Oracle Inventory

  
 

Enterprise Structure

You must plan how Oracle Inventory represents your company’s inventory sites and business units. This includes defining organizations, locations, subinventories, and locators depending on your company structure. You also must plan how to implement certain parameters and what level of the structure controls them.



Multi-org often refers to an Oracle Applications setup used to enable multiple business units in a single install.  With multi-org, a business enterprise may set up multiple business units with differing sets of books, operating units, and legal entities all within a single instance.  With multi-org, goods my be sold out of one operating unit or legal entity and shipped out of another, and the system will process an intercompany sale to properly account for it.

Multi-org, however, should not be mistaken for installs with multiple inventory organizations.  You do not have to use Oracle Applications multi-org to support multiple inventory organizations if all the inventory organizations share the same set of books, operating unit, and legal entity.

Location:  A location is simply a name and address, and is assigned to an organization or used to indicate delivery information on a purchase order.  You may define as many locations as you like, but only one location may be assigned to an inventory organization. 

Business group is a group of companies that does business in different markets under common administrative or financial control whose members are linked by relations of interpersonal trust on the bases of similar personal ethnic or commercial background a business group.

Set of Books (SOB): The financial entity that represents the chart of accounts, fiscal calendar, and base currency.  The SOB is set up in the General Ledger.

Legal Entity Organization: An entity used to represent a legal company.  Fiscal and tax reporting are done at the Legal Entity level.
A legal employer is a legal entity that is responsible for employing people in a particular country. Therefore, if you employ people in a country, then you must have at least one organization classified as a legal entity and a legal employer.
The Configuration Workbench classifies an organization as a GRE/Legal Entity where your enterprise operates in a country, and classifies it as an Employer if you employ people in that country also. For example, you can have a legal entity in a country where you do business, but do not employ people in that country.

Operating Unit Organization: A business unit that shares a common Purchasing, Accounts Payable, Order Entry and Accounts Receivable setup.  An operating unit may consist of multiple inventory organizations, with multiple manufacturing sites, distribution centers, and sales offices, but they share a common sales order and purchase order system.  For example, a sales order may have lines shipping from different inventory organizations or a purchase order may have lines destined for different inventory organizations.

Inventory Organization:  An entity used to represent a manufacturing or distribution site.  Inventory organizations are where a user tracks on-hand balances, manufactures goods, and transacts the daily ins and outs of material movement.  An inventory organization is the lowest level entity for costing goods, planning material requirements, and securing system access.  Only a single address may be assigned to an Inventory Organization.  An inventory organization is assigned a Set of Books which determines the chart of accounts, fiscal calendar, and base currency for all financial and value added activities that occur within the organization. 

Inventory Organizations are also assigned to a Legal Entity Organization and an Operating Unit Organization.
A variation on the inventory organization is the master item organization.  Generally, with Oracle Applications a single inventory organization is created and designated at the master organization.  Items are defined first in the master organization, then enabled in other inventory organizations as necessary.  Some of the item attributes are set as controlled at the master organization and therefore the attribute values cannot be updated within individual inventory organizations.  Category sets may also be designated as master organization level.  Cross-references are also master level only or master level optional as well.  

Subinventory: Physical or logical locations for storing inventory.  Subinventories are generally defined to represent the main stores area as well as stocking points on the production floor.  Additional subinventories may be used to specify supply closets or cabinets and the cage area for discrepant material.  Subinventories are flagged as to availability for planning (nettable), reservations, and available to promise checks, thereby determining the availability of the material stored in the subinventory.  Subinventories are assigned material asset account numbers.  As goods move in and out of a subinventory a transaction posts to the asset account.

Stock Locator:  A physical area within a stockroom.  The stock locator is a key flexfield that is often defined as a multiple segment flexfield with the segments representing the physical layout of a stockroom.  For example, a stockroom may be laid out in rows of shelves with bins on the shelves, each numbered so that a row/shelf/bin combination would direct someone to a particular material storage compartment.  Such an implementation would define a locator flexfield as a 3 segment flexfield with segments for row, shelf, and bin.

Attachment of LE/OU/INV with BG
We never attach any LE/OU/INV with BG in front end...but its available in HR_ALL_ORGANIZATION_UNITS in column Business_Group_ID..so the question is from where it comes?
First we create a Business Group. When ever we create a business group the system creates an organization with type businessgroup and attach a business group ID 'N' which is same as the organization ID for that Business group.

After that we attach the business group to a responsibility through the profile option HR : Business Group.

Next we create whenever we create a new LE/OU/Inv with one responsibility the system 'll attach the Business Group which is attached with the HR : Business group for that particular responsibility.

Item Categories

Item Category Flexfield Structures

You can define multiple segment structures for the Item Categories Flexfield. Each segment structure may have its own display prompts and fields.
When you install or upgrade Oracle Inventory or Oracle Purchasing, Oracle provides two category flexfield structures by default: Item Categories and PO Item Category.
Each segment structure can display prompts and fields that apply specifically to a particular naming convention. For example, you might want one of your category sets to use two segments for the names of categories. Another item grouping scheme might use just one segment for the names of categories. You choose a flexfield structure for every category set and category that you define.

3. Define the item category flex field.

4. Filling up the value set of the stucture product information

Defining Item Categories

Enter a flexfield Structure Name, a unique Category (value) for each structure segment, and a unique description for the new category.  If you want to make a category inactive, enter a date you want the category to be inactive on.  Save your work.

If you choose a multi–segment flexfield structure you can assign a specific meaning to each segment. For example in our case the category "Electronics.Mobile.Samsung" means an item assinged to this category is a samusng brand mobile device of elcetroincs product group.

Category Sets

Category sets may be used as a means to develop custom lists of items on which to report and sort. You can also create other category sets such as John’s Priority or Jane’s Priority, with categories like high, medium, and low.

The category set Inventory is seeded when you install Oracle Inventory.
The category set Purchasing is seeded when you install Oracle Purchasing.
If you plan to use Order Management’s group pricing functionality with item categories, you must add the categories to the Order Entry category set.

Attention:
1. You must use this window to define valid categories for each purchasing category set before you can use Oracle Purchasing.
2. For the Controlled At level, if the item defining attribute of the functional area (e.g. Inventory’s is Inventory Item) is controlled at the Organization level, then the new default Category Set should also be controlled at the Organization level.

Default Category Sets

set to each of the following functional areas: Inventory, Purchasing, Order Management, Costing, Engineering, and Planning. Product Line Accounting is seeded with the Inventory category set. Inventory makes the default category set mandatory for all items defined for use by a functional area. If your item is enabled for a particular functional area you cannot delete the item’s corresponding default category set assignment. Default category sets are required so that each functional area has at least one category set that contains all items in that functional area.

You can enable an item for each functional area by using that functional area’s item defining attribute. An item defining attribute identifies the nature of an item. For example, what designates an item as an “engineering item” is the attribute Engineering Item. If a functional area’s item defining attribute is controlled at the Organization level, then that functional area may only have an Organization level default category set.

When you enable an item for a certain functional area, Oracle Inventory automatically assigns the item to the default category set of that functional area and the default category of that set. For example, if you set Inventory Item to Yes, then Inventory automatically assigns the item to the Inventory functional area’s default category set and default category.

You may change a functional area’s default category set under certain conditions. You should ensure that every item within the functional area belongs to the new default category set (which replaces the existing default category set). If the item defining attribute of the functional area is controlled at the Organization level then the new default category set should also be controlled at the Organization level.

Assigning Items to Categories

When you enable an item in a functional area, the item is assigned to the default (mandatory) category set and default category of the functional area. You can override the category set’s default category. In addition, you can manually assign your item to an unlimited number of category sets. You may optionally assign an item to more than one category within a category set based on the category set definition.

When you assign your item to another organization Oracle Inventory copies Master level category sets, Organization level default category sets, and the associated categories assigned in the Item Master organization. This means that if you manually assign an Organization level category set to the item in the Master organization, Inventory does not copy over that Organization level category set when you assign that item to another organization.

After assigning an item to another organization you can disable the item for one or more functional areas in the new organization. However, Inventory does not remove the corresponding functional area’s default category set. For example, you may have set the value of the Purchased attribute to ”Yes” when you defined the item in the item master organization. When you assign this item to another organization Inventory copies over the ”Yes” value of the Purchased attribute and
therefore assigns the default category set of the purchasing functional area. In the new organization you may decide to set the value of the Purchased attribute to ”No.” After you disable the item for the purchasing functional area in the new organization, the item still retains the purchasing default category set. You may manually delete the purchasing category set in the new organization.

If you copy an item from another item with category sets defined at the Organization level, Inventory assigns the new item the default categories of the mandatory category sets, even if the original item did not have the default categories. This is because Inventory copies the values of the item defining attributes and not the category sets and categories themselves.

Introduction to Items

An item is a part or service that you purchase, sell, plan, manufacture, stock, distribute, or prototype. The following Oracle Applications use items:

• Oracle Inventory
• Oracle Purchasing
• Oracle Order Entry

• Oracle Cost Management
• Oracle Bills of Material
• Oracle Work in Process
• Oracle Master Scheduling/MRP

• Oracle Receivables
• Oracle Payables

• Oracle Services
• Oracle Engineering
• Oracle Quality
• Oracle Sales and Marketing

Below diagram describes the basic work that needs to be done before an item is ready to be used in inventory for transaction purpose.

Item Master Organization

You define items in one organization. To distinguish it from others, we call it the Item Master organization. Other organizations (child organizations) refer to the Item Master for item definition. After you define an item in the Item Master, you can assign it to any number of other organizations.

There is no functional or technical difference between the Item Master organization and other organizations. However, for simplicity, Oracle recommends that you limit the Item Master to just an item definition organization.
Oracle also recommends that you do not define multiple item masters. This can make item definition and maintenance confusing. In addition, multiple item masters are distinct entities, with no relationship to each other. You cannot associate items in one item master organization with another item master organization. You cannot copy items across item
master organizations.

To create the item master:
1. Use the Organization window to create the organization you want to use as the Item Master.
2. Use the Organization Parameters window to specify that organization as the Item Master. This is also where you assign child organizations to the Item Master. The item master organization uses itself as the Item Master.

Item Attribute, Item Defining Attributes, Status Attributes & Item Status

Item attributes are information about an item, such as order cost, lead time, and revision control.

Item Defining Attributes - An item defining attribute identifies the nature of an item. What designates an item as an “engineering item” is the attribute Engineering Item, but what controls the functionality of the item are the collection of
attributes that describe it. You can buy an engineering item if you want to; simply set Engineering Item, Purchased, and Purchasable to Yes.
The following table presents item defining attributes:

When you set an item defining attribute to Yes, the item is automatically assigned to the default category set of the corresponding functional area. For example, if you set Inventory Item to Yes, the item is automatically assigned to the default category set for the inventory functional area.

An item status Codes is defined by selecting the value check boxes for the status attributes.
Item Status Codes may be used to set or update the default values for certain item attributes.  They can be used to control the functionality of an item.  When you update the values for a status, all items that use that status will be updated also.
The Item Status Code controls certain item attributes designated as status attributes.  Each status attribute has a Status Setting option.   The option determines whether a status attribute value is set by the status code and is not updateable, defaulted and updateable, or not used when you define an item

Pending Status:
You can assign one or more pending statuses for an item, to be implemented on future dates. These statuses become effective on their assigned effective dates. You can also view the history of an item status.
(N) Items—>Master Items (M)—>Tools -> Pending Status

You can submit the Update item statuses with the Pending statuses of the concurrent program to update the status of all items with Pending statuses and current effective dates. When you submit this concurrent program, change its parameters so that it resubmits itself periodically, automatically updating item statuses to a Pending status, as effective dates become current. Pending statuses are used in the product development cycle.

