Inventory Organizations

Inventory Organization Structure

O r g a n iz a tio n S u b In v e n to ry S u b in v e n to r y L o c a to r L o c a to r

Locations
Setting Up Locations
Define information describing the physical location of employees and organization Locations are shared between Oracle Inventory, Oracle Purchasing and Oracle uman !esources "anagement Systems# Locations flagged as global locations are available to all business groups $ssociate organization with only one location,however you can associate more than one organization with same location

 Sample Inventory Organization

Ledger Operating Unit Inventory Organization $ Subinventory Locator Locator Subinventory Locator

Defining Organizations

Inventory Organization % Subinventory Locator Subinventory Locator

"ulti&Organization Structure
$pplications and database enhancement 'nables you to consolidate your operations under one installation of Oracle $pplications on a single global instance 'nables you to (eep transactions data secure by line of business

"ulti&Organization Structure

Inventory Parameters
'nables you to
Setup organization information 'nable specific products and features

Oracle 'nterprise asset management

Oracle Process ')ecution

Oracle *arehouse "anagement

Inventory Parameters +continued, Organization -eatures

Organization codes Item master organization

Product -eatures
Oracle Process ')ecution Oracle 'nterprise $sset "anagement Oracle *arehouse "anagement

 *hich .osting method is the organization going to use/

Standard $verage -I-O + -irst in -irst Out,

.osting Parameters

.osting method where items that were received earliest are transacted first

LI-O + Last in -irst Out,

.osting method where items that were received most recently are transacted first

!evision, Lot, Serial, and License Plate 0umber+LP0, Parameters

$1P, Pic(, Item&Sourcing Parameters 1he $1P, Pic(, Item&Sourcing

Parameters enables you to
Set the available to promise+$1P, default rule for the organization Set the pic(ing defaults for the organization Set the Item&sourcing defaults for the organization

Interorganization Parameters
1he Inter&organization Information tab enables you to determine the parameters the organization uses when it transfers material between organizations

D"2 Organization

D"3 Organization

Other $ccounting Parameters

Other $ccounting Parameters tab enables you to setup receiving account information,profit and loss account information, and other additional account information

Subinventory Physical or logical separation of material

$t least one subinventory must be defined for each organization

 Locators are structures within sub inventories Locators may represent rows, aisles or bins in warehouse Dynamic Locators
4enerate during a transaction as needed

Locator control

Static Locators
Predefined

Sub inventory Locator !elationship

Interorganization Shipping 0etwor(

!elationships between shipping organization and destination organization 5ou must define a shipping networ( between two organizations
Shipping "ethod

$dditional Organizational Setups

"aterial Shortage Parameters Define parameters for the system to determine when unsatisfied demand e)ceeds available supply Organizational $ccess .ontrols access to the organization based on users responsibility assigned to user by the system administrator

 Organization ierarchy enables you to

Organizational

ierarchy

$ssign items to organizations .opy item attributes 6iew item information Open and .lose accounting information Purge 1ransactions

Organization !eports
Report Description Item-subinventory Report Locator Quantities Report Subinventory Quantities Report #reight $arrier Listing Inter-organization Shipping In!ormation Listing Lists items assigned to sub inventories Shows the inventory item uantities stored in speci!ic "ocators Shows the inventory item uantities by subinventory Lists the !reight carrier codes !or the current organization Lists the shipping networ%s !or the current organization

Organization !eports
Report Locator Listing Organization &arameters Listing Subinventory Listing

+.ontinued,

Description

Lists the "ocators !or the current organization Lists the organization parameters !or the current organization Lists the sub inventories !or the current organization Disp"ays a"" organizations be"ong to a "ega" entity that are not assigned to an organization hierarchy

Organization 'ierarchy ()ception Report

&ro!i"e Option

Profile Options

Description

I*+, -""ow Inventory -sset to .rans!er Indicates whether you can trans!er an item !rom e)pensed sub inventory to an asset "ocation I*+, Inter-Organization $urrency $onversion Indicates the currency conversion !or inter organization trans!ers between organizations using di!!erent currencies Indicates whether bac% !"ush transactions can drive the inventory negative even i! inventory parameter a""ow negative ba"ances unchec%ed

