, sold, planned,
manufactured, stocked, distributed, or prototyped. The
following Modules use items:
Items
Lead Time
Attributes
Inventory
Attributes
Invoicing
Attributes
MRP/MPS
Attributes
Costing
Attributes
Bills of Material
Attributes
Order Management
Attributes
Purchasing
Attributes
Planning
Attributes
Work in Process
Attributes
Receiving
Attributes
Service
Attributes
CompanyConfidential
87
Creating and Maintaining Items
Copy items
Enter attribute values
Enable in child organizations
Update organization level attributes
Define item costs
Copy templates
1
Steps to Setup, Define and Maintain items
CompanyConfidential
88
Creating and Maintaining Items
Master Item vs. Organizational Item
Whether an item attribute is defined/maintained at the Master
level or the Organization level can be designated.
Attributes at the Master level are the same across all
organizations that the item is assigned to.
If an attribute is maintained at the Organization level, it can have
different values in each organization the item is assigned.
Some attributes can be maintained at only the Master level or the
Organizational Level. Unit of Measure should be maintained at the
Master level. Min-Max should be maintained at the organizational
level if multiple organizations are used.
CompanyConfidential
89
Creating and Maintaining Items
Organization Assignment and Organization Item
Item can be enabled in all child organizations under master
organization or child organizations where the item to be used is
chosen. Inventory propagates item to all organizations in which
the item is to be defined.
Organizational attributes for item attributes which are enabled in
that organization, can be entered or changed which are enabled in
that organization. For example, go to an organization to choose
reorder point planning for an item, and then go to another
organization and choose Min-Max planning for the same item.
CompanyConfidential
90
Creating and Maintaining Items
Defining Items
(N) Inventory>Items>Master Items
CompanyConfidential
91
Creating and Maintaining Items
Defining Items
Organization Assignment
CompanyConfidential
92
Creating and Maintaining Items
Defining Item Relationships
The following types of relationships can be defined for items:
Item cross-references
Substitute items
Related items
Manufacturer part numbers
Customer item numbers
Relationships between items can be defined to improve
purchasing management and item searching capabilities.
Substitute items can be received in Oracle Purchasing.
CompanyConfidential
93
Creating and Maintaining Items
Defining Item Relationships
(N) Inventory>Items>Item Relationships
CompanyConfidential
94
Creating and Maintaining Items
Cross–reference types
Cross–reference types define relationships between items
and entities such as old item numbers or supplier item
numbers. For example, a cross–reference type Old can be
created to track the old item numbers , and a cross-reference
type Supplier to track supplier part numbers.
multiple cross-reference types can be assigned to a single
item.
CompanyConfidential
95
Creating and Maintaining Items
Cross–reference types
(N) Inventory>Items>Cross References
CompanyConfidential
96
Creating and Maintaining Items
Customer Items
(N) Inventory>Items>Customer Items>Customer Items
Allows the entry of
customer part
numbers and the
customer(s) they are
associated with.
These items can
also be associated
with commodity
codes and container
types
CompanyConfidential
97
Creating and Maintaining Items
Customer Item Cross References
(N) Inventory>Items>Customer Items>Customer Items
Used to define
cross references
between
inventory items
and the customer
items defined
above.
CompanyConfidential
98
 Introduction to Oracle inventory management
 Inventory Enterprise Structure
 Inventory Setup
 Creating and Maintaining Items
 Inventory Controls
 Inventory Transactions
 Inventory Accuracy Control
 Inventory Planning
Agenda
CompanyConfidential
99
Inventory Controls
With Inventory locator, revision, lot and serial
number control can be implemented
Flexibility:
- Inventory controls are optional for all items.
- any combination of the four controls
(locator, revision, lot and serial number) for
each item can be implemented.
Overview
CompanyConfidential
100
Inventory Controls
Locators are optional structures within subinventories.
Locators are the third level in the enterprise structuring
scheme of Oracle Inventory .
Locators may represent rows, aisles, or bins in warehouses.
Items can be received directly into and shipped items directly
from locators.
Locator setup
CompanyConfidential
101
Inventory Controls
(N) INV> Setup>Organizations>Subinventories
Locator setup
Indicates the priority for
picking items from this
locator relative to another
locator.Subinventory to
which the locator
belongs
CompanyConfidential
102
Inventory Controls
A revision is a particular version of an item, bill of material,
or routing.
By using the ‘Revision control’ option while defining items
item quantities can be tracked by item revision. To do so a
revision is a must for each material transaction.
Revision control is enabled for items for which version
changes or changes that are significant enough to track but
are not affecting the function and feature of the item are
tracked .
 Revision Control item attribute cannot be changed when
an item has quantity on hand.
Revision Control
CompanyConfidential
103
Inventory Controls
When defining Revision numbers letters, numbers and
characters such as A, A1, 2B, etc can be used.
Letters are always in upper case and numbers may include
decimals.
To ensure that revisions sort properly, decimals should
always be followed by a number.
Revisions are sorted according to ASCII rules.
Each revision must be greater than the previous revision.
For example, revision 10 cannot be used after revision 9
because, according to ASCII sorting, 10 precedes 9.
Revision Control
CompanyConfidential
104
Inventory Controls
 Inventory provides complete lot number support for
inventory transactions.
A lot identifies a specific batch of an item that is
received and stored in an organization.
Lot control is a technique for enforcing the use of lot
numbers during material transactions, thus enabling the
tracking of batches of items throughout their movement
in and out of inventory.
If Lot Control is turned on for an item, the lot number
must be indicated to perform a transaction.
Lot Control
CompanyConfidential
105
Inventory Controls
Lot Control must be turned on at the item level.
lot numbers must be assigned whenever items under
lot control are received into inventory.
An inventory receipt can be split in to several lots, as
necessary.
Quantities can be added to existing lot numbers.
Inventory will generate default lot numbers by using the
default lot number generation method which is configured
in the Organization Parameters window during setup.
Lot Control
CompanyConfidential
106
Inventory Controls
Lot can have an
expiration date by
assigning a number of
lot control shelf life days
or by entering a lot
expiration date.
The expiration date
controls the availability
of the lot for transacting
and planning purposes.
Lot Control
CompanyConfidential
107
Inventory Controls
An Expired Lot:
is not considered as on-hand supply when performing min-
max, reorder point or MRP planning calculations.
cannot be reserved for a date beyond the expiration date.
can be transacted and is included in on-hand quantities.
is included in all inquiries and reports.
is included in a cycle count and count entry and
adjustments are allowed.
is included in a physical inventory and tag entry and
adjustments are allowed.
Lot Control
CompanyConfidential
108
Inventory Controls
Disabled Lots:
Disabling a lot only prevents it
from appearing in a list of values
when performing receipt
transactions.
Lot Control
CompanyConfidential
109
Inventory Controls
A Disabled Lot:
is included in available to transact, available to promise and
available to reserve calculations.
is included as on-hand supply when performing min-max,
reorder point or MRP planning calculations.
is included as on-hand in all inquiries and reports, including
inventory valuation reports.
can be transacted with Inventory functions and the
Transaction Open Interface.
can be reserved.
Lot Control
CompanyConfidential
110
Inventory Controls
A serial number is an alphanumeric piece of information
assigned to an individual unit of an item. A serialized unit is a
combination of an item number and a serial number.
Individual units of items can be tracked by using serial
numbers. Serial number control is a system technique for
enforcing the use of serial numbers during a material
transaction. Serial numbers can be used to track items over
which a very tight control is to be maintained.
One serial number per unit of an item can be assigned
Serial Control
CompanyConfidential
111
Inventory Controls
Generating Serial Numbers
Depending on how Serial Number Control is set at the Master
Item level will determine how serial numbers are generated.
If No Control is specified as the serial number control type, no
serial number control will be enforced.
If Predefined is specified as the serial number control type,
serial numbers for that item must be predefined.
If control At inventory receipt or At sales order issue, optionally
serial numbers for the item can be predefined.
Serial Control
CompanyConfidential
112
Inventory Controls
Generating Serial Numbers
Inventory uses the starting
serial number prefix and the
starting serial number
specified in the Item screen .
The process of generating
serial numbers is done
through a concurrent report.
This does not assign numbers
to units in inventory, it simply
reserves serial numbers for an
item, for later use.
Serial Control
CompanyConfidential
113
 Introduction to Oracle inventory management
 Inventory Enterprise Structure
 Inventory Setup
 Creating and Maintaining Items
 Inventory Controls
 Inventory Transactions
 Inventory Accuracy Control
 Inventory Planning
Agenda
CompanyConfidential
114
nventory Transactions
 Understanding of Transaction Types
 Overview of Inventory Transactions
 Miscellaneous Transactions
 Subinventory Transfer
 Inter Organization Transfer
 Receipts
 Move Orders
Overview
CompanyConfidential
115
A transaction type is the combination of a transaction
source type and a transaction action. It is used to
classify a particular transaction for reporting and
querying purposes.
Transaction
Source Type
Transaction
Type
Transaction
Action
nventory Transactions
CompanyConfidential
116
System Defined Transaction Types
System defined transaction
type codes for different
inventory transactions. Each
transaction type is linked to
source type and action
nventory Transactions
CompanyConfidential
117
Use user defined terminology to
define transaction type. The
transaction type can be only
linked to pre seeded values of
source type and action
User Defined Transaction Types
nventory Transactions
CompanyConfidential
118
Types of Inventory Transactions
 Miscellaneous Transactions- This transaction is used to do
adjustments in stock due to damage, obsolescence, issuing
items for R & D or issuing track able expense items.
 Subinventory Transfer- This transaction is used to transfer
goods from one stockroom to another with in the same inventory
organization.
 Inter ORG Transfers- This transaction is used to transfer
goods from one inventory organization to another.
nventory Transactions
CompanyConfidential
119
Types of Inventory Transactions
 Receiving Transactions- This transaction is used to move
goods from receiving dock to specified subinventory and
locator.
 Sales Issue- This transaction is used to move goods from
pick subinventory to staged subinventory.
 WIP Issue- This transaction is used to issue materials
against production orders.
nventory Transactions
CompanyConfidential
120
MiscellaneousMiscellaneous
ReceiptReceipt
MiscellaneousMiscellaneous
IssueIssue
OrganizationOrganization
SubinventorySubinventory
TransferTransfer
Subinventory
Locator
Locator
Subinventory
Transfer
Subinventory
Locator
Locator
Organization
DirectDirect
InterorganizationInterorganization
TransferTransfer
InterorganizationInterorganization
Transfer by WayTransfer by Way
of Intransitof Intransit
nventory Transactions
CompanyConfidential
121
Select the
transaction type
Account for
passing
adjustment
transactions
If you want to enter
transaction line by
serial number for
serialized item
check this box
Miscellaneous Transactions
nventory Transactions
CompanyConfidential
122
 Initial loading of item on-hand quantities when you
start implementing Oracle Inventory
 Scrapping items by issuing them to expense
accounts denoting scrap
 Issuing items to individuals, departments, or projects
 Receiving items that were acquired by assorted
means (without purchase orders)
 Entering adjustments and corrections to system
quantities due to theft, vandalism, loss, shelf-life
expiration, or inaccurate record keeping
nventory Transactions
CompanyConfidential
123
Enter the
quantity to
be adjusted
Lot or serial number
can be entered if item
is a serial controlled or
Lot Controlled
Miscellaneous Transactions - Transaction Lines
nventory Transactions
CompanyConfidential
124
 Use the Subinventory transfer window to:
Transfer material within your current organization
between subinventories, or between two locators
within the same subinventory
Subinventory transfer
nventory Transactions
CompanyConfidential
125
The type can be Subinventory
transfer to transfer from one
subinventory to another or any
of the user defined transaction
type for source inventory &
action subinventory transfer
Subinventory Transfer
nventory Transactions
CompanyConfidential
126
Subinventory Transfer Transaction Lines
Enter source
subinventory
Enter
destination
subinventory
Enter
Quantity
Saving the record will complete the transaction.
nventory Transactions
CompanyConfidential
127
• We can perform inter–organization transfers as direct or
in transit shipments.
Goods thathavedepartedfromthe dispatch , loading ,or shipping pointbuthavenotyetarrivedatthe receipt , offloading ,or deliverypoint .Alsocalled
intransit inventory orstock intransit .
We can transfer one or more items in a single
transaction. We can also transfer partial quantities of the
same item to different subinventories and locators in a
single transaction.
• We can also transfer expense and asset items from one
organization to another using in transit inventory
Inter Org Transfer
nventory Transactions
CompanyConfidential
128
Pune
Organization
Mumbai
Organization
Delhi
Organization
Pune
Organization
Use IntransitUse Intransit
InventoryInventory
(FOB = Receiving)(FOB = Receiving)
Austin
Organization
RequireRequire
Internal OrderInternal Order
to Shipto Ship
Use IntransitUse Intransit
InventoryInventory
(FOB = Shipping)(FOB = Shipping)
DirectDirect
TransferTransfer
You need to define shipping network before doing inter
organization transfer
Inter Org Transfer
nventory Transactions
CompanyConfidential
129
Direct Inter–organization Transfers
 We can use a direct inter–organization transfer
to move inventory directly from a shipping
organization to a destination organization.
 The validity of a transfer transaction depends on
the controls we have defined in both the shipping
and destination organizations for the items we
want to transfer.
Inter Org Transfer
nventory Transactions
CompanyConfidential
130
Inter–Organization Transfers via Intransit Inventory
We usually transfer material to intransit inventory
when transportation time is significant. When we
perform the transfer transaction, we do not need
to specify the delivery location. We only need to
enter the subinventory we are shipping from, a
shipment number, the freight information, and,
depending on the inter–organization transfer
charge that applies between the organizations, a
percentage of the transaction value or a discrete
amount that Oracle Inventory uses to compute
transfer charges.
Inter Org Transfer
nventory Transactions
CompanyConfidential
131
Inter Org Transfer Shipping Network
Select Transfer
type as Intransit or
Direct
Enter FOB as receipt or
shipment to identify who
owns the inventory after
shipment has been made
Check this box if
internal order is
required
nventory Transactions
CompanyConfidential
132
There are three options for transfer
charge.
Predefined % of transaction value. The %
is maintained here. The other two options
are requested % or requested value. In
this case value is mentioned at the time
of entering Inter ORG transaction
Inter Org Transfer Shipping Network
nventory Transactions
CompanyConfidential
133
Enter the accounts for
transfer credit and PPV if
destination organization uses
standard cost
On these form maintain
Inter ORG receivable
and payable account
Inter Org Transfer Shipping Network
nventory Transactions
CompanyConfidential
134
Enter Source &
Destination
Organization
Select type as
Intransit or Direct
shipment
Enter the order number
Inter Org Transfer - In transit
nventory Transactions
CompanyConfidential
135
Subinventory in
the shipping
organization
Subinventory in
the receiving
organization
nventory Transactions
CompanyConfidential
136
As transaction type in Inter
ORG order was in transit
shipment, the inventory is
shown in transit after shipping
Note: Receiving for Inter ORG orders will be covered as a part of receiving transactions
nventory Transactions
CompanyConfidential
137
Type of Receipt Transactions
 Receive both internally and externally sourced shipments
 Process unordered receipts
 Receive substitute items
 Inspect items for quality control and invoice matching
needs
 Correct transaction errors
 Receive returned items into invento
 Return delivered items to receiving
Note: As part of inventory training only standard receiving
transaction will be covered with receipt routing as Direct
Delivery
Receipts
nventory Transactions
CompanyConfidential
138
Use the Find
Expected Receipts
window to:
Find source
documents for which
you can enter
receipts.
Use the Supplier and
Internal tabbed region
to search for
Purchasing
documents.
Receipts
nventory Transactions
CompanyConfidential
139
Use the Receipt Header window to enter header information
for all types of receipts.
Enter packing slip
number
Enter other information like shipped date, number of containers etc.
Receipts
nventory Transactions
CompanyConfidential
140
Use the Receipts window to enter receipt line information.
Enter the receipt
quantity
Default
subinventory
from PO. It can
be overridden
As routing is
direct receipt,
the inventory is
delivered on
saving the
transaction
Receipts
nventory Transactions
CompanyConfidential
141
Overview Of Move Orders
•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.
Move Orders
nventory Transactions
CompanyConfidential
142
Move Order
Requisition
• Account
Transfer
• Subinventory
Transfer
• Manually Generated
• Optional Approval
Processing
Replenishment
Move Orders
• Kanban
• Min Max
• Replenishment
• Count
• Automatically
Generated
• Pre-approved
• Ready for
Transaction
Move Order Type Transaction Type Generation & Approval
Pick Wave
Move Orders
Sales Order Pick
Internal Order
Pick
• Pre approved
• Print Pick Slip
Move Orders
nventory Transactions
CompanyConfidential
143
Move Order Process Flow
PickingPicking
SourceSource
locationlocation
Destination
location
Put awayPut away
PickPick
TicketTicket
Move order locatesMove order locates
material sourcesmaterial sources
In case of shortageIn case of shortage
move ordermove order
can be re-plannedcan be re-planned
Move orderMove order
requisitionrequisition
createdcreated
ApproveApprove
movemove
orderorder
nventory Transactions
CompanyConfidential
144
Move Order Header
Default source
subinventory
for move order
Select
Transaction
Type