Item Attribute Control determines whether you have centralized (Master level) or decentralized (Organization level) control of item attributes. Both status attributes and item status can be controlled at the item level or organization levels.

You can choose the status setting level of each status attribute in the Item Attribute Controls window. The status setting level determines whether you can update the value of each status attribute within an item status.
Sets Value: The status that you assign to the item loads a non updatable value into the status attribute. You can update the status attribute by changing the status that you assigned to your item.
Defaults Value: The status that you assign to the item loads a default value into the status attribute. You can update the status attribute as you define your item.
Not Used: The status that you assign to the item does not determine the value of the status attribute. You can enable or disable the status attribute as you define your item.
Status Setting Level Consideration: You have the flexibility to change individual status attribute settings. Using meaningful status codes gives you control over item usage.
 

Item Templates

Templates are defined sets of attributes that you can use over and over to create many similar items. Templates make initial item definition easier. Oracle recommends that you use templates—either those Oracle provides or those you define—when you define your items.

Finished Good
ATO Item
ATO Model
ATO Option Class
Kit
PTO Model
PTO Option Class
Phantom Item
Outside Processing Item
Planning Item

• You can also define your own templates using the Item Templates window. Note that the window does not validate any of the template attributes. In other words, you can define a template with contradictory attributes. Only when you use a template to define an item does Inventory verify that the attributes are valid for a given item.
• If an attribute is not updatable for an item, the value from the template is not applied. If a combination of attributes is invalid a warning appears when you save the item.
• You can enable or disable the attribute value for each attribute in a template. When you use a template, it applies only the enabled attributes for that particular template
• You can apply the same or different templates to an item multiple times. The more recent attribute values (from the last template applied) override previous values unless the previous value is not updatable (for example, the Primary Unit of Measure, which is never updatable). For example, you define a new item and apply a template that has the Primary Unit of Measure = EACH and Cycle Count Enabled = YES. Next, you apply a new template with Primary Unit of Measure = DOZ, Cycle Count Enabled = NO, and Carrying Cost Percent = 3. The attribute values are now: Primary Unit of Measure EACH, Cycle Count Enabled NO, and Carrying Cost Percent 3 

Item Catalog

An item catalog group is a standard set of descriptive elements to which you assign items. Examples of catalog descriptive elements are color, shape, length, and so on.  For example, a textile manufacturer might define pattern attributes such as color, size, texture, and style.

Usage: An electronics company (say Samsung) can use the catalog to incorporate length, breadth and height of each mobile it produces. As the company Samsung also produces other electronics products such as TV, Refrigerator and etc. We should first create an item category as mobile and then create a catalog group as mobile-catalog with three catalogs length-breadth and height.

Seraching all the items with bredth 20.

Defining Locations

Use the Locations window to define ship–to, bill-to, receiving, office site, internal site & other location information for Purchasing documents.

Organization

Define the following organizaions as per the requirement of business
i. Business group
ii. Legal Entity
iii. Operating Units
iv. Organization

Enter Organization Classifications & Additional Information
1. Business Group

Business Group Information.
Budget Value Defaults.
Work Day Information.
Benefits Defaults.
PTO Balance Type.
Recruitment Information.
Payslip Information.
Self Service Preference Information.

2. Attaching Set of Books to Legal Entity

3. Attaching Set of Books & Legal Entity to Operating Unit

4. Attaching Operating Unit to organization

Organization Parameters

You can define and update default inventory and costing parameters for your current organization in the following areas:

1. Inventory Parameters
2. Costing Information
3. Other Account Parameters
4. Revision, Lot, Serial, LPN Parameters
5. ATP, Pick, Item–Sourcing Parameters
6. Defining Inter–Organization Information
7. Defining Warehouse Parameters



 

1. Enter an organization code for which you want to set up the organization parameter.

2. Select an Item Master organization. Oracle Inventory only defines items in the Item Master organization of the organization from which you enter the Items window.

3. Select a workday calendar. This is required when Oracle Master Scheduling/MRP and Oracle Supply Chain Planning is installed.

4. Optionally, select a demand class. Demand classes segregate scheduled demand and production into groups, allowing you to track and consume those groups independently. Oracle Master Scheduling/MRP and Oracle Supply Chain Planning uses this demand class during forecast consumption, and shipment and production relief.

5. In the Move Order Timeout Period field, enter the number of days a move order requisition can wait for approval.
The workflow approval process sends a notification to the item planner when a move order requisition requires approval. After the first timeout period, if the recipient has not approved or rejected the order, a reminder notice is sent. After the second timeout period, the order is automatically approved or rejected, depending on whether you select Approve automatically or Reject automatically in the Move Order Timeout Action field. If you want to bypass the move order approval process and automatically approve move order requisitions, enter 0 days in the Move Order Timeout Period field and select Approve automatically in the Move Order Timeout Action field.

6. Select a move order timeout action

Approve automatically: After the second timeout period, move order requisitions are automatically approved. Select this option and set the Move Order Timeout Period to 0 if you want to bypass the move order approval process and automatically approve move order requisitions.
Reject automatically: After the second timeout period, move order requisitions are automatically rejected.

7. Select a locator control option:
None: Inventory transactions within this organization do not require locator information.
Prespecified only: Inventory transactions within this organization require a valid, predefined locator for each item.
Dynamic entry allowed: Inventory transactions within this organization require a locator for each item. You can choose a valid, predefined locator, or define a locator dynamically at the time of transaction.
Determined at subinventory level: Inventory transactions use locator control information that you define at the subinventory level.

• Indicate whether to allow negative balances. Determines whether inventory transactions can drive the inventory balance of an item negative.
  Attention: If insufficient quantity on hand exists in a supply subinventory to satisfy backflush demand, Oracle Work in Process forces the supply subinventory balance negative, ignoring this option setting.
• Auto delete allocation at Move Order cancellation
• Indicate whether this organization is an Oracle Warehouse Management enabled organization. You can use WMS features such as LPNs, task management, warehouse execution rules and cost
  groups in this organization. Locator control must be enabled in order to enable WMS. Once this has been enabled and transactions have been entered in this organization, this box cannot be unchecked.
• Indicate whether this organization is enabled for Quality inspection.
• Indicate whether this organization is an Oracle Enterprise Asset Management enabled Organization.
• Enter a total load weight and unit of measure for this organization.
• Enter a total volume and unit of measure for this organization.  

Defining Costing Information

The costing organization that controls the costs in your current organization and the costing method are displayed. You cannot make changes to these fields.

1. Costing Organization

2. Costing Method

3. Transfer to GL Indicate whether all transactions are posted in detail to the general ledger.
Caution: Transferring detail transaction distributions to the general ledger increases general ledger posting times due to the number of records created.

4. Reverse Encumbrance Indicate whether to reverse encumbrance entry upon receipt in inventory.
You normally select this option if you use encumbrances with Oracle Purchasing.

5. Optionally, enter a Cost Cutoff Date
If you leave this field blank, all available transactions will be costed,as usual. If you enter a date, all transactions prior to this date will be costed. All transactions on or later than this date will not be costed.

For inter–organization transfers, a standard costing, receiving organization will not cost a receipt if the sending organization did not already cost the transaction.
The default time is the first instant of the date. You can optionally choose another time.

The standard cost update process can be performed on the cost cutoff date. You can restart cost processing by changing the cutoff date to blank, or a future date.

6. Default Material Sub element
For standard costing, select a material sub–element that this organization uses as a default when you define item costs. For average costing, the default material sub–element you select can be used for cost collection when Project Cost Collection Enabled is set.

7. Material Over head Sub element
Optionally, select a Default Material Overhead Sub–Element from the list of values. During the Supply Chain Rollup process, when costs are merged from another organization, markup and shipping costs will use this value.

The supply chain cost rollup will complete successfully, regardless of whether this field is populated. If the Cost Rollup identifies an organization with a default material overhead sub–element not set up, a corresponding warning message will be printed in the log file.

8. Default Cost Group
Indicate the default cost group for the organization. This will default into the Default Cost Group field for each subinventory. If the WMS cost group rules engine fails to find a cost group, this cost group will be used.

9. Valuation Accounts
You choose a default valuation account when you define organization parameters. Under standard costing, these accounts are defaulted when you define subinventories and can be overridden. Under average costing, these accounts (except for Expense) are used for subinventory transactions and cannot be updated. For a detailed discussion of cost
elements.
Material An asset account that tracks material cost. For average costing, this account holds your inventory
and intransit values. Once you perform transactions, you cannot change this account.
Material Overhead An asset account that tracks material overhead cost.
Resource An asset account that tracks resource cost.
Overhead An asset account that tracks resource and outside processing overheads.
Outside processing An asset account that tracks outside processing cost.
Expense The expense account used when tracking a non–asset item.

Other Accounts

Revision, Lot, Serial, LPN Parameters

Subinventories

Subinventories are unique physical or logical separations of material inventory, such as raw inventory, finished goods, or defective material. All material within an organization resides in a subinventory. There are two types of subinventories within Warehouse Management, storage and receiving.

Storage subinventories are intermediate or final put away locations for material. Material that resides in a storage subinventory appears in on hand quantity, and is tracked by the system. The system can book orders against, and use manufacturing processes on material that resides in a storage subinventory. You must define at least one storage subinventory for your implementation.

Optionally, you can create receiving subinventories to track material in the receiving area. You use receiving subinventories when you want to track the material as soon as it enters the warehouse before an operator puts it away. Receiving subinventories enable managers to see where the material resides as soon as it enters the warehouse. Material located in a receiving subinventory does not appear in on hand quantity, and the system cannot reserve the material.
An operator can also only specify a receiving subinventory if they are using a mobile device to receive the material.
Note: Operators cannot transfer material from a storage subinventory to a receiving subinventory.

Define new Subinventory

Select a source type for item replenishment.

Stock Locators

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.




1. Add the segment values of the KFF stock locator.
Navigation : GL -> Financials -> Flexfields -> Key -> Values

Organization Access

You can specify which organizations a responsibility can access by mapping responsibilities to organizations. Once this mapping is set up, a user logging into an Oracle Manufacturing product is restricted to the organizations mapped to the responsibility chosen. The Change Organization window is restricted as well.

Attention: Until you assign an organization to a responsibility in this window, all responsibilities have access to all organizations. Once you have restricted any responsibility to an organization, you must then explicitly define the organizations which all responsibilities can access.

Attention: This feature does not restrict access once the user is in the product. Users with access to functions that cross multiple organizations (such as ATP, Inter–organization Transfers, Item Search, Multi–organization Quantity Report, and so on) can still specify any valid organization when running these functions.

Shortage Parameters

You can enable the system to send material shortage alerts and shortage notifications when a material shortage occurs in an organization. A material shortage occurs whenever unsatisfied demand exceeds available quantity for incoming supply of material.

Customer Items

The concept of customer item is to link the customer item with the inventory item of the organization so that the customer can order with their customer item for which we have a refernce to the inventory item. To facilitate the process we use commodity code to group all the customer items.

• Customer items can be defined at customer category level, customer level and customer ship to level.
• For a single customer item we can have two differnt inventory items in customer cross reference with rank 1, 2 etc
• The process of difining customer cross reference is  

A customer item defined at the Customer level is recognized across all address and address categories for that customer. If you ship an item to multiple customer ship–to sites that have been grouped as an address category, you can define the customer item for that address category. You would define a customer item at the address level if you ship the item to only one ship–to site for that customer.

