Cycle_Count_Approval_Process.pdf

Oracle® Warehouse Management Cloud
Cycle Count Approval Process
Update 19C
August 2019

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Oracle® Warehouse Management Cloud Cycle Count Approval Process
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Oracle® Warehouse Management Cloud Cycle Count Approval Process, Update 19C
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Preface
This document provides details for Setting up a Scheduled Job with Job Type Extract for Oracle Warehouse
Management Cloud.
Change History
Date Document Revision Summary of Changes
04/07/2019 01 Initial version – Shirley Kumar.
17/7/2019 03 Including the use case when tolerance check = SKU.
07/08/2019 05 Included additional scenario – Auto Approval and Manual
Approval.

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Table of Contents
COPYRIGHT NOTICE ........................................................................................... II
SEND US YOUR COMMENTS................................................................................III
PREFACE.............................................................................................................IV
CHANGE HISTORY .............................................................................................................. IV
TABLE OF CONTENTS ........................................................................................... V
CYCLE COUNT APPROVAL..................................................................................... 1
CONFIGURATION................................................................................................................. 1
CYCLE COUNT ADJUSTMENT APPROVAL RULE UI.............................................................................................1
UI CONFIGURATION .............................................................................................................................2
RF CYCLE COUNT CONFIGURATION ......................................................................................... 6
CYCLE COUNT APPROVAL RULE – USE CASES ............................................................................ 7
SCENARIO 1 - CYCLE COUNT APPROVAL BY RULE – AUTO APPROVAL .....................................................................7
SCENARIO 2- CYCLE COUNT APPROVAL BY RULE – MANUAL APPROVAL ...................................................................8
SCENARIO 3 - CYCLE COUNT APPROVAL RULE (TOLERANCE CHECK = INVENTORY) .....................................................9
SCENARIO 4 - CYCLE COUNT APPROVAL RULE (TOLERANCE CHECK = SKU)........................................................... 13

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Cycle Count Approval
As a general practice across industries, certain warehouse operations may require an option to auto-approve
inventory that falls within a defined acceptance of threshold value. In order to achieve this, you need a
mechanism to define certain rule based configuration in the system that allows you to set the tolerance level
for auto-approval.
As part of 19C, Oracle WMS Cloud (WMS) is enhanced with features where you can define rules via the Cycle
Count CC Adjustment Rule UI. The system automatically approves cycle count differences based on the
configuration you set in the Cycle Count Adjustment Approval Rule UI. Any adjustments associated with rules
you define in the CC Adjustment Approval Rule are auto-approved, and ones that do not meet the criteria will
require a manual approval by the warehouse supervisor.
Configuration
For the Cycle Count Approval process to work, you must first set the facility/company parameter
“INVN_ADJ_APPROVAL_REQUIRED” to Yes. This will configure Cycle Count Approval in deferred approval
mode. If the parameter is set to No, then the Manual and Auto-Approval mode is performed in non-deferred
approval mode.
Cycle Count Adjustment Approval Rule UI
Prior to 19C, any deviation or changes that incurred during the deferred mode of cycle count created a record
in the Cycle Count Adjustment UI, and it required a supervisor to either approve or reject the discrepancy.
Normally, large scale warehouse operations deal with numerous transactions on a daily basis. Therefore, when
you performed cycle count adjustment, you had to manually approve discrepancies in inventory. This manual
approval only increased the work load for the supervisor. Especially if the deviations were in large numbers,
these scenarios became challenging.
To address this situation, Oracle WMS Cloud now allows you to configure rules for the Item and Location
Entities, so that you can determine which discrepancies can be approved automatically. So, you can create
rules for low cost items that meet your selected criteria, (for example, items with higher cost) to go through
the approval process. All other adjustments that do not meet the criteria, (lower cost items in this example)
are set for auto-approval.
For example, let’s say you have an inventory consisting of 100 units of bolts. During cycle count, you have 98
units of bolts. Previously, the system required the approval of a supervisor for this discrepancy. However, now
you can set the threshold or tolerance for an item’s approval to auto-approval without any manual
intervention.

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UI Configuration
The following section describes the process for the cycle count - approval by rule method.
Adding a new Approval Rule
The “CC Adjustment Approval Rule” UI allows you to create your own rule where you can define your
criteria/attributes and tolerances for item approval.
Select the rule name and click on details. The detail page opens as shown in the figure below:
Configuring Approval Rule
After creating a new Approval Rule, select the detail to define the rules.
To add your approval rule, click (+):
The detail page opens as shown in the figure below:

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The following table lists the fields available from the Cycle Count Adjustment Rule -> Selection UI:
Fields Description
Approval rule name Displays the rule name.
Priority Enter the sequence number in which you want to prioritize the rule for the
selected rule name.
Approval choice Select the type of approval you want to set by clicking the drop-down menu.
The Approval choice has the following two types:
1. Manual Approval
2. Auto Approve based on Tolerance
If the Approval choice = Auto Approve based on Tolerance
Approval based on Select on what basis you want the tolerance to be checked by clicking on
the drop-down menu. The available options are:
1. Quantity: System measures the tolerance in terms of item
quantity.
2. Cost: System measures the tolerance in terms of cost.
Value or Percentage Select your choice of approval from the drop-down menu: The available
options are:
1. Value: System calculates the tolerance in terms of value based on
Cost or Quantity difference. For example, Approval based on = Cost
of item, Value = 100$ or Approval based on=Quantity of item, then
value = 10.
2. Percentage: System calculates the tolerance in terms of
percentage against total number of items.
Min tolerance % This field is enabled only if the approval is based on Percentage. Specify
the minimum tolerance % for which you want the system to auto approve
the item.
For example:
If the min tolerance set to = 10%,
Expected count for SKUA = 100, and
If the counted value = 96, then the system auto approves the SKU. This is
because the system counted value of the SKU falls within the minimum
tolerance value.
However, if the counted value = 89, then the system prompts for an
approval from the supervisor/warehouse in charge person.
If no value is provided, then the system considers zero tolerance and goes
for approval when there is a variance in the counted number of skus.

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Fields Description
Max tolerance % This field is enabled only if the approval is based on Percentage. Specify
the maximum tolerance % for which you want the system to auto approve
the item.
For example:
If the max tolerance set to = 10%,
The expected count for SKUA = 100, and the counted value = 106, then the
system auto approves the sku. Because, system counted value of the SKU
falls within the maximum tolerance value.
However, if the counted value = 111, then the system prompts for an
approval from the supervisor/warehouse in charge person.
for approval when there is a variance in the counted number of skus.
Tolerance value This field is enabled only if the approval is based on Value. Specify the
tolerance for which you want the system to auto approve the item.
For example:
Suppose the tolerance value set = 100$,
Total Cost for SKUA = 1000$, and
Total Adjusted Cost is 950$ or 1050$, then the system processes the SKU
for auto approval.
However, if the total adjusted cost is 850$ or 1150$, then the system waits
for approval from the supervisor.
for approval when a variance is found.
Tolerance check by You can apply the tolerance for items based on the following two values:
1. Inventory: System applies tolerance values for every distinct
inventory of the SKU in an active location /any distinct inventory of
the SKU in an active IBLPN. For example, one carton box consists of
100 packs of pens.
2. SKU: System applies tolerance values for every distinct SKU within
the inventory from an active location/ IBLPN. For example, 1 pack
consists of 10 pens.
Note: You can configure multiple details with different priorities under the same header rule with different
sequence numbers. Each detail can have separate selection criteria populated.

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Selection Criteria Button
From the detail page, the selection button is enabled once you select a detail record. This Selection button
allows you to perform basic operations and a wide variety of column fields are made available in the selection
criteria.
Note: From the Rule Detail screen, you can configure different selection criteria for each rule.
Using this selection criteria, you can define specific characteristics related to location or item attributes when
you configure your rule. For example, you can configure your approval rule based on items quantity < 10%.
Therefore, any inventory whose items quantity is less than 10% will apply to this rule.
Cycle Count Adjustment Rule Details
Caution: The system evaluates a higher number of rules to determine the tolerance percentage. Therefore, it
is advised for the implementation team to use due-diligence when configuring the selection criteria to avoid
any performance issues during the transaction.

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RF Cycle Count Configuration
For Cycle Count Approval rules to work, you must configure deferred_approval_mode in the screen UI for
the RF Cycle Count IBLPN and RF Cycle Count Location transactions.
The deferred_approval_mode consists of the following approval methods:
 Manual Approval (Default): When the discrepancy is recorded in the CC Deferred Adjustment table
and any deviation in terms of percentage or value of the item, requires supervisor approval or
cancellation.
 Auto Approve: When any discrepancy is recorded, the system auto-approves the inventory.
 Skip CC Deferred Adjustments: Performs in non-deferred approval mode. When the parameter
"deferred_approval_mode" is set to “Skip CC deferred adjustment, the system does not write the
count information in the CC Deferred Adjustment table. If WMS encounters any deviation during the
cycle count, the system posts necessary inventory adjustments as an immediate mode of counting
when performed for the location/IBLPN.
 Approval by Rule: A parameter choice available in the deferred approval mode where the system
auto approves an item (or item group) based on the rule you define in the “auto-approve-rule-name”
parameter screen.
The deferred approval mode needs to have the Approval by Rule parameter choice selected.
The “auto-approve-rule-name” parameter is a new parameter where you need to enter the rule name that
defines the approval tolerance for items in the parameter value field.
Note: Your auto approve rule name must be the same name as the name defined in the CC Adjustment
Approval Rule UI.

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Cycle Count Approval Rule – Use Cases
This section describes scenarios when the tolerance check is by Inventory/SKU and if there exists any
discrepancy, the following depicts the system behavior and determines the approval method to complete the
transaction.
You have the following configuration in the CC Adjustment Rule where,
1. Approved based on = Quantity
2. Value or Percentage = Value
3. Tolerance value = 10
4. Tolerance check by = Inventory
Scenario 1 - Cycle Count Approval by Rule – Auto Approval
You invoke the RF transaction, scan the inventory and arrive at the following count:
 Number of units counted in batch number 1 = 100
 Total expected number of items = 200
 Total number of items counted = 210 which falls within the tolerance check value (10) defined in the
CC Adjustment Rule screen.
On verifying, the CC Adjustment screen displays “Approved” status as shown below.

