Training OnTraining OnOracle InventoryOracle Inventory
Oracle Applications 11i
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Introduction to Oracle inventory management
Inventory Enterprise Structure
Inventory Setup
Creating and Maintaining Items
Inventory Controls
Inventory Transactions
Inventory Accuracy Control
Inventory Planning
AgendaAgenda
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Introduction to Oracle inventory management
What is Inventory?
Stocking ,tracking and maintaining the level of
different items like Raw material, Finished Goods, etc in
an organization.
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Introduction to Oracle inventory managementIntroduction to Oracle inventory management
Oracle Inventory enables users to satisfy a company’s business needs, area such as: Defining part numbers Modeling organization structures Tracking perpetual inventory Maintaining accurate on-hand balances Planning material replenishments Forecasting anticipated demand
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Inventory Integration with other modules
OracleOraclePurchasingPurchasing
Oracle Oracle Inventory Inventory
ExternalSystems
OracleOracleWIPWIP
Oracle CostOracle CostManagementManagement
OracleOracleEngineeringEngineering Oracle BillsOracle Bills
of Materialof Material
Oracle Order Oracle Order ManagementManagement Oracle MasterOracle Master
Scheduling/MRPScheduling/MRP
OracleOracleFlow ManufacturingFlow Manufacturing
OracleOracleShippingShipping
OracleOracleProject Project
ManufacturingManufacturing
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Inventory Integration with finance modules
Oracle Oracle AssetsAssets
Oracle Oracle ReceivablesReceivables
OracleOraclePayablesPayables
OracleOracleGeneral General LedgerLedger
Oracle Oracle Inventory Inventory
ExternalSystems
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Introduction to Oracle inventory management
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Introduction to Oracle inventory managementIntroduction to Oracle inventory management
Item Item
An item is a part or service that are purchased, sold,
planned, manufactured, stocked, distributed, or
prototyped .
Item Statuses and AttributesStatus attributes are item attributes that enable key
functionality for each item. An item status is defined by
selecting the value check boxes for the status attributes.
Both status attributes and item status can be controlled at
the item level or organization levels.
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Introduction to Oracle inventory managementIntroduction to Oracle inventory management Unit of Measure
A unit of measure (UOM) is a term used along with a numeric value, to specify the quantity of an item. For example, “each” is a unit of measure that used to specify the number of units of an item.
A unit of measure class is a group of units of measure with similar characteristics. For example, “weight” can be a unit of measure class with units of measure such as kilogram, gram, pound, and ounce.
A unit of measure conversion is a mathematical relationship between two different units of measure.
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Introduction to Oracle inventory management
Base UOM
Yes
No
No
UOM
lbs
kg
g
1 kg = 2.208 X lbs
1 g = 0.002208 X lbs
UOM Class = Weight UOM Conversion
UOM Interclass Conversion
Conversion
2Weightlbs
Item
Keyboard
DestinationBase UOM
DestinationUOM Class
SourceBase UOM
SourceUOM Class
QuantityEach
2 Each = 1 lb
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Introduction to Oracle inventory management
Organization Calendar
workday calendar must be defined in Inventory if the following are to be performed : inventory forecasting ,reorder-point planning, available-to-promise analysis or cycle counting.
Inventory automatically generates a workday pattern (the base calendar) that includes all days, including non-workdays, between the start and end dates specified.
workday exceptions can be assigned to the base calendar to denote holidays, schedule maintenance, or overtime.
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Introduction to Oracle inventory management
Categories and Category Sets
Categories are logical groupings of items that have similar characteristics.
A category set is a distinct category grouping scheme and consists of categories.
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Introduction to Oracle inventory management
Finished GoodFinished Good
SubassemblySubassembly
HardwareHardware
SoftwareSoftware
PCPC
OtherOther
Category Grouping
Inventory Category Set
Purchasing Category Set
Craig Category Set
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Introduction to Oracle inventory management
Inventory Controls
With Oracle Inventory locator, revision, lot, and
serial number control can be implemented.
Any combination of the four controls (locator,
revision, lot, and serial number) can be
implemented for each item. Inventory controls
are optional for all items.
User can choose to implement inventory controls
for specific items.
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Introduction to Oracle inventory management
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Introduction to Oracle inventory management
Inventory Transactions
Transaction A transaction is an item movement into, within, or
out of inventory. A transaction changes the quantity, location, or cost of an item. Inventory supports a number of predefined and user-defined transaction types.
Every material movement has a corresponding set of accounting transactions that Oracle Inventory automatically generates.
All transactions validate the various controls (revision, locator, lot number, and serial number) enabled for items.
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Introduction to Oracle inventory management
Material FlowMaterial Flow Business FlowBusiness Flow
Receive GoodsReceive Goods
Ship GoodsShip Goods
Move GoodsMove Goods
MRPMRP Order EntryOrder Entry
PurchasingPurchasing
InventoryInventory
WIPWIP
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Introduction to Oracle inventory management
Inventory Enterprise Structure
Inventory Setup
Creating and Maintaining Items
Inventory Controls
Inventory Transactions
Inventory Accuracy Control
Inventory Planning
AgendaAgenda
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Inventory Enterprise Structure
Inventory Enterprise Structure
The Oracle Applications organization models define organizations and the relationships among them in arbitrarily complex enterprises. This organization model serves as the cornerstone for all of the Oracle Applications products. It dictates how transactions flow through different organizations and how those organizations interact with each other.
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Inventory Enterprise StructureInventory Enterprise Structure
LELELELE
Set of Books
IOIO
OUOUOUOU
IOIOIOIO
OUOU
IOIOIOIO IOIO
BGOrganization Structure
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Inventory Enterprise Structure
Multi-org Multi-Org is a key component that provides
secure access to the different organizations of the enterprise supports multiple organizations of the enterprise structure in a single database.
Operating Unit is the primary organization unit through which user secures transaction data, but also creates processes and reports on financial applications data. An Operating Unit can be used to model an autonomous business unit that performs one or more business activities and creates transactions with financial impact.
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Inventory Enterprise Structure
Business Group This is an Organization that
represents the consolidated enterprise, a major division, or an operation company and has no accounting impact. The Business Group partitions Human Resources information and the Purchasing Approval Hierarchy. If you request a list of employees (in any module) you will see only those employees in the Business Group of which your Operating Unit is a part. Multiple Legal Entities can relate to a single Business Group.
OU
Set of Books
Legal Entity
Business Group
Inventory Organization
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Inventory Enterprise StructureInventory Enterprise Structure
Set of Books Set of Books is the financial reporting
entity that secures financial entries and account balances within the GL application. SOB will be based on 3C’s (Currency, Calendar, Chart of Accounts)
A Set of Books is the highest level that impacts accounting. A Set of Books is associated with a single Business Group, but multiple Sets of Books may be associated with a single Business Group
OU
Set of Books
Legal Entity
Business Group
Inventory Organization
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Inventory Enterprise Structure
GRE/Legal Entity The Legal Entity represents a legal
company for which the user prepares fiscal or tax reports.
Legal Entities are associated with a Set of Books. One or more Legal Entities may be associated with a single Set of Books, and multiple Legal Entities may be associated with a single Business Group.