Commodity Codes

Customer Item Commodity Codes are used to group customer items and can be entered during the definition of customer items.
Navigation : INV -> Setup ->Items -> Customer Item commodity code.

Customer Item
1. Select one of the existing Customer Names (in the Details window, you can use either Customer Name or Customer Number,).
2. Select the Definition Level: Customer, Address Category, or Address.
A customer item defined at the Customer level is recognized across all address and address categories for that customer. If you ship an item to multiple customer ship-to sites that have been grouped as an address category, you can define the customer item for that address category. You would define a customer item at the address level if you ship the item to only one ship-to site for that customer.
For the Address Category definition level, enter the address category.
For the Customer Address definition level, enter the customer address.
3. Enter the Customer Item number and description.
4. In the Commodity tabbed region, you can assign the customer item to a Commodity Code.
5. In the Container tabbed region, you can enter the default master and detail containers for this customer item as well as the minimum fill percent for the container.
6. In the Model, Departure Planning tabbed region, you can reference a customer item as a Model by entering the inventory item number of an existing Model item (the BOM Item Type attribute is set to Model).
You can also check Required to indicate that items must be departure planned before they released and Before Build to indicate that ATO items must be departure planned before they are built.
7. In the Demand Tolerances, Active tabbed region, you can enter positive and negative tolerance percentages and select or deselect the Active check box.

Customer Item Cross References
Use the Customer Item Cross References window to define and update cross references between your inventory items and the customer item numbers defined in the Customer Items Summary/Detail windows.

You can also navigate to this window by selecting the Cross Reference button in the Customer Items Summary window. Inventory displays the existing cross references for the customeritem on the current line in the Customer Items Summary window, and you can add new cross references by selecting a new row.

Enter the Rank as a positive number. To permit alternate or substitute inventory items for a customer item, you can define multiple cross references to inventory items for a single customer item. In these cases, you must specify the Rank of the cross reference. The highest rank is 1.

Cross–Reference Types

Cross–reference types define relationships between items and entities such as old item numbers or supplier item numbers. For example, you can create a cross–reference type Old to track the old item numbers, and a type Supplier to track supplier part numbers.

Item Master

You must set certain controls and reference options before defining items. These enable you to maintain, group, reference, query, and delete your items. Once you have defined items, you can set up other parameters, such as item cross references, to control the use of items.

You define items in one organization. To distinguish it from others, we call it the Item Master organization. Other organizations (child organizations) refer to the Item Master for item definition. After you define an item in the Item Master, you can assign it to any number of other organizations.

There is no functional or technical difference between the Item Master organization and other organizations. However, for simplicity, Oracle recommends that you limit the Item Master to just an item definition organization.

Oracle also recommends that you do not define multiple item masters. This can make item definition and maintenance confusing. In addition, multiple item masters are distinct entities, with no relationship to each other. You cannot associate items in one item master organization with another item master organization. You cannot copy items across item master organizations.

To create the item master:
1. Use the Organization window to create the organization you want to use as the Item Master.
2. Use the Organization Parameters window to specify that organization as the Item Master.

Item Master Business Example
Suppose you have a distribution warehouse and a manufacturing factory. In the warehouse, the item has independent demand and is min–max planned. In the factory, the item is MRP planned and built.

Using an Item Master with a warehouse and a factory as the other organizations, you define the item just once—in the Item Master. Next, you assign the item to both the warehouse and the factory. Finally, you change the planning and build attributes in each organization to
describe the different behavior of the items in those organizations. You do not have to change any other information about the item; in fact, because information such as unit of measure, description, and so on is maintained at the Master level, you know it is consistent in each organization

Main Attribute Group

Inventory Attribute Group

Inventory Attribute Group
Following are the Inventory attributes and their possible values. You set these attributes when defining or updating items.

Order Management Attribute Group

Following are the Order Management attributes and their possible values. You set these attributes when defining or updating items.

Customer Ordered
Indicate whether to allow an item to be ordered by external customers.  You can add any customer orderable items to price lists in Oracle Order Management. This attribute must be turned off if the BOM Item Type attribute is set to Planning.

If you turn this attribute on, you can temporarily exclude an item from being ordered by turning Customer Orders Enabled off. This is an item defining attribute. If you turn this attribute on, the item is automatically assigned to the default category set for the Oracle Order Management functional area.

Customer Orders Enabled
Indicate whether an item is currently customer orderable. If you turn this attribute on you can specify the item in the Enter Orders window in Oracle Order Management.
You can initially define an item with Customer Ordered Item turned on and Customer Orders Enabled turned off. This means prices can be defined for the item, but no orders can be placed for it.

Internal Ordered
Indicate whether to allow an item to be ordered on an internal requisition.
If you turn this attribute on, you can temporarily exclude an item from being ordered on an internal requisition by turning Internal Orders Enabled off.
This is an item defining attribute. If you turn this attribute on, the item is automatically assigned to the default category set for the Oracle Purchasing functional area.

Internal Orders Enabled
Indicate whether you can currently order an item internally. If you turn this attribute on, you can specify the item on an internal requisition, if Internal Ordered Item is also on.
If you turn Internal Ordered Item on, you can temporarily exclude an item from being ordered on an internal requisition by turning this attribute off.
This attribute is optionally set by the Item Status code.

Shippable
Indicate whether to ship an item to a customer. Shippable items are released by Oracle Shipping Execution’s Pick Release program, creating confirmable shipping lines, and are printed on the pick slip. A warning is issued if you change the value of this attribute when open sales order lines exist.
This attribute must be turned off if the BOM Item Type attribute is set to Planning.

OE Transactable
Indicate whether demand can be placed for an item by Oracle Order Management, and whether shipment transactions are interfaced to Oracle Inventory. Most items with Shippable turned on also have OE Transactable turned on. For items you do not ship, you may still want OE Transactable turned on if you use the items in forecasting or planning.
If you also want to reserve the item, turn Reservable on. A warning is issued if you change the value of this attribute when open sales order lines exist. You cannot turn this attribute off if demand exits.

Pick Components
Indicate whether an item has a bill of material with options, classes, or included items picked from finished goods inventory. Pick–to–order items must have this attribute turned on. Assemble–to–order items and items without a bill of material must have this attribute turned off.

Assemble to Order
Turn this attribute on if an item is generally built for sales order demand; a final assembly work order is created based on sales order details. You must turn on this attribute if you auto create requisitions.
An item cannot have Pick Components turned on and this attribute turned on at the same time.

Returnable
Indicate whether to allow customers to return an item. If an item is returnable, you can enter it on the Returns window in Oracle Order Management. Order Management uses this attribute along with Stockable and Transactable to determine which authorized returned items
you can physically receive into inventory.

RMA Inspection Required
Indicate whether inspection is required for items returned by the customer. The item then must be separately transferred to inventory.
Credits are never automatically generated by Oracle Order Management for customer return items awaiting inspection.

Financing Allowed
Indicate whether a customer can finance this item.

ORDER DETAILS
Check ATP
Select Check Material Only, Check Material and Resources, Check Resources Only, or None to indicate whether to check available to promise and/or capable to promise information when placing demand.
This attribute also determines whether you can view component ATP information for material requirements in Work in Process.

ATP Components
Indicate whether to include, in available to promise checking, additional components in the bill of material for ATO and PTO items. These components are included in ATP checking if Check ATP for the component is turned on.

ATP Rule
Enter a user–defined available to promise rule. ATP rules define supply and demand sources, time–fence parameters, and available–to–promise calculation methods. You can give ATP rules meaningful names, such as ATO ATP Rule.
If there is no ATP rule for the item, the organization’s default ATP rule is used.

Default Shipping Organization
Enter the Oracle Shipping Execution primary shipping organization. This organization defaults to the Enter Orders window if Item is the source attribute of the Warehouse object in the standard value rule set for the order. This organization defaults to the Enter Returns window if a receiving warehouse is not defined on the customer or order type.

Default SO Source Type
This item attribute determines if an item is to be drop–shipped. If the value is internal, the item will not be drop–shipped. If the value is external, the item will be drop–shipped.

Picking Rule
Enter the picking rule that defines the order in which subinventories, locators, lots, and revisions are picked. This rule will not be employed in WMS enabled organizations. Oracle Warehouse Management picking rules will be used.

Purchasing Attribute Group

Following are the Purchasing attributes and their possible values. You set these attributes when defining or updating items.

Purchased
Indicate whether to purchase and receive an item. Turning this option on allows you to set the Purchasable attribute.
This is an item defining attribute. If you turn this option on, the item is automatically assigned to the default category set for the Oracle Purchasing functional area.
If an item is vendor managed, you must turn on this option.

Purchasable
Indicate whether to order an item on a purchase order. You can set this only when Purchased is turned on.
Turning Purchasable off allows you to temporarily restrict the ability to buy. This attribute is optionally set by the Item Status code.

RFQ Required
Indicate whether to require an item quotation when requesting an item. Oracle Purchasing defaults this value on requisition lines for this item.  Leave this field blank if you want Inventory to use the value defined in the Purchasing Options window for transactions involving this item.

Taxable
Indicate whether the supplier charges a tax. Oracle Purchasing uses the taxable status together with the tax code you associate with a location to determine whether a purchase order shipment is taxable, and what the tax code that applies to this shipment is. Leave this field blank if you want Inventory to use the value defined in the window for transactions involving this item.

Tax Code
Select the appropriate tax code for the item. The tax code shows the tax authorities and rates that are available to use for this item. You must select the taxable attribute to enable this field.

Receipt Required (Three–Way Invoice Matching)
Indicate whether you must receive an item before you can pay the invoice. Leave this field blank if you want Inventory to use the value defined in the Purchasing Options window for transactions involving this item.

Inspection Required (Four–Way Invoice Matching)
Indicate whether to inspect an item upon receipt from the supplier, before paying the corresponding invoice. Leave this field blank if you want Inventory to use the value defined in the Purchasing Options window for transactions involving this item.

Outside Processing Item
Indicate whether you can add the item to an outside processing purchase order line. You can turn this option on only if Purchased is also on. In addition, this option controls whether you can attach an item to a resource in the Resource window.

Outside Processing Unit Type
Select an option to determine the quantity of an outside processing item you requisition, purchase and receive:
Assembly You purchase an outside processing item based on the number of assemblies you ship to the supplier.
Resource You purchase an outside processing item based on the number of assemblies times the resource usage rate or amount.

Receiving Attribute Group

Following are the Receiving attributes and their possible values. You set these attributes when defining or updating items.

Bills of Material Attribute Group

Following are the Bills of Material attributes and their possible values. You set these attributes when defining or updating items
BOM Allowed
Allows you to define a bill of material for an item, or to assign the item as a component on a bill.
This attribute is optionally set by the Item Status code.

BOM Item Type

This attribute is controlled at the Master level only.

Costing Attribute Group

Following are the Costing attributes and their possible values. You set these attributes when defining or updating items.

Work In Process Attribute Group

Following are the Work In Process attributes and their possible values. You set these attributes when defining or updating items.

General Planning Attribute Group

Following are the General Planning attributes and their possible values. You set these attributes when defining or updating items.

Inventory Planning Method
Select an option for organization level planning.
Min–max You define a minimum quantity that you want on hand. When you reach this quantity, you reorder. You also define a maximum on–hand quantity that you do not want to exceed.
Not planned No planning method used. Select this option for MRP/MPS planned items.
Reorder point The reorder point is calculated based on the planning information you define for this item.

Planner
This attribute is controlled at the Organization level only. Enter the material planner assigned to plan this item. You must define planner codes for your organization before updating this attribute. The planner defined here is responsible for approving all move order lines requesting the item if move order approvals are used.
If an item is vendor managed, you must enter a planner for the item.

