Inventory in Oracle apps

Balaji
Balajisun2008@gmail.com
Oracle Inventory
Inventory
Oracle Inventory is one of Oracle‘s enterprise applications products. Oracle Inventory enables companies to satisfy
business needs such as these:
• Defining part numbers
• Modeling organization structures
• Tracking perpetual inventory
• Maintaining accurate on-hand balances
• Planning material replenishments
• Forecasting anticipated demand

Implemenation of Inventory
Submitted by Anonymous on Sat, 03/28/2009 - 16:55
Tag:
Inventory
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The first step in ventroy implemenation is to design the flex field structures.

Of all the key flexfield system items is the most important. Its used to store the item information.
Oracle Inventory Flexfields
Submitted by Anonymous on Fri, 04/17/2009 - 20:04
Tag:
Inventory
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Oracle Inventory provides the following flexfields:
1. System Items
2. Item Catalogs
3. Item Categories
4. Stock Locators
5. Account Aliases
6. Sales Orders
Depending on your system's setup, Inventory may also use some or all of the following
flexfields provided by other Oracle products:
Accounting (Oracle General Ledger)
Sales Tax Location (Oracle Receivables)
Territory (Oracle Receivables)
1. System Items
You can use the System Items Flexfield (also called the Item Flexfield) for recording and reporting your item
information. You must design and configure your Item Flexfield before you can start defining items.

All Oracle Applications products that reference items share the Item Flexfield and support multiple-segment
implementations. However, this flexfield supports only one structure.
You must set up your OE: Item Flexfield profile option to specify the Item Flexfield structure that you will use for your
Oracle applications.
Users can also set up the OE: Item Flexfield Entry Method profile option to specify your preferred method of entry
for this flexfield.
You can optionally use the item flexfield to default item information for invoice, debit memo, and credit memo lines or
you can enter your own line information.
2. Item Catalogs
This key flexfield supports only one structure.

3. Item Categories
You must design and configure your Item Categories Flexfield before you can start defining items since all items must
be assigned to categories. You can define multiple structures for your Item Categories Flexfield, each structure
corresponding to a different category grouping scheme. You can then associate these structures with the categories
and category sets you define.
4. Stock Locators
You can use the Stock Locators Flexfield to capture more information about stock locators in inventory. If you do not

have Oracle Inventory installed, or none of your items have locator control, it is not necessary to set up this flexfield.
If you keep track of specific locators such as aisle, row, bin indicators for your items, you need to configure your
Stock Locators Flexfield and implement locator control in your organization.
5. Account Aliases

6. Sales Order
The Sales Order Flexfield is a key flexfield used by Oracle Inventory to uniquely identify sales order transactions
Oracle Order Management interfaces to Oracle Inventory.
Your Sales Order Flexfield should be defined as Order Number, Order Type, and Order Source. This combination
guarantees each transaction to Inventory is unique. You must define this flexfield before placing demand or making
reservations in Oracle Order Management.
You must set up the OM: Source Code profile option to determine the source code you will use in for the third
segment of this flexfield to guarantee that each transaction is unique. (Oracle Inventory defaults the value of the OM:
Source Code profile option to 'ORDER MANAGEMENT'.)
For your value sets, you must use Dynamic Inserts. The Validation Type should be None. Value Required should be
Yes to improve performance of concurrent programs. The value set must be alphanumeric. The value set maximum
size must be 40.
You should set the Required field to Yes in the Validation Information region when enabling the flexfield segments.
Setting this field to Yes, improves performance when updating existing demand or reservations by guaranteeing that
Oracle Order Management always supplies a value.
Set Right-justify Zero-fill Numbers to No so sales order numbers are not padded with zeros.
Oracle Inventory defines a unique ID for each order in MTL_SALES_ORDERS based on this flexfield. The Inventory
unique ID, as opposed to the Order Management unique ID, is used throughout Oracle Manufacturing applications.
Item Categories
Submitted by oracleug on Mon, 01/19/2009 - 18:03
Tag:
Inventory
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Categories are logical groupings of items that have similar characteristics. A category set is a distinct category
grouping scheme and consists of categories.
Each category grouping scheme can use different terminology for its categories, as well as different naming
structures based on number of segments. You can define multiple structures for your Item Categories flexfield. You
can configure each flexfield structure by using as many segments and any level of value set validation that you need.
When inventory is installed, a default category must be assigned to each of the following functional areas: Inventory,
Purchasing, Order Entry, Costing, Engineering, and Planning. When an item is enabled for a functional area, it is
assigned the default category set. You cannot delete the items default category set assignment. Default categories
are required so that each functional area has at least one category set that contains all items in that functional area.
For the functional areas, optionally, you can have a unique category set; for example, you may set up a unique
category set for Purchasing. It is also possible to have one category set defined to be the default category set for all
functional areas.
The complete set up of item categories is done in below 5 steps in sequence.

