R12 Oracle Inventory Managment Fundamentals Volume1

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R12 Oracle InventoryManagement Fundamentals

Volume I- Student Guide

D49489GC10

Edition 1.0

July 2007

D51692


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Copyright 2007, Oracle. All rights reserved.

This document contains proprietary information and is protected by copyright and other intellectual property laws. You may copy andprint this document solely for your own use in an Oracle training course. The document may not be modified or altered in any way.Except where your use constitutes "fair use" under copyright law, you may not use, share, download, upload, copy, print, display,perform, reproduce, publish, license, post, transmit, or distribute this document in whole or in part without the express authorizationof Oracle.

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Oracle, JD Edwards, PeopleSoft, and Siebel are registered trademarks of Oracle Corporation and/or its affiliates. Other names maybe trademarks of their respective owners.

Author

Tyra Crockett, Maneesha Nanda

Technical Contributors and Reviewers

Jennifer Sherman, Susan Flierl, Ronald Delong, David Nelson, Jean-Francois Guerrini

This book was published using: oracletu tor


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Copyright Oracle Corporation, 2007. All rights reserved.

R12 Oracle Inventory Management Fundamentals Table of Contentsi

Table of Contents

Overview of Oracle Inventory........................................................................................................................1-1R12 Overview of Oracle Inventory ...............................................................................................................1-3Objectives......................................................................................................................................................1-4

Overview .......................................................................................................................................................1-5Inventory Capabilities....................................................................................................................................1-6Inventory Capabilities (Cont) ........................................................................................................................1-7Receipt to Issue Life Cycle............................................................................................................................1-8Receiving Inventory ......................................................................................................................................1-9Transferring Inventory...................................................................................................................................1-12Issuing Inventory...........................................................................................................................................1-14Oracle Inventory Application Integration......................................................................................................1-16Integration of Oracle Inventory to Financial Applications ............................................................................1-18Summary........................................................................................................................................................1-19

Inventory Structure.........................................................................................................................................2-1R12 Defining Inventory Organizations..........................................................................................................2-3Objective........................................................................................................................................................2-4

Inventory Organizations ................................................................................................................................2-5Inventory Organization Structure ..................................................................................................................2-6Sample Inventory Organization.....................................................................................................................2-7Multi-Organization Structure.........................................................................................................................2-8Setting Up Locations .....................................................................................................................................2-9

Guided Demonstration - Setting up Locations...........................................................................................2-10Defining Organizations..................................................................................................................................2-11Inventory Parameters.....................................................................................................................................2-12Costing Parameters........................................................................................................................................2-13Revision, Lot, Serial, and License Plate Number (LPN) Parameters ............................................................2-14ATP, Pick, Item-Sourcing Parameters...........................................................................................................2-15Interorganization Parameters.........................................................................................................................2-16Other Account Parameters.............................................................................................................................2-17

Warehouse Management Parameters.............................................................................................................2-18Guided Demonstration - Setting Up Organizations...................................................................................2-19What is a Subinventory?................................................................................................................................2-24What is a Subinventory (Cont) ......................................................................................................................2-25Defining Subinventories................................................................................................................................2-26

Guided Demonstration - Defining Subinventories.....................................................................................2-27Practice - Creating Subinventories ............................................................................................................2-28Solution - Creating Subinventories............................................................................................................2-29

Locator Control .............................................................................................................................................2-35Dynamic and Static Locators.........................................................................................................................2-36Subinventory-Locator Relationship...............................................................................................................2-37Locator Flexfield Structure............................................................................................................................2-38

Guided Demonstration - Defining Locators ..............................................................................................2-39Practice - Defining Locators......................................................................................................................2-40Solution Setting Up Locator Control ......................................................................................................2-41

Interorganization Shipping Networks............................................................................................................2-43Shipping Method ...........................................................................................................................................2-45Additional Set Up Steps ................................................................................................................................2-46Additional Organizational Setups..................................................................................................................2-47Copying Inventory Organizations..................................................................................................................2-48Organization Hierarchy .................................................................................................................................2-50Organization Reports.....................................................................................................................................2-52Organization Reports (Cont)..........................................................................................................................2-53


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Profile Options...............................................................................................................................................2-54Implementation Considerations.....................................................................................................................2-55Implementation Considerations (Cont)..........................................................................................................2-56Summary........................................................................................................................................................2-61

Units of Measure..............................................................................................................................................3-1R12 Units of Measure....................................................................................................................................3-3Objectives......................................................................................................................................................3-4