Make or Buy
Select the option that applies to items with Inventory Item set to Yes. The Planner Workbench uses this to default an appropriate value for implementation type. You cannot change the value of the flag if open orders exist for the item.
Make Usually manufactured. The Planner Workbench defaults the implementation type Discrete job. The planning process passes demand down from manufactured items to lower level components.
Buy Uslly purchased. The Planner Workbench defaults the implementation type to Purchase Requisition. The planning process does not pass demand down from purchased items to lower level components.
Attention: You must also set Purchasable to Yes to create purchase requisitions and purchase orders. If you also set Build in WIP to Yes, you can use the Planner Workbench to implement planned orders as discrete jobs.

Invoicing Attribute Group

Following are the Invoicing attributes and their possible values. You set these attributes when defining or updating items

Item Control

In this chapter we‘ll discuss some advance controls that oracle provides on items

 

Item Relationships

You can define relationships between items. This allows you to search for items through these relationships. Except in Oracle Purchasing, these relationships are for inquiry and reporting purposes only.

Item Relationships with Oracle Purchasing
Within Oracle Purchasing you can define acceptable substitute items for receiving. You must define a list of substitutes before you receive a substitute item in place of an originally ordered item. Attention: If you receive a substitute item, you must have previously defined a unit of measure conversion between the unit of measure on the purchase order and the unit of measure on the receipt.

 
Cross–Sell: This relationship indicates that one item may be sold in lieu of another item.

Up–Sell: This relationship indicates that a newer version of the item exists, and can be sold in place of the older item.

Service: This relationship establishes service items for a repairable item.

Prerequisite: This relationship indicates that you must possess one of the items as a requirement to possessing the other item.

Collateral: This relationship indicates collateral, such as marketing brochures, that you possess for an item.

Superceded: This relationship indicates that one item has replaced another item that is no longer available.

Complimentary: This relationship indicates if a customer purchases one item, the other item is received for free.

Impact: This relationship is used to relate items to each other but only under special conditions.

Conflict: This relationship indicates that these items may never be used together.

Mandatory Charge: This relationship indcates a mandatory charge if the customer purchases both items.

Optional Charge: This relationship indicates an optional charge if the customer purchases both items.

Promotional Upgrade: This relationship enables a customer to upgrade from one item to another item or equal or higher value, without an additional charge.

Split: This relationship enables you to split support for an item so you do not have to manually split support at contract renewal. To use this relationship, you must be in a planning enabled organization.

Merge: This relationship enables rules based consolidation of contracts. You may use the earliest or latest target end date for consolidation. This allows you to choose how contracts are consolidated. To use this relationship, you must be in a planning enabled organization.

Migration: During contact renewal you are given the option of renewing contracts based on new licenses, or old licenses. To use this relationship, you must be in a planning enabled organization.

Repair to: You use the Repair to item relationship with field service operations that use spares management functionality. If a part has been superseded by another part, the Repair to item relationship determines the replacement part.

Defining Manufacturer Part Numbers

You can define manufacturer part numbers for items. You can use this information for reporting purposes; and in catalog searches for particular items.

Navigate to the Manufacturers window , Enter the name of the manufacturer &  Save your work.

 

Assigning - Subinventories & Item

Assigning Subinventories to an Item
You can assign a list of subinventories to an item. You restrict an item to the list of subinventories by setting the Restrict Subinventories attribute when you define or update the item.

Defining Item Transaction Defaults

Use this form to define a default subinventory and/or locator for an item for shipping, receiving, and move order transactions. Oracle Shipping Execution displays the default shipping information when you ship an item. Oracle Inventory displays the default receiving information when you receive an item. For move orders, Oracle Inventory derives the default put away locator when you transact an item into a locator controlled subinventory if no locator was specified by the creator of the move order.

Defining Item Revisions

Navigate to the Item Revisions window from one of the following windows:
i.Master Items Summary folder or Master Item window
ii. Organization Items Summary folder or Organization Item window
iii. Bills of Material window
iv. Engineering Change Orders window

You can use letters, numbers, and characters (such as *, &, and #) to label revisions. 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. Valid revisions can include: A, B, 01, 02, A1, B1, 1A, 1B, 0.0, 0.1, A.0, A.1, and so on.

Revisions are sorted according to ASCII rules. Each revision must be greater than the previous revision. Therefore, you cannot use revision 10 after revision 9 because, according to ASCII sorting, 10 precedes 9.
The value you entered in the Starting Revision field in the Organization Parameters window displays as the starting revision for the item. For revisions that have the same effective date, the revisions sort in descending order starting with the last revision you entered.

Item Lot Control

Oracle Inventory provides complete lot number support for inventory transactions. You can enable lot control for specific items in your inventory. For items under lot control, you assign lot numbers to each receipt into inventory and thereafter reference the same lots each time you perform material transactions. This allows you to have tight control over batches of items in your inventory.

1. You must assign lot numbers whenever you receive items under lot control into inventory. You can also add quantities to existing lot numbers and split an inventory receipt into several lots, as necessary.
2. Inventory assists you in entering lot numbers by generating defaults using the default lot number generation method you chose in the Organization Parameters window.
3. If the item you are receiving is also under User–defined expiration date Lot Expiration (shelf life) Control, you must specify the expiration date for the lot.

Issuing Material from Inventory
When you issue items under lot control from inventory, you must specify a lot number for that item. You can specify more than one lot to cover the transaction quantity. If you attempt to transact an item to or from an expired lot, Inventory displays a warning message but does not prevent you from using the lot.

Assigning Lot Numbers to Assemblies
When you complete an assembly under lot control into inventory, you must assign a lot number in the WIP Completion Transaction form in Oracle Work in Process. For assembly completions on discrete jobs, Oracle Work in Process defaults the job’s lot number.

Purging Lot Transactions
You can purge all lot transaction information from your current organization. Note that the transactions must be in closed accounting periods.
Attention: Purging lot transactions eliminates information used in lot genealogy reports and inquiries (Supplier Lot Trace Report, Job Lot Composition Report, and Job Lot Composition Inquiry).

Maintaining Lot Number Information
You can use the Item Lots window to update the expiration date of lots for items under lot expiration (shelf–life) control. Inventory lets you view all lots you created in your current organization and the supplier lot information associated with them.

Expired Lots
You can determine whether a lot has an expiration date by assigning a number of lot control shelf life days or by entering an lot expiration date. The expiration date controls the availability of the lot for transacting and planning purposes. 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, including inventory valuation 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

Disabled Lots
Disabling a lot only prevents it from appearing in a list of values when performing receipt transactions. If you type in the lot number it is valid and acccepted even though it was not in the list of values. Disabling is used only for tailoring this specific instance of the list of values for lot numbers. 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




Cycle Counting
Inventory includes the lot numbers of the items to cycle count when it generates a cycle count listing. You must assign lot numbers to all items under lot control for which you enter counts. If there is a difference between the count quantity and the system on–hand
quantity, Inventory adjusts the item quantity in that lot.

Performing Physical Inventories
Inventory includes the lot numbers of the items to count in your physical inventory when it generates tags. You must assign lot numbers to all items under lot control for which you enter counts in the Physical Inventory Tag Counts window. If there is a difference between the count quantity and the system on–hand quantity, Inventory adjusts the item quantity in that lot.

Lot Control Setup

Before using the lot control we need to have the following 3 setups

1. Lot information in inventory tab of item master
http://www.oracleug.com/user-guide/oracle-inventory/inventory-attribute-group

Maintaining Item Lot Information

You can update the disable status and expiration date associated with item lot information.

 

Item Serial Number

Oracle Inventory provides complete serial number support for inventory transactions. You can enable serial number control for specific items in your inventory. For items under serial number control, you assign unique serial numbers to individual units and
thereafter reference the same serial numbers each time you perform material transactions. This allows you to have tight control over every unit of every item in your inventory. If your item is under dynamic entry At sales order issue, you can only assign serial numbers when you perform a shipment transaction in Oracle Shipping Execution.

Serial Number Validation
Oracle Inventory enables you to perform two optional validations for serial numbers that have been used in Oracle Work in Process. This validation is enabled by setting the profile option, Inventory: Restrict Receipt of Serials to Yes.

• Validation of serialized components:
Enabling the profile option will validate that a given serial number for an item may not be received via purchase order receipt, miscellaneous receipt, or account alias receipt, if that same serial number has been issued to Oracle Work In Process.
• Validation of serialized end–assemblies:
Enabling the profile option will validate that a given serial number for an end assembly item may not be completed into Oracle Inventory for a Discrete Job, Repetitive Schedule, Flow Schedule, and Work Order–less Completion, if that same serial number has a state of, Issued out of stores.

Issuing Material from Inventory
If you issue items with a serial number control type of dynamic entry At inventory receipt or Predefined, you must choose from the list of serialized units that you have already received into inventory. If you issue items with a serial number control type of dynamic entry At sales order issue, you must assign serial numbers when you ship the item
against a sales order.

Assigning Serial Numbers to Assemblies
When you receive into inventory a completed assembly with a serial number control type of dynamic entry At inventory receipt or Predefined, you must assign a serial number in the WIP Completion Transaction window in Oracle Work in Process. You either accept the default serial number or enter another valid one.

Returning Serialized Units to Suppliers
You can return serialized units to the supplier in the Enter Returns and Adjustments window. Oracle Inventory updates the serial number information with the purchase order number and transaction date of the return so that the location of the serialized unit is known.
When you receive replacement units, you can issue new serial numbers. When you receive repaired units, you should reference the original serial numbers so that Oracle Inventory can properly update the existing serial numbers

Setting Up Serial Number Control

1. Item master setup
http://www.oracleug.com/user-guide/oracle-inventory/inventory-attribute-group

http://www.oracleug.com/user-guide/oracle-inventory/lot-control-setup

Generating & Assigning Serial Numbers

Generating Serial Numbers
If you specified Predefined as the serial number control type for an item, you must predefine serial numbers for that item.
If you specified entry At inventory receipt or At sales order issue, you can optionally predefine serial numbers for the item. The process of generating serial numbers does not assign serial numbers to units in inventory, it simply reserves specific serial numbers for an item, for later use. When you run the serial generation program if you have the same serial prefix number across organizations, the concurrent program searches across the organizations, and generates serial numbers using the highest start number across the organizations.

Serial Number Assignment

You must assign serial numbers whenever you receive items under serial number control into inventory. If an item is under Predefined control, you can choose from the list of predefined serial numbers for that item. If an item is under dynamic entry At inventory receipt, you can choose from a predefined list of serial numbers or enter any serial number, depending on the uniqueness control for your organization. You can create and assign serial numbers individually or as a range to speed up data entry. If your item is under dynamic entry At sales order issue, you can only assign serial numbers when you perform a shipment transaction in Oracle Shipping Execution.

Once you assign a serial number to an item, the combination of the serial number and the item is an entity known as a serialized unit. From that point on, Oracle Inventory tracks all movements and maintains the following information for each serialized unit:
• Receipt or Ship Date
The date on which you last performed a material transaction for your serialized unit. Material transactions update this
information when you move your serialized unit.
• Serial State
Oracle Inventory assigns one of the following states to your serialized unit: Defined but not used, Resides in inventory, Issued out of inventory, or Resides in intransit.
 