Item Category Flexfield Structures
Submitted by Anonymous on Tue, 01/20/2009 - 11:31
Tag:
Inventory
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You can define multiple segment structures for the Item Categories Flexfield. Each segment structure may have its
own display prompts and fields.
When you install or upgrade Oracle Inventory or Oracle Purchasing, Oracle provides two category flexfield structures
by default: Item Categories and PO Item Category.
Each segment structure can display prompts and fields that apply specifically to a particular naming convention. For
example, you might want one of your category sets to use two segments for the names of categories. Another item
grouping scheme might use just one segment for the names of categories. You choose a flexfield structure for every
category set and category that you define.

1. Lets create an item category as Procut Information with three segment: Product Line - Product Name - Brand
Name
Product Line - Electronics, Machine, FMG
Product Name - Mobile, TV, Bus Engine, Soap, Biscuit
Brand Name - LG, Samsung, Cummins, Britania
2. Define all the value sets as shown below.
3. Define the item category flex field.

4. Filling up the value set of the stucture product information

Defining Item Categories
Tag:
Inventory
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Enter a flexfield Structure Name, a unique Category (value) for each structure segment, and a unique description for
the new category. If you want to make a category inactive, enter a date you want the category to be inactive on.
Save your work.
If you choose a multi–segment flexfield structure you can assign a specific meaning to each segment. For example in
our case the category "Electronics.Mobile.Samsung" means an item assinged to this category is a samusng brand
mobile device of elcetroincs product group.

Category Sets
Tag:
Inventory
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Category sets may be used as a means to develop custom lists of items on which to report and sort. You can also
create other category sets such as John‘s Priority or Jane‘s Priority, with categories like high, medium, and low.
The category set Inventory is seeded when you install Oracle Inventory.
The category set Purchasing is seeded when you install Oracle Purchasing.
If you plan to use Order Management‘s group pricing functionality with item categories, you must add the categories
to the Order Entry category set.
Attention:
1. You must use this window to define valid categories for each purchasing category set before you can use Oracle
Purchasing.
2. For the Controlled At level, if the item defining attribute of the functional area (e.g. Inventory‘s is Inventory Item) is
controlled at the Organization level, then the new default Category Set should also be controlled at the Organization
level.

Enter a unique category set Name and Description. In the Flex Structure section, enter which flexfield structure is to
be used. The categories assigned to the category set must have the same flexfield structure as the set itself. Select
a control level and a default category.
You will then need to select Enforce List of Valid Categories if you want validation of the categories at the time of
input. You will then enter in or select the valid categories for the category set.
Assigning Items to Categories
Tag:
Inventory
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When you enable an item in a functional area, the item is assigned to the default (mandatory) category set and
default category of the functional area. You can override the category set‘s default category. In addition, you can
manually assign your item to an unlimited number of category sets. You may optionally assign an item to more than
one category within a category set based on the category set definition.