Units of Measure ...........................................................................................................................................3-5Uses of Units of Measure ..............................................................................................................................3-6Unit of Measure Class ...................................................................................................................................3-7

Guided Demonstration - Creating Units of Measure .................................................................................3-8Guided Demonstration - Creating Unit of Measure Classes ......................................................................3-9

Unit of Measure Conversions ........................................................................................................................3-10Guided Demonstration - Defining Unit of Measure Conversions..............................................................3-11

Lot-Level Unit of Measure Conversions .......................................................................................................3-12Units of Measure Setup .................................................................................................................................3-13

Practice - Defining Units of Measure ........................................................................................................3-14Solution Defining Units of Measure.......................................................................................................3-16

Unit of Measure Reports................................................................................................................................3-20Profile Options...............................................................................................................................................3-21Organization Parameter Setup .......................................................................................................................3-22Implementation Considerations.....................................................................................................................3-23Summary........................................................................................................................................................3-24

Defining and Maintaining Items.....................................................................................................................4-1R12 Defining and Maintaining Items Fundamentals.....................................................................................4-3Objective........................................................................................................................................................4-4What is an Item?............................................................................................................................................4-5Steps to Setup, Define, and Maintain Items...................................................................................................4-6Defining Items...............................................................................................................................................4-7

Guided Demonstration - Define Item ........................................................................................................4-9Item Master Organization..............................................................................................................................4-10Item Master....................................................................................................................................................4-12Item Attributes...............................................................................................................................................4-13

Item Attribute Groups....................................................................................................................................4-14Guided Demonstration - Viewing Item Attributes.....................................................................................4-15Item Status.....................................................................................................................................................4-16Unit of Measure Attributes............................................................................................................................4-17Item Statuses and Attributes..........................................................................................................................4-19Status Attributes and Functionality ...............................................................................................................4-20Status Attribute Interdependencies................................................................................................................4-23Item Attribute Relationships..........................................................................................................................4-26

Practice - Viewing Item Attributes ............................................................................................................4-27Solution Viewing Item Attributes...........................................................................................................4-28

Item Templates ..............................................................................................................................................4-36Creating Item Templates ...............................................................................................................................4-37Enabling Attributes in a Template.................................................................................................................4-38

Guided Demonstration - Creating Item Templates....................................................................................4-39Organization Assignment and Organization Items........................................................................................4-40Control Levels ...............................................................................................................................................4-41Revision Control............................................................................................................................................4-43

Defining Items ...........................................................................................................................................4-45Solution - Defining Items ..........................................................................................................................4-46

Restricting Items to Subinventories...............................................................................................................4-59Guided Demonstration - Restricting Items to Subinventories ...................................................................4-60

Item Relationships.........................................................................................................................................4-61Guided Demonstration -Establishing Item Relationships..........................................................................4-62


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Categories and Category Sets ........................................................................................................................4-63Assigning Items to Categories.......................................................................................................................4-64

Practice - Defining Categories...................................................................................................................4-65Solution Defining Categories..................................................................................................................4-66

Item Catalogs.................................................................................................................................................4-70Guided Demonstration - Setting up Catalog Groups .................................................................................4-71

Deletion Constraints and Deletion Groups ....................................................................................................4-74Deletion Constraints ......................................................................................................................................4-75Deletion Constraints (Cont)...........................................................................................................................4-76Item Reports ..................................................................................................................................................4-77Item Reports (Cont).......................................................................................................................................4-78Profile Options...............................................................................................................................................4-80Profile Options (Cont) ...................................................................................................................................4-81Implementation Considerations.....................................................................................................................4-86Implementation Considerations (Cont)..........................................................................................................4-87Summary........................................................................................................................................................4-88

Lot and Serial Control ....................................................................................................................................5-1R12 Lot and Serial Control............................................................................................................................5-3Objective........................................................................................................................................................5-4Lot Control Overview....................................................................................................................................5-5Child Lots ......................................................................................................................................................5-6Setting up Lot Control (Organization Parameters) .......................................................................................5-7

Guided Demonstration - Setting Up Organizations...................................................................................5-8Lot Number Uniqueness................................................................................................................................5-12Setting up Lot Control (Item Attributes) ......................................................................................................5-13Managing Lots...............................................................................................................................................5-15Expired Lots ..................................................................................................................................................5-16Disabled Lots.................................................................................................................................................5-17

Guided Demonstration - Generating Lots..................................................................................................5-18Guided Demonstration - Maintaining Grades............................................................................................5-21Guided Demonstration - Maintaining Lot Actions ....................................................................................5-23Practice - Using the Lot Master .................................................................................................................5-24Solution Using the Lot Master................................................................................................................5-25