I*+, Override *eg !or /ac% !"ush

$n item is a part or services you

Purchase Sell Plan "anufacture Stoc( Distributive Prototypes

*hat is an Item

Use the "aster item window to define and update items and item attributes

Defining Items

Item "aster Organization $n item master Organization is a logical entity that you use to
define items

Defining Item "aster Organization

0 a s te r O r g a n iz a tio n D 0 0 $ h i"d O r g a n i z a t i o n D 0 1 $ h i"d O r g a n i z a t i o n D 0 2

Item $ttributes
Item attributes are the collection of information about an item#

Item $ttribute 4roups

 *hen you define an item you use the item status attribute to assign an item status

Item Status

Primary Unit of "easure 1rac(ing

Unit of "easure $ttributes

Stoc(ing unit of measure any necessary conversions are on this unit of measure 1he System can trac( the Item in either the primary only or the primary and secondary Unit of "easure# If the system trac(s the item by the primary and secondary unit of measure this is called the dual unit of measure control#

Unit of Defaulting
-i)ed

"easure $ttributes

+.ontinued,

$ttribute controls the behavior of dual unit of measure controlled Item

System stores inventory in both the primary and secondary units of measure 'nter an item 7uantity in one unit of measure, and the system converts the 7uantity to the secondary units of measure and displays both the 7uantities#

Item attributes describe an item an item#

Item Statuses and $ttributes

Status attributes are item attributes that enable the (ey functionality of Status $ttributes and -unctionality #unctiona"ity -rea Inventory Inventory3 Order 0anagement3 &urchasing3 4or% in &rocess #unctiona"ity (nab"es you to store the item in an asset subinventory (nab"es you to transact the item in Orac"e Inventory3 Orac"e Order 0anagement3Orac"e &urchasing and Orac"e 4or% in &rocess

Status -ttribute Stoc%ab"e .ransactab"e

Item Statuses and $ttributes

Status -ttribute &urchasab"e #unctiona"ity -rea &urchasing
+.ontinued,

#unctiona"ity (nab"es you to p"ace the item on a &urchase Order (nab"es you to bui"d the item on a discrete 5ob3 a repetitive schedu"e or both (nab"es you to p"ace the item on Sa"es Order !or the item (nab"es you to create an interna" Sa"es Order !or the item

/ui"d in 4I&

4or% in &rocess

$ustomer Orders Order 0anagement (nab"ed Interna" Orders (nab"ed Inventory3 Order 0anagement3 &urchasing

Item Statuses and $ttributes

Status -ttribute /O0 a""owed #unctiona"ity -rea /i""s o! materia"
+.ontinued,

#unctiona"ity (nab"es you to create the bi""s o! materia" !or the item (nab"es you to create an invoice !or an item (nab"es you to create a recipe or !ormu"a !or this item in the process manu!acturing (nab"es you to use the item in the production batch as an ingredient3 product or byproduct

Invoice (nab"ed

Receivab"es

Recipe enab"ed

&rocess 0anu!acturing

&rocess ()ecution (nab"ed

&rocess 0anu!acturing

Status $ttribute Dependencies -ttribute 0ust be Set to I!

Stoc%ab"e Stoc%ab"e .ransactab"e .ransactab"e *o 6es *o 6es Inventory Item is set to 6es -SL is +0I enab"ed Stoc%ab"e set to 6es -SL is +0I enab"ed

Status $ttribute Dependencies -ttribute 0ust be Set to I!

&urchasab"e /ui"d in 4I& *o *o

+.ontinued,

&urchasab"e set to *o Inventory Item is set to *o or /O0 Item .ype is *O. set to Standard $ustomer ordered item is set to *o Interna" ordered item set to *o

$ustomer Orders (nab"ed *o Interna" Orders (nab"ed *o

Status $ttribute Dependencies

-ttribute /O0 a""owed Invoice (nab"ed &rocess ()ecution (nab"ed 0ust be Set to *o *o *o I!

