2. Objectives
โข Define Inventory Structures that correspond to your sites
โข Define and maintain item numbers
โข Implement controls to track items in your inventory
โข Record movement of items within your inventory structures
โข Check accuracy of on-hand quantities by performing physical
inventory and cycle counting
โข Perform inventory forecasting and planning
4. Overview
Oracle Inventory enables you to satisfy your company's business
needs, area such as
โข Defining part numbers
โข Modeling organization structures
โข Tracking perpetual inventory
โข Maintaining accurate on-hand balances
โข Planning material replenishments
โข Forecasting anticipated demand
7. Global Organization Architecture
KSA
Business Group
Jeddah
Operating Unit
Riyadh
Operating Unit
Company 1 & 2
Primary Ledger
Company 1
Legal Entity
Company 2
Legal Entity
Company 3
Legal Entity
Company 3
Legal Entity
Riyadh
Operating Unit
Inventory
Organization 1
Inventory
Organization 2
Locator 1 Locator 2
Inventory
Organization 2
Locator 2
Business Group:
Business group is the highest level in the Organization
Structure and is used for managing human resource
information. It can be setup to represent a consolidated
Enterprise or an Operating Company. There is no impact of
Business group on Accounting.
Ledger:
Ledger is a financial reporting entity, which represents the
core of a Companyโs financial records where every
transaction flows through. It provides balanced ledger
accounting for the accounting entity and serves as a
repository of financial information.
Legal Entity:
Legal Entity represents a legal company for which Fiscal
and Tax reports are prepared. A Legal Entity can Model to
an Enterprise, a Designated Legal unit which is recognized
by legal authorities in a country. Legal entity is a business
entity that is known to exist to the outside world.
Operating Unit:
An operating Unit represents a business unit in an
Enterprise which has a business need to secure transaction
data, Setups and Seed data. It can be a major division,
sales office, a department, or a separate company within an
enterprise.
8. Legal Organization
Your group may have many Legal Entities
Public
Company
Public
Company
Subsidiary
Company
(regional parent)
Subsidiary
Company
(business parent)
Subsidiary
Company
Subsidiary
Company
Subsidiary
Company
Subsidiary
Company
Subsidiary
Company
โข LEs pay the taxes
- need tax registrations
โข Trade between LEs
needs intercompany
โข LEs own the money
and bank accounts
โข LEs file the accounts,
take care of accounting
โข LEs comply with
whatever needs
compliance: โlegalโ in LE
Why ERP Cares
โข Parent companies (LEs) โown
or controlโ subsidiaries (LEs)
โข No โgroupโ entity
9. Oracle Inventory Integration with
Manufacturing Applications
Oracle
Purchasing
Oracle
Inventory
External
Systems
Oracle
WIP
Oracle Cost
Management
Oracle
Engineering Oracle Bills
of Material
Oracle Order
Management Oracle Master
Scheduling/MRP
Oracle
Flow Manufacturing
Oracle
Shipping
Oracle
Project Manufacturing
10. Inventory Enterprise Structure
โ Creating organization structures in inventory
โ Defining a unit of measure
โ Creating a workday calendar
11. Unit of Measure
Defining a unit of measure
โ A unit of measure (UOM) is a term that is used, with a numeric value, to
specify the quantity of an item. For example, โeachโ is a unit of measure
that you would use to specify the number of units of an item.
Defining a unit of measure class
โ A unit of measure class is a group of units of measure with similar
characteristics. For example, โweightโ can be a unit of measure class with
units of measure such as kilogram, gram, pound, and ounce.
Defining a unit of measure conversion
โ A unit of measure conversion is a mathematical relationship between two
different units of measure. For example, 16 ounces = 1 pound, or 2.2
pounds = 1 kilogram.
12. Organization Calendar
โ If you perform inventory forecasting, reorder-point planning, available-to-
promise analysis, or cycle counting, you must define your workday
calendar.
โ Oracle Inventory automatically generates a workday pattern (the base
calendar) that includes all days, including non-workdays, between the start
and end dates you specify.
โ You can assign workday exceptions to the base calendar to denote
holidays, scheduled maintenance, or overtime.
13. Creating and Maintaining Items
โ Defining item statuses and attributes
โ Defining items
โ Defining categories and category sets
14. Status Attributes
Master-Level Control
An attribute that you maintain at the master level has identical values for an item
in all organizations that use it.
Organization-Level Control
An attribute that you maintain at the organization level may have different
values for an item in each organization that uses it.
15. Defining Items
An item is a part or service that you purchase, sell, plan, manufacture, stock,
distribute, or prototype. The following Oracle Applications use items:
Items
Lead Time
Attributes
Inventory
Attributes
Invoicing
Attributes
MRP/MPS
Attributes
Order
Management
Attribute
Purchasing
Attributes
Planning
Attributes
Physical
Attributes
Work in Process
Attributes
Receiving
Attribute
Service
Attributes
Main
Attributes
Bills of Material
Attributes
Costing
Attributes
17. Categories and Category Sets
Category Grouping Schemes
Finished Good
Inventory
Category Set
Subassembly
Hardware
Purchasing Category
Set
Software
PC
Craig
Category Set
Other
19. Inventory Controls
โ Defining locator control
โ Defining revision control
โ Defining lot control
โ Defining serial number control
โ Defining serial genealogy
20. Inventory Controls
Locator Revision Lot Serial
Revision and
Serial controlled
Locator and
Lot controlled
Lot and
Serial controlled
Item # AS2497 Item # AS3691 Item # AS6026