Lot Number Purging......................................................................................................................................5-32Cycle Counts Under Lot Control...................................................................................................................5-33Physical Inventory Under Lot Control...........................................................................................................5-34

Guided Demonstration - Revision, Lot, and Serial Controls .....................................................................5-35Serial Number Overview...............................................................................................................................5-38Generating Serial Numbers............................................................................................................................5-39Serial Uniqueness ..........................................................................................................................................5-40Maintaining Serial Numbers..........................................................................................................................5-42

Practice - Generating and Maintaining Serial Numbers ............................................................................5-43Solution Generating and Maintaining Serial Numbers............................................................................5-44

Lot Genealogy ...............................................................................................................................................5-49Guided Demonstration - Viewing Lot Genealogy.....................................................................................5-50

Serial Genealogy ...........................................................................................................................................5-51Lot and Serial Reports ...................................................................................................................................5-52

Lot and Serial Reports (Cont)........................................................................................................................5-53Profile Options...............................................................................................................................................5-55Profile Options (Cont) ...................................................................................................................................5-56Implementation Considerations.....................................................................................................................5-57Implementation Considerations (Cont)..........................................................................................................5-58Summary........................................................................................................................................................5-59

Transaction Setup............................................................................................................................................6-1R12 Transaction Setup...................................................................................................................................6-3Objectives......................................................................................................................................................6-4


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Overview .......................................................................................................................................................6-5Inventory Transactions ..................................................................................................................................6-6Move Orders..................................................................................................................................................6-7Transaction Source Types..............................................................................................................................6-8Transaction Action ........................................................................................................................................6-10Transaction Reasons......................................................................................................................................6-12Transaction Types..........................................................................................................................................6-13

Guided Demonstration - Creating Customized Transactions.....................................................................6-14Predefined Transaction Types .......................................................................................................................6-16Transaction Managers....................................................................................................................................6-17Running Transaction Managers.....................................................................................................................6-18Creating Picking Rules ..................................................................................................................................6-20

Guided Demonstration - Creating Picking Rules.......................................................................................6-22Account Aliases.............................................................................................................................................6-23Accounting Periods........................................................................................................................................6-24

Guided Demonstration - Opening Accounting Periods .............................................................................6-25Material Shortage Alerts and Notifications ...................................................................................................6-26Setting Up Shortage Alerts and Notifications................................................................................................6-28Setting Up for Move Orders ..........................................................................................................................6-29Setup Steps for Move Orders.........................................................................................................................6-31Profile Options...............................................................................................................................................6-33

Profile Options (Cont) ...................................................................................................................................6-34Implementation Considerations for Shortage Checks....................................................................................6-39Implementation Considerations for Move Orders ........................................................................................6-40Summary........................................................................................................................................................6-41

Issuing and Transferring Material.................................................................................................................7-1R12 Issue and Transfer Material....................................................................................................................7-3Module Objectives.........................................................................................................................................7-4Overview of Inventory Transactions .............................................................................................................7-5Inventory Transactions ..................................................................................................................................7-6Inventory Transactions Without Documents and Requisitions......................................................................7-7Inventory Transactions with Documents and Requisitions............................................................................7-8Control Options and Restrictions...................................................................................................................7-9Miscellaneous Transactions...........................................................................................................................7-10

Practice - Processing Miscellaneous Receipts ...........................................................................................7-12Solution Processing Miscellaneous Receipts..........................................................................................7-13

Subinventory Transfer ...................................................................................................................................7-24Guided Demonstration - Performing Subinventory Transfers...................................................................7-25Practice - Processing Subinventory Transfers ...........................................................................................7-26Solution Processing Subinventory Transfers..........................................................................................7-27

Inter-Organization Direct Shipment ..............................................................................................................7-31Inter-organization Intransit Shipment............................................................................................................7-32

Guided Demonstration - Performing Interorganization Transfers .............................................................7-34Practice - Performing Interorganization Transfers.....................................................................................7-35Solution Performing Interorganization Transfers ...................................................................................7-36

Managing Receipts ........................................................................................................................................7-41Express Receipts and Receiving Transactions...............................................................................................7-43

Direct Receipts ..............................................................................................................................................7-44Standard Receipt............................................................................................................................................7-45Inspection Receipt .........................................................................................................................................7-46

Guided Demonstration - Receiving Stock into Inventory..........................................................................7-47Practice - Receiving Material into Inventory.............................................................................................7-49Solution Receiving Material into Stock..................................................................................................7-50

