Oracle Applications 11i

Training On
Oracle Inventory
 Agenda

 Introduction to Oracle inventory management

 Inventory Enterprise Structure
 Inventory Setup
 Creating and Maintaining Items
 Inventory Controls
 Inventory Transactions
 Inventory Accuracy Control
 Inventory Planning

2
Company Confidential
 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.

3
Company Confidential
 Introduction 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

4
Company Confidential
 Inventory Integration with other modules

Oracle
WIP Oracle
Flow Manufacturing Oracle
Oracle Cost Project
Management Manufacturing

Oracle External
Purchasing
Systems

Oracle
Inventory

Oracle Order
Management Oracle Master
Oracle Scheduling/MRP
Engineering Oracle Bills
Oracle of Material
Shipping

5
Company Confidential
 Inventory Integration with finance modules

External
Systems

Oracle Oracle
Payables General
Ledger

Oracle
Inventory

Oracle Oracle
Receivables Assets
6
Company Confidential
 Introduction to Oracle inventory management

7
Company Confidential
Introduction 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 Attributes
Status 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.

8
Company Confidential
Introduction 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.

9
Company Confidential
 Introduction to Oracle inventory management

UOM Class = Weight UOM Conversion

UOM Base UOM

1 kg = 2.208 X lbs
lbs Yes
kg No 1 g = 0.002208 X lbs
g No

UOM Interclass Conversion

Destination Destination Source Source
Item Base UOM UOM Class Conversion Base UOM UOM Class

Keyboard lbs Weight 2 Each Quantity

2 Each = 1 lb

10
Company Confidential
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.
11
Company Confidential
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.

12
Company Confidential
 Introduction to Oracle inventory management

Category Grouping

Inventory Purchasing Craig Category

Category Set Category Set Set
Finished Good Hardware PC

Other

Subassembly Software

13
Company Confidential
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.

14
Company Confidential
 Introduction to Oracle inventory management

15
Company Confidential
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.
16
Company Confidential
Introduction to Oracle inventory management

Material Flow Business Flow

Receive Goods
WIP Purchasing

Move Goods Inventory

Ship Goods MRP Order Entry

17
Company Confidential
 Agenda

 Introduction to Oracle inventory management

 Inventory Enterprise Structure
 Inventory Setup
 Creating and Maintaining Items
 Inventory Controls
 Inventory Transactions
 Inventory Accuracy Control
 Inventory Planning

18
Company Confidential
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.

19
Company Confidential
 Inventory Enterprise Structure

Organization BG
Structure
Set of Books

LE LE

OU
OU OU

IO IO IO
IO IO IO
20
Company Confidential
 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.
21
Company Confidential
 Inventory Enterprise Structure

 Business Group Business Group

This is an Organization that represents

the consolidated enterprise, a major division, or Set of Books

an operation company and has no accounting

impact. The Business Group partitions Human Legal Entity
Resources information and the Purchasing
Approval Hierarchy. If you request a list of OU
employees (in any module) you will see only
those employees in the Business Group of which
your Operating Unit is a part. Multiple Legal Inventory
Organization
Entities can relate to a single Business Group.

22
Company Confidential
 Inventory Enterprise Structure

Set of Books
 Set of Books is the financial reporting Business Group

entity that secures financial entries and Set of Books

account balances within the GL
application. SOB will be based on 3C’s Legal Entity
(Currency, Calendar, Chart of Accounts)
 A Set of Books is the highest level that OU

impacts accounting. A Set of Books is

associated with a single Business Group, Inventory
Organization
but multiple Sets of Books may be
associated with a single Business Group

23
Company Confidential
 Inventory Enterprise Structure

GRE/Legal Entity Business Group

 The Legal Entity represents a legal

company for which the user prepares Set of Books

fiscal or tax reports.

 Legal Entities are associated with a Set
Legal Entity

of Books. One or more Legal Entities OU

may be associated with a single Set of

Books, and multiple Legal Entities may Inventory
be associated with a single Business Organization

Group.

24
Company Confidential
 Inventory Enterprise Structure

Operating Unit
– An operating unit represents an organization that uses Business Group

any Oracle subledger application, for example, Order

Management, Payables. It may be a sales office, a Set of Books
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 Legal Entity

only for their operating unit.

Inventory Organizations OU

– 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 Inventory
Organization
raw materials, semi-finished goods, or finished goods for
varying periods of time.
– Inventory Organizations belong to an Operating Unit.

25
Company Confidential
 Inventory Organization Structure

26
Company Confidential
Inventory Enterprise Structure

Inventory Organization Structure

Organization

Subinventories

Locators

27
Company Confidential
Inventory 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.

28
Company Confidential
 Inventory Enterprise Structure

– Subinventory
Subinventories are unique physical or logical separations of
material inventory, such as raw material inventory, finished
goods inventory, or defective goods inventory. In Oracle
Inventory, all material within an organization is held in a
subinventory. Therefore, you must define at least one
subinventory.