Status Codes
---------------------
1 Defined but not used
3 Resides in stores
4 Issued out of stores
5 Resides in intransit
6 Pending status
7 Resides in receiving
8 Resides in WIP

You can get a full list of the codes with the following SQL: select
lookup_type,
lookup_code,
meaning
from mfg_lookups
where lookup_type = 'SERIAL_NUM_STATUS'
order by lookup_type, lookup_code

• Location
The organization, subinventory, and locator in which the serialized unit currently resides. Material transactions update
this information when you transfer the serialized unit.
• Revision level
The revision of the item when you assign the serial number to the unit.
• Lot number
During material transactions, you first specify the lot number and then the serial number. Oracle Inventory tracks the lot from which a specific serialized unit originates.

Maintaining Serial Number Information

You can view location, job and state information, as well as update supplier information associated with your serialized units.

1. Navigate to the Serial Numbers window. The Find Serials window appears.
2. Enter search criteria. If you do not enter criteria, a query for all serial numbers is performed.
3. Choose the Find button to display the serial number and item information in the Serial Numbers window.

Transaction Setup

You must set certain controls and options before performing inventory transactions. These include:

Setting transaction profile options:
Oracle Inventory provides you with the following transaction processing profiles:
• Enter Replenishment Count
• Inter–Organization Transfer
• Miscellaneous Issue and Receipt
• Transaction Processing Mode
• Transfer Between Subinventories
• Update Average Cost
• Server Side On–line Processing
• Allow Expense to Asset Transfer
• Project Miscellaneous Transaction Expenditure Type
• RPC Timeout
• Restrict Receipt of Serials
• Transaction Date Validation
• Use New Trx Manager for Processing
• Override negative for Blackflush
• Quantity Tree Timeout for Lock
• Maximum Number of Quantity Trees
• Cycle Count Approvals
• Cycle Count Entries

Transaction Processing Mode
You can set processing control globally for all transactions or you can choose different options for each type of transaction. You establish the method of transaction processing by choosing one of the following options when you set up your TP:INV Transaction Processing Mode profile:

On–line processing Processes transactions while you wait and returns control to you once it finishes.

Background processing Returns control immediately to you. With this option, Oracle Inventory processes transactions
on a periodic basis via the Inventory Transaction Manager.

Immediate concurrent processing Spawns a concurrent process when you commit the transaction and returns control immediately to you, allowing you to continue working.

Form level processing Processes transactions using the processing control option you choose for that particular type of transaction. You must also set the Inventory profile options for Inter–Organization Transfer, Miscellaneous Issue and Receipt,
Receive Customer Return, Return to Customer, and Transfer Between Subinventories. If you are using Oracle Work–in–Process, you must set the WIP profile options Completion Material Processing, Completion Transaction Form, Material Transaction Form, Move Transaction, Operation Backflush Setup, and Shop Floor Processing.

If you choose Form level processing for the Transaction Processing Mode profile you can set up different processing controls for each type of transaction.
On–line Processing If you use On–line processing, you can choose whether transactions are processed on the server or client side by setting the Server Side On–line Processing profile. The default value is server side processing.
Inventory Remote Procedure Manager Server side on–line processing uses the Inventory Remote Procedure Manager to allow a transaction initiated on the client to process on the server. System managers maintain the Remote Procedure Manager.

Launching Transaction Managers
The transaction managers execute the following processes:
material transaction,
move transaction,
resource cost transaction,
material cost transaction,
demand reservation &
remote procedure call.

These run at periodic intervals you specify until you delete them with the concurrent manager. They control the number of transaction workers, processing intervals, and number of transactions processed by each worker during each interval.

Transaction Source Types

The relationship between transaction source type, transaction action and transaction type is shown in below picture.

Transaction source type = Purchase Order
Transaction source  = Purchase Order Number
Transaction Action = Receipt
Transaction  type = PO Receipt

Transaction Actions

A transaction action is a generic type of material movement or cost update with no specificity regarding the source of the transaction. Along with a transaction source type, a transaction action identifies a transaction type. Oracle Inventory provides the following transaction actions:
• Issue from stores
• Subinventory transfer
• Direct organization transfer
• Cycle count adjustment
• Physical inventory adjustment
• Intransit receipt
• Intransit shipment
• Cost update
• Receipt into stores
• Delivery adjustments
• WIP assembly scrap
• Assembly completion
• Assembly return
• Negative component issue
• Negative component return
• Staging Transfer

Transaction Types

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. Oracle Inventory also uses transaction types to identify certain transactions to include in historical usage calculations for ABC analysis or forecasting. The following table presents predefined transaction types:

Use the Transaction Types window to define additional transaction types to customize transaction entry. A user–defined transaction type is a combination of a user–defined transaction source type and a predefined transaction action. For example, if you frequently donate items to charity, you might want to define a transaction source type called ”Charity” and a transaction type called ”Issue to Charity”. In this case, the transaction action would be Issue from Stores. You would then use the Miscellaneous Transactions window to actually issue an item to charity, using the ”Issue to Charity” transaction type. You would also specify the actual charity to which you are issuing, such as Goodwill, and the expense account that specifies the source (Goodwill).

You define transaction types by combining transaction actions and transaction source types. You define transaction source types in the Transaction Source Types window. Oracle Inventory provides the list of transaction actions.

You must specify a transaction type when you perform a miscellaneous receipt or issue, a subinventory transfer, a WIP transaction, or an inter–organization transfer.

Defining Transaction Reasons

A transaction reason is a standard means of classifying or explaining the reason for a transaction. Transaction reasons can be used in all transaction forms.
You can use these standard transaction reasons with any type of material transaction. Oracle Inventory provides transaction reporting and inquiring capabilities by transaction reason.

In the reason type from the list of values. The available choices are as follows:
• Load
• Drop
• Receiving
• Replenishment
• Cycle Count
• Shipping
• Update Status
• QA Update Status
Note: The Replenishment reason type is disabled.

If you selected Picking as the Reason Type, select a Reason Context from the list of values. The available choices are as follows:
• Curtail Pick: End the pick after picking a few LPNs or Lots and load the contents.
• LPN Exception: Pick partial quantity of the scanned fully consumable LPN.
• Pick None: End the pick without picking anything.
• Pick Over: Pick more than the requested quantity.
• Pick Partial: Split the pick and allow confirmation of less than the requested quantity. You must still pick the entire quantity, but can pick in stages.
• Pick Short: Specify a quantity less than the requested quantity, and back order the rest of the required quantity.
• Change Source Locator: Change the location from which the material is picked.
• Change UOM: Change the transaction unit of measure for the task.

Inter–Organization Shipping Network

Use the Inter–Organization Shipping Network window to define accounting information and the relationships that exist between shipping and destination organizations. You can specify whether an organization is a shipping organization, a destination organization, or both.

1. Enter the general ledger transfer credit account used to collect transfer charges for the shipping organization The default value is the value you defined in the Organization Parameters window for the shipping organization.
2. Enter the general ledger account used to collect the purchase price variance for inter–organization receipts into standard cost organizations. You must enter an account if your receiving organization is using standard costing.
3. Enter the general ledger receivables account used as an inter–organization clearing account for the shipping organization.
4. The inter–organization receivable account for the shipping organization should equal the inter–organization payables account for the receiving organization.



8. Intransit lead time
Select Shipping Methods on the Tools menu to open the Inter–org Shipping Methods window.
Enter the shipping method for which you want to associate an intransit lead time for the displayed from and to organizations and enter the intransit lead time in days.

Defining Intercompany Relations

Use the Intercompany Relations window to define, query, and update intercompany relations between two operating units in a multi–organization environment. These operating units are either the shipping organization and the selling organization, or the receiving and purchasing organization.

When a sales order is entered in an operating unit, the shipping organization is often part of a separate operating unit, belonging to a separate set of books. Once the sales order is shipped to the customer, the inventory asset account for the shipping organization is credited and the cost of goods sold account is debited. On the other hand, sales revenue must be recognized in the order entry organization. If the two organizations belong to different operating units, the system must perform accounting distributions to record the intercompany revenue, receivable, and payable entries.

Oracle Inventory and Oracle Receivables must be installed before you can define intercompany relations. If Oracle Payables is not installed, the fields in the AP Invoicing for Selling region are not required.

Transactions

Oracle Inventory, with Oracle Order Management, Oracle Purchasing, and Oracle Work in Process, provides you with a complete set of transactions and reports for maintaining inventory control. This allows you to control the flow of material from the time you receive items to the time you ship finished goods to the customer.

Inventory transactions and on hand balance supports decimal precision to 5 digits after the decimal point. Oracle Work in Process supports decimal precision to 6 digits. Other Oracle Applications support different decimal precision. As a result of the decimal precision mismatch, transactions another Oracle Application passes may be rounded when processed by Inventory. If the transaction quantity is rounded to zero, Inventory does not process the transaction. It is therefore suggested that the base unit of measure for an item is set up such that transaction quantities in the base unit of measure not require greater than 5 digits of decimal precision.

Inter–organization Transfers

You can define multiple inventories, warehouses, and manufacturing facilities as distinct organizations. With Oracle Inventory you can perform inter–organization transfers as direct or intransit shipments.

Inter-Org transfers can be done within or accross operating units but you can not generate intercompany invoice with inter-org transfer. Intercompany invoicing is possible for inter-org transfers of type ‘In-transit’ only through ‘Internal sales Orders’. No intercompany invoicing is possible if you perform org transfers between two inventory orgs belonging two different operating units without ‘internal sales Orders’. Also note that intercompany invoice cannot be raised for inter-org transfers of type ‘Direct Transfer’ through Internal sales Orders.

 

Direct Inter–organization Transfers

You 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 you have defined in both the shipping and destination organizations for the items you want to transfer. For example, you can transfer item A from organization X to organization Y, even though item A is under lot control only in organization X (you can specify the lot numbers for item A in organization X during the transfer transaction). However, you cannot transfer item B from organization X to organization Y if item B is under lot control only in organization Y (you cannot specify lot numbers for item B in the destination organization because you are performing a
direct transfer).

The following tables present direct, inter–organization transfers.(As given in oracle user guide)

 If destination is Asset/Serial controlled/Lot controlled/ Revision Controlled then the source needs to be Asset/Serial controlled/Lot controlled/ Revision Controlled

Inter–Organization Transfers via Intransit Inventory

You usually transfer material to intransit inventory when transportation time is significant. When you perform the transfer transaction, you do not need to specify the delivery location. You only need to enter the subinventory you 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.

If the FOB point is set to Receipt in the Shipping Networks window, the destination organization owns the shipment when they receive it. If it is set to Shipment, the destination organization owns the shipment when the shipping organization ships it, and while it is intransit.

While your shipment is intransit, you can update shipping information such as the freight carrier or arrival date in the Maintain Shipments window.

At the time of shipment, you must define your receiving parameters for the destination organization. You can receive and deliver your shipment in a single transaction or you can receive and store your shipment at the receiving dock.

The validity of a transfer transaction depends on the controls you have defined in both the shipping and destination organizations for the items you want to transfer. For example, you can transfer item A from organization X to organization Y, even though item A is under lot control only in organization X (you can specify the lot numbers for item A in organization X during the transfer transaction). You can also transfer item B from organization X to organization Y if item B is under lot control only in organization Y (you can specify lot numbers for item B in the destination organization when you perform the receiving transaction).

1. The following tables present inter–organization transfers via intransit inventory.

 2. In case of inter organization transfer via Intransit we required to put the shipment number

 After completing the inter org transfer, go to the receiving form of the 'to org' and receive the shipment with the shipment number.

Serial Number Restrictions

There are certain restrictions and expected behaviors when transferring items between organizations where the serial control in the source and destination organizations are different. The following tables explain the expected results.