Move Orders..................................................................................................................................................7-57Move Orders Process Flow............................................................................................................................7-58Move Order Requisition Approval Process ...................................................................................................7-59


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Benefits of Managed Material Flow in a Facility..........................................................................................7-61Move Order Source Types.............................................................................................................................7-63Move Order Components ..............................................................................................................................7-65Generate Move Orders...................................................................................................................................7-67Move Order Allocating..................................................................................................................................7-69Item Allocation..............................................................................................................................................7-71Transact Move Orders ...................................................................................................................................7-72

Practice - Transacting Move Orders ..........................................................................................................7-73Solution Transacting Move Orders.........................................................................................................7-74Guided Demonstration - Defining Subinventories.....................................................................................7-80

Mobile Transactions ......................................................................................................................................7-81Guided Demonstration - Mobile Application Interorganization Transfers................................................7-83Practice - Performing Mobile Transactions ...............................................................................................7-84Solution Mobile Transactions.................................................................................................................7-85

Managing Shipments .....................................................................................................................................7-90Transactions Reports .....................................................................................................................................7-91Transactions Reports (Cont) ..........................................................................................................................7-92Summary........................................................................................................................................................7-96

On-hand and Availability................................................................................................................................8-1R12 On-hand and Availability.......................................................................................................................8-3Objectives......................................................................................................................................................8-4Overview of On-hand Quantity .....................................................................................................................8-5Overview of Reservations..............................................................................................................................8-6Overview of Availability...............................................................................................................................8-7Reservation Versus Allocation ......................................................................................................................8-8Material Workbench......................................................................................................................................8-9Display Options .............................................................................................................................................8-10Viewing Available Items...............................................................................................................................8-12Material Workbench Transactions.................................................................................................................8-13

Guided Demonstration - Using the Material Workbench ..........................................................................8-14Practice - Using the Material Workbench..................................................................................................8-15Solution Using the Material Workbench ................................................................................................8-16

Available to Promise .....................................................................................................................................8-20What are Supply and Demand? .....................................................................................................................8-21Uses of ATP in Oracle Inventory ..................................................................................................................8-22ATP Rules Setup Steps..................................................................................................................................8-23Defining Computation Options......................................................................................................................8-24Specifying Supply and Demand Time Fences...............................................................................................8-26Specifying Demand Sources..........................................................................................................................8-30Specifying Supply Sources............................................................................................................................8-32Setting Up Item and Bills for ATP Checking ................................................................................................8-33ATP Checking ...............................................................................................................................................8-34

Guided Demonstration - Creating an ATP Rule ........................................................................................8-35Reservation Types .........................................................................................................................................8-36Supply Types.................................................................................................................................................8-37Demand Types...............................................................................................................................................8-38Reserving Material ........................................................................................................................................8-39

Reservation Management- Transfer Supply ..................................................................................................8-41Reservation Management- Transfer Demand................................................................................................8-42

Guided Demonstration - Creating Reservations ........................................................................................8-43Practice - Creating Reservations................................................................................................................8-45Solution Creating Reservations ..............................................................................................................8-46

On-hand and Availability Reports .................................................................................................................8-48Profile Options...............................................................................................................................................8-49Profile Options (Cont) ...................................................................................................................................8-50Implementation Considerations.....................................................................................................................8-51


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Summary........................................................................................................................................................8-52

Material Status Control ..................................................................................................................................9-1R12 Material Status .......................................................................................................................................9-3Objectives......................................................................................................................................................9-4Material Status...............................................................................................................................................9-5Material Status Control Levels ......................................................................................................................9-6Material Status Transactions..........................................................................................................................9-7

Cumulative Effective Status ..........................................................................................................................9-8Material Status Examples ..............................................................................................................................9-9Setting Up......................................................................................................................................................9-10Defining Item Material Status Control ..........................................................................................................9-11Assigning Material Status Control to Subinventories and Locators ..............................................................9-12Assigning Planning Statuses..........................................................................................................................9-13Disabling Material Statuses ...........................................................................................................................9-14

Practice - Setting up Material Status Control ............................................................................................9-15Solution Setting up Material Status Control ...........................................................................................9-16

Material Status Reports .................................................................................................................................9-24Profile Option ................................................................................................................................................9-25Implementation Considerations.....................................................................................................................9-26Summary........................................................................................................................................................9-27