– Locator
You use locators to identify physical areas where you store
inventory items. Item quantities can be tracked by locator. Items
can also be restricted to specific locators

29
Company Confidential
 Review Question

What are the 3 C’s in Set of Books?

 Currency
 Calendar
 Chart of Account

30
Company Confidential
 Agenda

 Introduction to Oracle inventory management

 Inventory Enterprise Structure
 Inventory Setup
 Creating and Maintaining Items
 Inventory Controls
 Inventory Transactions
 Inventory Accuracy Control
 Inventory Planning

31
Company Confidential
Inventory Setup

Required Setup Steps

Step Activity Level *

1 Define Item Flexfield Global

2 Define Item Categories Flexfield Global

3 Define Item Catalog Group Flexfield Global

4 Define Stock Locators Flexfield Global

5 Define Account Aliases Flexfield Global

6 Define Sales Orders Flexfield Global

7 Define Organizations Organization

32 * Defined Once Globally or for each organization

Company Confidential
Inventory Setup

Required Setup Steps

Step Activity Level *

8 Organization access Organization

9 Defining Intercompany Relations Global

10 Define Unit of Measure Classes Global

11 Define Subinventories Organization

12 Define Item Attribute Controls Global

13 Define Categories Either Level

14 Define Category Sets Either Level

33 * Defined Once Globally or for each organization

Company Confidential
Inventory Setup

Required Setup Steps

Step Activity Level *

15 Define Default Category Sets Global

16 Define Statuses Global

17 Define Cost Types Global

18 Define Accounting Periods Global

19 Set Profile Options Global

* Defined Once Globally or for each organization

34
Company Confidential
 Inventory Setup
Flexfield Definitions
* Refer System Administrator & AOL training for Flexfield set up
Flexfield Name Table Name Comment
1 MTL_GENERIC_DISPOSITIONS
Account Aliases It supports just one structure
2 MTL_ITEM_CATALOG_GROUPS
Item Catalogs It supports only one structure
3 MTL_CATEGORIES
Item 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 MTL_SYSTEM_ITEMS This should be configured before
(Items Flexfield) defining items. OE: Item Flexfield
profile option should be set to
specify the Item Flexfield structure
that will be used for Oracle
35 applications.
Company Confidential
 Inventory Setup

Profile Options
• 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.

36
Company Confidential
 Inventory Setup

These profiles are updateable at all levels:

Profile Option Req’d Default

INV: Allow Expense to Asset Transaction No Yes

INV: Default Item Status No Active

INV: Default Primary Unit of Measure No Each

INV: Dynamic Precision Option No -9,999,999.00

INV: Inter-Organization Currency Conv No Corporate

INV: Item Master Flexfield Yes No Default

INV: MinMax Reorder Approval No Approved

37
Company Confidential
 Inventory Setup

These profiles are updateable at all levels:

Profile Option Req’d Default

INV: Proj Misc Trans Expenditure Type INV: No User Entered

RC Line Failure Continue
No
Processing
INV: Requisition Approval
No Approved
INV: Save Search Items
No No
INV: Updateable Customer Item
No No
INV: Updateable Item Name
No No
TP:INV: Cycle Count Approvals Form Concurrent
No
Processing

38
Company Confidential
 Inventory Setup

These profiles are updateable at all levels:

Profile Option Req’d Default

TP:INV: Cycle Count Entries Form No Concurrent

Processing
TP:INV: Enter Replenishment Count Form No Concurrent
Processing
TP:INV: Inter-Organization Transfer Form Online
No Processing
TP:INV: Misc Issue and Receipt Form Online
No Processing
Immediate Con-
TP:INV: Transaction Processing Mode No current Processing

Online
TP:INV: Transfer Between SubInv Form No Processing
Online
TP:INV: Update Average Cost Form No Processing

39
Company Confidential
 Inventory Setup

These profiles are updateable at all levels:

Profile Option Req’d Default
Concurrent
TP:INV: Server Side Online Processing No Processing

INV: CCEOI Commit Point Yes No Default

INV: Override Negative Qty for Backflush No No

INV: Order Transact Form No Online

Processing
INV: Purchasing by Revision No Yes

INV: Debug Trace Yes No Default

INV: Debug File (Include complete path) Yes No Default

40
Company Confidential
 Inventory Setup

These profiles are updateable at all levels:

Profile Option Req’d Default

INV: FIFO for Original Receipt Date No No

INV: Debug Level Yes No Default

INV: Detail Serial Numbers No No

41
Company Confidential
 Inventory Setup

These profiles are updateable only at the Site level:

Profile Option Req’d Default

INV: Accounting Category Set Yes No Default

INV: Capable to Promise Yes No Default

INV: External ATP Yes No Default

INV: Use Catalog Name in Item Desc. No No

INV: Minimum Number of Quantity Trees No 500

INV: CCEOI Workers Yes No Default

INV: Detect Truncation on UOM Conversn Yes No Default

42
Company Confidential
 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
43
Company Confidential
 Inventory Setup

Organization Setup
 (N)> Inventory>Setup>Organizations>Locations

Flagged as global, physical locations of Employees

locations are and Organizations. Locations are
available to all shared between Inventory,
Business Groups Purchasing and Human
Resources. Each organization
can be associated with only one
location. One or more
organizations can be associated
with the same location

44
Company Confidential
 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

45
Company Confidential
 Inventory Setup

Organization Setup
 (N)>setup>Organizations> Organizations

Link Between Organization &

Legal entity/Set of Books &
Operating Unit.

46
Company Confidential
 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.

47
Company Confidential
 Inventory Setup

48
Company Confidential
 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
For forecasting, planning, can be any number of Item masters in an
available-to-promise analysis, or instance but it is advised that there is only
cycle counting, workday calendar one item master unless absolutely
must be defined. This calendar is necessary.
entered in the parameters screen in
Item master can be common across
order to be used by the above
operating units, legal entity & SOB. It can
functions. When defining a calendar
be optionally common across business
system assumes a workday pattern
groups also. It is also advised that there
that includes all days, between the
are no transactions carried in an item
start and end dates unless
49 master
specified.
Company Confidential
 Inventory Setup

Organization Setup
 (N)>setup>Organizations> Parameters

Locator control option

Decides Whether the inventory
determines at which level
balance in the organization can
the locator is controlled.
go below zero. If enabled ,does
Options are None, Pre
allow the inventory to go below
specified, Dynamic &
zero.
Controlled at subinventory

50
Company Confidential
 Inventory Setup

Organization Setup
 (N)>setup>Organizations> Parameters
Costing organization determines which
is the costing organization for the
organization in question. However for
Determines the costing
an average costing organization the
method used in the
costing organization is the same
organization. Options are
organization i.e. the costs cannot be
Standard costing, Average
shared.
costing, FIFO & LIFO

Valuation accounts for the

organization. Once any
transaction takes place in Indicate whether all transactions are
an organization ,these posted in detail or summary to the
accounts cannot be general ledger.
changed in an Average
51
costing scenario.
Company Confidential
 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

Can be generated at org

level or at item level option for serial number uniqueness.
Options are Within organization, Within
inventory & items Across organizations

52
Company Confidential
 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.

53
Company Confidential
 Inventory Setup

Organization Setup

Inventory Organizations are made up of one or more

subinventories which can be made up of one or more
locators
Organization

Subinventory

Locator

54
Company Confidential
 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.
55
Company Confidential
 Inventory Setup

Subinventory set up
(N) INV> Setup>Organizations>Subinventories
Indicates whether to
include items in this
subinventory in ATP Indicates whether each
calculations. transaction for this
subinventory updates
the quantity on hand for
the subinventory

Indicates whether to maintain the

Indicates whether to value of this subinventory on the
include this subinventory balance sheet
while performing available
to reserve calculations.

56
Company Confidential
 Inventory Setup

Subinventory set up
(N) INV> Setup>Organizations>Subinventories
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

Indicate whether the planning
are picked from this subinventory,
process uses the on–hand
relative to another subinventory, where
balance of these subinventory
a given item resides.
items as available inventory

57
Company Confidential
 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

58
Company Confidential
 Inventory Setup

Workday Calendar
Workday 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.

59
Company Confidential
 Inventory Setup

Workday Calendar
(N) INV> Setup>Organizations>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

Note: Before using a calendar it must be
over workday exceptions.
built using tools>build option

60
Company Confidential
 Inventory Setup

Units of Measure
Units 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.
61
Company Confidential
 Inventory Setup

Units of Measure
Perform the following steps to define multiple UOMs and
set up conversions:

Define one base UOM

Define UOM classes
for each UOM class

Define multiple non base

UOMs for each class

Define intraclass
conversions

Define interclass
conversions

62
Company Confidential
 Inventory Setup

Units of Measure Classes

(N) Inventory>Setup>Units of Measure>Classes

63
Company Confidential
 Inventory Setup

Units of Measure (UOM)

(N) Inventory>Setup>Units of Measure>Units 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 used to specify
the number of units of an
item.

64
Company Confidential
 Inventory Setup

Units of Measure Conversions

(N) Inventory>Setup>Units of Measure>Conversions
If items are
transacted in UOM
belonging to classes
other than their
unit of measure conversion primary UOM class,
conversions between
is a mathematical the base units of
measure in different
relationship between two UOM classes must
be defined
different units of measure.
For example, 10 Kilograms
= 1 Each, or 2.2 pounds = 1
kilogram.