nventory Transactions
CompanyConfidential
145
Move Order Lines
Enter Item and
for transfer
Default transaction
type from header. It
can be overridden
Quantity to be
transferred
nventory Transactions
CompanyConfidential
146
Move Order Allocation
Press Allocate to generate
reservation from source
subinventory to destination
subinventory
After allocation reservation
can be viewed and updated
manually if required.
nventory Transactions
CompanyConfidential
147
Transact Move Orders
Print Pick List for
Picker
Press Transact to move the
inventory from source to
destination subinventory
nventory Transactions
CompanyConfidential
148
 Introduction to Oracle inventory management
 Inventory Enterprise Structure
 Inventory Setup
 Creating and Maintaining Items
 Inventory Controls
 Inventory Transactions
 Inventory Accuracy Control
 Inventory Planning
Agenda
CompanyConfidential
149
nventory Accuracy Control
 Cycle Counting
Cycle counting is the periodic counting of individual items
throughout the year. Count items of higher value more
frequently than items of lower value. The differences between
the system quantity and counted quantity are adjusted to
correct the system quantity and inventory value in the system.
 Physical inventory
A physical inventory is a periodic reconciliation of system on-
hand balances with physical counts in inventory. It is normally
done once in a year as a part of financial auditing requirement
to verify inventory assets on balance sheet. Production is
stopped at the time of carrying out this activity.
CompanyConfidential
150
Define cycle count header
Update cycle-count items
Schedule items to count
Generate count requests
Enter cycle counts
Approve cycle counts
ABC Classification of items
Cycle Counting
nventory Accuracy Control
CompanyConfidential
151
ABC Analysis
•ABC analysis is a method of determining the relative
value of items in your inventory sites.
• An ABC analysis involves ranking your items according
to a criterion and then grouping items into classes.
ABC Classification
nventory Accuracy Control
CompanyConfidential
152
Define ABC group
Assign items to ABC classes
Update class assignments
Purge ABC information
Define ABC compilation Define ABC classes
ABC Analysis
ABC Classification
nventory Accuracy Control
CompanyConfidential
153
ABC Compilation
Criterion for categorizing
your items in
Organization. It can be
based on current value or
historical usage value
Cost type to pick
up the unit cost
of items in
compile set
Press Compile
to generate
compile results
ABC Classification
nventory Accuracy Control
CompanyConfidential
154
ABC Compilation- Descending Value Report
ABC Classification
nventory Accuracy Control
CompanyConfidential
155
Use ABC classes to identify the value groupings to which
items belong.
 Define these classes using own terminology. For example,
you might define classes High value, Medium value, Low
value.
 Assign items of highest rank to the High class, those of lower
rank to the Medium class and those of lowest rank to the Low
class.
 Can use ABC classes to group items for a cycle count where
you count “A” items more frequently than “B” items.
ABC Classification
nventory Accuracy Control
CompanyConfidential
156
ABC Classes
Define class
names for your
ABC Classification
purpose
ABC Classification
nventory Accuracy Control
CompanyConfidential
157
Define ABC Assignment Group
Define Group name to
link compile class and
set of ABC Classes
defined
ABC Classification
nventory Accuracy Control
CompanyConfidential
158
Link ABC Classes to
ABC assignment
group
Give a priority to all
classes. The class
with lowest priority is
assumed to have the
highest rank.
Define ABC Assignment Group
ABC Classification
nventory Accuracy Control
CompanyConfidential
159
ABC Item Assignments
Choose the sequence
value from ABC
descending value
report to assign a
range of items to class
Shows % of total items
and % of total value
assigned to a specific
class with in an
Organization
ABC Classification
nventory Accuracy Control
CompanyConfidential
160
Updating Item Assignments
ABC assignments generated
automatically by assigning cut
off sequence numbers for each
class. If required classes can
be changed manually
ABC Classification
nventory Accuracy Control
CompanyConfidential
161
Maintain Cycle Count
Adjustment account to
store variance amount
by which inventory is
adjusted
If automatic recount
required for out of
tolerance items
If items not scheduled
for counting to be
included
Cycle Counting
nventory Accuracy Control
CompanyConfidential
162
Maintain Cycle Count
Cycle counting to be
allowed for serialized
items or not. If
allowed will there be
multiple serial
numbers per request
or one serial number
per request
What Details to be
printed. Quantity
only or quantity
with serial
numbers
Scheduling
daily or
weekly or by
periods
Cycle Counting
nventory Accuracy Control
CompanyConfidential
163
Maintain Cycle Count Header
Tolerances set by
quantity, value and
hot/miss analysis
ABC group
lined for
identifying item
classes
Use this option as
re-initialization to
upload items for the
first time from ABC
group. Make it to
update to add new
items added in ABC
group to cycle count
items
Cycle Counting
nventory Accuracy Control
CompanyConfidential
164
Cycle Count Classes
Mentions the
numbers of times
the item to be
counted in a year
Cycle count class
specific tolerances
can be maintained
here. If it is not
maintained here it is
taken from cycle
count header
Cycle Counting
nventory Accuracy Control
CompanyConfidential
165
Cycle Count Items
Cycle count classes and item
generated from ABC initialization
at the time of linking cycle count
to ABC group
Item specific
quantity tolerance
can be maintained
here
Cycle Counting
nventory Accuracy Control
CompanyConfidential
166
Schedule Cycle Count
Automatic Scheduling
Oracle inventory uses the number of items in each cycle
count class, the frequency of each class, and the workday
calendar of your organization to determine how many and
which items you need to count during the scheduling
frequency.
 Manual Scheduling
You can manually schedule counts in addition to or instead
of those generated with automatic scheduling.
Cycle Counting
nventory Accuracy Control
CompanyConfidential
167
Generate Cycle Count Request
Cycle count Scheduler for
automatic scheduling
Generate Cycle count
request to generate
cycle count entries
Cycle Counting
nventory Accuracy Control
CompanyConfidential
168
Cycle Counting List Report
Print this report to show items
scheduled for cycle counting in a
specific period. This report is given
to people who physically count
items
Cycle Counting
Inventory Accuracy Control
CompanyConfidential
169
Cycle Count Entries
Enter the quantity
counted at the locator
in the warehouse
Cycle Counting
Inventory Accuracy Control
CompanyConfidential
170
Approve Cycle Count
Approve cycle count entries that
are out of tolerance. The entries
with variance with in tolerance
will be approved by system.
Cycle Counting
Inventory Accuracy Control
CompanyConfidential
171
Cycle Count Entries and Adjustments Report:
This report shows all cycle count entries for a specified time period. It analyzes the
number of cycle count transactions you make against an item, and the number of units
you actually adjust. The report also calculates the value, in your functional currency, of
the adjustments to inventory.
Cycle Counting
Inventory Accuracy Control
CompanyConfidential
172
Inventory Accuracy Control
Define physical inventory
Take snapshot of on-hand quantities
Generate tags
Count items
Enter counts
Void tags
Approve counts
Run adjustment program
Purge physical inventory
Physical Inventory
CompanyConfidential
173
Inventory Accuracy Control
Define Physical Inventory
Set the option
for approval of
physical
inventory tags
Tolerances for Quantity and
value
Click snapshot to
generate the snapshot
of inventory on hand for
count subinventories
Use this option when
tags are generated
outside oracle inventory
Physical Inventory
CompanyConfidential
174
Inventory Accuracy Control
Generate Tags
You can generate
blank tags for stock
points not recorded in
your system
Generates a unique tag for
each unique combination
of item, sub inventory,
locator, revision, lot, serial
number
Starting tag number and in
what order you want to
increment to generate the next
tag number
Physical Inventory
CompanyConfidential
175
Inventory Accuracy Control
Physical Inventory Tags Counts
Enter the quantity physically
counted at specific location with
in the warehouse
You can void a tag if
damaged or lost. If
default tag is void it
sets the inventory to
zero for that SKU
Physical Inventory
CompanyConfidential
176
Inventory Accuracy Control
Approve Counts
Approval option- Always the system requires approval of all
counts entered. You must approve or reject each adjustment
before running the physical adjustments program. After the
system adjusts all the approved counts the status of the
adjustment changes to ‘Posted
Approval option If Out of Tolerance the system requires approval
of all adjustments exceeding the tolerances entered in the
physical inventory definition. You must accept or reject each of
these adjustments before running the physical inventory
adjustments program. After the system adjusts all the approved
counts the status of the adjustment changes to ‘Posted’.
Physical Inventory
CompanyConfidential
177
Inventory Accuracy Control
Approve Counts
Approve or reject
the count
Physical Inventory
CompanyConfidential
178
Inventory Accuracy Control
Perform Physical Inventory Adjustments
The system performs adjustments by creating a material
transaction for the +/- quantity of the adjustment.
 Once adjustment program is run the system does not allow a
new tag generation or any further updates to the tag counts.
You must approve or reject all adjustments or the system will
not run the adjustments program.
Tag quantities, adjustment quantities, and adjustment values
can be reported before performing the adjustments.
You can use the adjustment report to authorize approvals or
request recounts of items with large pending adjustments.
Physical Inventory
CompanyConfidential
179
Inventory Accuracy Control
Perform Physical Inventory Adjustments
Account for passing
transactions due to
variance in system and
counted quantity
Physical Inventory
CompanyConfidential
180
Inventory Accuracy Control
Purge Physical Inventory
Purging tags only: You can purge
all tags associated with a physical
inventory definition. If irreversible
mistakes are made in the count-
entry phase, you can start over
without refreezing your inventory.
Purging All Information You can
purge the physical inventory
definition, frozen quantities, tags
and count quantities. This purge
deletes adjustments but not the
adjustment material transactions.
Physical Inventory
CompanyConfidential
181
Inventory Planning
 Performing reorder-point planning
 Performing Min-Max planning
 Subinventory replenishment planning
 Creating and executing Kanban cards
Planning methods:
CompanyConfidential
182
Min-max planning is a method of determining when and how
much to order based on user-defined minimum and maximum
inventory levels. In Oracle Inventory you can perform min-max
planning at two levels:
Organization: To perform organization-level min-max planning
for an item, you must specify organization-level minimum and
maximum quantities.
Subinventory: To perform subinventory-level min-max planning
for an item, you must specify subinventory-level minimum and
maximum quantities.
Inventory Planning
MIN MAX Planning
CompanyConfidential
183
1 . 0 D e fin e P la n n in g
a tt r ib u t e s f o r M in - M a x
p la n n e d it e m s a t O r g
le v e l
M in - M a x P la n n in g a t O r g
o r S u b in v e n t o r y le v e l?
2 . 0 R u n M i n - M a x
P la n n in g R e p o r t a t
O r g le v e l
3 .0 D e f in e P la n n in g
a tt r ib u te s f o r M in -
M a x p la n n e d it e m s
a t S u b I n v le v e l
4 . 0 R u n M in - M a x
P la n n in g R e p o r t a t
S u b I n v le v e l
A
A u t o
R e p le n is h -
m e n t ?
M in - M a x r e p o r t
O r g
N o
I t e m A v a ila b le q u a n t it y
b e lo w M in q u a n t it y ?
A S to p
Y e s
N o
Y e s
M a k e o r B u y ?
S o u r c e ?
B u y
7 . 0 C r e a t e
U n r e le a s e d J o b
M a k e
5 .0 C r e a te
P u r c h a s e
R e q u is it io n s
S u p p lie r
In t e r n a l
S u p p lie r
6 .0 C r e a te
I n te r n a l
R e q u is it i o n s
6 . 1 C r e a t e
In t e r n a l
R e q u is it io n s
Inventory Planning
MIN MAX Planning
CompanyConfidential
184
Inventory Planning
Enter minimum quantity
Enter maximum quantity
Enter fixed lot increments
Enter minimum order quantity
Enter maximum order quantityRun min-max report
YesYes
NoNo
Do you want
specific lot
increments?
Determine minimum
and maximum
quantities
MIN MAX Planning
CompanyConfidential
185
Inventory Planning
The following equation represents when you should order:
Quantity Available= Min QTY- on hand quantity + quantity on
order
If Quantity Available is>0, the order should be placed
Order quantity = (maximum quantity) - [(on-hand quantity) +
(quantity on order) ]
You can constrain the order quantity by specifying the
following order modifiers for an item:
 Fixed lot multiplier
 Minimum order quantity
 Maximum order quantity
CompanyConfidential
186
Inventory Planning
Enter item planning
attributes.
Define subinventory-
level min-max
information (optional).
Run the Min-max
report.
MIN MAX Planning
CompanyConfidential
187
Enter the following:
•Min-max minimum quantity
•Min-max maximum quantity
•Fixed-lot-size multiplier
•Minimum order quantity
•Maximum order quantity
Specify a planning level
(either Organization or
Subinventory).
Set up the appropriate
profile value for
requisition approval.
Select an Inventory
Planning method.
Inventory Planning
MIN MAX Planning
CompanyConfidential
188
Inventory Planning
Enter the
minimum and
maximum
quantity Enter the planning
method as Min
Max Planning
Enter the source type as
supplier if you want to
generate purchase
requisitions. Enter
subinventory or organization
if you want to generate move
orders
MIN MAX Planning
CompanyConfidential
189
Inventory Planning
Min Max Report
Planning level can be
organization or
subinventory. If it is
subinventory the min
max quantity should
have been maintained
at subinventory level
Demand cut off
date for demand
calculation
MIN MAX Planning
CompanyConfidential
190
Inventory Planning
What are the different
sources of supply to be
considered for calculation of
quantity available
The program includes
nettable subinventory
as supply. In order to
include non nettable
subinventory make it
yes
If you don’t want to
generate orders keep the
option as No. it will print
report for all those items
where quantity available is
less than Min Quantity
MIN MAX Planning
CompanyConfidential
191
Oracle Inventory ProcessesOracle Inventory Processes
Oracle Purchasing ProcessesOracle Purchasing Processes
Run Order Import
Oracle Order Entry ProcessesOracle Order Entry Processes
Min-Max
Planning
Reorder-Point
Planning
Subinventory
Replenishment
Populate Requisition
Interface
Run Req. Import
Create Purchase
Requisition
Create Purchase
Order
Create Internal
Requisition
Create Internal
Order
Kanban
Inventory Planning
CompanyConfidential
192
Inventory Planning
 Reorder-point planning is a method of determining
the size and timing of item replenishment orders.
 Reorder-point planning uses the following pieces of
information:
Safety stock
Replenishment lead time
item demand
Order cost
Carrying cost
Reorder-point planning
CompanyConfidential
193
QuantityQuantity
TimeTime
Reorder PointReorder Point
Safety StockSafety Stock
Inventory Planning
Reorder-point planning
CompanyConfidential
194
Inventory Planning
 You can perform-reorder point planning for the
entire organization.
 You can use Reorder-point planning for items
under independent demand.
 You can specify Reorder-point planning as the
inventory planning method when you define an item.
 You can use Reorder-point planning for items that
you do not need to control very tightly and that are
not very expensive to carry in inventory.
Reorder-point planning
CompanyConfidential
195
Inventory Planning
Enter item planning
attributes.
Define safety stocks.
Forecast Item Demand
Run Reorder-point
report.
Reorder Point Planning Steps
Forecast item demand
Reorder-point planning
CompanyConfidential
196
Inventory Planning
Item Planning Attributes
Specify a maximum-
order quantity.
Enter a carrying cost
percent.
Select Reorder-point
as the inventory
planning method.
Enter an order cost.
Specify a fixed-lot
size multiplier.
Specify a minimum-
order quantity.
Reorder-point planning
CompanyConfidential
197
Inventory Planning
Enter Lead Times
Enter processing lead
time.
Enter preprocessing
lead time.
Enter postprocessing
lead time.
Reorder-point planning
CompanyConfidential
198
Inventory Planning
Item Planning Attributes
Set your planning
method
Set your lead
times on the
lead time tab
Safety Stock
method
Reorder-point planning
CompanyConfidential
199
Inventory Planning
You can select one of the following three safety stock calculation
methods for each item:
 User-defined quantity
You can enter safety stock quantities and the date for which each
quantity is effective. You can update safety stock quantities that
you previously entered or that Oracle Inventory calculated for you.
User-defined percentage
To use the user-defined percentage method, you must use the
Reload Safety Stock window and specify the following information
for the item:
A forecast
A safety stock percent
Reorder-point planning -Entering Safety Stock
CompanyConfidential
200
Inventory Planning
You can select one of the following three safety stock calculation
methods for each item:
Mean absolute deviation
To calculate safety stock using this method, you submit a
concurrent request using the Reload Safety Stock window.
In this window, you must specify the following information:
A forecast
A service level percent
safety stock = Z × 1.25 × (mean absolute deviation)
where Z is the appropriate value from a table of standard
normal
distribution, corresponding to the service level. The mean
absolute deviation is a measure of how the forecast demand
deviates form the actual demand.
Reorder-point planning -Entering Safety Stock
CompanyConfidential
201
Inventory Planning
Entering Safety Stock- User Defined
User defined
safety stock
Enter a default item if
multiple entries are to
be maintained for the
same item
Reorder-point planning
CompanyConfidential
202
Inventory Planning
Entering Safety Stock
Method as MAD or safety
stock %
If method is safety stock %
enter safety stock %. F method
is MAD enter service level
Enter the forecast for
MAD calculation
Reorder-point planning
CompanyConfidential
203
Inventory Planning
Forecast Item Demand
Choose a item that
had a planning
method as reorder
point
Define a forecast set for your
forecasting scenario. With in your
forecast set define your forecast
name
Reorder-point planning
CompanyConfidential
204
Inventory Planning
Forecast Item Demand
Enter your forecast
bucket. It can be daily,
week or periods
Enter the forecast quantity
Reorder-point planning
CompanyConfidential
205
Inventory Planning
Reorder Point Program
Give your demand supply
and supply cut off date. Till
this date your forecast will be
taken for reorder point
calculation
Enter the forecast
set to be used for
EOQ and reorder
point calculation
Use this option as no if
you don’t want to
generate requisitions
and want to generate
report for items will
quantity less than
reorder point
Reorder-point planning
CompanyConfidential
206
Inventory Planning
Reorder Point Program
Mention what supply should
be considered as availability
for reorder point calculation
Reorder-point planning
CompanyConfidential
207