Inventory Replenishment................................................................................................................................10-1R12 Replenishment Fundamentals ...............................................................................................................10-3Objectives......................................................................................................................................................10-4Overview of Inventory Planning ...................................................................................................................10-5Order Planning...............................................................................................................................................10-6How Much to Order.......................................................................................................................................10-7Replenishment Process for Intra-Org Supply Sources...................................................................................10-8Replenishment Process for Supplier Supply Sources ....................................................................................10-9Replenishment Process for Inter-Org Supply Sources...................................................................................10-10Replenishment Process for Product Supply Sources .....................................................................................10-11Replenishment Methods ................................................................................................................................10-12Overview of Inventory Forecasting...............................................................................................................10-13Forecast Types...............................................................................................................................................10-15

Forecast Setup and Maintenance ...................................................................................................................10-16Guided Demonstration - Creating a Manual Forecast ...............................................................................10-17Oracle Inventory Replenishment Methods ....................................................................................................10-19Replenishment Methods Levels.....................................................................................................................10-20Safety Stock...................................................................................................................................................10-21Economic Order Quantity..............................................................................................................................10-22Overview of Reorder-Point Planning ............................................................................................................10-23Uses of Reorder-Point Planning ....................................................................................................................10-24Reorder-Point Planning Steps........................................................................................................................10-25Performing Reorder-Point Planning ..............................................................................................................10-26

Guided Demonstration - Setting up Reorder Point Planning.....................................................................10-28Overview of Min-Max Planning....................................................................................................................10-30Uses of Min-Max Planning............................................................................................................................10-31Min-Max Planning.........................................................................................................................................10-32Min-Max Planning: How Much to Order? ....................................................................................................10-33Min-Max Planning Steps ...............................................................................................................................10-34Item Planning Attributes................................................................................................................................10-35Min-Max Planning Setup Procedure..............................................................................................................10-36Selecting a Planning Level ............................................................................................................................10-37Entering Planning Attributes .........................................................................................................................10-38Submitting the Min-Max Planning Requests.................................................................................................10-39

Guided Demonstration - Setting up Min-Max Planning ............................................................................10-41Practice - Performing Min-Max Planning..................................................................................................10-43


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Solution Performing Min-max Planning.................................................................................................10-44Overview of Replenishment Counting ..........................................................................................................10-50Uses of Replenishment Counting ..................................................................................................................10-51Replenishment Planning Steps ......................................................................................................................10-52Subinventories Window ................................................................................................................................10-54Item Subinventories Window ........................................................................................................................10-55Item Subinventories: Order Modifier Tab .....................................................................................................10-56Replenishment Count Headers ......................................................................................................................10-57Replenishment Count Lines...........................................................................................................................10-58Processing Replenishment Counts.................................................................................................................10-60Mobile Replenishment Count Overview .......................................................................................................10-62

Practice - Performing a Replenishment Count Using Forms.....................................................................10-63Solution - Performing a Replenishment Count Using Forms ....................................................................10-65Practice - Performing a Replenishment Count Using the Mobile Application..........................................10-72Solution - Performing a Replenishment Count Using the Mobile Application .........................................10-74

Overview of PAR Counting...........................................................................................................................10-82Processing PAR Counts.................................................................................................................................10-83Reorder Quantity for PAR Count ..................................................................................................................10-84Overview of Kanban Replenishment.............................................................................................................10-86Kanban Cards ................................................................................................................................................10-88Kanban Planned Items...................................................................................................................................10-89

Kanban Cards ................................................................................................................................................10-91Kanban Supply Status....................................................................................................................................10-93Kanban Replenishment Sources ....................................................................................................................10-94Kanban Card Printing....................................................................................................................................10-95

Guided Demonstration - Performing Kanban Replenishment ...................................................................10-96Practice - Performing Kanban Replenishment...........................................................................................10-97Solution Performing Kanban Replenishment .........................................................................................10-98

Planning and Replenishment Reports............................................................................................................10-101Planning and Replenishment Reports (Cont).................................................................................................10-102Profile Options...............................................................................................................................................10-103Profile Options (Cont) ...................................................................................................................................10-104Implementation Considerations.....................................................................................................................10-105Implementation Considerations (Cont)..........................................................................................................10-108

Summary........................................................................................................................................................10-109Inventory Accuracy .........................................................................................................................................11-1

