128224154 oracle-inventory-ppt

Editor's Notes

• #18: Transaction A transaction is an item movement into, within, or out of inventory. A transaction changes the quantity, location, or cost of an item. Oracle 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) you enable for your items. You can choose your own transaction processing methods to use available computing resources most effectively.
• #28: Defining Organizations Classify the Organization Choose an organization classification to describe the general purpose of your organization. Examples of organization classifications are inventory organization, legal company, and HR organization. Choose inventory organization as your organization classification to use your organization for inventory management. Set of Books Tie each organization to an operating unit, which is associated to a legal entity and a general ledger set of books. Inventory Parameters Use the Organization Parameters window to complete your organization definition for inventory purposes. Define receiving parameters if you receive items on purchase orders, internal orders, and intransit interorganization shipments.
• #73: This table can be located on the online help at: (N)Oracle Inventory>Setting Up>Item Set Up and Control>Status Attributes and Item Status Control
• #118: Customizing Transaction Entry 1. Define a new transaction source type. 2. Use the new transaction source type and a transaction action to define a new transaction type. 3. Use this transaction type in the Miscellaneous Transaction, Subinventory Transfer, or Interorganization Transfer windows. Reasons to Customize Transactions Flexibility to use your own terminology to name common transactions. Unlimited number of transactions to use for recording material movement. Ability to record and review material movement using customized transaction names and source types.
• #121: You Can Perform the Following Oracle Inventory Transactions Receive items into your organization from a general ledger account number Issue items from your organization to a general ledger account number Transfer items from a subinventory in your organization to another subinventory in the same organization Transfer items directly between organizations Transfer items between organizations by way of intransit Reserve items for a specific account or temporarily prevent the release of items onto the shop floor
• #122: The choice of transaction type available is list of user and system defined transaction types defined in set up. The commonly used transaction types are following. Miscellaneous Issue/Receipt Account Issue/Receipt- This is used to convert inventory asset into non track able expense or vice versa.
• #124: On saving the record it updates the inventory on hand tables and generates material distribution transaction. Dr Material Account Cr Adjustment Account
• #125: Subinventory Transfer (N) Transactions—>Subinventory Transfer (B) Transaction Lines Choosing a Transaction Type You can use one of your user-defined transaction types or one of the system predefined transaction type, Inventory subtransfer. Entering a Transaction Source You can enter source information for the source type associated with the transaction type you chose. The source type corresponding to the transaction type determines whether Oracle Inventory validates the source information. Application of Inventory Subtransfers You can move items from one bin to another or to an inspection area (a subinventory that is nonreversible, nonnettable, and is not Available to Promise). You can replenish floor stock inventories or move items from one stockroom to another. (Help) Oracle Manufacturing Applications > Oracle Inventory >Transactions > Transferring Between Subinventories
• #129: There are three ways to do Inter ORG Transfer. Direct Transfer- In this case there is no intransit record. The shipping and receiving transactions are completed at the same time. This can be done when source and destination organizations are with in the proximity of each other. Inter ORG transfer with intransit inventory Internal Order Require to ship- This can be used if you require shipping documents and proforma invoice at the time of shipping.
• #130: For example, we can transfer item A from organization X to organization Y, even though item A is under lot control only in organization X (we can specify the lot numbers for item A in organization X during the transfer transaction). However, we cannot transfer item B from organization X to organization Y if item B is under lot control only in organization Y (we cannot specify lot numbers for item B in the destination organization because you are performing a direct transfer).