Subinventory transfer

You can transfer material within your current organization between subinventories, or between two locators within the same subinventory. You can transfer from asset to expense subinventories, as well as from tracked to non–tracked subinventories. If an item has a restricted list of subinventories, you can only transfer material from and to subinventories in that list. Oracle Inventory allows you to use user–defined transaction types when performing a subinventory transfer.

To do a subinventory transfer from expense to asset subinventory set the profile option INV: Allow Expense to Asset Transfer  to "Yes."  

 If it has not been set it to "Yes," it is possible to issue from an asset to an expense subinventory, but issue from an expense to asset subinventory is not possible.  Oracle Inventory expects the consumption of material at the expense location.  If you return an asset item to an expense subinventory, you must be first issue it from the expense subinventory using the Miscellaneous

Transaction form and transfer it to the subinventory expense account.  Then, no accounting occurs and you only transfer quantities.  To receive the asset item back to the asset subinventory, perform the Miscellaneous Transaction account receipt using the same expense account as the expense subinventory.

For receiving an ASSET item back, you use the Miscellaneous Transaction instead of the subinventory transfer. 

Performing Miscellaneous Transactions

With a miscellaneous transaction you can issue material to or receive material from general ledger accounts in your current organization. This allows you to issue material to groups that are not inventory, receiving, or work in process such as a research and development group or an accounting department. You can also make manual adjustments to the general ledger by receiving material from one account to inventory, and then issuing that material from inventory to another account.

You can use your user–defined transaction types and sources to further classify and name your transactions. You can use this feature to issue items to individuals, departments, or projects; or to issue damaged items to expense accounts such as scrap. You can perform the receipts for items that were acquired by means other than a purchase order from a supplier. You can also use this feature to load all item on–hand quantities when you start implementing Oracle Inventory.

You will receive a material shortage alert while performing a miscellaneous transaction if you have enabled shortage alerts for the miscellaneous transaction type being performed. Also, a miscellaneous transaction can trigger a shortage notification to be sent to various pre–defined individuals.

On–hand and Availability

Oracle Inventory provides a variety of windows to view

1. on–hand quantities,
2. reservations,
3. supply/demand,
4. available to promise,
5. supply chain available to promise,
6. and capable to promise information.

Material Workbench

You use the material workbench to view on–hand quantities. The Material Workbench enables you to view on–hand balances for inventory items by

You can view the following information in the effective status window.
• Subinventory Status: The subinventory status.
• Locator Status: The locator status. This field is blank if the item is not locator controlled.
• Lot Status: The lot status. This field is blank if the item is not lot controlled.
• Serial Status: The serial status. This field is blank if the item is not serial controlled.
• Transaction Types: The transaction types alternative region displays the allowed and disallowed transaction types for the
item.

5. Material Workbench Transactions
You can use the Material Workbench tools menu to perform the following transactions:
• Mass Move: Moves the selected items to a new subinventory.
• Mass Issue: Enabled you to mass issue an item.
• Status Update: Enables you to change status information.
• Cost Group Transfer: Enables you to transfer the item to another cost group.
• Cycle Counting: Enables you to initiate a cycle count for the selected subinventory.

Multi–Organization Quantity Report

Use the Multiple Organization Inventory Report to show the inventory quantity on hand for items in more than one organization. The report has no limitations on the number of organizations you can enter. The report is sorted by inventory item for all of the organizations. You can include quantities that are in transit. If you have revision control items, you can report on the revision quantities individually (for each revision) or summed for the item. You can run the report for all items, or you can specify a range of items.

Viewing Item Supply/Demand Information

You can view supply/demand information, and the current and projected available quantities of an item.

Supply/Demand Type: The supply source or demand source type, such as Account number, Purchase order, Sales order, and WIP discrete job.
Identifier: The identifier for the supply source or demand source, such as the purchase order number or work in process discrete job number.
Quantity: The scheduled supply quantity or demand quantity for the item. Demand quantities are displayed as negative numbers.  Supply quantities are displayed as positive numbers.
Available Quantity: The projected on–hand quantity of the item, defined as Current Available plus all future sources of supply and less all future sources of demand

Available to Promise

Calculating the Available to Promise (ATP) is a method of checking the projected supply of an item at a given time.

• The basic formula for ATP is ATP quantity = on-hand quantity + supply - demand.
• Oracle Inventory lets you define different rules that govern what is considered supply and demand.
• In oracle inventory you can view the earliest available date for a specific quantity of an item or a group of items and the available quantity of an item for a specific date.

ATP Rule

To implement available to promise, you begin by defining your ATP rules. ATP rules let you tailor the ATP calculation to suit your business needs. Each rule is a combination of ATP computation options, time fence options, and supply and demand sources to use during an ATP inquiry. You cannot delete an ATP rule, but you can rename or redefine existing rules by updating fields.

You can define multiple ATP rules to reflect th
e specific needs of your organization, and then use different rules to calculate availability for different items or groups of items. Each time you run an ATP check, the rule determines how existing supply and demand are matched. You can choose one of the ATP rules you define as the default ATP rule for your organization. You can update the item attribute ATP Rule to specify a default ATP rule for each item.



ATP Computation Options
You can choose a variety of computation options to suit your business needs. ATP computations use the consumption and accumulate available features. Consumption resolves negative ATP after it is already determined that there is not enough available inventory.
Accumulation uses excess inventory from a period to determine where new demand can be placed. You can choose any combination of the following options:
Backward consumption only
ATP calculates availability for your item period by period. If the available supply quantity for the period does not meet the existing demand for that period, ATP works backward, period by period, and checks if the available supply within each period is sufficient to meet the excess demand. ATP does not combine the available quantities from multiple periods to meet an existing demand.

Backward consumption and accumulate available
ATP accumulates the excess supply from period to period. When demand in a period exceeds supply, this accumulated quantity is dipped into and reduced. When you perform an availability check, the accumulated quantity is available for your demand.

Forward consumption and backward consumption
ATP consumes backwards first. If the available supply quantity for a period is not enough to meet the period’s demand, ATP
steps back period by period to try to satisfy demand. If the demand cannot be met, ATP then moves forward into future periods to check on available supply.
Keep in mind that the ATP rule applies to existing demand and supply, and determines the quantity available on a period by period basis. Your quantity check is done against the results. ATP does not try to forward consume or backward consume your ATP check quantity.

ATP Time Fence Options
You can specify time fences for your ATP rules to restrict the use of both supply and demand. Time fences help you filter the noise out of the ATP calculation. You can implement the following time fence options:

Past Due Demand Days
ATP does not include any demand orders with a due date before this time fence. ATP uses the number of manufacturing workdays you enter for this fence to back off from the current system date and determine the past due time fence.
Use this time fence if you have sales orders, jobs, repetitive schedules, or other demand outstanding with past due dates that you do not plan to fill from existing or planned supply. If the due dates are before the time fence, ATP does not include these orders as demand.

Past Due Supply Days
ATP does not include any supply orders with a due date before this time fence. ATP uses the number of manufacturing workdays you enter for this fence to back off from the current system date and determine the past due supply fence.
Use this time fence if you have purchase orders, jobs, repetitive schedules or other supply orders with past due dates that you do not want to rely on as a source of supply for your ATP calculations. If the due dates are before the time fence, ATP does not include these orders as supply.

Infinite Supply Time Fence
Use this time fence to specify the end of your ATP horizon. ATP considers any demand that falls beyond this time fence as available. Use this time fence as the practical lead time you need to acquire components and build any quantity that a customer may order. You can choose from the following options to determine the infinite supply time fence:
• Cumulative manufacturing lead time
• Cumulative total lead time
• Item total lead time (does not include lead time of components)
• User–defined time fence (specify the number of supply days for your rule)

Accumulation Window
If you choose to accumulate expected surplus in one ATP period to the next, you can limit this accumulation to a specific number of workdays. Oracle Inventory does not treat excess supply as available supply beyond this accumulation window. Oracle Inventory also uses this option in backward consumption calculations, preventing excess supply from a period beyond the accumulation window from covering a shortage in a future period.
You can use the accumulation window to prevent the commitment of supply to satisfy demand with requirement dates far into the future. This is particularly useful if you have an item with high turnover and would likely be able to sell it quickly.

ATP Supply Source Options
You can choose the supply sources for each ATP rule. The ATP rule you use during the ATP inquiry then determines which sources of supply to include in the ATP calculation. Note that supply that falls on a non–manufacturing workday is considered available on the next manufacturing workday. All supply must have a scheduled due date within the ATP rule’s past due supply days window.

Inventory Planning and Replenishment

Oracle Inventory lets you manage your inventory levels using any combination of the system’s planning and replenishment features, including min–max planning, reorder point planning, kanban replenishment, and a replenishment system for generating orders.

Inventory planning involves answering 3 questions:

When to Order?
Typically, you should order when:
on-hand quantity + supply - demand < minimum inventory level
The minimum level is a safety stock designed to be on an exception basis to meet
demand or inventory while waiting for replenishment.

How Much to Order?
Typically you should order a quantity that balances the cost of placing an order with the cost of carrying inventory while covering expected demand. You then create a requisition to replenish inventory from another organization or a supplier.

Which Planning Methods to use ?
• Reorder-point planning (organization)
• Min-max planning (organization and subinventory)
• Replenishment Counting
• Vendor managed
• Kanban planning
• Material-requirements planning: Master Production Scheduling/Master Demand Scheduling (organization)

Order Modifiers

When you define an item or an item–subinventory relationship, you can specify attributes that modify your order quantities. You can use them to model supplier constraints that restrict the size of an order or mandate a specific lot size. You can specify minimum and maximum order quantities and fixed lot size modifiers. For replenishing subinventories, these same order modifiers can be set by item at the subinventory level.

If an order is smaller than the minimum order quantity, Inventory modifies the order upward to the minimum order quantity. Likewise, if the order is larger than the maximum order quantity, it modifies it downward to the maximum order quantity. An order must be a multiple of the fixed lot size multiplier. If it is not, it is revised upward so that the order is such a multiple.

Reorder Point Planning

Reorder point planning uses demand forecasts to decide when to order a new quantity to avoid dipping into safety stock.
Reorder point planning suggests a new order for an item when the available quantity—on–hand quantity plus planned receipts—drops below the item’s safety stock level plus forecast demand for the item during its replenishment lead time. The suggested order quantity is an economic order quantity that minimizes the total cost of ordering and carrying inventory. Oracle Inventory can automatically generate requisitions to inform your purchasing department that a replenishment order is required to supply your organization.

Safety Stock Safety stock for an item is the quantity of an item that you plan to have in inventory to protect against fluctuations in demand and supply. You can enter your own safety stock quantities, or Oracle Inventory can calculate safety stock based on an existing forecast for the item.

Item Demand The reorder point planning routine uses the average demand during the replenishment lead time. Oracle uses forecast information to calculate average demand.

On a normal circumstance its a summation of all the forecats.

Replenishment Lead Time Replenishment lead time is the total time between recognizing the need for items and the receipt of items. You can enter three components of order-processing lead times:
• Preprocessing lead time
• Processing lead time
• Postprocessing lead time
Oracle Inventory calculates reorder point planning lead time by adding all three components of processing lead time.

EOQ/Reorder Quantity
Reorder quantity = Economic Order Quantity (EOQ)
The economic order quantity is the quantity that minimizes the total cost of ordering and storing inventory.
EOQ = SQRT {[2 * (annual demand) * (order cost)]/(carrying cost percent *unit cost)}

Annual carrying cost = carrying cost percent*unit cost

Oracle Inventory calculates annual demand information from the forecast that you provide when you perform reorder point planning.