OU
Set of Books
Legal Entity
Business Group
Inventory Organization
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Inventory Enterprise Structure
Operating Unit – An operating unit represents an organization that
uses any Oracle subledger application, for example, Order Management, Payables. It may be a sales office, a division, or a department. An operating unit is associated with a legal entity. Information is secured by operating unit for these applications. Each user sees information only for their operating unit.
Inventory Organizations – An inventory organization is a facility in your
enterprise where you store and transact your inventory items. The items in an inventory organization can be in the form of raw materials, semi-finished goods, or finished goods for varying periods of time.
– Inventory Organizations belong to an Operating Unit.
OU
Set of Books
Legal Entity
Business Group
Inventory Organization
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Inventory Organization Structure
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Inventory Enterprise Structure
Inventory Organization Structure
Organization
Subinventories
Locators
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Inventory Enterprise StructureInventory Enterprise Structure
Inventory Enterprise Structure
Organizations– An inventory organization is a facility in your
enterprise where you store and transact your inventory items. The items in an inventory organization can be in the form of raw materials, semi-finished goods, or finished goods for varying periods of time.
– A physical entity such as a manufacturing facility, warehouse, distribution center, or a branch office.
– A logical entity such as an item master organization, which you can use just to define items but no transactions. The item master organization is discussed in detail in the lesson titled “Defining and Maintaining Items Fundamentals.
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Inventory Enterprise Structure
– SubinventorySubinventories 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. Therefore, you must define at least one subinventory.
– LocatorYou 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
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Review Question
What are the 3 C’s in Set of Books?
Currency Calendar Chart of Account
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Introduction to Oracle inventory management
Inventory Enterprise Structure
Inventory Setup
Creating and Maintaining Items
Inventory Controls
Inventory Transactions
Inventory Accuracy Control
Inventory Planning
Agenda
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Inventory SetupInventory Setup
Required Setup Steps Step
1
2
3
4
5
6
7
Level *
Global
Global
Global
Global
Global
Global
Organization
Activity
Define Item Flexfield
Define Item Categories Flexfield
Define Item Catalog Group Flexfield
Define Stock Locators Flexfield
Define Account Aliases Flexfield
Define Sales Orders Flexfield
Define Organizations
* Defined Once Globally or for each organization
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Inventory SetupInventory Setup
Required Setup Steps
* Defined Once Globally or for each organization
Step
8
9
10
11
12
13
14
Level *
Organization
Global
Global
Organization
Global
Either Level
Either Level
Activity
Organization access
Defining Intercompany Relations
Define Unit of Measure Classes
Define Subinventories
Define Item Attribute Controls
Define Categories
Define Category Sets
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Inventory Setup
Required Setup Steps
* Defined Once Globally or for each organization
Step
15
16
17
18
19
Level *
Global
Global
Global
Global
Global
Activity
Define Default Category Sets
Define Statuses
Define Cost Types
Define Accounting Periods
Set Profile Options
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Inventory Setup
Flexfield Definitions
Flexfield Name Table Name Comment
1 Account Aliases MTL_GENERIC_DISPOSITIONS It supports just one structure2 Item Catalogs MTL_ITEM_CATALOG_GROUPS It supports only one structure 3 Item Categories MTL_CATEGORIES This should be defined before
defining items. There Can be multiple structures per instance
4 Sales Orders MTL_SALES_ORDERS Defined as Order Number, Order Type, and Order Source to make each transaction unique. It’s defined before placing demand /reservations
5 Stock Locators MTL_ITEM_LOCATIONS Used to capture more information about stock locators and items
6 System Items (Items Flexfield)
MTL_SYSTEM_ITEMS This should be configured before defining items. OE: Item Flexfield profile option should be set to specify the Item Flexfield structure that will be used for Oracle applications.
* Refer System Administrator & AOL training for Flexfield set up
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Inventory Setup
• Oracle Inventory users use the Personal Profile Values window to set profile values only at the user level.
• System administrators use the System Profile Values window to set profile values at the site, application, responsibility, and user levels.
• Required profiles have no default; they require input from a user or an administrator. Optional profiles have defaults which may be accepted or manually overridden.
Profile Options
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Profile Option
INV: Allow Expense to Asset Transaction
INV: Default Item Status
INV: Default Primary Unit of Measure
INV: Dynamic Precision Option
INV: Inter-Organization Currency Conv
INV: Item Master Flexfield
INV: MinMax Reorder Approval
Default
Yes
Active
Each
-9,999,999.00
Corporate
No Default
Approved
Req’d
No
No
No
No
No
Yes
No
These profiles are updateable at all levels:
Inventory Setup
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Profile Option
INV: Proj Misc Trans Expenditure Type INV:
RC Line Failure
INV: Requisition Approval
INV: Save Search Items
INV: Updateable Customer Item
INV: Updateable Item Name
TP:INV: Cycle Count Approvals Form
Default
User Entered
Continue Processing
Approved
No
No
No
Concurrent Processing
Req’d
No
No
No
No
No
No
No
These profiles are updateable at all levels:
Inventory Setup
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Profile Option
TP:INV: Cycle Count Entries Form
TP:INV: Enter Replenishment Count Form
TP:INV: Inter-Organization Transfer Form
TP:INV: Misc Issue and Receipt Form
TP:INV: Transaction Processing Mode
TP:INV: Transfer Between SubInv Form
TP:INV: Update Average Cost Form
Default
Concurrent ProcessingConcurrent Processing
Online Processing
Online Processing
Immediate Con- current Processing
Online Processing
Online Processing
Req’d
No
No
No
No
No
No
No
These profiles are updateable at all levels:
Inventory Setup
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Profile Option
TP:INV: Server Side Online Processing
INV: CCEOI Commit Point
INV: Override Negative Qty for Backflush
INV: Order Transact Form
INV: Purchasing by Revision
INV: Debug Trace
INV: Debug File (Include complete path)
Default
Concurrent Processing
No Default
No
Online Processing
Yes
No Default
No Default
Req’d
No
Yes
No
No
No
Yes
Yes
These profiles are updateable at all levels:
Inventory Setup
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Inventory Setup
Profile Option
INV: FIFO for Original Receipt Date
INV: Debug Level
INV: Detail Serial Numbers
Default
No
No Default
No
Req’d
No
Yes
No
These profiles are updateable at all levels:
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Profile Option
INV: Accounting Category Set
INV: Capable to Promise
INV: External ATP
INV: Use Catalog Name in Item Desc.
INV: Minimum Number of Quantity Trees
INV: CCEOI Workers
INV: Detect Truncation on UOM Conversn
Default
No Default
No Default
No Default
No
500
No Default
No Default
Req’d
Yes
Yes
Yes
No
No
Yes
Yes
These profiles are updateable only at the Site level:
Inventory Setup
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Inventory Setup
Organization Setup Before using Oracle Inventory, one or more organizations
need to be defined. Organizations represent distinct entities in a company and can include separate manufacturing facilities, warehouses, distribution centers, and branch offices.