• #132: Shipping Network (N) Setup—>Organizations—>Shipping Networks (B) New Enabling a Shipping Network You can specify the sending and receiving organization for each shipping network. You must enable the network between each shipping and receiving organization. Specifying Intransit Requirements Use intransit inventory if you want to track your items as they move from the current organization to the destination organization. Receive intransit shipments by performing an intransit receipt transaction. Choose an FOB Point Shipment: The destination organization takes ownership of transferred items when they are issued to intransit. Receipt: The destination organization takes ownership of the transferred items when you perform a receipt transaction out of intransit; the sending organization owns the items while they are in transit. Requiring an Internal Order You can specify whether an internal order must exist for Oracle Inventory to allow transfer of items from the shipping organization to the receiving organization. An internal order requirement results in a paper trail of the interorganization transfer. Choosing Transfer Charge Type Options None: The destination organization is not charged. Requested %: You can choose a percentage of the transaction value. Requested Value: You can choose a fixed amount that represents an added value. Predefined %: Oracle Inventory charges transfer costs to the destination organization as a predefined percentage of the transaction value. Updating Interorganization Transfer Accounts Oracle Inventory displays the interorganization transfer accounts that you entered in the Organization Parameters window. You can update the transfer accounts that Oracle Inventory uses for interorganization transactions. (Help) Oracle Manufacturing Applications > Oracle Inventory >Transactions > Setting Up > Transaction Setup../ Inter-Organization Shipping Network../ Defining Inter-Organization Shipping Network
• #139: Find Expected Receipts Purchasing opens the Receipts window and displays all shipments that meet the search criteria when you choose the Find button in the Find Expected Receipts window. In the lower part of the screen, Purchasing displays the following detail information for the current shipment line: Order Type, Order Number, the Supplier or internal organization shipping the item or the Customer returning the item, Due Date, Item Description, Hazard class, Destination, UN Number, Receiver Note, and Routing. Verifying the Organization You can ensure you are in the correct receiving organization based on documented destination information. Navigate to the Change Organization window if you need to make an adjustment. Selecting a Receipt Source Choose Supplier to receive purchase order shipments from an external source. Choose Internal to find interorganization transfers from Oracle Inventory or to find intransit shipments against internal requisitions. Choose All to find both Supplier and Internal shipments. Specifying Additional Search Criteria Specify additional search criteria based on the selected Source Type. Enter supplier or purchase order information when the Source Type is Supplier. Use Requisition to locate Internal Order shipments. Enter the Shipment number for internal shipments. Include Closed POs to query soft-closed shipment lines. Enter supplier or organization source information that will enable the Source Site field. Use the Item region to narrow the search criteria. (Help) Oracle Manufacturing Applications > Oracle Inventory >Receiving > Finding Expected Receipts
• #140: You can create a new receipt or add to an existing receipt for the supplier who shipped the items you want to transact. You can specify the supplier for new receipts. Optionally you can specify additional information, including Freight Carrier, Bill of Lading, and number of Containers.
• #142: Overview of Move Orders A move order is a request for a subinventory transfer or account issue (also called a Move Order Issue). When using a Move Order Issue, the actual movement is an issue, not a transfer from subinventory to subinventory. Previously, these transactions have been one-step occurrences, and there has been no way to plan these intra-organization material movements. Move orders allow planners and facility managers to request the movement of material within the four walls of a warehouse or facility for replenishment, material storage relocations, quality handling or other purposes. Individual users can request move orders, and Oracle Inventory automatically creates move orders when warranted for inventory replenishment and order picking.
• #143: Move Order Source Types Oracle Inventory Release 11i provides three types of move orders. Move Order Requisitions Replenishment Move Orders Pick Wave Move Orders The move order type refers to the entity that created the move order. For all move orders, the final result is one of the two supported transactions: subinventory or move order issue. Move Order Requisition The requisition is a manually generated request for a move order. You must create a move order requisition. You can generate requests for subinventory transfers or move order issues. The requisition can optionally go through an Oracle Workflow approval process before it becomes a move order. If no approval process is used, the requisition becomes a move order immediately. Replenishment Move Order These move orders are generated by kanban cards where the pull sequence calls for a subinventory transfer (intra-organization kanbans), or by min-max planned items where the item’s replenishment source (set at the item-subinventory level) is another subinventory. In this case, the min-max or replenishment count report automatically generates a move order. Replenishment move orders are pre-approved and ready to be transacted. Pick Wave Move Order The pick release process generates move orders to bring the material from its source location in stores to a staging location, which you define as a subinventory in Oracle Inventory. This transaction is a subinventory transfer. These move orders are generated automatically by the Oracle Shipping Execution pick release process. These orders are pre-approved and ready to transact. Pick slips and other shipping and inventory reports will also be available with Oracle Order Management.
• #145: Move Order Header Oracle Inventory uses the move order header to store the move order source type. This refers to the entity that created the move order. An order could be a pick wave, for sales order picks, a replenishment type, a requisition for subinventory transfer, and so on. The move order header also stores the default source and destination, if available, the order number, and the requested date.
• #146: Move Order Lines Move order lines are the requests on a move order. They store the item, requested quantity, the completed quantity (if the move order has been partially fulfilled), and a source and destination, if known. The move order lines also include any project and task references, if the organization is project-manufacturing enabled. If known, the user can also request specific serial or lot numbers on the move order line
• #147: Allocating Move Orders Allocating is the process in Oracle Inventory that uses picking rules and item transaction defaults to suggest move order line details to fulfill a move order line. The line details are the inventory transactions that must be fulfilled to complete the move order line. You can consider the allocating process as a sourcing process. Allocating occurs when you click the Allocate button in the move order transaction window. Suggesting Sources Oracle Inventory uses the picking rules you set up at the organization or organization-item level, to suggest source locators, revisions, and lots to source the material in order to fulfill a move order line. Suggesting a Destination The picking rules only suggest source locations. If the destination subinventory is locator-controlled and no locator was specified on the move order line, Oracle Inventory generates a suggestion based on the item subinventory locator default you set up for move orders. Before release 11i, the item subinventory defaults were used only for put away locations in the receiving process. You can now set up a default locator for each item that you want to move around the warehouse on a move order. This is not the same default type that you would use for receiving or shipping. Oracle Shipping Oracle Shipping provides two choices for when and how the user will fill in the line details. These choices are made by setting up an organization parameter but can be overridden at pick release. Auto allocate--the allocating process is done at pick release instantly after the move order is created. No more human intervention is needed and the pick slip can be printed automatically. Pick release only creates move orders but does not fill in the line details. A user must navigate to the move order form after pick release and press the Allocate button. This option allows warehouse managers to determine when to release the pick to the floor and might be a better solution for implementations running a global order entry with distributed warehouse management and/or shipping. In these cases orders can be released to regional warehouses from the central order management location in advance and individual warehouses can schedule picks closer to actual ship time.