+.ontinued,

Inventory Item is set to *o Invoiceab"e item set to *o Inventory or Recipe (nab"ed !"ag set to *o

*hen you define an item , Oracle Inventory enforces particular relationships between some of the item attributes
!e7uired attributes Interdependent attributes Updateable attributes .ontrol level dependencies

Item attribute relationships

$n item template can be assigned when you create or update an inventory item# 1he template contains values for any number of item attributes
'nabling attributes in a template 'nable item attributes and assign them values in each template that you create *hen you apply template to an item,Oracle Inventory updates only the attributes that are enabled for the template Define templates with relatively few attributes enabled because you can apply more than one template to define one item

Item 1emplates

Organization $ssignment and Organization Items

.ontrol levels
Master Level Controls
$n attribute you maintain at the master level has identical values across all organizations that use the Item

Organization-Level Control
$n attribute you maintain at the Organization level may have different values for each organization that uses it#

Attribute Control
Some attributes can be maintained at only the master level or organization level# Units of measure are controlled at the "aster level# If you are using multiple organizations, then you should maintain min& ma) planning at the organization level#

 $ revision is a particular version of an item, bill of material, or routing# Use the !evision control to trac( the item 7uantities by item revision and specify a revision for each material transaction# 'nable revision control for items you must trac( version changes that are significant enough to trac( but do not affect the function and feature of the item# 5ou cannot change the revision control item attributes when an item has 7uantity on hand

!evision .ontrol

 If revision control is controlled at the master item level, the chec( for on&hand 7uantity is against the sum of on&hand 8 7uantity in all child organizations# If revision control is controlled at the organization level, the chec( for on&hand 7uantity is against the sum of on&hand 7uantity in that organization Use letters, numbers, and characters such as $, $2, 3%, and so on to define revision numbers

!evision .ontrol

+.ontinued,

Item !elationship
5ou can define relationship between items# 1his allows you to search for items through these relationships#

.ategories and .ategory Sets

$ category is a logical classification of items that have similar characteristics $ .ategory set is a distinct grouping scheme and consists of categories 5ou can define an unlimited number of categories and group subsets of your categories into category sets $ category can belong to multiple category sets

.ategories and .ategory Sets

+.ontinued,

*hen you install Oracle Inventory, you must assign default .ategory set
Inventory Purchasing Order "anagement .osting 'ngineering and Planning

Item .atalog
Item catalogs enable you to add descriptive information to items and to partition your Item "aster into groups of items that share common characteristics

Deletion .onstraints and Deletion 4roups

If you want to enforce specific business rules and add custom chec(s before you can delete an item, you must define the delete constraints to supplement the standard predefined item deletion conditions 5ou can delete items that have incorrect attribute information#
-or ')ample, if you ma(e a mista(e in entering an Item number, use the Deletion 4roups window to delete the item

If you decided to purge the item immediately after defining it and before using it anywhere in the system you will be able to delete it#

Deletion .onstraints
If you want to enforce specific business rules and add custom chec(s before Oracle Inventory allows deletion of an item, you must define item deletion constraints to supplement the standard predefined item deletion conditions 1he ma9or use of item deletion is to correct the data entry errors

-or e)ample, if you defined an item with the wrong primary unit of measure,you can use the delete function to remove the item from your database# If you decide to purge the item immediately after incorrectly defining it and before using it anywhere in the system, you will be able to delete it#

Deletion .onstraints

+.ontinued,

$fter an item is used, for e)ample in an assembly Oracle Inventory automatically creates references to it# Oracle Inventory chec(s all possible references to an item and does not allow it to be deleted until every reference is removed

Item !eports
Report Item statuses Report Item .emp"ate Listing Description Lists Item Statuses Lists item temp"ate de!initions

$ustomer Item $ommodity $odes Listing Lists customer item commodity cods and inactive dates $ustomer Item $ross Re!erence Report Lists customer item cross re!erences

Item !eports
Report $ustomer Items Report Inactive Items Report

+.ontinued,

Description Lists customer items Lists items that have not had inventory transaction since the date you speci!y -ssigns an item3 range o! items3 category set or range o! categories to mu"tip"e organizations be"onging to the same Item 0aster Organization7 Lists comprehensive item in!ormation

Item Organization -ssignment Report

Item De!inition Detai"s

Profile Options
&ro!i"e Option I*+, De!au"t Status Description Indicates the de!au"t item status when you de!ine an item Indicates which !"e) !ie"d is used to de!ine items in 0.L8S6S.(08I.(0S .his pro!i"e option determines the price !or 0ode" :amp; options or con!igured items7 .he avai"ab"e options are 6eas and *o7this pro!i"e option is on"y update at the site "eve"