More Related Content

What's hot

Inventory Management Systems ( Internship)
Inventory Management Systems ( Internship)Inventory Management Systems ( Internship)
Inventory Management Systems ( Internship)Maniur Rahman
 
Dual Units Of Measure, Use, Benefits and Impact in Oracle application
Dual Units Of Measure, Use, Benefits and Impact in Oracle applicationDual Units Of Measure, Use, Benefits and Impact in Oracle application
Dual Units Of Measure, Use, Benefits and Impact in Oracle applicationiWare Logic Technologies Pvt. Ltd.
 
Oracle R12 – Multiple Organization Setup Steps
Oracle R12 – Multiple Organization Setup StepsOracle R12 – Multiple Organization Setup Steps
Oracle R12 – Multiple Organization Setup StepsBoopathy CS
 
Oracle Process Manufacturing
Oracle Process ManufacturingOracle Process Manufacturing
Oracle Process ManufacturingBlink Consulting
 
0601075 inventory management
0601075 inventory management0601075 inventory management
0601075 inventory managementSupa Buoy
 
Design and Implement E-Warehouses Management System for Universities in Devel...
Design and Implement E-Warehouses Management System for Universities in Devel...Design and Implement E-Warehouses Management System for Universities in Devel...
Design and Implement E-Warehouses Management System for Universities in Devel...IJSRED
 
Oracel inventory and purchasing exam guide
Oracel inventory and purchasing exam guideOracel inventory and purchasing exam guide
Oracel inventory and purchasing exam guideAdil Arshad
 

What's hot (8)

Inventory Management Systems ( Internship)
Inventory Management Systems ( Internship)Inventory Management Systems ( Internship)
Inventory Management Systems ( Internship)
 
Dual Units Of Measure, Use, Benefits and Impact in Oracle application
Dual Units Of Measure, Use, Benefits and Impact in Oracle applicationDual Units Of Measure, Use, Benefits and Impact in Oracle application
Dual Units Of Measure, Use, Benefits and Impact in Oracle application
 
Oracle R12 – Multiple Organization Setup Steps
Oracle R12 – Multiple Organization Setup StepsOracle R12 – Multiple Organization Setup Steps
Oracle R12 – Multiple Organization Setup Steps
 
Oracle Process Manufacturing
Oracle Process ManufacturingOracle Process Manufacturing
Oracle Process Manufacturing
 
0601075 inventory management
0601075 inventory management0601075 inventory management
0601075 inventory management
 
Design and Implement E-Warehouses Management System for Universities in Devel...
Design and Implement E-Warehouses Management System for Universities in Devel...Design and Implement E-Warehouses Management System for Universities in Devel...
Design and Implement E-Warehouses Management System for Universities in Devel...
 
A STUDY ON INVENTORY MANAGEMENT IN AUTOMOBILE SECTOR
A STUDY ON INVENTORY MANAGEMENT IN AUTOMOBILE SECTORA STUDY ON INVENTORY MANAGEMENT IN AUTOMOBILE SECTOR
A STUDY ON INVENTORY MANAGEMENT IN AUTOMOBILE SECTOR
 
Oracel inventory and purchasing exam guide
Oracel inventory and purchasing exam guideOracel inventory and purchasing exam guide
Oracel inventory and purchasing exam guide
 

Viewers also liked

Oracle SCM Purchasing R12
Oracle SCM Purchasing R12Oracle SCM Purchasing R12
Oracle SCM Purchasing R12Zabi Khan
 
Oracle Purchasing | Oracle Purchasing Training - Oracle Trainings
Oracle Purchasing | Oracle Purchasing Training - Oracle TrainingsOracle Purchasing | Oracle Purchasing Training - Oracle Trainings
Oracle Purchasing | Oracle Purchasing Training - Oracle TrainingsOracleTrainings
 
R12 purchasing presentation oa
R12 purchasing presentation oaR12 purchasing presentation oa
R12 purchasing presentation oaSuresh Mishra
 
Oracle Purchasing ivas
Oracle Purchasing ivasOracle Purchasing ivas
Oracle Purchasing ivasAli Ibrahim
 
Oracle Purchasing R12 Setup Steps
Oracle Purchasing R12 Setup StepsOracle Purchasing R12 Setup Steps
Oracle Purchasing R12 Setup StepsAhmed Elshayeb
 

Viewers also liked (7)

Oracle SCM Purchasing R12
Oracle SCM Purchasing R12Oracle SCM Purchasing R12
Oracle SCM Purchasing R12
 
Oracle Purchasing | Oracle Purchasing Training - Oracle Trainings
Oracle Purchasing | Oracle Purchasing Training - Oracle TrainingsOracle Purchasing | Oracle Purchasing Training - Oracle Trainings
Oracle Purchasing | Oracle Purchasing Training - Oracle Trainings
 
R12 purchasing presentation oa
R12 purchasing presentation oaR12 purchasing presentation oa
R12 purchasing presentation oa
 
Purchasing 11i.5.10 Training
Purchasing 11i.5.10 TrainingPurchasing 11i.5.10 Training
Purchasing 11i.5.10 Training
 
Basics of Oracle Purchasing
Basics of Oracle PurchasingBasics of Oracle Purchasing
Basics of Oracle Purchasing
 
Oracle Purchasing ivas
Oracle Purchasing ivasOracle Purchasing ivas
Oracle Purchasing ivas
 
Oracle Purchasing R12 Setup Steps
Oracle Purchasing R12 Setup StepsOracle Purchasing R12 Setup Steps
Oracle Purchasing R12 Setup Steps
 

Similar to Oracle inventory-latest-111130132449-phpapp02 (1)

documents.pub_oracle-inventory-ppt.ppt
documents.pub_oracle-inventory-ppt.pptdocuments.pub_oracle-inventory-ppt.ppt
documents.pub_oracle-inventory-ppt.pptMohamedTarek448957
 
Oracle inventory EBS R11
Oracle inventory EBS R11Oracle inventory EBS R11
Oracle inventory EBS R11Ali Ibrahim
 
Oracle_Fin-Theo.docx
Oracle_Fin-Theo.docxOracle_Fin-Theo.docx
Oracle_Fin-Theo.docxadnanalakdar
 
Contains details about the Inventory process in Oracle
Contains details about the Inventory process in OracleContains details about the Inventory process in Oracle
Contains details about the Inventory process in Oracleeinsteinthegreat
 
Oracle apps 11i tutorial(v2)
Oracle apps 11i tutorial(v2)Oracle apps 11i tutorial(v2)
Oracle apps 11i tutorial(v2)vk91188
 
Navigating Success: Oracle Enterprise Management
Navigating Success: Oracle Enterprise ManagementNavigating Success: Oracle Enterprise Management
Navigating Success: Oracle Enterprise ManagementTriforce Global
 
Understanding Multi-Org Structure in Oracle Apps
Understanding Multi-Org Structure in Oracle AppsUnderstanding Multi-Org Structure in Oracle Apps
Understanding Multi-Org Structure in Oracle AppsBaker Khader Abdallah, PMP
 
Webinar - Oracle iProcurement in Oracle Purchasing Application
Webinar - Oracle iProcurement in Oracle Purchasing ApplicationWebinar - Oracle iProcurement in Oracle Purchasing Application
Webinar - Oracle iProcurement in Oracle Purchasing ApplicationiWare Logic Technologies Pvt. Ltd.
 