• #148: Transact Once the lines have been allocated, you can commit all of the transactions for a single move order line by selecting the lines you want to transact and clicking the Transact button. You can save and exit the move order line details without transacting if you need to print a pick slip report. This enables you to transact each detail line before or after picking the material.
• #151: Cycle Counting You can reconcile system on-hand balances with actual counts in inventory. You can maintain tighter control of items of higher relative value. You can perform cycle count for the entire organization or for specific subinventories within an organization.
• #152: ABC Classification ABC classification is the process of assigning items to groups called ABC classes. With Oracle Inventory you can use your own terminology to define ABC classes. ABC Ranking With Oracle Inventory you can choose one of 11 compilation criteria for performing an ABC analysis. You can also maintain multiple rankings of the same set of items.
• #153: Reasons for ABC Analysis You can perform an ABC analysis to decide how frequently you want to count items in each ABC class. Typically you count items of higher value more frequently than you count items of lower value. The principle of ABC analysis is that effort saved through relaxed controls on low-value items can be applied to improve control of high-value items.
• #154: Inventory items are categorized by the system according to the criterion designated (such as Current Value or historical usage value or Forecasted Usage Quantity). This process is called an “ABC Compile”, and is used to get an overview of existing inventory
• #155: You use the ABC Descending Value Report to view the results of your ABC compile. The report is sorted by descending value or quantity, depending on the compile criterion. You use this report to evaluate the break points for assigning your ABC item to classes.
• #157: You can define as many classes as required for your business environment. Normally companies define three to four classes for their items classification.
• #158: ABC assignment groups link a particular ABC compile with a valid set of ABC classes. Oracle Inventory uses these groups when you automatically assign your items to ABC classes. It ensures that you divide your items into the exact number of groupings you specified in the ABC group.
• #159: You must also assign a sequence number to each class associated with the ABC group. The class with the lowest sequence number is assumed to have the highest rank and will have higher rank items assigned to that class than the next higher sequence number.
• #161: If you are not satisfied with the class into which an item falls as a result of the automatic ABC assignment process, you can change it. For example, you compile your ABC analysis based on historical usage value. A new item in your inventory is ranked low because it has little transaction history. However, you know that for the future this item should really be ranked higher. Use the Update ABC Assignments form to reclassify this item.
• #164: The quantity variance tolerance is a user-defined limit for the difference between the actual cycle count quantity and the system tracked on-hand quantity. You express positive and negative quantity variance tolerances as percentages of the system on-hand quantity. You enter these percentages when you define your: Cycle Count Header Cycle Count Classes Cycle Count Items Adjustment Value Tolerance: The Adjustment Value Tolerance is a user-defined limit for the total value of a cycle count adjustment. The adjustment value is calculated as: adjusted value = (count qty - system on-hand qty) * current item cost The Adjustment Value Tolerance is expressed as positive and negative amounts in your functional currency. An adjustment value is out of tolerance if it falls outside of these amounts. You enter these tolerances when you define your cycle count header and cycle count classes
• #168: This process takes the output of the automatic scheduler and your manual schedule entries and generates a count request for each item number, revision, lot number, subinventory and locator combination for which on-hand quantities exist. These count requests are ordered first by subinventory and locator, then by item, revision and lot. Oracle Inventory assigns a unique sequence number to each count request that can be used for reporting, querying and rapid count entry. Because the count requests are derived from the state of on-hand balances at the time the Generate Cycle count Requests process is run, you should wait to run it until you are ready to count. Note: When you schedule an item to be counted using manual scheduling, some schedule requests may have overlapping count requirements. The count request generator does not create duplicate count requests, but instead cross-references one count request back to each associated schedule request.
• #170: Oracle Inventory automatically queries up all count requests for which you have not yet entered a count. You can use flexible search criteria to specify the group of count requests for which you want counts entered to speed up the count entry process. For example, you can specify a range of count request sequences assigned to one person so they can be entered in the same order they were printed on the count sheet.