Organizations can be classified and connected to model the overall enterprise structure. The classifications include:- Business Groups- Legal Entities (LE) / Government Reporting Entities (GRE)- Operating Units- Inventory Organizations
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Inventory Setup
Organization Setup (N)> Inventory>Setup>Organizations>Locations
physical locations of Employees
and Organizations. Locations are
shared between Inventory,
Purchasing and Human
Resources. Each organization
can be associated with only one
location. One or more
organizations can be associated
with the same location
Flagged as global,
locations are
available to all
Business Groups
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Inventory Setup
Organization Setup (N)>setup>Organizations> Organizations
organization classification is used
to describe the general purpose of
organization. Examples are
Inventory Org, GRE / Legal Entity,
and HR Organization. Inventory
Organization classification is used
for inventory management.
Organization location field links a location to
an organization to a location. This is a must for
Legal Entity organizations
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Inventory Setup
Organization Setup (N)>setup>Organizations> Organizations
Link Between Organization
& Legal entity/Set of Books
& Operating Unit.
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Inventory Setup
Using an Item Master Organization
Item Master Organization is usually the first Inventory organization that is set up. Its single purpose is for entering items. It has no subinventories and is not used for inventory transactions. Items are entered in an item master organization and then assigned to be used in child organizations.
Child Organization is an inventory organization with at least one subinventory that is set up for processing inventory transactions. It is not used to enter items. It gets a list of items from the master.
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Inventory Setup
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Inventory Setup
Organization Setup (N)>setup>Organizations> Parameters
This must be the first organization to be
defined as this is a required field in
parameters. Later it can be changed. There
can be any number of Item masters in an
instance but it is advised that there is only
one item master unless absolutely
necessary.
Item master can be common across
operating units, legal entity & SOB. It can
be optionally common across business
groups also. It is also advised that there are
no transactions carried in an item master
For forecasting, planning, available-
to-promise analysis, or cycle
counting, workday calendar must be
defined. This calendar is entered in
the parameters screen in order to be
used by the above functions. When
defining a calendar system assumes
a workday pattern that includes all
days, between the start and end
dates unless specified.
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Inventory Setup
Organization Setup (N)>setup>Organizations> Parameters
Decides Whether the inventory
balance in the organization can
go below zero. If enabled ,does
allow the inventory to go below
zero.
Locator control option
determines at which level
the locator is controlled.
Options are None, Pre
specified, Dynamic &
Controlled at subinventory
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Inventory Setup
Organization Setup (N)>setup>Organizations> Parameters
Costing organization determines which
is the costing organization for the
organization in question. However for
an average costing organization the
costing organization is the same
organization i.e. the costs cannot be
shared.
Determines the costing
method used in the
organization. Options are
Standard costing,
Average costing, FIFO &
LIFO
Valuation accounts for the
organization. Once any
transaction takes place in
an organization ,these
accounts cannot be
changed in an Average
costing scenario.
Indicate whether all transactions
are posted in detail or summary to
the general ledger.
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Inventory Setup
Organization Setup (N)>setup>Organizations> Parameters
Enforces unique lot numbers across
items, if set. The options are Across
items & None
option for lot number
generation. It can be generated
at item level, org level or User
defined
option for serial number uniqueness.
Options are Within organization, Within
inventory & items Across organizations
Can be generated at org
level or at item level
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Inventory Setup
Organization Access
This setup controls access to
organizations based on the user
responsibility assigned to a user
by the system administrator. If
implemented for one user
responsibility, it is then required
for all other user responsibilities
accessing the same organization.
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Inventory Setup
Organization Setup
Organization
Subinventory
Locator
Inventory Organizations are made up of one or more
subinventories which can be made up of one or more
locators
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Inventory Setup
Subinventory set up
A subinventory is a physical or logical grouping of
inventory, such as raw material, finished goods, defective
material, or a freezer compartment.
The subinventory is the primary place where items are
physically stocked. A subinventory must be specified for
every inventory transaction
Subinventories can be further divided into areas
designated as locators.
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Inventory Setup
Subinventory set up(N) INV> Setup>Organizations>Subinventories
Indicates whether
to include items in
this subinventory in
ATP calculations.
Indicates whether to maintain
the value of this subinventory
on the balance sheet
Indicates whether each
transaction for this
subinventory updates
the quantity on hand
for the subinventory
Indicates whether to
include this subinventory
while performing available
to reserve calculations.
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Inventory Setup
Subinventory set up(N) INV> Setup>Organizations>Subinventories
Indicate whether the planning
process uses the on–hand
balance of these
subinventory items as
available inventory
Can only be selected if
locator control is set as
Determined at subinventory
level in the Organization
Parameters window
indicates the priority with which items
are picked from this subinventory,
relative to another subinventory,
where a given item resides.
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Inventory Setup
Subinventory set up(N) INV> Setup>Organizations>Subinventories
These valuation
accounts are used
in a standard
costing scenario.
For average costing
org, system picks
up the accounts
from org level
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Inventory Setup
Workday CalendarWorkday calendar can be defined both in Inventory and
Bills of Material.
It defines which days are “ON” within an organization and
which shifts are available to be worked. The workday
calendar is the Oracle term for a manufacturing calendar.
The workday calendar is separate from the Oracle General
Ledger calendar.
Each organization references a workday calendar.
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Inventory Setup
(N) INV> Setup>Organizations>CalendarWorkday Calendar
workday calendar consists of a start date, and
end date, and on and off days that follow one
or more defined workday patterns. A workday
calendar can also include shift information and
exception dates, such as holidays/scheduled
down time. Workday exceptions identify
deviations to the workday calendar. Shift
exceptions identify deviations for a shift.
Attention: Shift exceptions take precedence
over workday exceptions. Note: Before using a calendar it must
be built using tools>build option
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Inventory Setup
Units of MeasureUnits of measure (UOM) are defined for tracking/moving/storing
& counting items. Each item defined in Inventory must have a
primary UOM. Each transaction performed in Inventory must have
a UOM associated with the transaction quantity and a conversion
defined back to the primary UOM.
Multiple related UOMs are grouped together in a class with a
base unit of measure Inventory uses the base UOM to perform
conversions between units of measure in each class and between
two different unit of measure classes.
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Define UOM classes
Define multiple non base UOMs for each class
Define intraclass conversions
Define interclass conversions
Define one base UOMfor each UOM class
Inventory Setup
Perform the following steps to define multiple UOMs and
set up conversions:
Units of Measure
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Inventory Setup
Units of Measure Classes(N) Inventory>Setup>Units of Measure>Classes
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Inventory Setup
Units of Measure (UOM)
A unit of measure (UOM) is a term used along with a numeric value, to specify the quantity of an item. For example, “each” is a unit of measure used to specify the number of units of an item.
(N) Inventory>Setup>Units of Measure>Units of Measure
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Inventory Setup
Units of Measure Conversions
unit of measure conversion
is a mathematical
relationship between two
different units of measure.
For example, 10 Kilograms
= 1 Each, or 2.2 pounds = 1
kilogram.