When you assign your item to another organization Oracle Inventory copies Master level category sets, Organization
level default category sets, and the associated categories assigned in the Item Master organization. This means that
if you manually assign an Organization level category set to the item in the Master organization, Inventory does not
copy over that Organization level category set when you assign that item to another organization.
After assigning an item to another organization you can disable the item for one or more functional areas in the new
organization. However, Inventory does not remove the corresponding functional area‘s default category set. For
example, you may have set the value of the Purchased attribute to ‖Yes‖ when you defined the item in the item
master organization. When you assign this item to another organization Inventory copies over the ‖Yes‖ value of the
Purchased attribute and
therefore assigns the default category set of the purchasing functional area. In the new organization you may decide
to set the value of the Purchased attribute to ‖No.‖ After you disable the item for the purchasing functional area in the
new organization, the item still retains the purchasing default category set. You may manually delete the purchasing
category set in the new organization.
If you copy an item from another item with category sets defined at the Organization level, Inventory assigns the new
item the default categories of the mandatory category sets, even if the original item did not have the default
categories. This is because Inventory copies the values of the item defining attributes and not the category sets and
categories themselves.
Default Category Sets
Tag:
Inventory
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set to each of the following functional areas: Inventory, Purchasing, Order Management, Costing, Engineering, and
Planning. Product Line Accounting is seeded with the Inventory category set. Inventory makes the default category
set mandatory for all items defined for use by a functional area. If your item is enabled for a particular functional area
you cannot delete the item‘s corresponding default category set assignment. Default category sets are required so
that each functional area has at least one category set that contains all items in that functional area.
You can enable an item for each functional area by using that functional area‘s item defining attribute. An item
defining attribute identifies the nature of an item. For example, what designates an item as an ―engineering item‖ is
the attribute Engineering Item. If a functional area‘s item defining attribute is controlled at the Organization level, then
that functional area may only have an Organization level default category set.
When you enable an item for a certain functional area, Oracle Inventory automatically assigns the item to the default
category set of that functional area and the default category of that set. For example, if you set Inventory Item to Yes,
then Inventory automatically assigns the item to the Inventory functional area‘s default category set and default
category.
You may change a functional area‘s default category set under certain conditions. You should ensure that every item
within the functional area belongs to the new default category set (which replaces the existing default category set). If
the item defining attribute of the functional area is controlled at the Organization level then the new default category
set should also be controlled at the Organization level.

Item Catalog
Submitted by Anonymous on Wed, 01/21/2009 - 10:13
Tag:
Inventory
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An item catalog group is a standard set of descriptive elements to which you assign items. Examples of catalog
descriptive elements are color, shape, length, and so on. For example, a textile manufacturer might define pattern
attributes such as color, size, texture, and style.
Usage: An electronics company (say Samsung) can use the
catalog to incorporate length, breadth and height of each
mobile it produces. As the company Samsung also produces
other electronics products such as TV, Refrigerator and etc.
We should first create an item category as mobile and then
create a catalog group as mobile-catalog with three catalogs
length-breadth and height.
Defining and Using Item Catalogs
Follow these steps to define and use item catalogs:
1 Define the item catalog group.

2 Define descriptive elements within each catalog group.
3 Enter categories for the catalog groups.
Items belonging to the above category are attached with the descriptive element of the catalog.

4 Enter descriptive element values for each item.
5 Update item descriptions with catalog group and descriptive element values.

6 Search for items using descriptive elements as the search criteria.

Searching all the items with bredth 20.
Stock Locators
Submitted by oracleug on Thu, 01/22/2009 - 14:41
Tag:
Inventory
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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.
1. Add the segment values of the KFF stock locator.
Navigation : GL -> Financials -> Flexfields -> Key -> Values

2. Enter the new locator in locator form which can be accessed from below navigation or on subinventory form.
Navigation : Inventory -> Set up -> Stock Locator

1. Locator Type: Indicate the locator type available choices are as follows: Dock Door, Receiving, Inspection
Station, Storage Locator, Consolidation Locator, Staging Lane, Packing Station. Dock doors are used in
Oracle Warehouse Management environments only.
2. Indicate the material status of this locator, which controls the enabled transactions for all material in this locator.
The status is not overridden by the status of any ubinventory, lot or serial, within this locator. The statuses of those
objects will be considered when
determining transactions that are not enabled. This field is used if you have Oracle Warehouse Management
installed.
3. Enter the subinventory where the locator resides.
4. Enter a picking order value indicating the priority for picking items from this locator relative to another locator. This
value is used by Oracle Warehouse Managment to sequence picking tasks. A picking order of 1 means that order
management functions pick items from this locator before other locators with a higher number (2, 3, and so on). If you
have Oracle Warehouse Management installed, this field determines the picking path through the warehouse and not
the order in which material is allocated for a sales order.
5. Enter a dropping order to indicate the priority for dropping items in this locator relative to another locator. Oracle
warehouse management uses this value to sequence tasks.
6. Enter the inactive date for the locator. This is the date the locator becomes inactive.
Defining Account Aliases
Submitted by Anonymous on Thu, 01/29/2009 - 11:10
Tag:
Account Receivables