65
Company Confidential
 Agenda

 Introduction to Oracle inventory management

 Inventory Enterprise Structure
 Inventory Setup
 Creating and Maintaining Items
 Inventory Controls
 Inventory Transactions
 Inventory Accuracy Control
 Inventory Planning

66
Company Confidential
 Creating and Maintaining Items

Setting up item Definition 1

Choose Item Attribute Control Levels
2
Define
Status Define Create Define
Define Categories Templates Catalogs
Control
UOMs and
Levels
Category
Define Sets
Statuses

3
Define
Items
67
Company Confidential
 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.
68
Company Confidential
 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.
69
Company Confidential
 Creating and Maintaining Items

Item Attributes
(N) Inventory>Setup>Items >Attribute Controls

Control level can be

determined using this
field

70
Company Confidential
 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.
71
Company Confidential
 Creating and Maintaining Items

Status Attributes and Functionality

Status Attribute Functional Area Functionality
Allows to store the item in
Stockable Inventory an asset subinventory

Inventory, Order Allows to transact the

Transactable Management, item Inventory, OM, PO
Purchasing, WIP and WIP

Purchasable Purchasing Allows to place the

item on a purchase
order
Allows to build the item
Build in WIP Work in Process
on a discrete job and/or a
repetitive schedule

72
Company Confidential
 Creating and Maintaining Items

Status Attributes and Functionality

Status Attribute Functional Area Functionality

Allows to place the

Customer Orders Order Management item on a sales order
Enabled
Internal Orders Inventory, Order Allows to create an
Enabled Management, internal sales order for
Purchasing the item

BOM Allowed Allows to create a bill

Bills of Material
of material for the item

Allows to create an
Invoice Enabled Receivables
invoice for the item

73
Company Confidential
 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.
74
Company Confidential
 Creating and Maintaining Items

Item Status
(N) Inventory>Setup>Items>Status Codes

75
Company Confidential
 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.

76
Company Confidential
 Creating and Maintaining Items

Item Templates
Templates 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
77
Company Confidential
 Creating and Maintaining Items

Item Templates
Users 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

78
Company Confidential
 Creating and Maintaining Items

Item Templates
(N) Inventory>Setup>Items>Templates

79
Company Confidential
 Creating and Maintaining Items

Item Categories
A 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.

80
Company Confidential
 Creating and Maintaining Items

Item Categories - Setup

Define 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.

81
Company Confidential
 Creating and Maintaining Items

Item Categories - Define Categories

(N) Inventory>Setup>items>Categories>Category Codes

82
Company Confidential
 Creating and Maintaining Items

Item Categories - Define Category sets

(N) Inventory>Setup>items>Categories>Category sets

This option should only be

enabled for user defined
category sets. Functional

Category is assigned to category set category sets cannot have

from here. same item with multiple

categories within itself.

83
Company Confidential
 Creating and Maintaining Items

Item Categories - Assign items to Categories

(N) Inventory>Setup>items>Categories>Category sets>Assign

84
Company Confidential
 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.
85
Company Confidential
 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:
Inventory Purchasing
Attributes Attributes

Service Order Management

Attributes Attributes

Work in Process Bills of Material

Attributes Attributes
Receiving
Items
Costing
Attributes Attributes
Lead Time MRP/MPS
Attributes Attributes

Planning Invoicing
Attributes Attributes
86
Company Confidential
 Creating and Maintaining Items

Steps to Setup, Define and Maintain items

1

Copy templates

Copy items

Enter attribute values

Enable in child organizations

Update organization level attributes

Define item costs

87
Company Confidential
 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.
88
Company Confidential
 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.

89
Company Confidential
 Creating and Maintaining Items

Defining Items
(N) Inventory>Items>Master Items

90
Company Confidential
 Creating and Maintaining Items

Defining Items
Organization Assignment

91
Company Confidential
 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.
92
Company Confidential
 Creating and Maintaining Items

Defining Item Relationships

(N) Inventory>Items>Item Relationships

93
Company Confidential
 Creating and Maintaining Items

Cross–reference types
Cross–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.

94
Company Confidential
 Creating and Maintaining Items

Cross–reference types
(N) Inventory>Items>Cross References

95
Company Confidential
 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

96
Company Confidential
 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.

97
Company Confidential
 Agenda

 Introduction to Oracle inventory management

 Inventory Enterprise Structure
 Inventory Setup
 Creating and Maintaining Items
 Inventory Controls
 Inventory Transactions
 Inventory Accuracy Control
 Inventory Planning

98
Company Confidential
 Inventory Controls

Overview

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.

