Approving Physical Inventory Adjustments

Approval Tolerances
Oracle Inventory supports two types of physical inventory approval tolerances. For each type, you can specify a positive and a negative limit. When a particular physical inventory tag count entry results in an adjustment that exceeds any one of these limits, you have a physical inventory adjustment that exceeds approval tolerances. Based on the approval option you chose when you defined your physical inventory, this adjustment is or is not held for approval.

If you decide that approval is required for adjustments out of tolerance you must enter at least one positive or negative value for one type of approval tolerance. The quantity variance tolerance is a user–defined limit for the  difference between the system–tracked on–hand quantity and the actual tag count quantity. You express positive and negative quantity
variance tolerances as percentages of the system on–hand quantity. You enter these percentages when defining your physical inventory.

The adjustment value tolerance is a user–defined limit for the total value of a physical inventory adjustment:
adj value = (system on–hand qty – actual count qty) x current cost,
where: – Current cost is the cost at inventory snapshot.

You express positive and negative adjustment value tolerances as amounts in your functional currency. You enter these tolerances when defining your physical inventory.

Approving Physical Inventory Adjustments

You can view, reject, or approve physical inventory adjustments pending approval. The adjustments you can view from this window are determined by the approval option you defined for your physical inventory. If you approve a particular adjustment, the Process Physical Inventory Adjustments program adjusts your inventory balance by that quantity. If you reject an adjustment, Oracle Inventory does not change the system on–hand quantity.

Notes:

1. Even after saving a count as approved/or rejeceted we can change the quantity in TAG count till the physical inventory adjustment is processed.
Example: we entered quantity 1 for item001 in tag count window and then saved it as approved in approve PI adjustment winodw. We can again go back and change the quantity of item001 and save it. if we requry the item in adjustment window then it would be shown in None status though previously we had saved it as approved.

Oracle Applications Fusion Cloud - Inventory

Oracle Cloud/Fusion Procurement training will help you develop the fundamental skills required to set up and use the Procurement module. This training covers all the tasks, setups, forms and reports used in Procurement and related modules