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An account alias is an easily recognized name or label representing a general ledger account number. You can view,
report, and reserve against an account alias. During a transaction, you can use the account alias instead of an
account number to refer to the account.
Inventory Period Close
Tag:
Inventory
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The period close process for perpetual costing enables you to
1. Summarize costs related to inventory and manufacturing activities for a given accounting period.
2. Distribute those costs to the general ledger.
3. Calculates ending period subinventory values.
4. Closes the open period for Inventory and Work in Process.
Generally, you should open and close periods for each separate inventory organization independently. By
keeping only one period open, you can ensure that your transactions are dated correctly and posted to the

correct accounting period. (For month–end adjustment purposes, you can temporarily hold multiple open
periods.)
The accounting periods and the period close process in Cost Management use the same periods, fiscal
calendar, and other financial information found in General Ledger.
Inventory and work in process transactions automatically create accounting entries. All accounting entries
have transaction dates that belong in one accounting period. You can report and reconcile your transaction
activity to an accounting period and General Ledger. You can transfer summary or detail transactions to
General Ledger. You can transfer these entries to General Ledger when you close the period or perform
interim transfers.
When you transfer to General Ledger, a general ledger (GL) batch ID and organization code are sent with
the transferred entries. You can review and report the GL batch number in General Ledger and request
Inventory and Work in Process reports by the same batch number. You can also view general ledger
transfers in Inventory and drill down by GL batch ID into the inventory and WIP accounting distributions.
Note: Purchasing holds the accounting entries for receipts into receiving inspection and for deliveries into expense
destinations. This includes any perpetual receipt accruals.Purchasing also has a separate period open and close, and
uses
separate processes to load the general ledger interface.
Closes Open Period
The period close process permanently closes an open period. You can no longer charge transactions to a closed
period. Once you close a period, it cannot be reopened. As a precaution, you can do a GL transfer without closing the
period.
Transfers Accounting Entries to the General Ledger
If your inventory organization‘s parameter for Transfer to GL is None, perpetual accounting entries are not transferred
to the General Ledger. The other choices for the Transfer to GL parameter are Summary and Detail, indicating
whether the period close process creates summary or detail transactions for posting to the general ledger. The period
close
process transfers the following information:
• work in process transactions
• job costs and variances
• period costs for expense non–standard jobs
• depending on the selected options, the remaining balances for
repetitive schedules
Note: If you have chosen the new Periodic Costing feature, Cost Management warns you of the possibility of
inadvertently
posting both Periodic and perpetual costed transactions to the General Ledger. The warning displays if there is at
least one
legal entity–cost type combination that has the Periodic Cost Post Entries to GL option checked, where the
organization
under that legal entity also has the perpetual cost GL transfer enabled.
Calculates Ending Period Subinventory Values
For each subinventory, the period close adds the net transaction value for the current period to the prior period‘s
ending value. This, along with values intransit, creates the ending value for the current period.
Inventory Period Close
Tag:
Inventory
/
The period close process for perpetual costing enables you to