Oracle 11i Configuration Document
Oracle 11i Configuration DocumentOracle 11i Configuration Document
Oracle 11i Configuration Documentساجد علی
 
Oracle apps scm online training in american samoa
Oracle apps scm online training in american samoaOracle apps scm online training in american samoa
Oracle apps scm online training in american samoamagnifics
 
Tools Commonly Used for Inventory Control
Tools Commonly Used for Inventory ControlTools Commonly Used for Inventory Control
Tools Commonly Used for Inventory ControlAbu Taher Sohag
 
All About Multi Organization Access
All About Multi Organization AccessAll About Multi Organization Access
All About Multi Organization AccessAhmed Elshayeb
 
Oracle grants accounting 2
Oracle grants accounting 2Oracle grants accounting 2
Oracle grants accounting 2Naveen Reddy
 
Oracle grants accounting 2
Oracle grants accounting 2Oracle grants accounting 2
Oracle grants accounting 2Naveen Reddy
 
Encumbrance accounting in oracle ebs r12
Encumbrance accounting in oracle ebs r12Encumbrance accounting in oracle ebs r12
Encumbrance accounting in oracle ebs r12Sam Elrashedy
 

Similar to Oracle inventory-latest-111130132449-phpapp02 (1) (20)

documents.pub_oracle-inventory-ppt.ppt
documents.pub_oracle-inventory-ppt.pptdocuments.pub_oracle-inventory-ppt.ppt
documents.pub_oracle-inventory-ppt.ppt
 
Oracle inventory EBS R11
Oracle inventory EBS R11Oracle inventory EBS R11
Oracle inventory EBS R11
 
Oracle_Fin-Theo.docx
Oracle_Fin-Theo.docxOracle_Fin-Theo.docx
Oracle_Fin-Theo.docx
 
Oracle financials theory_vol_i
Oracle financials theory_vol_iOracle financials theory_vol_i
Oracle financials theory_vol_i
 
Contains details about the Inventory process in Oracle
Contains details about the Inventory process in OracleContains details about the Inventory process in Oracle
Contains details about the Inventory process in Oracle
 
Capsulization of Oracle Inventory
Capsulization of Oracle InventoryCapsulization of Oracle Inventory
Capsulization of Oracle Inventory
 
What is erp
What is erpWhat is erp
What is erp
 
Oracle apps 11i tutorial(v2)
Oracle apps 11i tutorial(v2)Oracle apps 11i tutorial(v2)
Oracle apps 11i tutorial(v2)
 
Navigating Success: Oracle Enterprise Management
Navigating Success: Oracle Enterprise ManagementNavigating Success: Oracle Enterprise Management
Navigating Success: Oracle Enterprise Management
 
Understanding Multi-Org Structure in Oracle Apps
Understanding Multi-Org Structure in Oracle AppsUnderstanding Multi-Org Structure in Oracle Apps
Understanding Multi-Org Structure in Oracle Apps
 
Webinar - Oracle iProcurement in Oracle Purchasing Application
Webinar - Oracle iProcurement in Oracle Purchasing ApplicationWebinar - Oracle iProcurement in Oracle Purchasing Application
Webinar - Oracle iProcurement in Oracle Purchasing Application
 
Oracle 11i Configuration Document
Oracle 11i Configuration DocumentOracle 11i Configuration Document
Oracle 11i Configuration Document
 
Oracle apps scm online training in american samoa
Oracle apps scm online training in american samoaOracle apps scm online training in american samoa
Oracle apps scm online training in american samoa
 
Tools Commonly Used for Inventory Control
Tools Commonly Used for Inventory ControlTools Commonly Used for Inventory Control
Tools Commonly Used for Inventory Control
 
Inventory management system
Inventory management systemInventory management system
Inventory management system
 
Multi org-r12
Multi org-r12Multi org-r12
Multi org-r12
 
All About Multi Organization Access
All About Multi Organization AccessAll About Multi Organization Access
All About Multi Organization Access
 
Oracle grants accounting 2
Oracle grants accounting 2Oracle grants accounting 2
Oracle grants accounting 2
 
Oracle grants accounting 2
Oracle grants accounting 2Oracle grants accounting 2
Oracle grants accounting 2
 
Encumbrance accounting in oracle ebs r12
Encumbrance accounting in oracle ebs r12Encumbrance accounting in oracle ebs r12
Encumbrance accounting in oracle ebs r12
 

Recently uploaded

BASLIQ CURRENT LOOKBOOK LOOKBOOK(1) (1).pdf
BASLIQ CURRENT LOOKBOOK  LOOKBOOK(1) (1).pdfBASLIQ CURRENT LOOKBOOK  LOOKBOOK(1) (1).pdf
BASLIQ CURRENT LOOKBOOK LOOKBOOK(1) (1).pdfSoniaTolstoy
 
1029 - Danh muc Sach Giao Khoa 10 . pdf
1029 -  Danh muc Sach Giao Khoa 10 . pdf1029 -  Danh muc Sach Giao Khoa 10 . pdf
1029 - Danh muc Sach Giao Khoa 10 . pdfQucHHunhnh
 
Mastering the Unannounced Regulatory Inspection
Mastering the Unannounced Regulatory InspectionMastering the Unannounced Regulatory Inspection
Mastering the Unannounced Regulatory InspectionSafetyChain Software
 
How to Make a Pirate ship Primary Education.pptx
How to Make a Pirate ship Primary Education.pptxHow to Make a Pirate ship Primary Education.pptx
How to Make a Pirate ship Primary Education.pptxmanuelaromero2013
 
Presentation by Andreas Schleicher Tackling the School Absenteeism Crisis 30 ...
Presentation by Andreas Schleicher Tackling the School Absenteeism Crisis 30 ...Presentation by Andreas Schleicher Tackling the School Absenteeism Crisis 30 ...
Presentation by Andreas Schleicher Tackling the School Absenteeism Crisis 30 ...EduSkills OECD
 
18-04-UA_REPORT_MEDIALITERAСY_INDEX-DM_23-1-final-eng.pdf
18-04-UA_REPORT_MEDIALITERAСY_INDEX-DM_23-1-final-eng.pdf18-04-UA_REPORT_MEDIALITERAСY_INDEX-DM_23-1-final-eng.pdf
18-04-UA_REPORT_MEDIALITERAСY_INDEX-DM_23-1-final-eng.pdfssuser54595a
 
Interactive Powerpoint_How to Master effective communication
Interactive Powerpoint_How to Master effective communicationInteractive Powerpoint_How to Master effective communication
Interactive Powerpoint_How to Master effective communicationnomboosow
 
Introduction to AI in Higher Education_draft.pptx
Introduction to AI in Higher Education_draft.pptxIntroduction to AI in Higher Education_draft.pptx
Introduction to AI in Higher Education_draft.pptxpboyjonauth
 
URLs and Routing in the Odoo 17 Website App
URLs and Routing in the Odoo 17 Website AppURLs and Routing in the Odoo 17 Website App
URLs and Routing in the Odoo 17 Website AppCeline George
 
Z Score,T Score, Percential Rank and Box Plot Graph
Z Score,T Score, Percential Rank and Box Plot GraphZ Score,T Score, Percential Rank and Box Plot Graph
Z Score,T Score, Percential Rank and Box Plot GraphThiyagu K
 
1029-Danh muc Sach Giao Khoa khoi 6.pdf
1029-Danh muc Sach Giao Khoa khoi  6.pdf1029-Danh muc Sach Giao Khoa khoi  6.pdf
1029-Danh muc Sach Giao Khoa khoi 6.pdfQucHHunhnh
 
microwave assisted reaction. General introduction
microwave assisted reaction. General introductionmicrowave assisted reaction. General introduction
microwave assisted reaction. General introductionMaksud Ahmed
 
Introduction to ArtificiaI Intelligence in Higher Education
Introduction to ArtificiaI Intelligence in Higher EducationIntroduction to ArtificiaI Intelligence in Higher Education
Introduction to ArtificiaI Intelligence in Higher Educationpboyjonauth
 
Advanced Views - Calendar View in Odoo 17
Advanced Views - Calendar View in Odoo 17Advanced Views - Calendar View in Odoo 17
Advanced Views - Calendar View in Odoo 17Celine George
 
Paris 2024 Olympic Geographies - an activity
Paris 2024 Olympic Geographies - an activityParis 2024 Olympic Geographies - an activity
Paris 2024 Olympic Geographies - an activityGeoBlogs
 
Hybridoma Technology ( Production , Purification , and Application )
Hybridoma Technology  ( Production , Purification , and Application  ) Hybridoma Technology  ( Production , Purification , and Application  )
Hybridoma Technology ( Production , Purification , and Application ) Sakshi Ghasle
 

Recently uploaded (20)

BASLIQ CURRENT LOOKBOOK LOOKBOOK(1) (1).pdf
BASLIQ CURRENT LOOKBOOK  LOOKBOOK(1) (1).pdfBASLIQ CURRENT LOOKBOOK  LOOKBOOK(1) (1).pdf
BASLIQ CURRENT LOOKBOOK LOOKBOOK(1) (1).pdf
 
1029 - Danh muc Sach Giao Khoa 10 . pdf
1029 -  Danh muc Sach Giao Khoa 10 . pdf1029 -  Danh muc Sach Giao Khoa 10 . pdf
1029 - Danh muc Sach Giao Khoa 10 . pdf
 
Mastering the Unannounced Regulatory Inspection
Mastering the Unannounced Regulatory InspectionMastering the Unannounced Regulatory Inspection
Mastering the Unannounced Regulatory Inspection
 
How to Make a Pirate ship Primary Education.pptx
How to Make a Pirate ship Primary Education.pptxHow to Make a Pirate ship Primary Education.pptx
How to Make a Pirate ship Primary Education.pptx
 
Presentation by Andreas Schleicher Tackling the School Absenteeism Crisis 30 ...
Presentation by Andreas Schleicher Tackling the School Absenteeism Crisis 30 ...Presentation by Andreas Schleicher Tackling the School Absenteeism Crisis 30 ...
Presentation by Andreas Schleicher Tackling the School Absenteeism Crisis 30 ...
 
Mattingly "AI & Prompt Design: Structured Data, Assistants, & RAG"
Mattingly "AI & Prompt Design: Structured Data, Assistants, & RAG"Mattingly "AI & Prompt Design: Structured Data, Assistants, & RAG"
Mattingly "AI & Prompt Design: Structured Data, Assistants, & RAG"
 
18-04-UA_REPORT_MEDIALITERAСY_INDEX-DM_23-1-final-eng.pdf
18-04-UA_REPORT_MEDIALITERAСY_INDEX-DM_23-1-final-eng.pdf18-04-UA_REPORT_MEDIALITERAСY_INDEX-DM_23-1-final-eng.pdf
18-04-UA_REPORT_MEDIALITERAСY_INDEX-DM_23-1-final-eng.pdf
 
Interactive Powerpoint_How to Master effective communication
Interactive Powerpoint_How to Master effective communicationInteractive Powerpoint_How to Master effective communication
Interactive Powerpoint_How to Master effective communication
 
Introduction to AI in Higher Education_draft.pptx
Introduction to AI in Higher Education_draft.pptxIntroduction to AI in Higher Education_draft.pptx
Introduction to AI in Higher Education_draft.pptx
 
TataKelola dan KamSiber Kecerdasan Buatan v022.pdf
TataKelola dan KamSiber Kecerdasan Buatan v022.pdfTataKelola dan KamSiber Kecerdasan Buatan v022.pdf
TataKelola dan KamSiber Kecerdasan Buatan v022.pdf
 
Staff of Color (SOC) Retention Efforts DDSD
Staff of Color (SOC) Retention Efforts DDSDStaff of Color (SOC) Retention Efforts DDSD
Staff of Color (SOC) Retention Efforts DDSD
 
URLs and Routing in the Odoo 17 Website App
URLs and Routing in the Odoo 17 Website AppURLs and Routing in the Odoo 17 Website App
URLs and Routing in the Odoo 17 Website App
 
Z Score,T Score, Percential Rank and Box Plot Graph
Z Score,T Score, Percential Rank and Box Plot GraphZ Score,T Score, Percential Rank and Box Plot Graph
Z Score,T Score, Percential Rank and Box Plot Graph
 
Código Creativo y Arte de Software | Unidad 1
Código Creativo y Arte de Software | Unidad 1Código Creativo y Arte de Software | Unidad 1
Código Creativo y Arte de Software | Unidad 1
 
1029-Danh muc Sach Giao Khoa khoi 6.pdf
1029-Danh muc Sach Giao Khoa khoi  6.pdf1029-Danh muc Sach Giao Khoa khoi  6.pdf
1029-Danh muc Sach Giao Khoa khoi 6.pdf
 
microwave assisted reaction. General introduction
microwave assisted reaction. General introductionmicrowave assisted reaction. General introduction
microwave assisted reaction. General introduction
 
Introduction to ArtificiaI Intelligence in Higher Education
Introduction to ArtificiaI Intelligence in Higher EducationIntroduction to ArtificiaI Intelligence in Higher Education
Introduction to ArtificiaI Intelligence in Higher Education
 
Advanced Views - Calendar View in Odoo 17
Advanced Views - Calendar View in Odoo 17Advanced Views - Calendar View in Odoo 17
Advanced Views - Calendar View in Odoo 17
 
Paris 2024 Olympic Geographies - an activity
Paris 2024 Olympic Geographies - an activityParis 2024 Olympic Geographies - an activity
Paris 2024 Olympic Geographies - an activity
 
Hybridoma Technology ( Production , Purification , and Application )
Hybridoma Technology  ( Production , Purification , and Application  ) Hybridoma Technology  ( Production , Purification , and Application  )
Hybridoma Technology ( Production , Purification , and Application )
 

Oracle inventory-latest-111130132449-phpapp02 (1)