• #171: The approval for count entries with variance outside the tolerance will generate the material distribution transactions. It debits the material account by variance amount and credits the adjustment account. You use the Count Adjustment Approvals Summary window to approve cycle count adjustments, to request/approve recounts, or to reject the adjustment. Inventory determines which counts need approval by using the approval tolerances you entered while defining your cycle count. You can use flexible search criteria to specify the cycle count adjustments you want to review or approve.
• #173: Reasons for Performing Physical Inventories Accurate on-hand quantities are essential for effective planning and for minimizing inventory investment. Accurate on-hand quantities are required for tax and audit purposes. Physical Inventory Tags A tag is a tool for recording the on-hand quantity of a specific item in a particular location. Usually a tag is a slip of paper posted at the item’s location. You refer to a tag by using alphanumeric notation. Oracle can automatically generate tag numbers that you can use to enter physical inventory counts. You can enter tag numbers that the system does not generate for you.
• #174: Snapshot Oracle Inventory records the item costs and on-hand quantities for each combination of item, subinventory, locator, revision, lot number, and serial number in your physical inventory definition. Oracle Inventory uses the snapshot as the basis for adjustments, rather than the current quantity on-hand. This allows you to resume transaction activity in a location where the count is complete and verified - even before running the adjustments program.
• #175: Tag ids can be a combination of alphabetic and numeric characters You can specify a value by which each numeric digit of the tag id may increase. You must specify a digit increase of zero for the alphabetic characters of your tag id. The alphabetic characters must be constant. For example with a starting tad id of “A001” and a digit increments as “0112”, the system generates tags with the following ids: A001, A003, A005, A007, A009, A011, and so on.
• #176: If you void a blank tag, it is accounted for in the Missing Tag listing. If you void a default tag, or fail to enter an actual count quantity, the system adjusts the quantity in the location to zero. You can void tags that were lost, damaged or discarded. You can void tag before the approval or the adjustment process. The Missing Tag listing reports system-generated tags for which you do not enter an actual count
• #188: Entering Min-Max Approval Status When you run the Min-max report, the INV: Minmax Reorder Approval profile option enables you to create requisitions as either approved or unapproved. How to Enter a Min-Max Approval Status To enter a min-max requisition approval status, navigate to the System Profiles window to enter a personal or system profile value to specify a min-max reorder approval status. (N) Setup > Profiles > Personal A Find window appears. Enter “%Minmax%” in the find window to locate the Minmax Reorder Approval profile option. Note: If you do not have access to system-level profile values, ask your system administrator for assistance in setting up the system-level Minmax Reorder Approval profile option.
• #191: Creating Requisitions and WIP Unrealized Jobs If you request a restock, Oracle Inventory creates requisitions and WIP unreleased jobs for all items that meet the following condition: (on-hand quantity) + (quantity on order) < minimum quantity Oracle Inventory creates purchase requisitions (if the source is Supplier) and internal requisitions (if the source is Inventory Organization) for all Buy items, and WIP unreleased jobs for all Make items. The order quantity is constrained by the following attributes: Fixed-lot size multiplier Minimum order quantity Maximum order quantity
• #200: The service level percent represents the probability that you can fill an order from available inventory. If you enter a high service level, then Oracle Inventory calculates relatively larger safety stock quantities. Oracle Inventory calculates safety stock quantity by using the following equation:
• #201: The service level percent represents the probability that you can fill an order from available inventory. If you enter a high service level, then Oracle Inventory calculates relatively larger safety stock quantities. Oracle Inventory calculates safety stock quantity by using the following equation:
• #206: Providing a Forecast The reorder-point planning program uses information from the forecast to calculate the economic order quantity (EOQ) and the reorder-point quantity. The following equations show each of these calculations: EOQ = SQRT {[2 × (annual demand) × (order cost)] / (carrying cost)]} Reorder point = safety stock + [(lead time) × (average demand)] Providing On-Order Quantity Information Oracle uses on-order quantity information to determine when to reorder an item. You should reorder when the following is true: (quantity on hand + quantity on-order) < reorder point Oracle uses the following sources to calculate on-order quantities: Purchase orders Requisitions (internal and supplier) In-transit shipments owned by the organization Oracle Inventory uses purchase orders, requisitions, and in-transit shipments that are scheduled to be delivered before the supply cutoff date. To perform reorder-point planning, you submit a concurrent request through the Reorder Point Planning concurrent request window. You must specify the following parameters: Item Select Demand cutoff date Supply cutoff date Whether or not to restock Default deliver to location Forecast
• #207: Describing Reorder-Point Planning Considerations When submitting Reorder-point planning requests, consider the following: Nettable Subinventories: Oracle Inventory uses on-hand quantities that exist in nettable subinventories only. Oracle Inventory displays the sum of all unfulfilled demand created before the cutoff date. This program will generate purchase requisition if source is supplier in Item Org Data, Move order if source is organization and WIP order if it is a make item.