99
Company Confidential
 Inventory Controls

Locator setup
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.

100
Company Confidential
Inventory Controls

Locator setup
(N) INV> Setup>Organizations>Subinventories

Indicates the priority for

picking items from this
locator relative to another
Subinventory to which locator.
the locator belongs

101
Company Confidential
Inventory Controls

Revision Control
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 .
 RevisionControl item attribute cannot be changed when
an item has quantity on hand.
102
Company Confidential
Inventory Controls

Revision Control
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.
103
Company Confidential
Inventory Controls

Lot Control
 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.
104
Company Confidential
Inventory Controls

Lot Control
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.
105
Company Confidential
Inventory Controls

Lot Control
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.

106
Company Confidential
Inventory Controls
Lot Control
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.
107
Company Confidential
Inventory Controls

Lot Control
Disabled Lots:
Disabling a lot only prevents it
from appearing in a list of values
when performing receipt
transactions.

108
Company Confidential
Inventory Controls

Lot Control
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.
109
Company Confidential
Inventory Controls

Serial Control
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

110
Company Confidential
Inventory Controls

Serial Control
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.

111
Company Confidential
Inventory Controls
Serial Control
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.
112
Company Confidential
 Agenda

 Introduction to Oracle inventory management

 Inventory Enterprise Structure
 Inventory Setup
 Creating and Maintaining Items
 Inventory Controls
 Inventory Transactions
 Inventory Accuracy Control
 Inventory Planning

113
Company Confidential
Inventory Transactions

Overview
 Understanding of Transaction Types

 Overview of Inventory Transactions

 Miscellaneous Transactions

 Subinventory Transfer

 Inter Organization Transfer

 Receipts

114
 Move Orders
Company Confidential
Inventory Transactions

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.

Transaction Transaction
Source Type Action

Transaction
Type

115
Company Confidential
Inventory Transactions

System Defined Transaction Types

System defined transaction

type codes for different
inventory transactions. Each
transaction type is linked to
source type and action

116
Company Confidential
Inventory Transactions

User Defined Transaction Types

Use user defined terminology to

define transaction type. The
transaction type can be only
linked to pre seeded values of
source type and action

117
Company Confidential
Inventory Transactions

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.

118
Company Confidential
Inventory Transactions

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.

119
Company Confidential
Inventory Transactions

Miscellaneous Miscellaneous
Receipt Issue

Subinventory Organization Subinventory

Locator Locator
Subinventory
Subinventory Transfer
Transfer
Locator Locator

Direct Interorganization
Interorganization Transfer by Way
Transfer of Intransit

Organization

120
Company Confidential
Inventory Transactions

Miscellaneous Transactions

Select the
transaction type

Account for
passing
adjustment If you want to enter
transactions transaction line by
serial number for
serialized item
check this box
121
Company Confidential
Inventory Transactions

 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

122
Company Confidential
Inventory Transactions

Miscellaneous Transactions - Transaction Lines

Enter the
quantity to
be adjusted

Lot or serial number

can be entered if item
is a serial controlled or
Lot Controlled

123
Company Confidential
Inventory Transactions

Subinventory transfer
 Use the Subinventory transfer window to:
Transfer material within your current organization
between subinventories, or between two locators
within the same subinventory

124
Company Confidential
Inventory Transactions

Subinventory Transfer

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
125
Company Confidential
Inventory Transactions

Subinventory Transfer Transaction Lines

Enter source Enter

subinventory destination Enter
subinventory Quantity

Saving the record will complete the transaction.

126
Company Confidential
Inventory Transactions

Inter Org Transfer

• 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

127
Company Confidential
Inventory Transactions

Inter Org Transfer

You need to define shipping network before doing inter
organization transfer
Pune Mumbai
Organization Organization
Use Intransit
Inventory Use Intransit
(FOB = Receiving) Inventory
(FOB = Shipping)
Austin
Organization

Require Direct
Internal Order Transfer
Delhi to Ship Pune
Organization Organization
128
Company Confidential
Inventory Transactions

Inter Org Transfer

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.

129
Company Confidential
Inventory Transactions

Inter Org Transfer

Inter–Organization Transfers via Intransit Inventory
We 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.
130
Company Confidential
Inventory Transactions

Inter Org Transfer Shipping Network

Check this box if

internal order is
required

Enter FOB as receipt or

shipment to identify who
owns the inventory after
Select Transfer shipment has been made
type as Intransit or
Direct
131
Company Confidential
Inventory Transactions

Inter Org Transfer Shipping Network

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
132
Company Confidential
Inventory Transactions

Inter Org Transfer Shipping Network

Enter the accounts for

transfer credit and PPV if
On these form maintain
destination organization uses
Inter ORG receivable
standard cost
and payable account

133
Company Confidential
Inventory Transactions

Inter Org Transfer - In transit

Enter Source &

Destination Select type as
Organization Intransit or Direct
shipment

Enter the order number

134
Company Confidential
Inventory Transactions

Subinventory in Subinventory in
the shipping the receiving
organization organization

135
Company Confidential
Inventory Transactions

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
136
Company Confidential
Inventory Transactions

Receipts
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
137 Delivery
Company Confidential
Inventory Transactions

Receipts
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.