R12 Inventory Accuracy Fundamentals ........................................................................................................11-3Objectives......................................................................................................................................................11-4Overview of Inventory Accuracy ..................................................................................................................11-5ABC Analysis Overview ...............................................................................................................................11-6Defining an ABC Analysis ............................................................................................................................11-7Define and Run an ABC Compilation...........................................................................................................11-8ABC Compilation Criteria.............................................................................................................................11-9ABC Valuation Scope ...................................................................................................................................11-11Defining ABC Groups ...................................................................................................................................11-12Defining ABC Classes...................................................................................................................................11-13ABC Item Assignments.................................................................................................................................11-14

Guided Demonstration - Compiling an ABC Analysis..............................................................................11-16Practice - Compiling an ABC Analysis .....................................................................................................11-18Solution Compiling an ABC Analysis....................................................................................................11-20

Cycle Counting Overview .............................................................................................................................11-26Defining and Maintaining a Cycle Count ......................................................................................................11-27Cycle Count Approval Tolerance ..................................................................................................................11-28Approval Tolerances......................................................................................................................................11-29Hit/Miss Tolerance ........................................................................................................................................11-31Measurement Errors ......................................................................................................................................11-32


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Cycle Count Items .........................................................................................................................................11-33Automatic Scheduling ...................................................................................................................................11-35Manual Scheduling........................................................................................................................................11-36Count Requests..............................................................................................................................................11-37Entering Cycle Counts...................................................................................................................................11-39Cycle Count Open Interface ..........................................................................................................................11-40Count Adjustments and Approvals................................................................................................................11-41Automatic Recounts ......................................................................................................................................11-42Approving Cycle Counts and Adjustments ...................................................................................................11-43

Guided Demonstration - Performing a Cycle Count..................................................................................11-45Practice - Performing a Cycle Count .........................................................................................................11-48Solution Performing a Cycle Count........................................................................................................11-50

Mobile Inventory Accuracy Overview ..........................................................................................................11-60Practice - Mobile Counting........................................................................................................................11-61Solution Mobile Counting ......................................................................................................................11-62

Physical Inventory Overview ........................................................................................................................11-67Why Perform Physical Inventories? ..............................................................................................................11-68Defining Physical Inventories........................................................................................................................11-69Physical Inventory Tags ................................................................................................................................11-70Inventory Snapshots ......................................................................................................................................11-72Entering Physical Inventory Counts ..............................................................................................................11-74

Voiding Tags .................................................................................................................................................11-76Approval Tolerances......................................................................................................................................11-77Physical Inventory Adjustments....................................................................................................................11-78Accuracy Reports ..........................................................................................................................................11-79Accuracy Reports (Cont) ...............................................................................................................................11-80Profile Options...............................................................................................................................................11-85Implementation Considerations.....................................................................................................................11-86Implementation Considerations (Cont)..........................................................................................................11-87Summary........................................................................................................................................................11-89

Table Information............................................................................................................................................12-1R12 Table Information ..................................................................................................................................12-3Objective........................................................................................................................................................12-4Organization Tables.......................................................................................................................................12-5Subinventories and Locator Tables................................................................................................................12-7Item Master Tables ........................................................................................................................................12-9Item Status Tables .........................................................................................................................................12-11Item Categories Tables ..................................................................................................................................12-13Item Reservation Tables ................................................................................................................................12-15Inventory Transaction Tables ........................................................................................................................12-17

Guided Demonstration - Accessing eTRM................................................................................................12-19Summary........................................................................................................................................................12-20


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Preface

Profile

Before You Begin This Course

Working experience with Oracle Applications

Prerequisites

There are no prerequisites for this course.

How This Course Is Organized

R12 Oracle Inventory Management Fundamentals is an instructor-led course featuring lectureand hands-on exercises. Online demonstrations and written practice sessions reinforce the

concepts and skills introduced.


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Related Publications

Oracle Publications

Title Part Number

Oracle Inventory Users Guide B31547-02

Additional Publications

System release bulletins

Installation and users guides

Read-me files

International Oracle Users Group (IOUG) articles

Oracle Magazine


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R12 Oracle Inventory Management Fundamentals Table of Contentsxi

Typographic Conventions

Typographic Conventions in Text

Convention Element Example

Bold italic Glossary term (ifthere is a glossary)

The algorithminserts the new key.

Caps and

lowercase

Buttons,

check boxes,

triggers,

windows

Click the Executable button.

Select the Cant Delete Card check box.

Assign a When-Validate-Item trigger to the ORD block.

Open the Master Schedule window.

Courier new,

case sensitive

(default is

lowercase)

Code output,

directory names,

filenames,

passwords,

pathnames,

URLs,

user input,usernames

Code output: debug.set (I, 300);

Directory: bin(DOS), $FMHOME(UNIX)

Filename: Locate the init.orafile.