I*+, Item 0aster #"e) #ie"d

I*+, 9se 0ode" : Options !or $on!iguration &ricing

Profile Options
&ro!i"e Option I*+, De!au"t Item .emp"ate

+.ontinued,

Description .his pro!i"e option enab"es you to set a de!au"t item temp"ate !or a"" items you create .his pro!i"e option communicates to the receiving pages o! the mobi"e device to use assignments !or this particu"ar cross re!erence type to va"idate the items whi"e receiving receipt .his pro!i"e option enab"es you to show on"y current organization emp"oyees in the peop"e LO+ o! the category grants window

I*+, $ross re!erence type

I*+, +iew Item category type

Lot .ontrol

$ lot can represent a 7uantity of an item that shares the same specifications# 5ou can divide each lot into child lots that can reflect whatever characteristics you choose for items within a lot#

 *hen you allocate stoc( for production, you can allocate specific lots to a production batch based on the potency, age or other item characteristics# Items under lot control assign lot numbers to each receipt, and thereafter reference the same lots each time you perform material transactions, enables to have tight control over lot controlled items in your inventory#

Lot .ontrol

+.ontinued,

.hild lot is a subdivision of a lot that you can use if you produce a lot over a period of time, but still want to group the material as a single lot#

.hild Lots

Setting up Lot .ontrol +Organization Parameters,

Lot .ontrol uni7ueness Lot generation .hild lot generation control
-ormat validation .opy lot attributes

$uto create lot UO" conversion $llow different lot status

Setting Up Lot .ontrol + Item $ttributes,

Lot .ontrol

Starting prefi) and number "aturity and hold days

.hild lot enabled

-ormat validation .opy lot attributes

Lot ')piration

Shelf life days !etest interval ')piration action interval and action
4rade .ontrol

4rade

$ssigning lots

"anaging Lots

Pre assign on lot master $ssign during transactions $dd 7uantities to e)isting lots Split Inventory receipts into several lots
"aintain Lots

Update lot e)piration date 6iew lot information 6iew Supplier lot information

$n e)pired lot

')pired Lots

Is not considered as on hand supply when you are performing "in&"a), reorder point,or "!P planning calculations .annot be reserved for a date beyond the e)piration date .an be transacted and is included in on&hand 7uantities Included in all in7uiries and reports, including inventory valuation reports Included in a cycle count and count entry and ad9ustments are allowed Included in a physical inventory and tag entry and ad9ustments are allowed

Disabled Lot

Disabled Lots

Is included in available to transact, available to promise, and to available to reserve calculations Is included as on&hand supply when you are performing min&ma),reorder point or "!P planning calculations Is included as on&hand in all in7uiries and reports, including inventory valuation reports# .an be transacted with Inventory functions and the 1ransactions Open Interface .an be reserved

 5ou can purge all lot transaction information from your current organization# 1he transactions must be in closed accounting period# Purging lot transactions eliminates information used in lot reports and in7uiries#

Lot 0umber Purging

.ycle .ounts Under Lot 1he cycle count listing includes the lot .ontrol

numbers of the items to be cycle counted $ssign lot numbers to all items under lot control for which you enter counts If there is a difference between cycle count 7uantity and the system on&hand 7uantity# Oracle Inventory ad9usts the item 7uantity in that lot#

Physical Inventory Under Lot .ontrol Oracle Inventory includes the lot numbers of
the items to count in your physical inventory when generating Inventory tags# 5ou must assign lot numbers to all items under lot control for which you enter counts in the Physical Inventory 1ags count window If there is a difference between cycle count 7uantity and the system on&hand 7uantity# Oracle Inventory ad9usts the item 7uantity in that lot#

 Serial number is an alphanumeric piece of information you assign to an individual unit of an item# Serial number control is a system techni7ue for enforcing the use of serial numbers during a material transactions

Serial 0umber Overview

4enerating Serial 0umbers "any serial numbers as you want for any item
under serial number If you specify 0o .ontrol as the serial control type then the system does not enforce serial number control# If you specify Predefined as the serial number control type, then you must predefine serial numbers for that item# If you select $t Inventory receipt or $t sales order issue, then you can optionally predefine serial numbers for the item#