If items are transacted in UOM belonging to classes other than their primary UOM class, conversions between the base units of measure in different UOM classes must be defined
(N) Inventory>Setup>Units of Measure>Conversions
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Introduction to Oracle inventory management
Inventory Enterprise Structure
Inventory Setup
Creating and Maintaining Items
Inventory Controls
Inventory Transactions
Inventory Accuracy Control
Inventory Planning
Agenda
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Creating and Maintaining Items
Setting up item Definition
DefineItems
Choose Item Attribute Control Levels
DefineCategories
and Category
Sets
CreateTemplates
DefineStatuses
3
DefineCatalogs
1
2
DefineStatusControlLevels
DefineUOMs
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Creating and Maintaining Items
Item Attributes Item attributes are fields in the item table used to store specific characteristics of an item, such as item status, unit of measure, revision control, etc.. These can be controlled at either the master or the organization level.
Attributes Controlled at the Master Level
An item has the same value for such attributes in all organizations in which it is defined.
Master-level attributes can be only updated by using the Master Item window.
Inventory reflects your changes in all organizations that carry the item.
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Creating and Maintaining Items
Item Attributes
Attributes Controlled at the Organization Level
An item may have different values for such attributes in each
organization in which it is defined.
When defining items in the item master, defaults for
organization-level attributes can be specified.
Values of organization-level attributes can be updated only
by using the Organization Item form in each organization that
carries the item.
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Creating and Maintaining Items
Item Attributes (N) Inventory>Setup>Items >Attribute Controls
Control level can be
determined using this
field
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Creating and Maintaining Items
Status Attributes
Each status attribute is dependent on at least one other attribute. For example Stockable attribute cannot be set to yes if Inventory Item attribute is set to No.
Defaults Value: Value of this attribute defaults when assigning the status to an item. Can be changed.
Not Used: Use neither default nor status control.
Sets Value: Value of this attribute defaults when assigning the status to an item. Once assigned the default cannot be changed.
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Creating and Maintaining ItemsCreating and Maintaining Items
Functional AreaFunctional Area FunctionalityFunctionality
Stockable
Purchasable
Transactable
Build in WIP
InventoryAllows to store the item in an asset subinventory
Inventory, Order Management, Purchasing, WIP
Allows to transact the item Inventory, OM, PO and WIP
Purchasing Allows to place the item on a purchase order
Work in ProcessAllows to build the item on a discrete job and/or a repetitive schedule
Status Attribute
Status Attributes and Functionality
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Creating and Maintaining Items
Internal Orders Enabled
BOM Allowed
Customer Orders Enabled
Invoice Enabled
Functional Area Area Functionality
Order Management
Inventory, Order Management, Purchasing
Bills of Material
ReceivablesAllows to create an invoice for the item
Allows to create a bill of material for the item
Allows to create an internal sales order for the item
Allows to place the item on a sales order
Status AttributeStatus Attributes and Functionality
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Creating and Maintaining Items
Item Status When defining an item, status must be given by using the Item
Status attribute. The Item Status attribute has a user defined set
of yes/no values for the status attributes. The values are applied
to the status attributes when an item status code is chosen when
defining an item.
For example, in the beginning of a product development cycle
Item Status attribute is set to Prototype with all of the status
attributes defaulted to yes except for Customer Orders Enabled.
When the item is ready the Item Status attribute is set to Active to
allow all functions for the item.
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Creating and Maintaining Items
Item Status (N) Inventory>Setup>Items>Status Codes
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Creating and Maintaining Items
Item Attributes
Status Control
An unlimited number of status codes can be defined by the
user.
One or more of these status codes can be assigned to an Item
for implementation on a future date. The status codes then
automatically change on their user specified effectivity dates.
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Creating and Maintaining Items
Item TemplatesTemplates are defined sets of attributes that can be used
over and over to create many similar items. Templates make
initial item definition easier and more consistent.
Templates can be applied at any time after the item is
created. Multiple templates can be applied to a single item.
Templates can hold a complete set of attributes or a partial
set. If a partial set, then only values stored in the template
overwrite those on the item
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Creating and Maintaining Items
Item TemplatesUsers can define their own templates or predefined templates
include:
ATO Model ATO Item Kit
PTO Model Phantom Item Purchased
Subassembly Freight ATO Option Class
Finished Good Outside Processing Item PTO Option Class
Planning Item Reference Item Supply Item
Product Family
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Creating and Maintaining Items
Item Templates(N) Inventory>Setup>Items>Templates
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Creating and Maintaining Items
Item CategoriesA category is a logical classification of items that have similar
characteristics.
A category set is a distinct grouping scheme and consists of multiple
categories.
Some application modules, Inventory , for example require that all items are
assigned to a category. The user specifies a default category for this
purpose in each of these modules. Categories and category sets are used to
group items for various reports and programs.
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Creating and Maintaining Items
Item Categories - SetupDefine the Flexfield structures for the item categories Flexfield.
Define categories.
Define category sets and assign the categories to the sets. Each set can
use a different Flexfield definition if required.
Assign default category sets to each functional area, like Purchasing,
Planning and Inventory
Assign items to categories. An item can be assigned to only one category
within a set.
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Creating and Maintaining Items
Item Categories - Define Categories(N) Inventory>Setup>items>Categories>Category Codes
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Creating and Maintaining Items
Item Categories - Define Category sets (N) Inventory>Setup>items>Categories>Category sets
Category is assigned to category
set from here.
This option should only be
enabled for user defined
category sets. Functional
category sets cannot have
same item with multiple
categories within itself.
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Creating and Maintaining Items
Item Categories - Assign items to Categories (N) Inventory>Setup>items>Categories>Category sets>Assign
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Creating and Maintaining Items
Defining Items
With the Master Item window, items and the attributes
associated with them (such as description, unit of measure or
lot control) can be defined and updated.
Much of the information for an item is optional. Only the
information needed to maintain the item are defined.
An item cannot be defined at the Organizational level.
Oracle will automatically switch to the Master Item window
when defining a new item.
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Creating and Maintaining Items
Defining Items
An item is a part or service that is purchased, sold, planned, manufactured, stocked, distributed, or prototyped. The following Modules use items:
Items
Lead Time
Attributes
Inventory
Attributes
Invoicing
Attributes
MRP/MPS
Attributes
Costing
Attributes
Bills of Material
Attributes
Order Management
Attributes
Purchasing
Attributes
Planning
Attributes
Work in Process
Attributes
Receiving
Attributes
Service
Attributes
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Creating and Maintaining ItemsCreating and Maintaining Items
Copy items
Enter attribute values
Enable in child organizations
Update organization level attributes
Define item costs
Copy templates
1
Steps to Setup, Define and Maintain items
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Creating and Maintaining Items
Master Item vs. Organizational Item
Whether an item attribute is defined/maintained at the Master level or the Organization level can be designated.
Attributes at the Master level are the same across all organizations that the item is assigned to.
If an attribute is maintained at the Organization level, it can have different values in each organization the item is assigned.
Some attributes can be maintained at only the Master level or the Organizational Level. Unit of Measure should be maintained at the Master level. Min-Max should be maintained at the organizational level if multiple organizations are used.
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Creating and Maintaining Items
Organization Assignment and Organization Item
Item can be enabled in all child organizations under master organization or child organizations where the item to be used is chosen. Inventory propagates item to all organizations in which the item is to be defined.
Organizational attributes for item attributes which are enabled in that organization, can be entered or changed which are enabled in that organization. For example, go to an organization to choose reorder point planning for an item, and then go to another organization and choose Min-Max planning for the same item.