138
Company Confidential
Inventory Transactions

Receipts
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.

139
Company Confidential
Inventory Transactions

Receipts
Use the Receipts window to enter receipt line information.

As routing is
direct receipt,
the inventory is
delivered on
saving the
Default transaction
Enter the receipt subinventory
quantity from PO. It can
be overridden

140
Company Confidential
Inventory Transactions

Move Orders
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.
141
Company Confidential
Inventory Transactions

Move Orders
Move Order Type Transaction Type Generation & Approval

• Account
Move Order • Manually Generated
Transfer
• Optional Approval
Requisition • Subinventory
Processing
Transfer

• Automatically
• Kanban
Replenishment • Generated
Min Max
Move Orders • • Pre-approved
Replenishment
• Ready for
• Count
Transaction

Pick Wave Sales Order Pick

• Pre approved
Internal Order
Move Orders • Print Pick Slip
Pick
142
Company Confidential
Inventory Transactions

Move Order Process Flow

Approve
Move order move
order Move order locates
requisition
material sources Pick
created
Ticket

In case of shortage
move order
can be re-planned

Put away Picking

Destination Source
location location
143
Company Confidential
Inventory Transactions

Move Order Header

Default source
subinventory for
move order

Select
Transaction
Type

144
Company Confidential
Inventory Transactions

Move Order Lines

Enter Item and Default transaction

for transfer type from header. It Quantity to be
can be overridden transferred

145
Company Confidential
Inventory Transactions

Move Order Allocation

Press Allocate to generate

reservation from source After allocation reservation
subinventory to destination can be viewed and updated
subinventory manually if required.

146
Company Confidential
Inventory Transactions

Transact Move Orders

Print Pick List for

Picker

Press Transact to move the

inventory from source to
destination subinventory

147
Company Confidential
 Agenda

 Introduction to Oracle inventory management

 Inventory Enterprise Structure
 Inventory Setup
 Creating and Maintaining Items
 Inventory Controls
 Inventory Transactions
 Inventory Accuracy Control
 Inventory Planning

148
Company Confidential
Inventory Accuracy Control

 Cycle Counting
Cycle 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.
149
Company Confidential
Inventory Accuracy Control

Cycle Counting ABC Classification of items

Define cycle count header

Update cycle-count items

Schedule items to count

Generate count requests

Enter cycle counts

Approve cycle counts

150
Company Confidential
Inventory Accuracy Control

ABC Classification

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.

151
Company Confidential
Inventory Accuracy Control

ABC Classification
ABC Analysis
Define ABC compilation Define ABC classes

Define ABC group

Assign items to ABC classes

Update class assignments

Purge ABC information

152
Company Confidential
Inventory Accuracy Control

ABC Classification
ABC Compilation

Press Compile
Criterion for categorizing to generate
your items in compile results
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

153
Company Confidential
Inventory Accuracy Control

ABC Classification
ABC Compilation- Descending Value Report

154
Company Confidential
Inventory Accuracy Control

ABC Classification
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.

155
Company Confidential
Inventory Accuracy Control

ABC Classification

ABC Classes

Define class
names for your
ABC Classification
purpose

156
Company Confidential
Inventory Accuracy Control

ABC Classification
Define ABC Assignment Group

Define Group name to

link compile class and
set of ABC Classes
defined

157
Company Confidential
Inventory Accuracy Control

ABC Classification
Define ABC Assignment Group

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.

158
Company Confidential
Inventory Accuracy Control

ABC Classification
ABC Item Assignments

Choose the sequence

Shows % of total items
value from ABC
and % of total value
descending value
assigned to a specific
report to assign a range
class with in an
of items to class
Organization

159
Company Confidential
Inventory Accuracy Control

ABC Classification
Updating Item Assignments

ABC assignments generated

automatically by assigning cut
off sequence numbers for each
class. If required classes can
160 be changed manually
Company Confidential
Inventory Accuracy Control

Cycle Counting
Maintain Cycle Count

Adjustment account to
If items not scheduled store variance amount
for counting to be by which inventory is
included adjusted

If automatic recount
required for out of
tolerance items

161
Company Confidential
Inventory Accuracy Control

Cycle Counting
Maintain Cycle Count

Cycle counting to be
allowed for serialized
items or not. If
allowed will there be
What Details to be
multiple serial
printed. Quantity
numbers per request
only or quantity
or one serial number
with serial
per request
numbers