+.ontinued, Oracle Inventory uses the starting serial number prefi) and the starting serial number you specify in the Item window to load the number of predefined serial numbers you re7uest# 5ou can load as control# 1he process of generating serial numbers is done through a concurrent report# 1he process does not assign numbers to units in inventory, it simply reserves specify serial numbers for an item for later use#

4enerating Serial 0umbers

 5ou can use serial numbers window to update supplier information associated with your serial numbers 5ou can view all the serial numbers you created in your current organization# 5ou can view location and status information and update supplier information associated with your serialized units

"aintaining Serial 0umbers

 Lot genealogy trac(s the relationship between lots and provides lot traceability that results from inventory transactions, includes all lot splits, merges, and translations# Serial genealogy trac(s the transaction and multilevel composition history of any serial controlled item from receipt to customer sale#

Lot 4enealogy

Lot and Serial !eport

Report Lot .ransaction Register Description 6ou can use this report to audit "ot transaction !or a speci!ied time interva"3!or a range o! dates3 !or ranges o! items or categories3 o! !or other criteria 6ou use this report to iso"ate "ots that are about to e)pire3!ind e)pired "ots3 and !ind seria" assigned to e)pired "ots 6ou can use this report to audit seria" number transaction !or a speci!ied time interva"3 "ocation or group o! "ocations3 reason or group o! reasons or other criteria

()pired Lots Report

Seria" *umber .ransaction Register

Lot and Serial !eport

Report Lot Inventory Report Description

+.ontinued,

.his report provides you with an overview o! item "ots3 uantities and "ots statuses in a"" or the se"ected sub inventories or "ocators within the organization7 .his report provide you with an overview o! an in!ormation you set up in the "ot matter7 6ou can run this report !or a speci!ic item3 or a"" items in the organization7 .his report enab"es you to view a"" o! the grade changes made during a given period !or a particu"ar item within an organization

Lot 0aster Report

<rade 'istory $hange Report

&ro!i"e Option

Profile Options
Description 6ou use this to determine i! and how the item number is disp"ayed on the ob5ect <enea"ogy !orm7 Determines whether data !or pic%ing and reservations must be !i"tered to match the pre!erred grade that is de!ined on the order "ine7 -""ows you to pic% the character that appears between the item name and "ot number in the genea"ogy tree7

I*+,<enea"ogy pre!i) or su!!i)

I*+, .arget pre!erred grade

I*+, <enea"ogy 9n"imited

&ro!i"e Option

Profile Options Description

+.ontinued,

I*+, +a"idate Returned Lot

.his pro!i"e option determines whether the component "ot that is returned !rom 4I& shou"d be va"idated against "ots that are issued to the same 5ob7 .his pro!i"e option determines whether component seria"s that are returned !rom 4I& shou"d be va"idated against seria"s that are issued to the same 5ob7 Indicate whether the system per!orms two va"idation chec%s !or seria" numbers Orac"e wor% in process uses7 .his pro!i"e option a"so indicates i! you can re-receive a seria" number via a R0- receipt !or an item with seria" contro" set at sa"es order issue7

I*+, +a"idate Returned Seria"

I*+, Restrict Receipts o! Seria"s

"aterial Status "aterial Status enables you to control the

movement and usage of material for portions of your inventory#

 "aterial Status controls the transactions and planning actions that can be performed on an Item# "aterial Status brings in a granular level control, which is very effective It can be assigned to a specific Sub inventory, Locator, Lot 0umber and Serial 0umber#

"aterial Status .ontrol

"aterial Status 1ransactions

.umulative 'ffect

"aterial Status ')ample

Define 1ransaction 1ypes

Setting Up
'nable 1ransaction 1ypes for "aterial Status .ontrol

Define "aterial Status

'nable "aterial Status

'nable Profile Option

$ssign "aterial Status

Defining Item "aterial Status .ontrol

$ssigning "aterial Status .ontrol to Sub inventories Locators

$ssigning Planning Statuses

#

Disabling "aterial Statuses

#

"aterial Status !eports

#
Report 0ateria" Status De!inition Report Description &rovides you an overview o! each materia" status and how it is used &rovides you the !u"" status history o! who changed the materia" status and what reason was given