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Creating and Maintaining Items
Defining Items
(N) Inventory>Items>Master Items
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Creating and Maintaining Items
Defining Items
Organization Assignment
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Creating and Maintaining Items
Defining Item Relationships
The following types of relationships can be defined for items:
Item cross-references
Substitute items
Related items
Manufacturer part numbers
Customer item numbers
Relationships between items can be defined to improve purchasing management and item searching capabilities. Substitute items can be received in Oracle Purchasing.
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Creating and Maintaining Items
Defining Item Relationships(N) Inventory>Items>Item Relationships
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Creating and Maintaining Items
Cross–reference typesCross–reference types define relationships between items and entities such as old item numbers or supplier item numbers. For example, a cross–reference type Old can be created to track the old item numbers , and a cross-reference type Supplier to track supplier part numbers.
multiple cross-reference types can be assigned to a single item.
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Creating and Maintaining Items
Cross–reference types(N) Inventory>Items>Cross References
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Creating and Maintaining Items
Customer Items
(N) Inventory>Items>Customer Items>Customer Items
Allows the entry of customer part
numbers and the customer(s) they are
associated with.
These items can also be associated
with commodity codes and container
types
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Creating and Maintaining Items
Customer Item Cross References(N) Inventory>Items>Customer Items>Customer Items
Used to define cross references
between inventory items
and the customer items defined
above.
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Introduction to Oracle inventory management
Inventory Enterprise Structure
Inventory Setup
Creating and Maintaining Items
Inventory Controls
Inventory Transactions
Inventory Accuracy Control
Inventory Planning
Agenda
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Inventory Controls
With Inventory locator, revision, lot and serial number control can be implemented
Flexibility:
- Inventory controls are optional for all items.
- any combination of the four controls (locator, revision, lot and serial number) for each item can be implemented.
Overview
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Inventory Controls
Locators are optional structures within subinventories.
Locators are the third level in the enterprise structuring
scheme of Oracle Inventory .
Locators may represent rows, aisles, or bins in warehouses.
Items can be received directly into and shipped items directly
from locators.
Locator setup
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Inventory Controls
(N) INV> Setup>Organizations>SubinventoriesLocator setup
Indicates the priority for
picking items from this
locator relative to another
locator.Subinventory to
which the locator
belongs
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Inventory Controls
A revision is a particular version of an item, bill of material, or routing.
By using the ‘Revision control’ option while defining items item quantities can be tracked by item revision. To do so a revision is a must for each material transaction.
Revision control is enabled for items for which version changes or changes that are significant enough to track but are not affecting the function and feature of the item are tracked .
Revision Control item attribute cannot be changed when an item has quantity on hand.
Revision Control
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Inventory Controls
When defining Revision numbers letters, numbers and characters such as A, A1, 2B, etc can be used.
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.
Revisions are sorted according to ASCII rules.
Each revision must be greater than the previous revision. For example, revision 10 cannot be used after revision 9 because, according to ASCII sorting, 10 precedes 9.
Revision Control
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Inventory Controls
Inventory provides complete lot number support for inventory transactions.
A lot identifies a specific batch of an item that is received and stored in an 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.
If Lot Control is turned on for an item, the lot number must be indicated to perform a transaction.
Lot Control
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Inventory Controls
Lot Control must be turned on at the item level.
lot numbers must be assigned whenever items under lot control are received into inventory.
An inventory receipt can be split in to several lots, as necessary.
Quantities can be added to existing lot numbers.
Inventory will generate default lot numbers by using the default lot number generation method which is configured in the Organization Parameters window during setup.
Lot Control
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Inventory Controls
Lot can have an expiration date by assigning a number of lot control shelf life days or by entering a lot expiration date.
The expiration date controls the availability of the lot for transacting and planning purposes.
Lot Control
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Inventory Controls
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.
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.
Lot Control
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Inventory Controls
Disabled Lots:
Disabling a lot only prevents it from appearing in a list of values when performing receipt transactions.
Lot Control
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Inventory Controls
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.
Lot Control
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Inventory Controls
A serial number is an alphanumeric piece of information assigned to an individual unit of an item. A serialized unit is a combination of an item number and a serial number.
Individual units of items can be tracked by using serial numbers. Serial number control is a system technique for enforcing the use of serial numbers during a material transaction. Serial numbers can be used to track items over which a very tight control is to be maintained.
One serial number per unit of an item can be assigned
Serial Control
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Inventory Controls
Generating Serial Numbers
Depending on how Serial Number Control is set at the Master Item level will determine how serial numbers are generated.
If No Control is specified as the serial number control type, no serial number control will be enforced.
If Predefined is specified as the serial number control type, serial numbers for that item must be predefined.
If control At inventory receipt or At sales order issue, optionally serial numbers for the item can be predefined.
Serial Control
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Inventory Controls
Generating Serial Numbers
Inventory uses the starting serial number prefix and the starting serial number specified in the Item screen .
The process of generating serial numbers is done through a concurrent report. This does not assign numbers to units in inventory, it simply reserves serial numbers for an item, for later use.
Serial Control
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Introduction to Oracle inventory management
Inventory Enterprise Structure
Inventory Setup
Creating and Maintaining Items
Inventory Controls
Inventory Transactions
Inventory Accuracy Control
Inventory Planning
AgendaAgenda
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Inventory Transactions
Understanding of Transaction Types
Overview of Inventory Transactions
Miscellaneous Transactions
Subinventory Transfer
Inter Organization Transfer
Receipts
Move Orders
Overview
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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.
TransactionSource Type
TransactionType
TransactionAction
Inventory Transactions
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System Defined Transaction Types
System defined transaction type codes for different
inventory transactions. Each transaction type is linked to
source type and action
Inventory Transactions
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Use user defined terminology to define transaction type. The transaction type can be only
linked to pre seeded values of source type and action
User Defined Transaction Types
Inventory Transactions
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Types of Inventory Transactions Miscellaneous Transactions- This transaction is used to do adjustments in stock due to damage, obsolescence, issuing items for R & D or issuing track able expense items.
Subinventory Transfer- This transaction is used to transfer goods from one stockroom to another with in the same inventory organization.
Inter ORG Transfers- This transaction is used to transfer goods from one inventory organization to another.
Inventory Transactions
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Types of Inventory Transactions Receiving Transactions- This transaction is used to move goods from receiving dock to specified subinventory and locator.
Sales Issue- This transaction is used to move goods from pick subinventory to staged subinventory.
WIP Issue- This transaction is used to issue materials against production orders.