  • 1. Training OnTraining On Oracle InventoryOracle Inventory Oracle Applications 11i
  • 2. CompanyConfidential 2  Introduction to Oracle inventory management  Inventory Enterprise Structure  Inventory Setup  Creating and Maintaining Items  Inventory Controls  Inventory Transactions  Inventory Accuracy Control  Inventory Planning Agenda
  • 3. CompanyConfidential 3 Introduction to Oracle inventory management What is Inventory? Stocking ,tracking and maintaining the level of different items like Raw material, Finished Goods, etc in an organization.
  • 4. CompanyConfidential 4 Introduction to Oracle inventory management Oracle Inventory enables users to satisfy a company’s business needs, area such as:  Defining part numbers  Modeling organization structures  Tracking perpetual inventory  Maintaining accurate on-hand balances  Planning material replenishments  Forecasting anticipated demand
  • 5. CompanyConfidential 5 Inventory Integration with other modules OracleOracle PurchasingPurchasing OracleOracle InventoryInventory External Systems OracleOracle WIPWIP Oracle CostOracle Cost ManagementManagement OracleOracle EngineeringEngineering Oracle BillsOracle Bills of Materialof Material Oracle OrderOracle Order ManagementManagement Oracle MasterOracle Master Scheduling/MRPScheduling/MRP OracleOracle Flow ManufacturingFlow Manufacturing OracleOracle ShippingShipping OracleOracle ProjectProject ManufacturingManufacturing
  • 6. CompanyConfidential 6 Inventory Integration with finance modules OracleOracle AssetsAssets OracleOracle ReceivablesReceivables OracleOracle PayablesPayables OracleOracle GeneralGeneral LedgerLedger OracleOracle InventoryInventory External Systems
  • 8. CompanyConfidential 8 Introduction to Oracle inventory management Item  Item An item is a part or service that are purchased, sold, planned, manufactured, stocked, distributed, or prototyped .  Item Statuses and Attributes Status attributes are item attributes that enable key functionality for each item. An item status is defined by selecting the value check boxes for the status attributes. Both status attributes and item status can be controlled at the item level or organization levels.
  • 9. CompanyConfidential 9 Introduction to Oracle inventory management  Unit of Measure  A unit of measure (UOM) is a term used along with a numeric value, to specify the quantity of an item. For example, “each” is a unit of measure that used to specify the number of units of an item.  A unit of measure class is a group of units of measure with similar characteristics. For example, “weight” can be a unit of measure class with units of measure such as kilogram, gram, pound, and ounce.  A unit of measure conversion is a mathematical relationship between two different units of measure.
  • 10. CompanyConfidential 10 Introduction to Oracle inventory management Base UOM Yes No No UOM lbs kg g 1 kg = 2.208 X lbs 1 g = 0.002208 X lbs UOM Class = Weight UOM Conversion UOM Interclass Conversion Conversion 2Weightlbs Item Keyboard Destination Base UOM Destination UOM Class Source Base UOM Source UOM Class QuantityEach 2 Each = 1 lb
  • 11. CompanyConfidential 11 Introduction to Oracle inventory management Organization Calendar  workday calendar must be defined in Inventory if the following are to be performed : inventory forecasting ,reorder-point planning, available-to- promise analysis or cycle counting.  Inventory automatically generates a workday pattern (the base calendar) that includes all days, including non- workdays, between the start and end dates specified.  workday exceptions can be assigned to the base calendar to denote holidays, schedule maintenance, or overtime.
  • 12. CompanyConfidential 12 Introduction to Oracle inventory management Categories and Category Sets  Categories are logical groupings of items that have similar characteristics.  A category set is a distinct category grouping scheme and consists of categories.
  • 13. CompanyConfidential 13 Introduction to Oracle inventory management Finished GoodFinished Good SubassemblySubassembly HardwareHardware SoftwareSoftware PCPC OtherOther Category Grouping Inventory Category Set Purchasing Category Set Craig Category Set
  • 14. CompanyConfidential 14 Introduction to Oracle inventory management Inventory Controls  With Oracle Inventory locator, revision, lot, and serial number control can be implemented.  Any combination of the four controls (locator, revision, lot, and serial number) can be implemented for each item. Inventory controls are optional for all items.  User can choose to implement inventory controls for specific items.
  • 16. CompanyConfidential 16 Introduction to Oracle inventory management Inventory Transactions Transaction  A transaction is an item movement into, within, or out of inventory. A transaction changes the quantity, location, or cost of an item. 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, and serial number) enabled for items.
  • 17. CompanyConfidential 17 Introduction to Oracle inventory management Material FlowMaterial Flow Business FlowBusiness Flow Receive GoodsReceive Goods Ship GoodsShip Goods Move GoodsMove Goods MRPMRP Order EntryOrder Entry PurchasingPurchasing InventoryInventory WIPWIP
  • 18. CompanyConfidential 18  Introduction to Oracle inventory management  Inventory Enterprise Structure  Inventory Setup  Creating and Maintaining Items  Inventory Controls  Inventory Transactions  Inventory Accuracy Control  Inventory Planning Agenda
  • 19. CompanyConfidential 19 Inventory Enterprise Structure Inventory Enterprise Structure The Oracle Applications organization models define organizations and the relationships among them in arbitrarily complex enterprises. This organization model serves as the cornerstone for all of the Oracle Applications products. It dictates how transactions flow through different organizations and how those organizations interact with each other.
  • 20. CompanyConfidential 20 Inventory Enterprise Structure LELELELE Set of Books IOIO OUOU OUOU IOIO IOIO OUOU IOIO IOIO IOIO BGOrganization Structure
  • 21. CompanyConfidential 21 Inventory Enterprise Structure Multi-org  Multi-Org is a key component that provides secure access to the different organizations of the enterprise supports multiple organizations of the enterprise structure in a single database.  Operating Unit is the primary organization unit through which user secures transaction data, but also creates processes and reports on financial applications data. An Operating Unit can be used to model an autonomous business unit that performs one or more business activities and creates transactions with financial impact.
  • 22. CompanyConfidential 22 Inventory Enterprise Structure  Business Group This is an Organization that represents the consolidated enterprise, a major division, or an operation company and has no accounting impact. The Business Group partitions Human Resources information and the Purchasing Approval Hierarchy. If you request a list of employees (in any module) you will see only those employees in the Business Group of which your Operating Unit is a part. Multiple Legal Entities can relate to a single Business Group. OU Set of Books Legal Entity Business Group Inventory Organization
  • 23. CompanyConfidential 23 Inventory Enterprise Structure Set of Books  Set of Books is the financial reporting entity that secures financial entries and account balances within the GL application. SOB will be based on 3C’s (Currency, Calendar, Chart of Accounts)  A Set of Books is the highest level that impacts accounting. A Set of Books is associated with a single Business Group, but multiple Sets of Books may be associated with a single Business Group OU Set of Books Legal Entity Business Group Inventory Organization
  • 24. CompanyConfidential 24 Inventory Enterprise Structure GRE/Legal Entity  The Legal Entity represents a legal company for which the user prepares fiscal or tax reports.  Legal Entities are associated with a Set of Books. One or more Legal Entities may be associated with a single Set of Books, and multiple Legal Entities may be associated with a single Business Group. OU Set of Books Legal Entity Business Group Inventory Organization
  • 25. CompanyConfidential 25 Inventory Enterprise Structure Operating Unit – An operating unit represents an organization that uses any Oracle subledger application, for example, Order Management, Payables. It may be a sales office, a division, or a department. An operating unit is associated with a legal entity. Information is secured by operating unit for these applications. Each user sees information only for their operating unit. Inventory Organizations – An inventory organization is a facility in your enterprise where you store and transact your inventory items. The items in an inventory organization can be in the form of raw materials, semi-finished goods, or finished goods for varying periods of time. – Inventory Organizations belong to an Operating Unit. OU Set of Books Legal Entity Business Group Inventory Organization
  • 27. CompanyConfidential 27 Inventory Enterprise Structure Inventory Organization Structure Organization Subinventories Locators
  • 28. CompanyConfidential 28 Inventory Enterprise Structure Inventory Enterprise Structure  Organizations – An inventory organization is a facility in your enterprise where you store and transact your inventory items. The items in an inventory organization can be in the form of raw materials, semi- finished goods, or finished goods for varying periods of time. – A physical entity such as a manufacturing facility, warehouse, distribution center, or a branch office. – A logical entity such as an item master organization, which you can use just to define items but no transactions. The item master organization is discussed in detail in the lesson titled “Defining and Maintaining Items Fundamentals.
  • 29. CompanyConfidential 29 Inventory Enterprise Structure – Subinventory Subinventories are unique physical or logical separations of material inventory, such as raw material inventory, finished goods inventory, or defective goods inventory. In Oracle Inventory, all material within an organization is held in a subinventory. Therefore, you must define at least one subinventory. – Locator You use locators to identify physical areas where you store inventory items. Item quantities can be tracked by locator. Items can also be restricted to specific locators
  • 30. CompanyConfidential 30 Review Question What are the 3 C’s in Set of Books?  Currency  Calendar  Chart of Account
  • 31. CompanyConfidential 31  Introduction to Oracle inventory management  Inventory Enterprise Structure  Inventory Setup  Creating and Maintaining Items  Inventory Controls  Inventory Transactions  Inventory Accuracy Control  Inventory Planning Agenda
  • 32. CompanyConfidential 32 Inventory Setup Required Setup Steps Step 1 2 3 4 5 6 7 Level * Global Global Global Global Global Global Organization Activity Define Item Flexfield Define Item Categories Flexfield Define Item Catalog Group Flexfield Define Stock Locators Flexfield Define Account Aliases Flexfield Define Sales Orders Flexfield Define Organizations * Defined Once Globally or for each organization
  • 33. CompanyConfidential 33 Inventory Setup Required Setup Steps * Defined Once Globally or for each organization Step 8 9 10 11 12 13 14 Level * Organization Global Global Organization Global Either Level Either Level Activity Organization access Defining Intercompany Relations Define Unit of Measure Classes Define Subinventories Define Item Attribute Controls Define Categories Define Category Sets
  • 34. CompanyConfidential 34 Inventory Setup Required Setup Steps * Defined Once Globally or for each organization Step 15 16 17 18 19 Level * Global Global Global Global Global Activity Define Default Category Sets Define Statuses Define Cost Types Define Accounting Periods Set Profile Options
  • 35. CompanyConfidential 35 Inventory Setup Flexfield Definitions Flexfield Name Table Name Comment 1 Account Aliases MTL_GENERIC_DISPOSITIONS It supports just one structure 2 Item Catalogs MTL_ITEM_CATALOG_GROUPS It supports only one structure 3 Item Categories MTL_CATEGORIES This should be defined before defining items. There Can be multiple structures per instance 4 Sales Orders MTL_SALES_ORDERS Defined as Order Number, Order Type, and Order Source to make each transaction unique. It’s defined before placing demand /reservations 5 Stock Locators MTL_ITEM_LOCATIONS Used to capture more information about stock locators and items 6 System Items (Items Flexfield) MTL_SYSTEM_ITEMS This should be configured before defining items. OE: Item Flexfield profile option should be set to specify the Item Flexfield structure that will be used for Oracle applications. * Refer System Administrator & AOL training for Flexfield set up
  • 36. CompanyConfidential 36 Inventory Setup • Oracle Inventory users use the Personal Profile Values window to set profile values only at the user level. • System administrators use the System Profile Values window to set profile values at the site, application, responsibility, and user levels. • Required profiles have no default; they require input from a user or an administrator. Optional profiles have defaults which may be accepted or manually overridden. Profile Options
  • 37. CompanyConfidential 37 Profile Option INV: Allow Expense to Asset Transaction INV: Default Item Status INV: Default Primary Unit of Measure INV: Dynamic Precision Option INV: Inter-Organization Currency Conv INV: Item Master Flexfield INV: MinMax Reorder Approval Default Yes Active Each -9,999,999.00 Corporate No Default Approved Req’d No No No No No Yes No These profiles are updateable at all levels: Inventory Setup
  • 38. CompanyConfidential 38 Profile Option INV: Proj Misc Trans Expenditure Type INV: RC Line Failure INV: Requisition Approval INV: Save Search Items INV: Updateable Customer Item INV: Updateable Item Name TP:INV: Cycle Count Approvals Form Default User Entered Continue Processing Approved No No No Concurrent Processing Req’d No No No No No No No These profiles are updateable at all levels: Inventory Setup
  • 39. CompanyConfidential 39 Profile Option TP:INV: Cycle Count Entries Form TP:INV: Enter Replenishment Count Form TP:INV: Inter-Organization Transfer Form TP:INV: Misc Issue and Receipt Form TP:INV: Transaction Processing Mode TP:INV: Transfer Between SubInv Form TP:INV: Update Average Cost Form Default Concurrent Processing Concurrent Processing Online Processing Online Processing Immediate Con- current Processing Online Processing Online Processing Req’d No No No No No No No These profiles are updateable at all levels: Inventory Setup
  • 40. CompanyConfidential 40 Profile Option TP:INV: Server Side Online Processing INV: CCEOI Commit Point INV: Override Negative Qty for Backflush INV: Order Transact Form INV: Purchasing by Revision INV: Debug Trace INV: Debug File (Include complete path) Default Concurrent Processing No Default No Online Processing Yes No Default No Default Req’d No Yes No No No Yes Yes These profiles are updateable at all levels: Inventory Setup
  • 41. CompanyConfidential 41 Inventory Setup Profile Option INV: FIFO for Original Receipt Date INV: Debug Level INV: Detail Serial Numbers Default No No Default No Req’d No Yes No These profiles are updateable at all levels:
  • 42. CompanyConfidential 42 Profile Option INV: Accounting Category Set INV: Capable to Promise INV: External ATP INV: Use Catalog Name in Item Desc. INV: Minimum Number of Quantity Trees INV: CCEOI Workers INV: Detect Truncation on UOM Conversn Default No Default No Default No Default No 500 No Default No Default Req’d Yes Yes Yes No No Yes Yes These profiles are updateable only at the Site level: Inventory Setup
  • 43. CompanyConfidential 43 Inventory Setup Organization Setup  Before using Oracle Inventory, one or more organizations need to be defined. Organizations represent distinct entities in a company and can include separate manufacturing facilities, warehouses, distribution centers, and branch offices.  Organizations can be classified and connected to model the overall enterprise structure. The classifications include: - Business Groups - Legal Entities (LE) / Government Reporting Entities (GRE) - Operating Units - Inventory Organizations
  • 44. CompanyConfidential 44 Inventory Setup Organization Setup  (N)> Inventory>Setup>Organizations>Locations physical locations of Employees and Organizations. Locations are shared between Inventory, Purchasing and Human Resources. Each organization can be associated with only one location. One or more organizations can be associated with the same location Flagged as global, locations are available to all Business Groups
  • 45. CompanyConfidential 45 Inventory Setup Organization Setup  (N)>setup>Organizations> Organizations organization classification is used to describe the general purpose of organization. Examples are Inventory Org, GRE / Legal Entity, and HR Organization. Inventory Organization classification is used for inventory management. Organization location field links a location to an organization to a location. This is a must for Legal Entity organizations
  • 46. CompanyConfidential 46 Inventory Setup Organization Setup  (N)>setup>Organizations> Organizations Link Between Organization & Legal entity/Set of Books & Operating Unit.
  • 47. CompanyConfidential 47 Inventory Setup Using an Item Master Organization Item Master Organization is usually the first Inventory organization that is set up. Its single purpose is for entering items. It has no subinventories and is not used for inventory transactions. Items are entered in an item master organization and then assigned to be used in child organizations. Child Organization is an inventory organization with at least one subinventory that is set up for processing inventory transactions. It is not used to enter items. It gets a list of items from the master.