0ateria" Status 'istory Report

Profile Option
# Report
Description I*+, 0ateria" Status Support .his &ro!i"e Option determines whether 0ateria" Status is en!orced7 I! 0ateria" Status is not used in the insta""ation3 it is recommended to switch it o!! to increase the per!ormance o! the system

Overview of Inventory Planning

Oracle Inventory provides four types of !eplenishment "ethods:
= = = = "in&"a) Planning !eorder&point Planning ;anban !eplenishment Planning !eplenishment .ounting

Order Planning

ow "uch to Order

Overview of Inventory -orecasting Inventory -orecasting is the process of

e)trapolating the e)pected demand of an item over a number of periods in the future

-orecasting 1ypes

-orecast setup and "aintenance

Inventory !eplenishment "ethods

!eplenishment "ethods Levels < Inventory !eplenishment can be performed at Organization or Sub
inventory Level
Planning "ethod !eorder&point "in&"a) !eplenishment .ounting ;anban Organization 5es 5es 0o 0=$ Sub inventory 0o 5es 5es 0=$

 !eorder Point Planning as the name suggests places an Order when the Inventory level falls to a predefined !e& order Point# 1he Order Size is e7ual to the 'O># !eorder Point Planning is recommended for those items, which are not very e)pensive.

!eorder Point Planning

!eorder Point Planning+.ontinued,

Uses of !eorder Point Planning

!eorder Point Planning Steps

 In this method, the Inventory is planned based on user defined "inimum and "a)imum >uantity# Inventory is replenished to the "a)imum level whenever the Stoc( Level falls to the "inimum level# It can be applied to $ll or selected Items# It is a simple method used for low value item which doesn?t need strict monitoring.

"in& "a) Planning

"in& "a) Planning

"a)imum Level

>uantity

Stoc( Level

"inimum Level

1ime

"in& "a) Planning

"in&"a) at Org Level

Set Inventory Planning "ethod to "in&"a)

Specify "in @ "a) >ty

!un the "in&"a) !eport

;anban Planning
;anban is a Pull based replenishment in "anufacturing System# It leads to shorter lead times and reduced inventory# ;anban is typically applied to items with relatively constant demand and medium&to&high production volume# ;anban represents replenishment signals that are usually manual and highly visible li(e .olor& coded .ards, Light and 'mpty bin#

1ypes of ;anban !eplenishment

Inter Org: !eplenishes by creating Internal !e7uisition Intra Org: 1riggers "aterial movement from a subinventory in the same Organization# Production: .reates or releases a Production Aob Supplier: .reates a Purchase !e7uisition#

;anban 'lements
Pull Se7uence is a group of information that defines a ;anban location, source information, and planning parameters for an Item# ;anban chain is a series of Pull Se7uences, which defines the replenishment networ(# '#g#: $ssembly to Stores# ;anban .ards are created for Item, Subinventory and Locator +optional, and uni7uely identified by a ;anban number !eplenishable .ards can be created automatically through Pull Se7uence or manually through B;anban .ards? window#

;anban : Using .ards

!eplenishment .ounting !eplenishment .ounting is a method of ordering

Items for non&1rac(ed Subinventory# 0on&1rac(ed subinventories are e)pense subinventory, for which On&hand balances are not maintained# *henever an Item is moved into ')pense Subinventory, the ')pense account is charged and the 7uantity is discarded# Items are replenished in 0on&1rac(ed Subinventory by periodically counting the items physically.

!eplenishment .ounting

&ro!i"e Option

Profile Options

Description Determine whether or not a >anban card can be considered !i""ed i! the move order created to !i"" it was on"y partia""y trans!erred7 (nab"e you to create on"y one move order header per re uest Indicates processing contro" in the (nter Rep"enishment count window7

I*+, !i"" >anban on &artia" 0ove Order Receipt

I*+, Rep"enishment 0ove Order <rouping .&, I*/ (nter Rep"enishment $ount #orm

Profile Options +.ontinued,

&ro!i"e Option I*+, Rep"enishment $ount Re uisition -pprova" Description Indicates the status o! sub inventory Rep"enishment re uisition created by the rep"enishment processor7 Indicates the action ta%en when a !ai"ure is detected whi"e processing a rep"enishment count "ine Indicates the status o! re uisitions created by the min-ma) p"anning report

I*+,Rep"enishment $ount Line #ai"ure

I*+, 0inma) Reorder -pprova"