Inventory Transactions
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MiscellaneousMiscellaneousReceiptReceipt
MiscellaneousMiscellaneousIssueIssue
OrganizationOrganization
SubinventorySubinventoryTransferTransfer
Subinventory
Locator
Locator
SubinventoryTransfer
Subinventory
Locator
Locator
Organization
Direct Direct InterorganizationInterorganizationTransferTransfer
Interorganization Interorganization Transfer by WayTransfer by Way
of Intransitof Intransit
Inventory Transactions
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Select the transaction type
Account for passing
adjustment transactions
If you want to enter transaction line by serial number for
serialized item check this box
Miscellaneous Transactions
Inventory Transactions
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Initial loading of item on-hand quantities when you start implementing Oracle Inventory Scrapping items by issuing them to expense accounts denoting scrap Issuing items to individuals, departments, or projects Receiving items that were acquired by assorted means (without purchase orders) Entering adjustments and corrections to system quantities due to theft, vandalism, loss, shelf-life expiration, or inaccurate record keeping
Inventory Transactions
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Enter the quantity to be adjusted
Lot or serial number can be entered if item is a serial controlled or
Lot Controlled
Miscellaneous Transactions - Transaction Lines
Inventory Transactions
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Use the Subinventory transfer window to:Transfer material within your current organization between subinventories, or between two locators within the same subinventory
Subinventory transfer
Inventory Transactions
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The type can be Subinventory transfer to transfer from one
subinventory to another or any of the user defined transaction
type for source inventory & action subinventory transfer
Subinventory Transfer
Inventory Transactions
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Subinventory Transfer Transaction Lines
Enter source subinventory
Enter destination
subinventoryEnter
Quantity
Saving the record will complete the transaction.
Inventory Transactions
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• We can perform inter–organization transfers as direct or in transit shipments.Goods that have departed from the dispatch, loading, or shipping point but have not yet arrived at the receipt, offloading, or delivery point. Also called
in transit inventory or stock in transit.
We can transfer one or more items in a single transaction. We can also transfer partial quantities of the same item to different subinventories and locators in a single transaction.
• We can also transfer expense and asset items from one organization to another using in transit inventory
Inter Org Transfer
Inventory Transactions
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Pune
Organization
Mumbai
Organization
Delhi
Organization
Pune
Organization
Use IntransitUse IntransitInventoryInventory
(FOB = Receiving)(FOB = Receiving)
AustinOrganization
RequireRequireInternal OrderInternal Order
to Shipto Ship
Use IntransitUse IntransitInventoryInventory(FOB = Shipping)(FOB = Shipping)
DirectDirectTransferTransfer
You need to define shipping network before doing inter organization transfer
Inter Org Transfer
Inventory Transactions
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Direct Inter–organization Transfers We 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 we have defined in both the shipping and destination organizations for the items we want to transfer.
Inter Org Transfer
Inventory Transactions
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Inter–Organization Transfers via Intransit InventoryWe usually transfer material to intransit inventory when transportation time is significant. When we perform the transfer transaction, we do not need to specify the delivery location. We only need to enter the subinventory we 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.
Inter Org Transfer
Inventory Transactions
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Inter Org Transfer Shipping Network
Select Transfer type as Intransit or
Direct
Enter FOB as receipt or shipment to identify who owns the inventory after
shipment has been made
Check this box if internal order is
required
Inventory Transactions
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There are three options for transfer charge.
Predefined % of transaction value. The % is maintained here. The other two options are requested % or requested value. In this case value is mentioned at the time
of entering Inter ORG transaction
Inter Org Transfer Shipping Network
Inventory Transactions
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Enter the accounts for transfer credit and PPV if
destination organization uses standard cost
On these form maintain Inter ORG receivable and payable account
Inter Org Transfer Shipping Network
Inventory Transactions
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Enter Source & Destination
OrganizationSelect type as
Intransit or Direct shipment
Enter the order number
Inter Org Transfer - In transit
Inventory Transactions
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Subinventory in the shipping organization
Subinventory in the receiving organization
Inventory Transactions
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As transaction type in Inter ORG order was in transit shipment, the inventory is
shown in transit after shipping
Note: Receiving for Inter ORG orders will be covered as a part of receiving transactions
Inventory Transactions
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Type of Receipt Transactions Receive both internally and externally sourced shipments Process unordered receipts Receive substitute items Inspect items for quality control and invoice matching needs Correct transaction errors Receive returned items into invento Return delivered items to receiving
Note: As part of inventory training only standard receiving transaction will be covered with receipt routing as Direct Delivery
Receipts
Inventory Transactions
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Use the Find Expected Receipts window to:Find source documents for which you can enter receipts. Use the Supplier and Internal tabbed region to search for Purchasing documents.
Receipts
Inventory Transactions
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Use the Receipt Header window to enter header information for all types of receipts.
Enter packing slip number
Enter other information like shipped date, number of containers etc.
Receipts
Inventory Transactions
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Use the Receipts window to enter receipt line information.
Enter the receipt quantity
Default subinventory
from PO. It can be overridden
As routing is direct receipt,
the inventory is delivered on saving the transaction
Receipts
Inventory Transactions
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Overview Of Move Orders
•Move orders are requests for the movement of material within a single organization.
• Manage all material requisition and request processes within an organization by manually or automatically creating, approving, and transacting a move order.
• Used for movement of material within a warehouse or facility for purposes like replenishment, material storage relocations, and quality handling.
Move Orders
Inventory Transactions
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Move OrderRequisition
• Account Transfer• Subinventory Transfer
• Manually Generated• Optional Approval Processing
ReplenishmentMove Orders
• Kanban• Min Max• Replenishment • Count
• Automatically Generated• Pre-approved• Ready for Transaction
Move Order Type Transaction Type Generation & Approval
Pick WaveMove Orders
Sales Order PickInternal Order Pick
• Pre approved• Print Pick Slip
Move Orders
Inventory Transactions
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Move Order Process Flow
PickingPicking
SourceSourcelocationlocation
Destinationlocation
Put awayPut away
Pick Pick TicketTicket
Move order locates Move order locates material sourcesmaterial sources
In case of shortageIn case of shortagemove ordermove order
can be re-plannedcan be re-planned
Move orderMove orderrequisitionrequisition
createdcreated
Approve Approve move move orderorder
Inventory Transactions
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Move Order Header
Default source subinventory
for move order
Select Transaction
Type
Inventory Transactions
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Move Order Lines
Enter Item and for transfer
Default transaction type from header. It can be overridden
Quantity to be transferred
Inventory Transactions
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Move Order Allocation
Press Allocate to generate reservation from source
subinventory to destination subinventory
After allocation reservation can be viewed and updated
manually if required.
Inventory Transactions
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Transact Move Orders
Print Pick List for Picker
Press Transact to move the inventory from source to destination subinventory
Inventory Transactions
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Introduction to Oracle inventory management
Inventory Enterprise Structure
Inventory Setup
Creating and Maintaining Items
Inventory Controls
Inventory Transactions
Inventory Accuracy Control
Inventory Planning
AgendaAgenda
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Inventory Accuracy Control
Cycle CountingCycle counting is the periodic counting of individual items throughout the year. Count items of higher value more frequently than items of lower value. The differences between the system quantity and counted quantity are adjusted to correct the system quantity and inventory value in the system.
Physical inventory A physical inventory is a periodic reconciliation of system on-hand balances with physical counts in inventory. It is normally done once in a year as a part of financial auditing requirement to verify inventory assets on balance sheet. Production is stopped at the time of carrying out this activity.
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Define cycle count header
Update cycle-count items
Schedule items to count
Generate count requests
Enter cycle counts
Approve cycle counts
ABC Classification of itemsCycle Counting
Inventory Accuracy Control
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ABC Analysis
•ABC analysis is a method of determining the relative value of items in your inventory sites.