  • 49. CompanyConfidential 49 Inventory Setup Organization Setup  (N)>setup>Organizations> Parameters This must be the first organization to be defined as this is a required field in parameters. Later it can be changed. There can be any number of Item masters in an instance but it is advised that there is only one item master unless absolutely necessary. Item master can be common across operating units, legal entity & SOB. It can be optionally common across business groups also. It is also advised that there are no transactions carried in an item master For forecasting, planning, available- to-promise analysis, or cycle counting, workday calendar must be defined. This calendar is entered in the parameters screen in order to be used by the above functions. When defining a calendar system assumes a workday pattern that includes all days, between the start and end dates unless specified.
  • 50. CompanyConfidential 50 Inventory Setup Organization Setup  (N)>setup>Organizations> Parameters Decides Whether the inventory balance in the organization can go below zero. If enabled ,does allow the inventory to go below zero. Locator control option determines at which level the locator is controlled. Options are None, Pre specified, Dynamic & Controlled at subinventory
  • 51. CompanyConfidential 51 Inventory Setup Organization Setup  (N)>setup>Organizations> Parameters Costing organization determines which is the costing organization for the organization in question. However for an average costing organization the costing organization is the same organization i.e. the costs cannot be shared. Determines the costing method used in the organization. Options are Standard costing, Average costing, FIFO & LIFO Valuation accounts for the organization. Once any transaction takes place in an organization ,these accounts cannot be changed in an Average costing scenario. Indicate whether all transactions are posted in detail or summary to the general ledger.
  • 52. CompanyConfidential 52 Inventory Setup Organization Setup  (N)>setup>Organizations> Parameters Enforces unique lot numbers across items, if set. The options are Across items & None option for lot number generation. It can be generated at item level, org level or User defined option for serial number uniqueness. Options are Within organization, Within inventory & items Across organizations Can be generated at org level or at item level
  • 53. CompanyConfidential 53 Inventory Setup Organization Access This setup controls access to organizations based on the user responsibility assigned to a user by the system administrator. If implemented for one user responsibility, it is then required for all other user responsibilities accessing the same organization.
  • 54. CompanyConfidential 54 Inventory Setup Organization Setup Organization Subinventory Locator Inventory Organizations are made up of one or more subinventories which can be made up of one or more locators
  • 55. CompanyConfidential 55 Inventory Setup Subinventory set up A subinventory is a physical or logical grouping of inventory, such as raw material, finished goods, defective material, or a freezer compartment. The subinventory is the primary place where items are physically stocked. A subinventory must be specified for every inventory transaction Subinventories can be further divided into areas designated as locators.
  • 56. CompanyConfidential 56 Inventory Setup Subinventory set up (N) INV> Setup>Organizations>Subinventories Indicates whether to include items in this subinventory in ATP calculations. Indicates whether to maintain the value of this subinventory on the balance sheet Indicates whether each transaction for this subinventory updates the quantity on hand for the subinventory Indicates whether to include this subinventory while performing available to reserve calculations.
  • 57. CompanyConfidential 57 Inventory Setup Subinventory set up (N) INV> Setup>Organizations>Subinventories Indicate whether the planning process uses the on–hand balance of these subinventory items as available inventory Can only be selected if locator control is set as Determined at subinventory level in the Organization Parameters window indicates the priority with which items are picked from this subinventory, relative to another subinventory, where a given item resides.
  • 58. CompanyConfidential 58 Inventory Setup Subinventory set up (N) INV> Setup>Organizations>Subinventories These valuation accounts are used in a standard costing scenario. For average costing org, system picks up the accounts from org level
  • 59. CompanyConfidential 59 Inventory Setup Workday Calendar Workday calendar can be defined both in Inventory and Bills of Material. It defines which days are “ON” within an organization and which shifts are available to be worked. The workday calendar is the Oracle term for a manufacturing calendar. The workday calendar is separate from the Oracle General Ledger calendar. Each organization references a workday calendar.
  • 60. CompanyConfidential 60 Inventory Setup (N) INV> Setup>Organizations>Calendar Workday Calendar workday calendar consists of a start date, and end date, and on and off days that follow one or more defined workday patterns. A workday calendar can also include shift information and exception dates, such as holidays/scheduled down time. Workday exceptions identify deviations to the workday calendar. Shift exceptions identify deviations for a shift. Attention: Shift exceptions take precedence over workday exceptions. Note: Before using a calendar it must be built using tools>build option
  • 61. CompanyConfidential 61 Inventory Setup Units of Measure Units of measure (UOM) are defined for tracking/moving/storing & counting items. Each item defined in Inventory must have a primary UOM. Each transaction performed in Inventory must have a UOM associated with the transaction quantity and a conversion defined back to the primary UOM. Multiple related UOMs are grouped together in a class with a base unit of measure Inventory uses the base UOM to perform conversions between units of measure in each class and between two different unit of measure classes.
  • 62. CompanyConfidential 62 Define UOM classes Define multiple non base UOMs for each class Define intraclass conversions Define interclass conversions Define one base UOM for each UOM class Inventory Setup Perform the following steps to define multiple UOMs and set up conversions: Units of Measure
  • 63. CompanyConfidential 63 Inventory Setup Units of Measure Classes (N) Inventory>Setup>Units of Measure>Classes
  • 64. CompanyConfidential 64 Inventory Setup Units of Measure (UOM) A unit of measure (UOM) is a term used along with a numeric value, to specify the quantity of an item. For example, “each” is a unit of measure used to specify the number of units of an item. (N) Inventory>Setup>Units of Measure>Units of Measure
  • 65. CompanyConfidential 65 Inventory Setup Units of Measure Conversions unit of measure conversion is a mathematical relationship between two different units of measure. For example, 10 Kilograms = 1 Each, or 2.2 pounds = 1 kilogram. If items are transacted in UOM belonging to classes other than their primary UOM class, conversions between the base units of measure in different UOM classes must be defined (N) Inventory>Setup>Units of Measure>Conversions
  • 66. CompanyConfidential 66  Introduction to Oracle inventory management  Inventory Enterprise Structure  Inventory Setup  Creating and Maintaining Items  Inventory Controls  Inventory Transactions  Inventory Accuracy Control  Inventory Planning Agenda
  • 67. CompanyConfidential 67 Creating and Maintaining Items Setting up item Definition Define Items Choose Item Attribute Control Levels Define Categories and Category Sets Create Templates Define Statuses 3 Define Catalogs 1 2 Define Status Control Levels Define UOMs
  • 68. CompanyConfidential 68 Creating and Maintaining Items Item Attributes Item attributes are fields in the item table used to store specific characteristics of an item, such as item status, unit of measure, revision control, etc.. These can be controlled at either the master or the organization level. Attributes Controlled at the Master Level An item has the same value for such attributes in all organizations in which it is defined. Master-level attributes can be only updated by using the Master Item window.  Inventory reflects your changes in all organizations that carry the item.
  • 69. CompanyConfidential 69 Creating and Maintaining Items Item Attributes Attributes Controlled at the Organization Level An item may have different values for such attributes in each organization in which it is defined. When defining items in the item master, defaults for organization-level attributes can be specified. Values of organization-level attributes can be updated only by using the Organization Item form in each organization that carries the item.
  • 70. CompanyConfidential 70 Creating and Maintaining Items Item Attributes (N) Inventory>Setup>Items >Attribute Controls Control level can be determined using this field
  • 71. CompanyConfidential 71 Creating and Maintaining Items Status Attributes Each status attribute is dependent on at least one other attribute. For example Stockable attribute cannot be set to yes if Inventory Item attribute is set to No. Defaults Value: Value of this attribute defaults when assigning the status to an item. Can be changed. Not Used: Use neither default nor status control. Sets Value: Value of this attribute defaults when assigning the status to an item. Once assigned the default cannot be changed.
  • 72. CompanyConfidential 72 Creating and Maintaining Items Functional AreaFunctional Area FunctionalityFunctionality Stockable Purchasable Transactable Build in WIP Inventory Allows to store the item in an asset subinventory Inventory, Order Management, Purchasing, WIP Allows to transact the item Inventory, OM, PO and WIP Purchasing Allows to place the item on a purchase order Work in Process Allows to build the item on a discrete job and/or a repetitive schedule Status Attribute Status Attributes and Functionality
  • 73. CompanyConfidential 73 Creating and Maintaining Items Internal Orders Enabled BOM Allowed Customer Orders Enabled Invoice Enabled Functional AreaArea Functionality Order Management Inventory, Order Management, Purchasing Bills of Material Receivables Allows to create an invoice for the item Allows to create a bill of material for the item Allows to create an internal sales order for the item Allows to place the item on a sales order Status Attribute Status Attributes and Functionality
  • 74. CompanyConfidential 74 Creating and Maintaining Items Item Status When defining an item, status must be given by using the Item Status attribute. The Item Status attribute has a user defined set of yes/no values for the status attributes. The values are applied to the status attributes when an item status code is chosen when defining an item. For example, in the beginning of a product development cycle Item Status attribute is set to Prototype with all of the status attributes defaulted to yes except for Customer Orders Enabled. When the item is ready the Item Status attribute is set to Active to allow all functions for the item.
  • 75. CompanyConfidential 75 Creating and Maintaining Items Item Status (N) Inventory>Setup>Items>Status Codes
  • 76. CompanyConfidential 76 Creating and Maintaining Items Item Attributes Status Control An unlimited number of status codes can be defined by the user. One or more of these status codes can be assigned to an Item for implementation on a future date. The status codes then automatically change on their user specified effectivity dates.
  • 77. CompanyConfidential 77 Creating and Maintaining Items Item Templates Templates are defined sets of attributes that can be used over and over to create many similar items. Templates make initial item definition easier and more consistent. Templates can be applied at any time after the item is created. Multiple templates can be applied to a single item. Templates can hold a complete set of attributes or a partial set. If a partial set, then only values stored in the template overwrite those on the item
  • 78. CompanyConfidential 78 Creating and Maintaining Items Item Templates Users can define their own templates or predefined templates include: ATO Model ATO Item Kit PTO Model Phantom Item Purchased Subassembly Freight ATO Option Class Finished Good Outside Processing Item PTO Option Class Planning Item Reference Item Supply Item Product Family
  • 79. CompanyConfidential 79 Creating and Maintaining Items Item Templates (N) Inventory>Setup>Items>Templates
  • 80. CompanyConfidential 80 Creating and Maintaining Items Item Categories A category is a logical classification of items that have similar characteristics. A category set is a distinct grouping scheme and consists of multiple categories. Some application modules, Inventory , for example require that all items are assigned to a category. The user specifies a default category for this purpose in each of these modules. Categories and category sets are used to group items for various reports and programs.
  • 81. CompanyConfidential 81 Creating and Maintaining Items Item Categories - Setup Define the Flexfield structures for the item categories Flexfield. Define categories. Define category sets and assign the categories to the sets. Each set can use a different Flexfield definition if required. Assign default category sets to each functional area, like Purchasing, Planning and Inventory Assign items to categories. An item can be assigned to only one category within a set.
  • 82. CompanyConfidential 82 Creating and Maintaining Items Item Categories - Define Categories (N) Inventory>Setup>items>Categories>Category Codes
  • 83. CompanyConfidential 83 Creating and Maintaining Items Item Categories - Define Category sets (N) Inventory>Setup>items>Categories>Category sets Category is assigned to category set from here. This option should only be enabled for user defined category sets. Functional category sets cannot have same item with multiple categories within itself.
  • 84. CompanyConfidential 84 Creating and Maintaining Items Item Categories - Assign items to Categories (N) Inventory>Setup>items>Categories>Category sets>Assign
  • 85. CompanyConfidential 85 Creating and Maintaining Items Defining Items With the Master Item window, items and the attributes associated with them (such as description, unit of measure or lot control) can be defined and updated. Much of the information for an item is optional. Only the information needed to maintain the item are defined. An item cannot be defined at the Organizational level. Oracle will automatically switch to the Master Item window when defining a new item.
  • 86. CompanyConfidential 86 Creating and Maintaining Items Defining Items An item is a part or service that is purchased, sold, planned, manufactured, stocked, distributed, or prototyped. The following Modules use items: Items Lead Time Attributes Inventory Attributes Invoicing Attributes MRP/MPS Attributes Costing Attributes Bills of Material Attributes Order Management Attributes Purchasing Attributes Planning Attributes Work in Process Attributes Receiving Attributes Service Attributes
  • 87. CompanyConfidential 87 Creating and Maintaining Items Copy items Enter attribute values Enable in child organizations Update organization level attributes Define item costs Copy templates 1 Steps to Setup, Define and Maintain items
  • 88. CompanyConfidential 88 Creating and Maintaining Items Master Item vs. Organizational Item Whether an item attribute is defined/maintained at the Master level or the Organization level can be designated. Attributes at the Master level are the same across all organizations that the item is assigned to. If an attribute is maintained at the Organization level, it can have different values in each organization the item is assigned. Some attributes can be maintained at only the Master level or the Organizational Level. Unit of Measure should be maintained at the Master level. Min-Max should be maintained at the organizational level if multiple organizations are used.
  • 89. CompanyConfidential 89 Creating and Maintaining Items Organization Assignment and Organization Item Item can be enabled in all child organizations under master organization or child organizations where the item to be used is chosen. Inventory propagates item to all organizations in which the item is to be defined. Organizational attributes for item attributes which are enabled in that organization, can be entered or changed which are enabled in that organization. For example, go to an organization to choose reorder point planning for an item, and then go to another organization and choose Min-Max planning for the same item.
  • 90. CompanyConfidential 90 Creating and Maintaining Items Defining Items (N) Inventory>Items>Master Items
  • 91. CompanyConfidential 91 Creating and Maintaining Items Defining Items Organization Assignment
  • 92. CompanyConfidential 92 Creating and Maintaining Items Defining Item Relationships The following types of relationships can be defined for items: Item cross-references Substitute items Related items Manufacturer part numbers Customer item numbers Relationships between items can be defined to improve purchasing management and item searching capabilities. Substitute items can be received in Oracle Purchasing.
  • 93. CompanyConfidential 93 Creating and Maintaining Items Defining Item Relationships (N) Inventory>Items>Item Relationships
  • 94. CompanyConfidential 94 Creating and Maintaining Items Cross–reference types Cross–reference types define relationships between items and entities such as old item numbers or supplier item numbers. For example, a cross–reference type Old can be created to track the old item numbers , and a cross-reference type Supplier to track supplier part numbers. multiple cross-reference types can be assigned to a single item.
  • 95. CompanyConfidential 95 Creating and Maintaining Items Cross–reference types (N) Inventory>Items>Cross References
  • 96. CompanyConfidential 96 Creating and Maintaining Items Customer Items (N) Inventory>Items>Customer Items>Customer Items Allows the entry of customer part numbers and the customer(s) they are associated with. These items can also be associated with commodity codes and container types