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Scenario 2- Cycle Count Approval by Rule – Manual Approval
There may be items that you want to make sure go through Manual Approval. This means a supervisor will
have to approve the difference. If you select Manual Approval in the Approval Choice, all the other fields get
grayed out.
You invoke the RF transaction, scan the inventory, and arrive at the following count:
 Total number of items counted = 270 which falls above the tolerance check value (10) defined in the
CC Adjustment Rule screen.
Once the system verifies the count, the CC Adjustment screen displays a “Pending” status as shown below.
Further, you can view the details where scanned items for batch 1 and 2 exceeds by 20 units more, thus,
moving the approval to pending status.

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Scenario 3 - Cycle Count Approval Rule (Tolerance check = Inventory)
In the following example, the Tolerance check is set up by Inventory:
1. Let’s say you define the rule in the following format, where:
a. Approved based on = Quantity
b. Value or Percentage = Percentage
c. Min and Max tolerance % = 10
d. Tolerance check by = Inventory
2. Define your rule in the “auto-approve-rule-name” and select the deferred approval mode = Approval
by Rule.

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Configuration:
3. You have inventory in locations with the following criteria:
a. SK-BLORE-01 with 100 units with batch number “SKBLORE01”
b. SK-BLORE-01 with 100 units with batch number “SKBLORE02”
4. Using the RF, you invoke the cycle count transaction.
5. The system prompts you for the location. Enter the location where you want the inventory to be
placed.
Note: The location should be an active location.
6. Enter the item code, batch number of the first item, and the quantity for the item you count during
the cycle.
Note: The min and max threshold defined in the deferred approval mode is 10%.
7. The system prompts you to re-enter the quantity as a warning based on the calculation, you enter in
deferred approval mode.

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8. The system displays a message based on the change in the quantity of items for that particular batch
number.
9. Press Ctrl-A to accept the warning message. The system routes you back to the location screen and
prompts to scan the next item.

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10. Given the item quantity for batch “SKBATCH2” is 100, you may enter a quantity that exceeds the
maximum quantity, i.e., 120 units.
The system displays the warning message as shown in the figure below:
11. Press Ctrl-A to accept the warning message.
12. The system routes you back to the location screen and prompts you to scan the next item. Once you
scan all the items, press Ctrl-E to end the count.
Key Note: When the tolerance check is by Inventory, then the system considers the total_quantity
of items counted by applying the tolerance check on a unique batch in order to satisfy the auto-
approval criteria. However, even if one of the batch items encounters a discrepancy and requires
approval, then the entire inventory goes for an approval irrespective of any other batch falling under
the tolerance check for item approval.
13. Go to the CC Adjustment UI to view the deviation in the items counted. The status of the inventory is
marked as pending for approval from your supervisor.

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Scenario 4 - Cycle Count Approval Rule (Tolerance check = SKU)
In the following example, the Tolerance check is set by SKU.
1. Let’s say you define the rule in the following format, where:
a. Approved based on = Quantity
b. Value or Percentage = Value
c. Tolerance value = 10
d. Tolerance check by = SKU
2. Define your rule in the “auto-approve-rule-name” and select the deferred approval mode = Approval
by Rule.
Configuration:
3. In this example, you have inventory in the location with the following criteria:
c. SKJULY01 with 100 units with batch number “BSKSHIP01”
d. SKJULY01 with 100 units with batch number “BSKSHIP02”
4. Using the RF, invoke the cycle count transaction.
5. The system prompts you for the location. Enter the location that you want the inventory to be placed.
Note: The location should be an active location.
6. Enter the item, batch number (BSKSHIP01) and quantity. For example, 80 units.

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Note: The tolerance value defined in deferred approval mode is 10.
7. The system prompts you to re-enter the quantity as a warning based on the calculation that you enter
in deferred approval mode.
8. Press Ctrl-A to accept the warning message. The system routes you back to the location screen and
prompts you to scan the next item. Enter the item, batch number (BSKSHIP02) and the quantity. For
example, 130 units.

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9. Press Ctrl-A to accept the warning message.
10. The system routes you back to the location screen and prompts you to scan the next item. Once you
scan all the items, press Ctrl-E to end the count.
When the tolerance check = SKU, then irrespective of the discrepancy encountered during cycle count
for each batch, the system applies the tolerance check (where the value =10) for the total number of
items counted.
 Number of units counted in batch number (BSKSHIP01) = 80
 Number of units counted in batch number (BSKSHIP02) = 130
 Total number of items counted = 210 which falls within the tolerance check value (10) that
you defined in the CC Adjustment Rule screen.
Note: If the total_quantity counted is within the tolerance range of the expected quantity, then the
count is designated for auto approval.

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11. To verify, go to the CC Adjustment UI to view the deviation in the items counted. The status of the
SKU is marked as approved automatically.

Cycle_Count_Approval_Process.pdf

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