• An ABC analysis involves ranking your items according to a criterion and then grouping items into classes.
ABC Classification
Inventory Accuracy Control
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Define ABC group
Assign items to ABC classes
Update class assignments
Purge ABC information
Define ABC compilation Define ABC classes
ABC AnalysisABC Classification
Inventory Accuracy Control
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ABC Compilation
Criterion for categorizing your items in
Organization. It can be based on current value or
historical usage value
Cost type to pick up the unit cost
of items in compile set
Press Compile to generate
compile results
ABC Classification
Inventory Accuracy Control
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ABC Compilation- Descending Value ReportABC Classification
Inventory Accuracy Control
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Use ABC classes to identify the value groupings to which items belong. Define these classes using own terminology. For example, you might define classes High value, Medium value, Low value. Assign items of highest rank to the High class, those of lower rank to the Medium class and those of lowest rank to the Low class. Can use ABC classes to group items for a cycle count where you count “A” items more frequently than “B” items.
ABC Classification
Inventory Accuracy Control
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ABC Classes
Define class names for your
ABC Classification purpose
ABC Classification
Inventory Accuracy Control
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Define ABC Assignment Group
Define Group name to link compile class and
set of ABC Classes defined
ABC Classification
Inventory Accuracy Control
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Link ABC Classes to ABC assignment
group
Give a priority to all classes. The class
with lowest priority is assumed to have the
highest rank.
Define ABC Assignment Group
ABC Classification
Inventory Accuracy Control
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ABC Item Assignments
Choose the sequence value from ABC descending value report to assign a
range of items to class
Shows % of total items and % of total value assigned to a specific
class with in an Organization
ABC Classification
Inventory Accuracy Control
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Updating Item Assignments
ABC assignments generated automatically by assigning cut off sequence numbers for each class. If required classes can
be changed manually
ABC Classification
Inventory Accuracy Control
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Maintain Cycle Count
Adjustment account to store variance amount by which inventory is
adjusted
If automatic recount required for out of
tolerance items
If items not scheduled for counting to be
included
Cycle Counting
Inventory Accuracy Control
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Maintain Cycle Count
Cycle counting to be allowed for serialized
items or not. If allowed will there be
multiple serial numbers per request or one serial number
per request
What Details to be printed. Quantity only or quantity
with serial numbers
Scheduling daily or
weekly or by periods
Cycle Counting
Inventory Accuracy Control
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Maintain Cycle Count Header
Tolerances set by quantity, value and hot/miss analysis
ABC group lined for
identifying item classes
Use this option as re-initialization to
upload items for the first time from ABC group. Make it to
update to add new items added in ABC group to cycle count
items
Cycle Counting
Inventory Accuracy Control
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Cycle Count Classes
Mentions the numbers of times
the item to be counted in a year
Cycle count class specific tolerances can be maintained
here. If it is not maintained here it is
taken from cycle count header
Cycle Counting
Inventory Accuracy Control
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Cycle Count Items
Cycle count classes and item generated from ABC initialization at the time of linking cycle count
to ABC group
Item specific quantity tolerance can be maintained
here
Cycle Counting
Inventory Accuracy Control
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Schedule Cycle Count
Automatic Scheduling
Oracle inventory uses the number of items in each cycle count class, the frequency of each class, and the workday calendar of your organization to determine how many and which items you need to count during the scheduling frequency.
Manual Scheduling
You can manually schedule counts in addition to or instead of those generated with automatic scheduling.
Cycle Counting
Inventory Accuracy Control
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Generate Cycle Count Request
Cycle count Scheduler for automatic scheduling
Generate Cycle count request to generate cycle count entries
Cycle Counting
Inventory Accuracy Control
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Cycle Counting List ReportPrint this report to show items
scheduled for cycle counting in a specific period. This report is given
to people who physically count items
Cycle Counting
Inventory Accuracy Control
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Cycle Count Entries
Enter the quantity counted at the locator
in the warehouse
Cycle Counting
Inventory Accuracy Control
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Approve Cycle Count
Approve cycle count entries that are out of tolerance. The entries with variance with in tolerance will be approved by system.
Cycle Counting
Inventory Accuracy Control
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Cycle Count Entries and Adjustments Report:This report shows all cycle count entries for a specified time period. It analyzes the number of cycle count transactions you make against an item, and the number of units you actually adjust. The report also calculates the value, in your functional currency, of the adjustments to inventory.
Cycle Counting
Inventory Accuracy Control
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Inventory Accuracy Control
Define physical inventory
Take snapshot of on-hand quantities
Generate tags
Count items
Enter counts
Void tags
Approve counts
Run adjustment program
Purge physical inventory
Physical Inventory
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Inventory Accuracy Control
Define Physical Inventory
Set the option for approval of
physical inventory tags
Tolerances for Quantity and value
Click snapshot to generate the snapshot
of inventory on hand for count subinventories
Use this option when tags are generated
outside oracle inventory
Physical Inventory
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Inventory Accuracy Control
Generate Tags
You can generate blank tags for stock
points not recorded in your system
Generates a unique tag for each unique combination
of item, sub inventory, locator, revision, lot, serial
number
Starting tag number and in what order you want to
increment to generate the next tag number
Physical Inventory
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Inventory Accuracy Control
Physical Inventory Tags Counts
Enter the quantity physically counted at specific location with
in the warehouse
You can void a tag if damaged or lost. If default tag is void it sets the inventory to
zero for that SKU
Physical Inventory
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Inventory Accuracy Control
Approve Counts
Approval option- Always the system requires approval of all counts entered. You must approve or reject each adjustment before running the physical adjustments program. After the system adjusts all the approved counts the status of the adjustment changes to ‘Posted
Approval option If Out of Tolerance the system requires approval of all adjustments exceeding the tolerances entered in the physical inventory definition. You must accept or reject each of these adjustments before running the physical inventory adjustments program. After the system adjusts all the approved counts the status of the adjustment changes to ‘Posted’.
Physical Inventory
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Inventory Accuracy Control
Approve Counts
Approve or reject the count
Physical Inventory
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Inventory Accuracy Control
Perform Physical Inventory Adjustments
The system performs adjustments by creating a material transaction for the +/- quantity of the adjustment. Once adjustment program is run the system does not allow a new tag generation or any further updates to the tag counts.You must approve or reject all adjustments or the system will not run the adjustments program. Tag quantities, adjustment quantities, and adjustment values can be reported before performing the adjustments.You can use the adjustment report to authorize approvals or request recounts of items with large pending adjustments.
Physical Inventory
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Inventory Accuracy Control
Perform Physical Inventory Adjustments
Account for passing transactions due to
variance in system and counted quantity
Physical Inventory
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Inventory Accuracy Control
Purge Physical InventoryPurging tags only: You can purge all tags associated with a physical inventory definition. If irreversible mistakes are made in the count-entry phase, you can start over without refreezing your inventory.
Purging All Information You can purge the physical inventory definition, frozen quantities, tags and count quantities. This purge deletes adjustments but not the adjustment material transactions.