Scheduling
daily or weekly
or by periods
162
Company Confidential
Inventory Accuracy Control

Cycle Counting
Maintain Cycle Count Header

Tolerances set by Use this option as

quantity, value and re-initialization to
hot/miss analysis upload items for the
first time from ABC
group. Make it to
update to add new
ABC group items added in ABC
lined for group to cycle count
identifying item items
classes

163
Company Confidential
Inventory Accuracy Control

Cycle Counting

Cycle Count Classes

Cycle count class

specific tolerances
can be maintained
here. If it is not
maintained here it is
taken from cycle
count header

Mentions the
numbers of times
the item to be
counted in a year

164
Company Confidential
Inventory Accuracy Control

Cycle Counting
Cycle Count Items

Item specific quantity

tolerance can be
maintained here

Cycle count classes and item

generated from ABC initialization
at the time of linking cycle count
to ABC group

165
Company Confidential
Inventory Accuracy Control

Cycle Counting
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.
166
Company Confidential
Inventory Accuracy Control

Cycle Counting
Generate Cycle Count Request
Cycle count Scheduler for
automatic scheduling

Generate Cycle count

request to generate
cycle count entries

167
Company Confidential
Inventory Accuracy Control

Cycle Counting Print this report to show items

scheduled for cycle counting in a
Cycle Counting List Report specific period. This report is given
to people who physically count
items

168
Company Confidential
Inventory Accuracy Control

Cycle Counting
Cycle Count Entries

Enter the quantity

counted at the locator
in the warehouse
169
Company Confidential
Inventory Accuracy Control

Cycle Counting
Approve Cycle Count

Approve cycle count entries that

are out of tolerance. The entries
with variance with in tolerance
will be approved by system.

170
Company Confidential
Inventory Accuracy Control

Cycle Counting
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.

171
Company Confidential
 Inventory Accuracy Control

Physical Inventory
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

172
Company Confidential
Inventory Accuracy Control

Physical Inventory
Define Physical Inventory

Set the option

for approval of
physical
inventory tags

Use this option when

tags are generated
outside oracle inventory
Tolerances for Quantity and
value
Click snapshot to
generate the snapshot
of inventory on hand for
173
count subinventories
Company Confidential
Inventory Accuracy Control

Physical Inventory
Generate Tags

Generates a unique tag for

each unique combination of
You can generate item, sub inventory, locator,
blank tags for stock revision, lot, serial number
points not recorded in
your system

Starting tag number and in

what order you want to
increment to generate the next
tag number
174
Company Confidential
Inventory Accuracy Control

Physical Inventory
Physical Inventory Tags Counts

You can void a tag if

damaged or lost. If
default tag is void it
sets the inventory to
Enter the quantity physically zero for that SKU
counted at specific location with
in the warehouse

175
Company Confidential
Inventory Accuracy Control

Physical Inventory
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’.
176
Company Confidential
Inventory Accuracy Control

Physical Inventory
Approve Counts

Approve or reject
the count

177
Company Confidential
Inventory Accuracy Control

Physical Inventory
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.

178
Company Confidential
Inventory Accuracy Control

Physical Inventory
Perform Physical Inventory Adjustments

Account for passing

transactions due to
variance in system and
counted quantity

179
Company Confidential
Inventory Accuracy Control

Physical Inventory
Purge Physical Inventory
Purging 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.
180
Company Confidential
 Inventory Planning

Planning methods:

 Performing reorder-point planning

 Performing Min-Max planning
 Subinventory replenishment planning
 Creating and executing Kanban cards

181
Company Confidential
 Inventory Planning

MIN MAX Planning

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.
182
Company Confidential
 Inventory Planning

MIN MAX Planning

Item Available quantity
1.0 Define Planning A
below Min quantity?
No Stop
attributes for Min-Max
planned items at Org
level
Yes

Auto
No Replenish- Yes
ment?
Min-Max Planning at Org
Org
or Subinventory level?
Min-Max report Buy Make or Buy ? Make
Supplier

3.0 Define Planning

2.0 Run Min-Max 7.0 Create
attributes for Min-
Planning Report at Source ? Unreleased Job
Max planned items
Org level at SubInv level Supplier
Internal

4.0 Run Min-Max

Planning Report at
SubInv level 5.0 Create 6.0 Create
Purchase Internal
Requisitions Requisitions

6.1 Create
A Internal
Requisitions
183
Company Confidential
Inventory Planning

MIN MAX Planning

Determine minimum
and maximum Enter minimum quantity
quantities

Enter maximum quantity

Do you want
Yes Enter fixed lot increments
specific lot
increments?