  • 97. CompanyConfidential 97 Creating and Maintaining Items Customer Item Cross References (N) Inventory>Items>Customer Items>Customer Items Used to define cross references between inventory items and the customer items defined above.
  • 98. CompanyConfidential 98  Introduction to Oracle inventory management  Inventory Enterprise Structure  Inventory Setup  Creating and Maintaining Items  Inventory Controls  Inventory Transactions  Inventory Accuracy Control  Inventory Planning Agenda
  • 99. CompanyConfidential 99 Inventory Controls With Inventory locator, revision, lot and serial number control can be implemented Flexibility: - Inventory controls are optional for all items. - any combination of the four controls (locator, revision, lot and serial number) for each item can be implemented. Overview
  • 100. CompanyConfidential 100 Inventory Controls Locators are optional structures within subinventories. Locators are the third level in the enterprise structuring scheme of Oracle Inventory . Locators may represent rows, aisles, or bins in warehouses. Items can be received directly into and shipped items directly from locators. Locator setup
  • 101. CompanyConfidential 101 Inventory Controls (N) INV> Setup>Organizations>Subinventories Locator setup Indicates the priority for picking items from this locator relative to another locator.Subinventory to which the locator belongs
  • 102. CompanyConfidential 102 Inventory Controls A revision is a particular version of an item, bill of material, or routing. By using the ‘Revision control’ option while defining items item quantities can be tracked by item revision. To do so a revision is a must for each material transaction. Revision control is enabled for items for which version changes or changes that are significant enough to track but are not affecting the function and feature of the item are tracked .  Revision Control item attribute cannot be changed when an item has quantity on hand. Revision Control
  • 103. CompanyConfidential 103 Inventory Controls When defining Revision numbers letters, numbers and characters such as A, A1, 2B, etc can be used. Letters are always in upper case and numbers may include decimals. To ensure that revisions sort properly, decimals should always be followed by a number. Revisions are sorted according to ASCII rules. Each revision must be greater than the previous revision. For example, revision 10 cannot be used after revision 9 because, according to ASCII sorting, 10 precedes 9. Revision Control
  • 104. CompanyConfidential 104 Inventory Controls  Inventory provides complete lot number support for inventory transactions. A lot identifies a specific batch of an item that is received and stored in an organization. Lot control is a technique for enforcing the use of lot numbers during material transactions, thus enabling the tracking of batches of items throughout their movement in and out of inventory. If Lot Control is turned on for an item, the lot number must be indicated to perform a transaction. Lot Control
  • 105. CompanyConfidential 105 Inventory Controls Lot Control must be turned on at the item level. lot numbers must be assigned whenever items under lot control are received into inventory. An inventory receipt can be split in to several lots, as necessary. Quantities can be added to existing lot numbers. Inventory will generate default lot numbers by using the default lot number generation method which is configured in the Organization Parameters window during setup. Lot Control
  • 106. CompanyConfidential 106 Inventory Controls Lot can have an expiration date by assigning a number of lot control shelf life days or by entering a lot expiration date. The expiration date controls the availability of the lot for transacting and planning purposes. Lot Control
  • 107. CompanyConfidential 107 Inventory Controls An Expired Lot: is not considered as on-hand supply when performing min- max, reorder point or MRP planning calculations. cannot be reserved for a date beyond the expiration date. can be transacted and is included in on-hand quantities. is included in all inquiries and reports. is included in a cycle count and count entry and adjustments are allowed. is included in a physical inventory and tag entry and adjustments are allowed. Lot Control
  • 108. CompanyConfidential 108 Inventory Controls Disabled Lots: Disabling a lot only prevents it from appearing in a list of values when performing receipt transactions. Lot Control
  • 109. CompanyConfidential 109 Inventory Controls A Disabled Lot: is included in available to transact, available to promise and available to reserve calculations. is included as on-hand supply when performing min-max, reorder point or MRP planning calculations. is included as on-hand in all inquiries and reports, including inventory valuation reports. can be transacted with Inventory functions and the Transaction Open Interface. can be reserved. Lot Control
  • 110. CompanyConfidential 110 Inventory Controls A serial number is an alphanumeric piece of information assigned to an individual unit of an item. A serialized unit is a combination of an item number and a serial number. Individual units of items can be tracked by using serial numbers. Serial number control is a system technique for enforcing the use of serial numbers during a material transaction. Serial numbers can be used to track items over which a very tight control is to be maintained. One serial number per unit of an item can be assigned Serial Control
  • 111. CompanyConfidential 111 Inventory Controls Generating Serial Numbers Depending on how Serial Number Control is set at the Master Item level will determine how serial numbers are generated. If No Control is specified as the serial number control type, no serial number control will be enforced. If Predefined is specified as the serial number control type, serial numbers for that item must be predefined. If control At inventory receipt or At sales order issue, optionally serial numbers for the item can be predefined. Serial Control
  • 112. CompanyConfidential 112 Inventory Controls Generating Serial Numbers Inventory uses the starting serial number prefix and the starting serial number specified in the Item screen . The process of generating serial numbers is done through a concurrent report. This does not assign numbers to units in inventory, it simply reserves serial numbers for an item, for later use. Serial Control
  • 113. CompanyConfidential 113  Introduction to Oracle inventory management  Inventory Enterprise Structure  Inventory Setup  Creating and Maintaining Items  Inventory Controls  Inventory Transactions  Inventory Accuracy Control  Inventory Planning Agenda
  • 114. CompanyConfidential 114 nventory Transactions  Understanding of Transaction Types  Overview of Inventory Transactions  Miscellaneous Transactions  Subinventory Transfer  Inter Organization Transfer  Receipts  Move Orders Overview
  • 115. CompanyConfidential 115 A transaction type is the combination of a transaction source type and a transaction action. It is used to classify a particular transaction for reporting and querying purposes. Transaction Source Type Transaction Type Transaction Action nventory Transactions
  • 116. CompanyConfidential 116 System Defined Transaction Types System defined transaction type codes for different inventory transactions. Each transaction type is linked to source type and action nventory Transactions
  • 117. CompanyConfidential 117 Use user defined terminology to define transaction type. The transaction type can be only linked to pre seeded values of source type and action User Defined Transaction Types nventory Transactions
  • 118. CompanyConfidential 118 Types of Inventory Transactions  Miscellaneous Transactions- This transaction is used to do adjustments in stock due to damage, obsolescence, issuing items for R & D or issuing track able expense items.  Subinventory Transfer- This transaction is used to transfer goods from one stockroom to another with in the same inventory organization.  Inter ORG Transfers- This transaction is used to transfer goods from one inventory organization to another. nventory Transactions
  • 119. CompanyConfidential 119 Types of Inventory Transactions  Receiving Transactions- This transaction is used to move goods from receiving dock to specified subinventory and locator.  Sales Issue- This transaction is used to move goods from pick subinventory to staged subinventory.  WIP Issue- This transaction is used to issue materials against production orders. nventory Transactions
  • 121. CompanyConfidential 121 Select the transaction type Account for passing adjustment transactions If you want to enter transaction line by serial number for serialized item check this box Miscellaneous Transactions nventory Transactions
  • 122. CompanyConfidential 122  Initial loading of item on-hand quantities when you start implementing Oracle Inventory  Scrapping items by issuing them to expense accounts denoting scrap  Issuing items to individuals, departments, or projects  Receiving items that were acquired by assorted means (without purchase orders)  Entering adjustments and corrections to system quantities due to theft, vandalism, loss, shelf-life expiration, or inaccurate record keeping nventory Transactions
  • 123. CompanyConfidential 123 Enter the quantity to be adjusted Lot or serial number can be entered if item is a serial controlled or Lot Controlled Miscellaneous Transactions - Transaction Lines nventory Transactions
  • 124. CompanyConfidential 124  Use the Subinventory transfer window to: Transfer material within your current organization between subinventories, or between two locators within the same subinventory Subinventory transfer nventory Transactions
  • 125. CompanyConfidential 125 The type can be Subinventory transfer to transfer from one subinventory to another or any of the user defined transaction type for source inventory & action subinventory transfer Subinventory Transfer nventory Transactions
  • 126. CompanyConfidential 126 Subinventory Transfer Transaction Lines Enter source subinventory Enter destination subinventory Enter Quantity Saving the record will complete the transaction. nventory Transactions
  • 127. CompanyConfidential 127 • We can perform inter–organization transfers as direct or in transit shipments. Goods thathavedepartedfromthe dispatch , loading ,or shipping pointbuthavenotyetarrivedatthe receipt , offloading ,or deliverypoint .Alsocalled intransit inventory orstock intransit . We can transfer one or more items in a single transaction. We can also transfer partial quantities of the same item to different subinventories and locators in a single transaction. • We can also transfer expense and asset items from one organization to another using in transit inventory Inter Org Transfer nventory Transactions
  • 128. CompanyConfidential 128 Pune Organization Mumbai Organization Delhi Organization Pune Organization Use IntransitUse Intransit InventoryInventory (FOB = Receiving)(FOB = Receiving) Austin Organization RequireRequire Internal OrderInternal Order to Shipto Ship Use IntransitUse Intransit InventoryInventory (FOB = Shipping)(FOB = Shipping) DirectDirect TransferTransfer You need to define shipping network before doing inter organization transfer Inter Org Transfer nventory Transactions
  • 129. CompanyConfidential 129 Direct Inter–organization Transfers  We can use a direct inter–organization transfer to move inventory directly from a shipping organization to a destination organization.  The validity of a transfer transaction depends on the controls we have defined in both the shipping and destination organizations for the items we want to transfer. Inter Org Transfer nventory Transactions
  • 130. CompanyConfidential 130 Inter–Organization Transfers via Intransit Inventory We usually transfer material to intransit inventory when transportation time is significant. When we perform the transfer transaction, we do not need to specify the delivery location. We only need to enter the subinventory we are shipping from, a shipment number, the freight information, and, depending on the inter–organization transfer charge that applies between the organizations, a percentage of the transaction value or a discrete amount that Oracle Inventory uses to compute transfer charges. Inter Org Transfer nventory Transactions
  • 131. CompanyConfidential 131 Inter Org Transfer Shipping Network Select Transfer type as Intransit or Direct Enter FOB as receipt or shipment to identify who owns the inventory after shipment has been made Check this box if internal order is required nventory Transactions
  • 132. CompanyConfidential 132 There are three options for transfer charge. Predefined % of transaction value. The % is maintained here. The other two options are requested % or requested value. In this case value is mentioned at the time of entering Inter ORG transaction Inter Org Transfer Shipping Network nventory Transactions
  • 133. CompanyConfidential 133 Enter the accounts for transfer credit and PPV if destination organization uses standard cost On these form maintain Inter ORG receivable and payable account Inter Org Transfer Shipping Network nventory Transactions
  • 134. CompanyConfidential 134 Enter Source & Destination Organization Select type as Intransit or Direct shipment Enter the order number Inter Org Transfer - In transit nventory Transactions
  • 135. CompanyConfidential 135 Subinventory in the shipping organization Subinventory in the receiving organization nventory Transactions
  • 136. CompanyConfidential 136 As transaction type in Inter ORG order was in transit shipment, the inventory is shown in transit after shipping Note: Receiving for Inter ORG orders will be covered as a part of receiving transactions nventory Transactions
  • 137. CompanyConfidential 137 Type of Receipt Transactions  Receive both internally and externally sourced shipments  Process unordered receipts  Receive substitute items  Inspect items for quality control and invoice matching needs  Correct transaction errors  Receive returned items into invento  Return delivered items to receiving Note: As part of inventory training only standard receiving transaction will be covered with receipt routing as Direct Delivery Receipts nventory Transactions
  • 138. CompanyConfidential 138 Use the Find Expected Receipts window to: Find source documents for which you can enter receipts. Use the Supplier and Internal tabbed region to search for Purchasing documents. Receipts nventory Transactions
  • 139. CompanyConfidential 139 Use the Receipt Header window to enter header information for all types of receipts. Enter packing slip number Enter other information like shipped date, number of containers etc. Receipts nventory Transactions
  • 140. CompanyConfidential 140 Use the Receipts window to enter receipt line information. Enter the receipt quantity Default subinventory from PO. It can be overridden As routing is direct receipt, the inventory is delivered on saving the transaction Receipts nventory Transactions
  • 141. CompanyConfidential 141 Overview Of Move Orders •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. Move Orders nventory Transactions
  • 142. CompanyConfidential 142 Move Order Requisition • Account Transfer • Subinventory Transfer • Manually Generated • Optional Approval Processing Replenishment Move Orders • Kanban • Min Max • Replenishment • Count • Automatically Generated • Pre-approved • Ready for Transaction Move Order Type Transaction Type Generation & Approval Pick Wave Move Orders Sales Order Pick Internal Order Pick • Pre approved • Print Pick Slip Move Orders nventory Transactions
  • 143. CompanyConfidential 143 Move Order Process Flow PickingPicking SourceSource locationlocation Destination location Put awayPut away PickPick TicketTicket Move order locatesMove order locates material sourcesmaterial sources In case of shortageIn case of shortage move ordermove order can be re-plannedcan be re-planned Move orderMove order requisitionrequisition createdcreated ApproveApprove movemove orderorder nventory Transactions
  • 144. CompanyConfidential 144 Move Order Header Default source subinventory for move order Select Transaction Type nventory Transactions
  • 145. CompanyConfidential 145 Move Order Lines Enter Item and for transfer Default transaction type from header. It can be overridden Quantity to be transferred nventory Transactions
  • 146. CompanyConfidential 146 Move Order Allocation Press Allocate to generate reservation from source subinventory to destination subinventory After allocation reservation can be viewed and updated manually if required. nventory Transactions
  • 147. CompanyConfidential 147 Transact Move Orders Print Pick List for Picker Press Transact to move the inventory from source to destination subinventory nventory Transactions
  • 148. CompanyConfidential 148  Introduction to Oracle inventory management  Inventory Enterprise Structure  Inventory Setup  Creating and Maintaining Items  Inventory Controls  Inventory Transactions  Inventory Accuracy Control  Inventory Planning Agenda
  • 149. CompanyConfidential 149 nventory Accuracy Control  Cycle Counting Cycle counting is the periodic counting of individual items throughout the year. Count items of higher value more frequently than items of lower value. The differences between the system quantity and counted quantity are adjusted to correct the system quantity and inventory value in the system.  Physical inventory A physical inventory is a periodic reconciliation of system on- hand balances with physical counts in inventory. It is normally done once in a year as a part of financial auditing requirement to verify inventory assets on balance sheet. Production is stopped at the time of carrying out this activity.
  • 150. CompanyConfidential 150 Define cycle count header Update cycle-count items Schedule items to count Generate count requests Enter cycle counts Approve cycle counts ABC Classification of items Cycle Counting nventory Accuracy Control
  • 151. CompanyConfidential 151 ABC Analysis •ABC analysis is a method of determining the relative value of items in your inventory sites. • An ABC analysis involves ranking your items according to a criterion and then grouping items into classes. ABC Classification nventory Accuracy Control