Physical Inventory
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Inventory Planning
Performing reorder-point planning Performing Min-Max planning Subinventory replenishment planning Creating and executing Kanban cards
Planning methods:
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Min-max planning is a method of determining when and how much to order based on user-defined minimum and maximum inventory levels. In Oracle Inventory you can perform min-max planning at two levels:
Organization: To perform organization-level min-max planning for an item, you must specify organization-level minimum and maximum quantities.
Subinventory: To perform subinventory-level min-max planning for an item, you must specify subinventory-level minimum and maximum quantities.
Inventory Planning
MIN MAX Planning
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1.0 Define Planningattributes for Min-Maxplanned items at Org
level
Min-Max Planning at Org
or Subinventory level?
2.0 Run Min-MaxPlanning Report at
Org level
3.0 Define Planningattributes for Min-
Max planned itemsat SubInv level
4.0 Run Min-MaxPlanning Report at
SubInv level
A
AutoReplenish-
ment?
Min-Max report
Org
No
Item Available quantitybelow Min quantity?A Stop
Yes
No
Yes
Make or Buy ?
Source ?
Buy
7.0 CreateUnreleased Job
Make
5.0 CreatePurchase
Requisitions
SupplierInternal
Supplier
6.0 CreateInternal
Requisitions
6.1 CreateInternal
Requisitions
Inventory Planning
MIN MAX Planning
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Inventory Planning
Enter minimum quantity
Enter maximum quantity
Enter fixed lot increments
Enter minimum order quantity
Enter maximum order quantityRun min-max report
YesYes
NoNo
Do you wantspecific lot
increments?
Determine minimumand maximum
quantities
MIN MAX Planning
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Inventory Planning
The following equation represents when you should order:
Quantity Available= Min QTY- on hand quantity + quantity on orderIf Quantity Available is>0, the order should be placed
Order quantity = (maximum quantity) - [(on-hand quantity) + (quantity on order) ]
You can constrain the order quantity by specifying the following order modifiers for an item:
Fixed lot multiplier Minimum order quantity Maximum order quantity
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Inventory Planning
Enter item planning attributes.
Define subinventory-level min-max
information (optional).
Run the Min-max report.
MIN MAX Planning
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Enter the following:• Min-max minimum quantity• Min-max maximum quantity• Fixed-lot-size multiplier• Minimum order quantity• Maximum order quantity
Specify a planning level (either Organization or
Subinventory).
Set up the appropriate profile value for
requisition approval.
Select an Inventory Planning method.
Inventory Planning
MIN MAX Planning
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Inventory Planning
Enter the minimum and
maximum quantity Enter the planning
method as Min Max Planning
Enter the source type as supplier if you want to
generate purchase requisitions. Enter
subinventory or organization if you want to generate move
orders
MIN MAX Planning
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Inventory Planning
Min Max Report
Planning level can be organization or
subinventory. If it is subinventory the min max quantity should
have been maintained at subinventory level
Demand cut off date for demand
calculation
MIN MAX Planning
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Inventory Planning
What are the different sources of supply to be
considered for calculation of quantity available
The program includes nettable subinventory as supply. In order to include non nettable subinventory make it
yes
If you don’t want to generate orders keep the option as No. it will print report for all those items
where quantity available is less than Min Quantity
MIN MAX Planning
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Oracle Inventory ProcessesOracle Inventory Processes
Oracle Purchasing ProcessesOracle Purchasing Processes
Run Order ImportOracle Order Entry ProcessesOracle Order Entry Processes
Min-Max Planning
Reorder-Point Planning
Subinventory Replenishment
Populate Requisition Interface
Run Req. Import
Create Purchase Requisition
Create Purchase Order
Create Internal Requisition
Create Internal Order
Kanban
Inventory Planning
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Inventory Planning
Reorder-point planning is a method of determining the size and timing of item replenishment orders.
Reorder-point planning uses the following pieces of information:
Safety stockReplenishment lead timeitem demandOrder costCarrying cost
Reorder-point planning
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QuantityQuantity
TimeTime
Reorder PointReorder Point
Safety StockSafety Stock
Inventory Planning
Reorder-point planning
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Inventory Planning
You can perform-reorder point planning for the entire organization.
You can use Reorder-point planning for items under independent demand.
You can specify Reorder-point planning as the inventory planning method when you define an item.
You can use Reorder-point planning for items that you do not need to control very tightly and that are not very expensive to carry in inventory.
Reorder-point planning
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Inventory Planning
Enter item planning attributes.
Define safety stocks.
Forecast Item Demand
Run Reorder-point report.
Reorder Point Planning Steps
Forecast item demand
Reorder-point planning
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Inventory Planning
Item Planning Attributes
Specify a maximum-order quantity.
Enter a carrying cost percent.
Select Reorder-point as the inventory planning method.
Enter an order cost.Specify a fixed-lot
size multiplier.
Specify a minimum-order quantity.
Reorder-point planning
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Inventory Planning
Enter Lead Times
Enter processing lead time.
Enter preprocessing lead time.
Enter postprocessing lead time.
Reorder-point planning
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Inventory Planning
Item Planning Attributes
Set your planning method
Set your lead times on the lead time tab
Safety Stock method
Reorder-point planning
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Inventory Planning
You can select one of the following three safety stock calculation methods for each item: User-defined quantityYou can enter safety stock quantities and the date for which each quantity is effective. You can update safety stock quantities that you previously entered or that Oracle Inventory calculated for you.
User-defined percentageTo use the user-defined percentage method, you must use the Reload Safety Stock window and specify the following information for the item:A forecastA safety stock percent
Reorder-point planning -Entering Safety Stock
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Inventory Planning
You can select one of the following three safety stock calculation methods for each item:Mean absolute deviation
To calculate safety stock using this method, you submit a concurrent request using the Reload Safety Stock window. In this window, you must specify the following information:
A forecastA service level percent
safety stock = Z × 1.25 × (mean absolute deviation)where Z is the appropriate value from a table of standard normaldistribution, corresponding to the service level. The mean absolute deviation is a measure of how the forecast demand deviates form the actual demand.
Reorder-point planning -Entering Safety Stock
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Inventory Planning
Entering Safety Stock- User Defined
User defined safety stock
Enter a default item if multiple entries are to be maintained for the
same item
Reorder-point planning
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Inventory Planning
Entering Safety Stock
Method as MAD or safety stock %
If method is safety stock % enter safety stock %. F method
is MAD enter service level
Enter the forecast for MAD calculation
Reorder-point planning
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Inventory Planning
Forecast Item Demand
Choose a item that had a planning
method as reorder point
Define a forecast set for your forecasting scenario. With in your forecast set define your forecast
name
Reorder-point planning
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Inventory Planning
Forecast Item Demand
Enter your forecast bucket. It can be daily,
week or periods
Enter the forecast quantity
Reorder-point planning
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Inventory Planning
Reorder Point Program
Give your demand supply and supply cut off date. Till
this date your forecast will be taken for reorder point
calculation
Enter the forecast set to be used for EOQ and reorder point calculation
Use this option as no if you don’t want to
generate requisitions and want to generate report for items will quantity less than
reorder point
Reorder-point planning
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Inventory Planning
Reorder Point Program
Mention what supply should be considered as availability for reorder point calculation
Reorder-point planning
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