The EOQ increases as demand increases, since the cost of carrying a larger order is smaller because the inventory is not carried as long. EOQ also increases when the cost of preparing an order increases. This is to avoid making too many orders and thus incurring this cost more often than necessary. On the other hand, the more it costs to carry inventory, the smaller the EOQ since it costs more to carry the excess inventory.

You can constrain the reorder quantity by specifying the following information for each item:
• Fixed-lot multiplier
• Minimum order quantity
• Maximum order quantity

Order cost
The cost associated in ordering the item.

Carrying cost
The cost associated in carrying the item in inventory.

Item Safety Stocks

Oracle Inventory uses item safety stocks in the reorder point planning process. Safety stock is a floor or base level of inventory from which Oracle Inventory performs all planning. In other words, the item is planned as if the safety stock quantity for the period is the zero inventory balance of the item. This ensures that the safety stock quantity remains in inventory to cover any fluctuations in demand.

In businesses such as aerospace and defense manufacturing, or construction, it is normal to segrate supplies and demands by inventory ownership. Safety stock definition in such environments can be project specific. You can enter your own safety stock quantities or let Oracle Inventory calculate them based on an existing forecast for the item.

1. To manually enter a safty stock against an item.
Navigate to Inventory ->Planning -> Safty stock
and enter the item and safty stock

MAD is the mean absolute deviation of the historic forecasts from the actual demand.
Z is the number from the normal distribution probabilities corresponding to the service level specified by the user.
 

Kanban Replenishment

Kanban is a means of supporting pull–based replenishment in manufacturing systems. A Kanban system is a self–regulating pull system that leads to shorter lead times and reduced inventory. Kanban systems are typically applied to items that have relatively constant demand and medium–to–high production volume.

Kanbans represent replenishment signals that are usually manual and highly visible, such as a color–coded card that moves with the material, a light that goes on when replenishment is required, or an empty bin that is moved to the supply location to trigger replenishment.

The system includes an API that can be called by external systems, such as bar code readers, to trigger replenishment signals.  Kanbans can be replenished from an external supplier or an internal organization.

The four types of kanbans available in the system trigger transactions that pull material from different replenishment sources.
Inter Org Creates internal requisitions
Intra Org Triggers material movement from a subinventory in the same organization
Production Creates or releases a production job (discrete job, repetitive schedule, or flow schedule)
Supplier Creates a purchase requisition

Kanbans are generally replenishable and cycle through the system from full to empty, remaining active until they are
withdrawn. One–time signals, called non–replenishable kanbans, are used primarily to manage sudden spikes in demand.

Master Item: MPS/MRP Planning

Inventory: (N) Items—>Master Item
To define a kanban planned item, you must set the Release Time Fence attribute in the MPS/MRP Planning attribute group to Kanban Item (Do Not Release). Only kanban planned items can be used in defining a pull sequence.

 

Defining Pull Sequences

SOURCE TAB

Process flow and Kanban Card status

Kanban cards are created for an item, subinventory, and locator (optional). They are uniquely identified by a kanban number.  For cards generated from a kanban pull sequence, the number is automatically generated. For manually defined cards, both replenishable and non–replenishable, you can enter an unused kanban number or let the system create the number.

Card Status
Kanban cards are generated with a default Card Status of Active. When you define a card manually, you can initially give it either Active or Hold status.
If the Supply Status is Full, you can temporarily pull a card out of the replenishment chain by changing the Card Status to Hold. You can later change the status back to Active. You can terminate use of a card by changing the Card Status to
Canceled, but you cannot reverse this change. Only Canceled cards can be deleted.

Supply Status
All the following Supply Status codes can be set either manually or automatically.

New The kanban has just been created and is not yet part of the replenishment chain.
Empty The kanban is empty and a replenishment signal has been generated (available only for Inter Org and Supplier source types).
Full The kanban has been replenished.
Wait The kanban is waiting until the minimum order quantity has been met by the aggregation of cards.
In–Process For the Supplier source type, the purchase order has been approved. For the Inter Org  source type, the internal requisition has been approved.

All cards are generated with a status of New. You can switch this status to Empty to trigger a kanban replenishment signal. During initial setup, you can switch the status to Full if you are starting out with a full bin. When you are defining a card manually, you can create a card with a status of Empty, Full, or New.

Defining/Generating/Printing Kanban Cards

Defining Kanban Cards
Use the Kanban Cards Summary window to view, define, and update kanban cards. You can also automatically generate kanban cards with the Generate Kanban Cards process.

 

 

Min–Max Planning

You can use min–max planning to maintain inventory levels for all of your items or selected items. With min–max planning, you specify minimum and maximum inventory levels for your items. When the inventory level for an item (on–hand quantities plus quantities on order) drops below the minimum, Oracle Inventory suggests a new purchase requisition, internal requisition, move order, or job to bring the balance back up to the maximum.

Oracle Inventory performs min–max planning for your items at either the organization level or the sub inventory level. Sub inventory level planning cannot generate jobs and does not consider WIP jobs as supply or WIP components as demand.

Document Types

Use the Document Types window to define access, security, and control specifications for all Purchasing documents. You cannot enter new document types; you can enter new document subtypes only for RFQs and quotations.

Prerequisites
1.  If you want to be able to choose the document approval hierarchy in this form, you must enable Use Approval Hierarchies in the Financial Options window.
2. You must use the Position Hierarchy window to create and update the position hierarchies, since Purchasing uses these hierarchies as document approval routing.

Select a Document Type from the list and click its icon in the Update column. If your document type is one of Purchase Agreement, Purchase Order, Quotation, Release, Request for Quotation, or Requisition you can update the attributes
discussed in the following steps.

• The Quotation Class is applicable only for document types Quotation and Request for Quotation. Choose one of the following options:

Approval

Control

Item Lead Time Attributes

  

Kanban Calculation Formula

One of the most important tasks of a kanban planning system is determining the optimal number of kanban cards. The kanban planning software takes care of this calculation provided you enter correct values for kanban size, average daily demand for the kanban item, and the lead time to replenish one kanban.

By default, the standard calculation is:

                                                      (C – 1) * S = D * A * (L + SSD)

where:

• Minimum Order Quantity
• Lot Multiplier

 

• It identifies all the kanban items that you want to include in your kanban calculation, using the parameters you enter when you launch a kanban calculation.
• It finds location information for each kanban item.
• For each kanban item, it identifies every BOM in which the item appears so that it can explode the demand from the assemblies down to the kanban item.
• Using the MDS, MPS, Actual Production, or forecast you specify in the Kanban Names window – it identifies all the demand entries for each kanban item for which the demand is independent. For example, suppose that from the forecast you specified in Kanban Names, the program finds independent demand for 600 of kanban item A.
• It uses the Allocation Percentage specified in the pull sequence for each kanban item to determine how to distribute demand for the item among its different locations. For example, if the allocation percentage for item A at location L1 is 20%, then the program places demand of 120 (that is, 20% of 600) at location L1.
• Using the MDS, MPS, Actual Production, or forecast you specify in the Kanban Names window – it calculates demand for each kanban item for which demand is dependent on the demand for other items. It does so by using the following information:

• Finally, the program sums up the demand entries that fall within the kanban planning horizon for each kanban item at each location and divides the demand for each item at each location by the number of workdays. For example, if the number of workdays on the planning horizon is 20, then the average daily demand for item A at location L1 is 6 (because the total demand  for item A at location L1 for the planning horizon is 120). The program prorates the demand from periodic forecasts for those days between the Demand window specified for the calculation program.

1. telling the application what demand information to use - we do that by specifying the kanban name in work bench as shown in above screenshot.
2. submitting a request for the calculation program. 

ATP, Pick, Item–Sourcing Parameters

Inter–Organization Information

Inventory Pending Transaction

Users can see the number of pending transactions by navigating to the Inventory Accounting Periods Form.
Navigate > Cost > Accounting Close Cycle > Inventory Accounting Periods
Place cursor on the appropriate open accounting period and click on the [Pending] Button. There are three zones titled “Resolution Required”, “Resolution Recommended” and “Unprocessed Shipping Transactions”.

Implemenation of Inventory

The first step in ventroy implemenation is to design the flex field structures.

Oracle Inventory Flexfields

Oracle Inventory provides the following flexfields:

1. System Items
2. Item Catalogs
3. Item Categories
   
4. Stock Locators
5. Account Aliases
   
6. Sales Orders

 
• Accounting (Oracle General Ledger)
• Sales Tax Location (Oracle Receivables)
• Territory (Oracle Receivables)

 

 

Dynamic entry for Locators

If we select the dynamic entry for locators then we can directly create the locators while do any transactions. To allow dynamic entery allowed for locators we need to do following two setups.
1. Make the stock locator as dynamic entery either at oraganization parameter or subinventory or at item level.

2. Allow dynamic insert should be enabled for the stock locator structure.

 
 

Units of Measure

Oracle Inventory provides you with powerful methods for defining and manipulating units of measure. You can easily convert between the units of measure you define. This enables you to manufacture, order, or receive items in any unit of measure. With units of measure you can:

1. Define unit of measure classes,
2. Define units of measure,
3. Define unit of measure conversions,
4. Define lot-specific unit of measure conversions

• Creating unit of measure classes is the first step in unit of measure management. Each unit of measure you define must belong to a unit of measure class.
• Each class has a base unit of measure. The base unit of measure is used to perform conversions between units of measure in the class. For this reason, the base unit of measure should be representative of the other units of measure in the class, and generally one of the smaller units. For example, you could use CU (cubic feet) as the base unit of a class called Volume.
• Unit of measure classes are not organization-specific. Default unit of measure classes are not provided.

 

Defining Unit of Measure Conversions

• Unit of measure conversions are not organization-specific.
• You must define a conversion between a non-base unit of measure and the base unit of measure before you can assign the non-base unit of measure to an item

1. Itemspecific: Only uses unit of measure conversions unique to this item. If none exist, you can only transact this item in its primary unit of measure.
2. Standard: Uses standard unit of measure conversions for this item if an item-specific conversion is not available.
3. Both: Uses both item-specific and standard unit of measure conversions. If both exist for the same unit of measure and item combination, the item-specific conversion is used.

 

 

Lot-Specific Unit of Measure Conversions

Lot specific conversions enable you to perform a specific inter-class conversion for a given lot. This enables you to establish more granular control over the transactional quantities of a lot. For example, the standard inter-class conversion for a lot controlled item is one gallon equals 15 pounds; however, when you receive a particular lot of the item, 1 gallon equals 16 pounds. You can create a lot specific unit of measure for this instance.

You can create lot-specific unit of measure conversions for on-hand lots or lots with a zero balance. If you create a lot-specific conversion for a lot with on-hand quantities, you can automatically update the quantities in the system to more accurately reflect the on-hand quantity.

You can also view the history of changes made to the lot unit of measure conversion, and the corresponding quantity changes.
 

1. Enter the item number in the Item field.
2. Enter the lot number in the Lot Number field.
3. Select the destination base unit of measure of the class to which you are converting the unit of measure.
4. Enter the conversion factor by which the source base unit is equivalent to the destination base unit.
For example, if 16 pounds (source base unit) is equivalent to 1 Gallon (destination base unit), the conversion factor is 16.
5. Optionally, enter an inactive date for the conversion. This is the date when the unit of measure conversion for the lot reverts back to the standard inter-class conversion.
6. Optionally, enter a transaction reason for the conversion.

MPS / MRP Planning Attribute Group

 

Defining Planners

You can define and update material planners or planning entities for the current organization and assign them to inventory items at the organization level. 
 