Password: User tigeras your password.

Pathname: Open c:\my_docs\projects

URL: Go to http://www.oracle.com

User input: Enter 300

Username: Log on as scott

Initial cap Graphics labels

(unless the term is a

proper noun)

Customer address (butOracle Payables)

Italic Emphasized words

and phrases,

titles of books and

courses,

variables

Do notsave changes to the database.

For further information, see Oracle7 Server SQL Language

Reference Manual.

[email protected], where user_idis the

name of the user.

Quotation

marks

Interface elements

with long namesthat have only

initial caps;

lesson and chapter

titles in cross-

references

Select Include a reusable module component and click Finish.

This subject is covered in Unit II, Lesson 3, Working with

Objects.

Uppercase SQL column

names, commands,

functions, schemas,

table names

Use the SELECT command to view information stored in the

LAST_NAME

column of the EMP table.

Arrow Menu paths Select File> Save.Brackets Key names Press [Enter].

Commas Key sequences Press and release keys one at a time:[Alternate], [F], [D]

Plus signs Key combinations Press and hold these keys simultaneously: [Ctrl]+[Alt]+[Del]


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Typographic Conventions in Code

Convention Element Example

Caps and

lowercase

Oracle Forms

triggers

When-Validate-Item

Lowercase Column names,

table names

SELECT last_nameFROM s_emp;

Passwords DROP USER scottIDENTIFIED BY tiger;

PL/SQL objects OG_ACTIVATE_LAYER(OG_GET_LAYER (prod_pie_layer))

Lowercase

italic

Syntax variables CREATE ROLE role

Uppercase SQL commands and

functions

SELECT useridFROM emp;

Typographic Conventions in Oracle Application Navigation Paths

This course uses simplified navigation paths, such as the following example, to direct you

through Oracle Applications.

(N) Invoice > Entry > Invoice Batches Summary (M) Query > Find (B) Approve

This simplified path translates to the following:

1. (N) From the Navigator window, select Invoicethen Entrythen Invoice Batches

Summary.

2. (M) From the menu, select Querythen Find.

3. (B) Click the Approvebutton.

Notations:

(N) = Navigator

(M) = Menu

(T) = Tab

(B) = Button

(I) = Icon

(H) = Hyperlink

(ST) = Sub Tab


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Typographical Conventions in Oracle Application Help System Paths

This course uses a navigation path convention to represent actions you perform to find

pertinent information in the Oracle Applications Help System.

The following help navigation path, for example

(Help) General Ledger > Journals > Enter Journals

represents the following sequence of actions:

1. In the navigation frame of the help system window, expand the General Ledger entry.

2. Under the General Ledger entry, expand Journals.

3. Under Journals, select Enter Journals.

4. Review the Enter Journals topic that appears in the document frame of the help system

window.


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R12 Oracle Inventory Management Fundamentals Table of Contentsxiv


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Overview of Oracle InventoryChapter 1 - Page 1

Overview of Oracle Inventory

Chapter 1


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R12 Overview of Oracle Inventory


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Objectives


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Overview

Overview

Oracle Inventory treats many different types of things as inventory. Inventory can be:

Finished goods that you sell to customers

Services that you sell to customers

Spare parts for maintenance

Raw materials for manufacturing processes

Inventory you purchase from a supplier on consignment


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Inventory Capabilities


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Inventory Capabilities (Cont)


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Receipt to Issue Life Cycle

Receipt to Issue

Oracle Inventory uses the receipt to issue process to manage your inventory. When inventory

arrives in your warehouse you receive it. After you receive inventory, you can transfer it

within your organization or to another organization. Finally, you can issue material out of

Oracle Inventory.


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Receiving Inventory

Receiving Inventory

There are different ways you can receive material into your organization.

Purchasing

You can use Oracle Purchasing to receive material from outside of your organization. You can

receive:

Purchase order receipts

Internal requisitions

In-transit receipts

Return material authorizations

Unexpected receipts

Work in Process

You can use Oracle Work in Process to receive material from the manufacturing floor. You can

receive:

Component returns

Negative component issues


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Assembly returns

Inventory

You can use Oracle Inventory to receive material in to your warehouse. You can receive:

Miscellaneous account receipts

Receipt from projects

User-defined receipts Interorganization transfers


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Receiving Inventory


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Transferring Inventory

Transferring Inventory

Different applications can generate requests to transfer inventory.

Shipping

You can use Oracle Shipping Execution to generate a transfer to move material from a storage

area to a staging to for shipping.