  • 152. CompanyConfidential 152 Define ABC group Assign items to ABC classes Update class assignments Purge ABC information Define ABC compilation Define ABC classes ABC Analysis ABC Classification nventory Accuracy Control
  • 153. CompanyConfidential 153 ABC Compilation Criterion for categorizing your items in Organization. It can be based on current value or historical usage value Cost type to pick up the unit cost of items in compile set Press Compile to generate compile results ABC Classification nventory Accuracy Control
  • 154. CompanyConfidential 154 ABC Compilation- Descending Value Report ABC Classification nventory Accuracy Control
  • 155. CompanyConfidential 155 Use ABC classes to identify the value groupings to which items belong.  Define these classes using own terminology. For example, you might define classes High value, Medium value, Low value.  Assign items of highest rank to the High class, those of lower rank to the Medium class and those of lowest rank to the Low class.  Can use ABC classes to group items for a cycle count where you count “A” items more frequently than “B” items. ABC Classification nventory Accuracy Control
  • 156. CompanyConfidential 156 ABC Classes Define class names for your ABC Classification purpose ABC Classification nventory Accuracy Control
  • 157. CompanyConfidential 157 Define ABC Assignment Group Define Group name to link compile class and set of ABC Classes defined ABC Classification nventory Accuracy Control
  • 158. CompanyConfidential 158 Link ABC Classes to ABC assignment group Give a priority to all classes. The class with lowest priority is assumed to have the highest rank. Define ABC Assignment Group ABC Classification nventory Accuracy Control
  • 159. CompanyConfidential 159 ABC Item Assignments Choose the sequence value from ABC descending value report to assign a range of items to class Shows % of total items and % of total value assigned to a specific class with in an Organization ABC Classification nventory Accuracy Control
  • 160. CompanyConfidential 160 Updating Item Assignments ABC assignments generated automatically by assigning cut off sequence numbers for each class. If required classes can be changed manually ABC Classification nventory Accuracy Control
  • 161. CompanyConfidential 161 Maintain Cycle Count Adjustment account to store variance amount by which inventory is adjusted If automatic recount required for out of tolerance items If items not scheduled for counting to be included Cycle Counting nventory Accuracy Control
  • 162. CompanyConfidential 162 Maintain Cycle Count Cycle counting to be allowed for serialized items or not. If allowed will there be multiple serial numbers per request or one serial number per request What Details to be printed. Quantity only or quantity with serial numbers Scheduling daily or weekly or by periods Cycle Counting nventory Accuracy Control
  • 163. CompanyConfidential 163 Maintain Cycle Count Header Tolerances set by quantity, value and hot/miss analysis ABC group lined for identifying item classes Use this option as re-initialization to upload items for the first time from ABC group. Make it to update to add new items added in ABC group to cycle count items Cycle Counting nventory Accuracy Control
  • 164. CompanyConfidential 164 Cycle Count Classes Mentions the numbers of times the item to be counted in a year Cycle count class specific tolerances can be maintained here. If it is not maintained here it is taken from cycle count header Cycle Counting nventory Accuracy Control
  • 165. CompanyConfidential 165 Cycle Count Items Cycle count classes and item generated from ABC initialization at the time of linking cycle count to ABC group Item specific quantity tolerance can be maintained here Cycle Counting nventory Accuracy Control
  • 166. CompanyConfidential 166 Schedule Cycle Count Automatic Scheduling Oracle inventory uses the number of items in each cycle count class, the frequency of each class, and the workday calendar of your organization to determine how many and which items you need to count during the scheduling frequency.  Manual Scheduling You can manually schedule counts in addition to or instead of those generated with automatic scheduling. Cycle Counting nventory Accuracy Control
  • 167. CompanyConfidential 167 Generate Cycle Count Request Cycle count Scheduler for automatic scheduling Generate Cycle count request to generate cycle count entries Cycle Counting nventory Accuracy Control
  • 168. CompanyConfidential 168 Cycle Counting List Report Print this report to show items scheduled for cycle counting in a specific period. This report is given to people who physically count items Cycle Counting Inventory Accuracy Control
  • 169. CompanyConfidential 169 Cycle Count Entries Enter the quantity counted at the locator in the warehouse Cycle Counting Inventory Accuracy Control
  • 170. CompanyConfidential 170 Approve Cycle Count Approve cycle count entries that are out of tolerance. The entries with variance with in tolerance will be approved by system. Cycle Counting Inventory Accuracy Control
  • 171. CompanyConfidential 171 Cycle Count Entries and Adjustments Report: This report shows all cycle count entries for a specified time period. It analyzes the number of cycle count transactions you make against an item, and the number of units you actually adjust. The report also calculates the value, in your functional currency, of the adjustments to inventory. Cycle Counting Inventory Accuracy Control
  • 172. CompanyConfidential 172 Inventory Accuracy Control Define physical inventory Take snapshot of on-hand quantities Generate tags Count items Enter counts Void tags Approve counts Run adjustment program Purge physical inventory Physical Inventory
  • 173. CompanyConfidential 173 Inventory Accuracy Control Define Physical Inventory Set the option for approval of physical inventory tags Tolerances for Quantity and value Click snapshot to generate the snapshot of inventory on hand for count subinventories Use this option when tags are generated outside oracle inventory Physical Inventory
  • 174. CompanyConfidential 174 Inventory Accuracy Control Generate Tags You can generate blank tags for stock points not recorded in your system Generates a unique tag for each unique combination of item, sub inventory, locator, revision, lot, serial number Starting tag number and in what order you want to increment to generate the next tag number Physical Inventory
  • 175. CompanyConfidential 175 Inventory Accuracy Control Physical Inventory Tags Counts Enter the quantity physically counted at specific location with in the warehouse You can void a tag if damaged or lost. If default tag is void it sets the inventory to zero for that SKU Physical Inventory
  • 176. CompanyConfidential 176 Inventory Accuracy Control Approve Counts Approval option- Always the system requires approval of all counts entered. You must approve or reject each adjustment before running the physical adjustments program. After the system adjusts all the approved counts the status of the adjustment changes to ‘Posted Approval option If Out of Tolerance the system requires approval of all adjustments exceeding the tolerances entered in the physical inventory definition. You must accept or reject each of these adjustments before running the physical inventory adjustments program. After the system adjusts all the approved counts the status of the adjustment changes to ‘Posted’. Physical Inventory
  • 177. CompanyConfidential 177 Inventory Accuracy Control Approve Counts Approve or reject the count Physical Inventory
  • 178. CompanyConfidential 178 Inventory Accuracy Control Perform Physical Inventory Adjustments The system performs adjustments by creating a material transaction for the +/- quantity of the adjustment.  Once adjustment program is run the system does not allow a new tag generation or any further updates to the tag counts. You must approve or reject all adjustments or the system will not run the adjustments program. Tag quantities, adjustment quantities, and adjustment values can be reported before performing the adjustments. You can use the adjustment report to authorize approvals or request recounts of items with large pending adjustments. Physical Inventory
  • 179. CompanyConfidential 179 Inventory Accuracy Control Perform Physical Inventory Adjustments Account for passing transactions due to variance in system and counted quantity Physical Inventory
  • 180. CompanyConfidential 180 Inventory Accuracy Control Purge Physical Inventory Purging tags only: You can purge all tags associated with a physical inventory definition. If irreversible mistakes are made in the count- entry phase, you can start over without refreezing your inventory. Purging All Information You can purge the physical inventory definition, frozen quantities, tags and count quantities. This purge deletes adjustments but not the adjustment material transactions. Physical Inventory
  • 181. CompanyConfidential 181 Inventory Planning  Performing reorder-point planning  Performing Min-Max planning  Subinventory replenishment planning  Creating and executing Kanban cards Planning methods:
  • 182. CompanyConfidential 182 Min-max planning is a method of determining when and how much to order based on user-defined minimum and maximum inventory levels. In Oracle Inventory you can perform min-max planning at two levels: Organization: To perform organization-level min-max planning for an item, you must specify organization-level minimum and maximum quantities. Subinventory: To perform subinventory-level min-max planning for an item, you must specify subinventory-level minimum and maximum quantities. Inventory Planning MIN MAX Planning
  • 183. CompanyConfidential 183 1 . 0 D e fin e P la n n in g a tt r ib u t e s f o r M in - M a x p la n n e d it e m s a t O r g le v e l M in - M a x P la n n in g a t O r g o r S u b in v e n t o r y le v e l? 2 . 0 R u n M i n - M a x P la n n in g R e p o r t a t O r g le v e l 3 .0 D e f in e P la n n in g a tt r ib u te s f o r M in - M a x p la n n e d it e m s a t S u b I n v le v e l 4 . 0 R u n M in - M a x P la n n in g R e p o r t a t S u b I n v le v e l A A u t o R e p le n is h - m e n t ? M in - M a x r e p o r t O r g N o I t e m A v a ila b le q u a n t it y b e lo w M in q u a n t it y ? A S to p Y e s N o Y e s M a k e o r B u y ? S o u r c e ? B u y 7 . 0 C r e a t e U n r e le a s e d J o b M a k e 5 .0 C r e a te P u r c h a s e R e q u is it io n s S u p p lie r In t e r n a l S u p p lie r 6 .0 C r e a te I n te r n a l R e q u is it i o n s 6 . 1 C r e a t e In t e r n a l R e q u is it io n s Inventory Planning MIN MAX Planning
  • 184. CompanyConfidential 184 Inventory Planning Enter minimum quantity Enter maximum quantity Enter fixed lot increments Enter minimum order quantity Enter maximum order quantityRun min-max report YesYes NoNo Do you want specific lot increments? Determine minimum and maximum quantities MIN MAX Planning
  • 185. CompanyConfidential 185 Inventory Planning The following equation represents when you should order: Quantity Available= Min QTY- on hand quantity + quantity on order If Quantity Available is>0, the order should be placed Order quantity = (maximum quantity) - [(on-hand quantity) + (quantity on order) ] You can constrain the order quantity by specifying the following order modifiers for an item:  Fixed lot multiplier  Minimum order quantity  Maximum order quantity
  • 186. CompanyConfidential 186 Inventory Planning Enter item planning attributes. Define subinventory- level min-max information (optional). Run the Min-max report. MIN MAX Planning
  • 187. CompanyConfidential 187 Enter the following: •Min-max minimum quantity •Min-max maximum quantity •Fixed-lot-size multiplier •Minimum order quantity •Maximum order quantity Specify a planning level (either Organization or Subinventory). Set up the appropriate profile value for requisition approval. Select an Inventory Planning method. Inventory Planning MIN MAX Planning
  • 188. CompanyConfidential 188 Inventory Planning Enter the minimum and maximum quantity Enter the planning method as Min Max Planning Enter the source type as supplier if you want to generate purchase requisitions. Enter subinventory or organization if you want to generate move orders MIN MAX Planning
  • 189. CompanyConfidential 189 Inventory Planning Min Max Report Planning level can be organization or subinventory. If it is subinventory the min max quantity should have been maintained at subinventory level Demand cut off date for demand calculation MIN MAX Planning
  • 190. CompanyConfidential 190 Inventory Planning What are the different sources of supply to be considered for calculation of quantity available The program includes nettable subinventory as supply. In order to include non nettable subinventory make it yes If you don’t want to generate orders keep the option as No. it will print report for all those items where quantity available is less than Min Quantity MIN MAX Planning
  • 191. CompanyConfidential 191 Oracle Inventory ProcessesOracle Inventory Processes Oracle Purchasing ProcessesOracle Purchasing Processes Run Order Import Oracle Order Entry ProcessesOracle Order Entry Processes Min-Max Planning Reorder-Point Planning Subinventory Replenishment Populate Requisition Interface Run Req. Import Create Purchase Requisition Create Purchase Order Create Internal Requisition Create Internal Order Kanban Inventory Planning
  • 192. CompanyConfidential 192 Inventory Planning  Reorder-point planning is a method of determining the size and timing of item replenishment orders.  Reorder-point planning uses the following pieces of information: Safety stock Replenishment lead time item demand Order cost Carrying cost Reorder-point planning
  • 193. CompanyConfidential 193 QuantityQuantity TimeTime Reorder PointReorder Point Safety StockSafety Stock Inventory Planning Reorder-point planning
  • 194. CompanyConfidential 194 Inventory Planning  You can perform-reorder point planning for the entire organization.  You can use Reorder-point planning for items under independent demand.  You can specify Reorder-point planning as the inventory planning method when you define an item.  You can use Reorder-point planning for items that you do not need to control very tightly and that are not very expensive to carry in inventory. Reorder-point planning
  • 195. CompanyConfidential 195 Inventory Planning Enter item planning attributes. Define safety stocks. Forecast Item Demand Run Reorder-point report. Reorder Point Planning Steps Forecast item demand Reorder-point planning
  • 196. CompanyConfidential 196 Inventory Planning Item Planning Attributes Specify a maximum- order quantity. Enter a carrying cost percent. Select Reorder-point as the inventory planning method. Enter an order cost. Specify a fixed-lot size multiplier. Specify a minimum- order quantity. Reorder-point planning
  • 197. CompanyConfidential 197 Inventory Planning Enter Lead Times Enter processing lead time. Enter preprocessing lead time. Enter postprocessing lead time. Reorder-point planning
  • 198. CompanyConfidential 198 Inventory Planning Item Planning Attributes Set your planning method Set your lead times on the lead time tab Safety Stock method Reorder-point planning
  • 199. CompanyConfidential 199 Inventory Planning You can select one of the following three safety stock calculation methods for each item:  User-defined quantity You can enter safety stock quantities and the date for which each quantity is effective. You can update safety stock quantities that you previously entered or that Oracle Inventory calculated for you. User-defined percentage To use the user-defined percentage method, you must use the Reload Safety Stock window and specify the following information for the item: A forecast A safety stock percent Reorder-point planning -Entering Safety Stock
  • 200. CompanyConfidential 200 Inventory Planning You can select one of the following three safety stock calculation methods for each item: Mean absolute deviation To calculate safety stock using this method, you submit a concurrent request using the Reload Safety Stock window. In this window, you must specify the following information: A forecast A service level percent safety stock = Z × 1.25 × (mean absolute deviation) where Z is the appropriate value from a table of standard normal distribution, corresponding to the service level. The mean absolute deviation is a measure of how the forecast demand deviates form the actual demand. Reorder-point planning -Entering Safety Stock
  • 201. CompanyConfidential 201 Inventory Planning Entering Safety Stock- User Defined User defined safety stock Enter a default item if multiple entries are to be maintained for the same item Reorder-point planning
  • 202. CompanyConfidential 202 Inventory Planning Entering Safety Stock Method as MAD or safety stock % If method is safety stock % enter safety stock %. F method is MAD enter service level Enter the forecast for MAD calculation Reorder-point planning
  • 203. CompanyConfidential 203 Inventory Planning Forecast Item Demand Choose a item that had a planning method as reorder point Define a forecast set for your forecasting scenario. With in your forecast set define your forecast name Reorder-point planning
  • 204. CompanyConfidential 204 Inventory Planning Forecast Item Demand Enter your forecast bucket. It can be daily, week or periods Enter the forecast quantity Reorder-point planning
  • 205. CompanyConfidential 205 Inventory Planning Reorder Point Program Give your demand supply and supply cut off date. Till this date your forecast will be taken for reorder point calculation Enter the forecast set to be used for EOQ and reorder point calculation Use this option as no if you don’t want to generate requisitions and want to generate report for items will quantity less than reorder point Reorder-point planning
  • 206. CompanyConfidential 206 Inventory Planning Reorder Point Program Mention what supply should be considered as availability for reorder point calculation Reorder-point planning