To define and update material planners or planning entities:

1. Navigate to the Planners window.
2. Enter a unique planner name. A planner can be a person or an entity, such as a department or a division. 
3. Enter the electronic mail address of the planner.
4. Optionally, enter a date on which the planner becomes inactive. From this date on, you cannot assign this planner to an inventory item.

Shrinkage Rate/Component Yield/Safety Stock

Shrinkage Rate

Component Yield

Safety stock is a quantity of stock you plan to remain in inventory to protect against fluctuations in demand or supply. Safety stock is sometimes referred to as  over planning, forecast, or a market hedge. In the context of master scheduling, safety stock refers to additional inventory planned as protection against forecast errors or short term changes in the backlog. You can specify safety stock days together with safety stock percent as item attributes in Oracle Inventory. You establish the default use of safety stock calculation when you define your planning parameters. You can override this option for individual material plans when you generate an MRP or MPS using the Launch window.

Move Orders

Move orders are requests for the movement of material within a single organization. They allow planners and facility managers to request the movement of material within a warehouse or facility for purposes like replenishment, material storage relocations, and quality handling. You can generate move orders either manually or automatically depending on the source type you use.

Note: Move orders are restricted to transactions within an organization. If you are transferring material between organizations you must use the internal requisition process.

Managed Material Flow in a Facility:
Move orders allow you to distinguish between inventory management processes and the actual material transaction process. This provides for the following:

Move Order Components

A move order comprises the following:

Move order header
Oracle Inventory uses the move order header to store the move order source type. This refers to the entity that created the move order. The header also stores the default source and destination (if known), the order number, and the requested date.

• Move Order Number
• Status
• Move Order Type

• Source
• Destination
• Control - Status
•  

Move Order Process Flow

Setting Up Move Orders

Define the Subinventory source type
To automatically create move orders using min-max planning and replenishment counting, you must define the sub inventory source type at once of the following levels:

• Subinventory
• Item Subinventory

Workflow for Move Order Approval Process

If you require planner approval for move order requisitions, you can use the move order approval process, which forwards move order lines to the designated item planner for approval. Oracle Inventory manages the approval process through Oracle Workflow.

To govern the move order approval process, you set two inventory organization parameters:

• Move Order Timeout Period and
• Move Order Timeout Action.

Defining Pick Slip Grouping Rules

You can create grouping rules to organize how picking lines for released sales orders and manufacturing tasks are grouped on pick slips. For example, if you select Delivery as a grouping criteria, all picking lines for the same delivery are grouped together on a pick slip.

You can also select additional grouping attributes for your grouping rules. For example if you select Delivery and Carrier as grouping criteria, picking lines for the same delivery and carrier are grouped together on a pick slip.

Unordered Receipts

Receive an item against a supplier

1. Click on unordered and enter the supplier name in receipt form

 

Receiving Controls, Options, and Profiles

MAL - Match approval level
Match approval level, which determines whether the items on a purchase order line must be received and/or inspected before the corresponding invoice can be paid.

The Invoice Close % tolerance for your shipments. Purchasing automatically closes a shipment for invoicing if it is within the invoicing closing tolerance at billing, when Payables matches invoices to purchase orders or receipts.

The Receipt Close % tolerance for your shipments. Purchasing automatically closes a shipment for receiving if it is within the receiving closing tolerance at the receiving close point.
Note also that in the Find Expected Receipts form you have the option to include closed purchase orders when you are entering search criteria. You can override this option for specific
items and orders

The Receipt Close Point, when the shipment is closed for receiving: Accepted (passed inspection), Delivered, or Received.

 

Creating Custom Deletion Constraints

Use custom deletion constraints to enforce specific business rules. Custom deletion constraints prevent the deletion of bills or routings if your data meets the conditions set forth in the constraint.
 

To create a custom deletion constraint:
 
1.   Navigate to the Deletion Constraints window:
           
            Inventory->Setup->Items->Delete Constraints
     
2. Enter a name for the deletion constraint.
         
3. Indicate whether the constraint is enabled. An enabled deletion constraint means that it is in effect when the delete concurrent program runs.
         
4. Select what kind of delete entity the constraint applies to: item, bill, routing, component, or operation.
         
5. Enter the SQL Select Statement that the delete concurrent program is to execute. You cannot update SQL statements for predefined deletion constraints.
         
6. Indicate whether to delete if there are rows found or no rows found by the SQL Select Statement
         
7. Enter a failure message from Oracle Application Object Library's message dictionary to display if the delete fails.

Delete an Item

To delete an item which does not violate any delete constraint, navigate to Delete items window

 

 

Inventory Controls

• You can implement any combination of the four controls (locator, revision, lot, and serial number) for each item.
• Inventory controls are optional for all items. You can choose to implement inventory controls for specific items.

1. Org level overrides subinventory and item level.
2. Subinventory level overrides item level.
3. If decision is pushed to item level, Oracle Inventory uses item level.

A lot is a specific batch of an item that you receive and store in your 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. With Oracle Inventory you can establish lot control for specific items in your organization.

Defining Serial Number Control

A serial number is an alphanumeric piece of information that you assign to an individual unit of an item. A serialized unit is a combination of an item and a serial number. You can track individual units of items by using serial numbers. Serial number control is a system technique for enforcing the use of serial numbers during a material transaction. You can use serial numbers to track items over which you want to  maintain very tight control.

Locator Control

1.  Choose the number of segments in the flexfield.
2.  Indicate the number of characters in each segment of the flexfield.
3.  Specify whether you want to validate the values that you assign to the segments.
4.  Freeze and compile your flexfield definition.
5.  Even if you do not implement locator control, you must still compile the Stock Locators flexfield because transaction and on-hand reports require a frozen flexfield definition.
6.  Locator control provides locator uniqueness within an organization.

 

• None Oracle Inventory never requests locator information while you perform a transaction for this organization.
• Prespecified only Oracle Inventory requires locator information while you perform a transaction for this organization. You must choose a locator from a list of locators that you have prespecified.
• Dynamic entry allowed Oracle Inventory requires locator information while you perform a transaction for this organization. You may either choose from a prespecified list of locators or define a locator dynamically when you enter the transaction.
• Determined at subinventory level You can use the Subinventories window to set locator control for each individual subinventory.

• None Oracle Inventory never requests locator information while you perform a transaction for this subinventory.
• Prespecified Oracle Inventory requires locator information while you perform a transaction for this subinventory. You must choose a locator from a list of locators that you have prespecified for this subinventory.
• Dynamic Entry Oracle Inventory requires locator information when you perform a transaction for this subinventory. You may either choose from a predefined list of locators or define a locator dynamically when you enter the transaction.
• Item level This determines whether Oracle Inventory requires locator information when you perform a transaction for this item.

• No control Serial number control not established for this item. All material transactions involving this item bypass serial number information.
• At inventory receipt Create and assign serial numbers when you receive the item. Thereafter, for any material transaction, you must provide a serial number for each unit.
• At sales order issue Create and assign serial numbers when you issue (ship) the item against a sales order. If you select this option, serial numbers are required at ship confirm. If you receive an item on an RMA (return material authorization), you must specify the same serial numbers you created at sales order issue. All other material transactions for this item bypass serial number information.
  
• Predefined Assign predefined serial numbers when you receive the item. Thereafter, for any material transaction, you must provide a serial number for each unit.

5. Define locators

Prespecified Locators

•  You must define locators if your item is under Prespecified locator control.
•  When you enter a transaction for an item that is under Prespecified locator control, you must choose a locator that you have prespecified in this window.
•  You do not have to prespecify locators if your item is under Dynamic Entry locator control.

Receving Locator

6. Item Transaction Defaults

7. Restrict Items to Locators

• Security You may decide to restrict high-security items to specific aisle/bin locations in warehouses.
• Transaction entry You can limit items to specific locators to make the transaction entry process easier.
• Fixed storage All your items are always stocked in a particular range of bins and aisles.

• In the Inventory region of the Master Item window, select the Restrict Subinventories and Restrict Locators check boxes.
• In the Item Subinventories window, enter the list of restricted subinventories and locators for each item.
• You can restrict an item to a list of locators only if your locator control is Prespecified or “No Control.”

Revision Control

A revision is a particular version of an item, bill of material, or routing. You use revision quantity control to track item quantities by item revision. To do so you must specify a revision for each material transaction.
You can enable revision quantity control for items for which you must track version changes or changes that are significant enough to track but are not affecting the function and feature of the item and therefore do not require an item change.

1.  Define a default starting revision for each organization.
2.  Enable revision quantity control for items.
3.  Define revision numbers to use for each revision-controlled item.
4.  Enter revision numbers when you perform transactions.

• Material Transactions You can enter revision numbers for revision-controlled items during inventory transactions.
• Reservations You can place holds on specific revisions of items.
• Accuracy You can enter revision numbers for revision-controlled items whenever you enter physical inventory counts and cycle counts.
• Reports and Inquiries Oracle Inventory reports and inquiry windows display revision information for revision-controlled items.

Lot Control

A lot is a specific batch of an item that you receive and store in your 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.
Oracle Inventory enables you to establish lot control for specific items in your organization.

 

1.  Choose organization-level lot number generation and uniqueness options.
2.  Enable lot and shelf life control for your items.
3.  Perform transactions for lot-controlled items.
4.  Update information for specific item lots.

• Material transactions You can trace item movements by lot number.
• Reservations You can place holds on batches of items.
• Perishable items You can establish shelf life control to regulate the use of perishable items.
• Accuracy You can enter lot number information when you enter physical inventory counts and cycle counts for lot-controlled items.
• Reports and inquiries Oracle Inventory displays lot number information on reports and inquiry windows that list item quantity and transaction information.

 

• None You can assign the same lot number to multiple part numbers in the same organization and across organizations.
• Across items You can assign a specific lot number to only one item in the same organization.

• At Item Level You can specify a starting lot number prefix and a starting lot numberwhen you define an item under lot control. When you receive the item, Oracle Inventory uses this information to generate a default lot number for the item.You can always override default lot numbers.
• At Organization Level You can specify the starting prefix and lot number information when you enter the organization parameters. When you receive a lotcontrolled item, Oracle Inventory uses this information to generate a default lot number for the item. You can always override default lot numbers.
• User-Defined Oracle Inventory does not generate a default lot number when you receive your item.

• Shelf Life Days All lots of this item have the number of shelf life days you define. Oracle Inventory calculates the expiration date of the lot by adding the shelf life days to the date on which you receive the item.
• User-defined You can enter an expiration date when you receive each lot and issue items from an expired lot to a scrap account. If you perform any other transaction from an expired lot, Oracle Inventory displays a message warning you that the lot has expired.

Serial Number Control

A serial number is an alphanumeric piece of information that you assign to an individual unit of an item. A serialized unit is a combination of an item and a serial number. You can track individual units of items by using serial numbers. Serial number control is a system technique for enforcing the use of serial numbers during a material transaction. You use serial numbers to track items over which you want to maintain very tight control.

1.   Choose organization-level serial number uniqueness and default generation options.
2.   Enter item-level serial number control options.
3.   Define serial numbers to assign to serial-controlled items./Enter transactions for serial-number-controlled items.
4.   Update information for specific serialized units.

• Material Transactions: You can enter serial numbers when you use inventory transactions to move serialized units.
• Cycle Counts: You can enter cycle counts for items under serial number control.
• Physical Inventory: You can enter physical inventory counts for items under serial control.
• Reports and Inquiries: Oracle Inventory reports and inquiry windows display serial number information for items and transactions.

• Within inventory items
• Within organization
• Across organizations

Detailed Steps to Implement Serial Number Control for Your Items

1. Choose organization-level serial number uniqueness and default generation options.