No
Enter minimum order quantity

Run min-max report Enter maximum order quantity

184
Company Confidential
 Inventory Planning

The following equation represents when you should order:

Quantity Available= Min QTY- on hand quantity + quantity on

order
If 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
185
Company Confidential
Inventory Planning

MIN MAX Planning

Enter item planning
attributes.

Define subinventory-
level min-max
information (optional).

Run the Min-max

report.

186
Company Confidential
Inventory Planning

MIN MAX Planning

Set up the appropriate Select an Inventory
profile value for Planning method.
requisition approval.

Specify a planning level

(either Organization or
Subinventory).

Enter the following:

• Min-max minimum quantity
• Min-max maximum quantity
• Fixed-lot-size multiplier
• Minimum order quantity
• Maximum order quantity
187
Company Confidential
Inventory Planning

MIN MAX 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
188 orders
Company Confidential
 Inventory Planning

MIN MAX 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
189 calculation
Company Confidential
Inventory Planning
If you don’t want to
MIN MAX Planning generate orders keep the
option as No. it will print
report for all those items
where quantity available is
less than Min Quantity

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

190
Company Confidential
Inventory Planning

Oracle Inventory Processes

Min-Max Reorder-Point Subinventory
Kanban
Planning Planning Replenishment

Populate Requisition
Interface

Oracle Purchasing Processes

Run Req. Import

Create Purchase Create Internal

Requisition Requisition
Create Purchase Create Internal
Order Order

Oracle Order Entry Processes

Run Order Import

191
Company Confidential
 Inventory Planning

Reorder-point 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 stock
Replenishment lead time
item demand
Order cost
Carrying cost

192
Company Confidential
 Inventory Planning

Reorder-point planning
Quantity

Reorder Point

Safety Stock

Time
193
Company Confidential
 Inventory Planning

Reorder-point 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.
194
Company Confidential
 Inventory Planning

Reorder-point planning
Reorder Point Planning Steps
Enter item planning
attributes.

Define safety stocks.

Forecast item demand

Forecast Item Demand

Run Reorder-point
report.
195
Company Confidential
 Inventory Planning

Reorder-point planning
Item Planning Attributes
Select Reorder-point Enter a carrying cost
as the inventory percent.
planning method.

Specify a fixed-lot
Enter an order cost.
size multiplier.

Specify a minimum- Specify a maximum-

order quantity. order quantity.
196
Company Confidential
 Inventory Planning

Reorder-point planning

Enter Lead Times

Enter preprocessing
lead time.

Enter processing lead

time.

Enter postprocessing
lead time.

197
Company Confidential
 Inventory Planning

Reorder-point planning
Item Planning Attributes

Set your planning Safety Stock

method method

Set your lead

times on the
198 lead time tab
Company Confidential
 Inventory Planning

Reorder-point planning -Entering Safety Stock

You can select one of the following three safety stock calculation
methods for each item:
 User-defined quantity
You 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 percentage
To use the user-defined percentage method, you must use the
Reload Safety Stock window and specify the following information
for the item:
A forecast
A safety stock percent
199
Company Confidential
 Inventory Planning

Reorder-point planning -Entering Safety Stock

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 forecast
A service level percent
safety stock = Z × 1.25 × (mean absolute deviation)
where Z is the appropriate value from a table of standard
normal
distribution, corresponding to the service level. The mean
absolute deviation is a measure of how the forecast demand
200
deviates form the actual demand.
Company Confidential
 Inventory Planning

Reorder-point planning
Entering Safety Stock- User Defined

Enter a default item if

multiple entries are to
be maintained for the User defined
same item safety stock

201
Company Confidential
Inventory Planning

Reorder-point planning
Entering Safety Stock

Method as MAD or safety

stock %

Enter the forecast for

MAD calculation

If method is safety stock %

enter safety stock %. F method
is MAD enter service level

202
Company Confidential
 Inventory Planning

Reorder-point planning
Forecast Item Demand
Define a forecast set for your
forecasting scenario. With in your
forecast set define your forecast
name

Choose a item that

had a planning
method as reorder
point

203
Company Confidential
 Inventory Planning

Reorder-point planning
Forecast Item Demand

Enter your forecast

bucket. It can be daily,
week or periods

Enter the forecast quantity

204
Company Confidential
 Inventory Planning

Reorder-point planning
Reorder Point Program

Enter the forecast

Use this option as no if set to be used for
you don’t want to EOQ and reorder
Give your demand supply generate requisitions point calculation
and supply cut off date. Till and want to generate
this date your forecast will be report for items will
taken for reorder point quantity less than
calculation reorder point

205
Company Confidential
 Inventory Planning

Reorder-point planning
Reorder Point Program

Mention what supply should

be considered as availability
for reorder point calculation

206
Company Confidential
207
Company Confidential