Order Management

You can use Oracle Order Management to generate a transfer to move material from a storage

area to a staging area for shipping.

Work in Process

You can use Oracle Work in Process to generate a transfer to acquire components for a project.Inventory

You can use Oracle Inventory to:

Transfer material between organizations

Transfer material within an organization

Replenish materials


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Request transfers


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Issuing Inventory

Issuing Inventory

You can use the following applications to issue material:

Order Management

Oracle Order Management can generate an inventory issue through:

Sales orders

Internal orders

Purchasing

Oracle Purchasing can generate an inventory issue for:

Return to vendor materials

Work in Process

Oracle Work in Process can generate an inventory issue through:

Component issues

Assembly returns

Inventory

Oracle Inventory can issue stock through:


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User-defined material issues

Interorganization transfers

Cycle count negative issue

Issue requests


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Oracle Purchasing provides receipt, delivery, ATP supply, and planning supply

information and receives item requisition, and interorganization shipment informationfrom Oracle Inventory.


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Integration of Oracle Inventory to Financial Applications

Integration of Oracle Inventory to Financial Applications

Oracle General Ledger provides ledger and currency exchange rates and receives

transaction accounting summary detail via Oracle Cost Management.

Oracle Payables receives Item information from Oracle Inventory.

Oracle Receivables provides intercompany invoice information and receives iteminformation from Oracle Inventory.

Oracle Assets receives item information from Oracle Inventory.


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Summary


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Inventory StructureChapter 2 - Page 1

Inventory Structure

Chapter 2


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R12 Defining Inventory Organizations


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Objective


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Inventory Organizations

Inventory Organizations

An inventory organization is a facility where you store and transact items. Before you can use

Oracle Inventory, you must define one or more inventory organizations. Inventory

organizations represent distinct entities in your enterprise and can be one of the following:

A physical entity such as a manufacturing facility, warehouse, or distribution center.

A logical entity such as an item master organization, which you use to define items.

An inventory organization may have the following attributes:

An inventory organization can have its own location, ledger, costing method, workday

calendar, and items.

An inventory organization can share one or more of these characteristics with otherorganizations.


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Inventory Organization Structure

Inventory Organization Structure

An inventory organization, where you store and transact items can have one or more

subinventories. Subinventories are unique physical or logical separations of material inventory,

such as raw material inventory, finished goods inventory, or defective goods inventory. In

Oracle Inventory, all material within an organization is held in a subinventory. You mustdefine at least one subinventory for every organization. You can track item quantities by

subinventory as well as restrict items to specific subinventories.

The subinventories in an inventory organization may be made up of one or more locators. Youuse locators to identify physical areas where you store inventory items. You can track items by

locator and restrict items to a specific locator. Locator control is optional in Oracle Inventory.


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Sample Inventory Organization


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Multi-Organization Structure

Multi-Organization Structure

Multi-Organization structure enables you to model multiple business units in an enterprise

using a single installation of Oracle applications. In a multi-organization architecture you can

keep data secure and separate from each business unit.

The following are the benefits of multi-organization structure:

You can use a single installation of any Oracle Applications product to support any

number of business units, even if those business units use a different ledger.

Secure access to data so users can access only relevant information.

You can define a organizational model that best suits your business requirements.

In Inventory, you can fulfill any Sales Order or Purchase Order regardless of them beingbooked from any Inventory organization. You can also determine if any inter-company

invoicing needs to occur based on if the Sales Order or Purchase Order was booked in a

different Operating Unit other than the one to which the Inventory organization isassigned.


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Setting Up Locations

Setting Up Locations

Define information describing the physical locations of employees and organizations.

Locations are shared between Oracle Inventory, Oracle Purchasing, and Oracle Human

Resource Management Systems. Locations flagged as global locations are available to all

business groups. You can associate each organization with only one location; however,you can associate more than one organization with the same location.


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Guided Demonstration - Setting up Locations

Responsibility = Inventory, Vision Operations USA

1. Navigate to the Locations window.

(N) > Setup > Organizations > Locations.

2. Define a Location using the following information:

Name: M12 Orlando

Description: Orlando Manufacturing

3. (T) Address Details

Address Style: United States

4. Enter the following address information:

Address Line 1: 100 Buena Vista Drive

City: Orlando

State: FL

Zip Code: 32803

County: Orange

Country: United States

Telephone: (407) 828-5000

5. Select the following Timezone from the list of values:

Eastern

6. (T) Shipping Details

Ship-To Location: M12 Orlando

7. Verify the following boxes are che

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