1. Summarize costs related to inventory and manufacturing activities for a given accounting period.
2. Distribute those costs to the general ledger.
3. Calculates ending period subinventory values.
4. Closes the open period for Inventory and Work in Process.
Generally, you should open and close periods for each separate inventory organization independently. By
keeping only one period open, you can ensure that your transactions are dated correctly and posted to the
correct accounting period. (For month–end adjustment purposes, you can temporarily hold multiple open
periods.)
The accounting periods and the period close process in Cost Management use the same periods, fiscal
calendar, and other financial information found in General Ledger.
Inventory and work in process transactions automatically create accounting entries. All accounting entries
have transaction dates that belong in one accounting period. You can report and reconcile your transaction
activity to an accounting period and General Ledger. You can transfer summary or detail transactions to
General Ledger. You can transfer these entries to General Ledger when you close the period or perform
interim transfers.
When you transfer to General Ledger, a general ledger (GL) batch ID and organization code are sent with
the transferred entries. You can review and report the GL batch number in General Ledger and request
Inventory and Work in Process reports by the same batch number. You can also view general ledger
transfers in Inventory and drill down by GL batch ID into the inventory and WIP accounting distributions.
Note: Purchasing holds the accounting entries for receipts into receiving inspection and for deliveries into expense
destinations. This includes any perpetual receipt accruals.Purchasing also has a separate period open and close, and
uses
separate processes to load the general ledger interface.
Closes Open Period
The period close process permanently closes an open period. You can no longer charge transactions to a closed
period. Once you close a period, it cannot be reopened. As a precaution, you can do a GL transfer without closing the
period.
Transfers Accounting Entries to the General Ledger
If your inventory organization‘s parameter for Transfer to GL is None, perpetual accounting entries are not transferred
to the General Ledger. The other choices for the Transfer to GL parameter are Summary and Detail, indicating
whether the period close process creates summary or detail transactions for posting to the general ledger. The period
close
process transfers the following information:
• work in process transactions
• job costs and variances
• period costs for expense non–standard jobs
• depending on the selected options, the remaining balances for
repetitive schedules
Note: If you have chosen the new Periodic Costing feature, Cost Management warns you of the possibility of
inadvertently
posting both Periodic and perpetual costed transactions to the General Ledger. The warning displays if there is at
least one
legal entity–cost type combination that has the Periodic Cost Post Entries to GL option checked, where the
organization
under that legal entity also has the perpetual cost GL transfer enabled.
Calculates Ending Period Subinventory Values
For each subinventory, the period close adds the net transaction value for the current period to the prior period‘s
ending value. This, along with values intransit, creates the ending value for the current period.
Transfer Transactions to General Ledger
Tag:

Inventory
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You can perform the general ledger transfer at any time during an open period—not just at period close. Interim
transfers allow you to reconcile and transfer information weekly, making the month–end period close process much
simpler and
faster.
The general ledger transfer loads summary or detail accounting activity for any open period into the general ledger
interface, including both inventory and work in process entries. When more than one period is open, the transfer
selects transactions from the first open period, up to the entered transfer date, and passes the correct accounting
date and financial information into the general ledger interface.
For example, when you transfer detail entries, the transaction date is the accounting date with a line for line transfer.
When you transfer summary entries with two periods open and enter a transfer date in the second period, the transfer
process assigns the period one end date for all the summarized transactions in period one and assigns the entered
transfer date for the summarized transactions in period two.
For each inventory organization, Cost Management transfers transactions to the general ledger interface table, line
for line. If you transfer summary information, Cost Management groups transactions by GL batch, by journal
category, by currency code, and by account.
Attention: Transfer in detail only if you have low transaction volumes. Transferring large amounts of detail
transactions can
adversely affect General Ledger performance.
For both detail and summary transfers, Cost Management passes the organization code, GL batch number, batch
description, and batch date. When you transfer in detail, you also pass the material or work in process transaction
number. In General Ledger, you can see the transferred information, as follows:

Cost Management uses the journal source Inventory for both inventory and work in process transactions.
The journal categories Inventory and Work in Process distinguish between inventory and work in process
transactions.
Using Journal Import and Post Journals processes in General Ledger, you can then post this information to the
general ledger.
Period Summarization Process
Summarization of transaction records for the open period is the last step in period close. You have the option to
perform this process automatically or manually using the profile option, CST:Period Summary. If the profile option is
set to Automatic, the period is closed and summarized when you change the period status from Open to Closed.
If the profile option is set to Manual, you can delay summarization – but you must summarize these delayed periods
in accounting period order. For example, if you delay summarization for a given period, the following period cannot be
summarized until the previous period is summarized. In situations where summarization is delayed, the longer the
delay – the larger the number of transaction records needed for reconciliation purposes. This situation can cause
summarization to take
more time to complete.
If you do not choose to summarize periods, set the period status to Closed not Summarized.
The Period Close Reconciliation report is used to compare account balances with inventory value at period end. You
can run the report in simulation mode by generating it for an open period. The report can be generated at any time
during the period.
Inventory Pending Transaction

Tag:
Inventory
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Users can see the number of pending transactions by navigating to the Inventory Accounting Periods Form.
Navigate > Cost > Accounting Close Cycle > Inventory Accounting Periods
Place cursor on the appropriate open accounting period and click on the [Pending] Button. There are three zones
titled ―Resolution Required‖, ―Resolution Recommended‖ and ―Unprocessed Shipping Transactions‖.
Unprocessed material transactions exist for this period
This message indicates you have unprocessed material transactions in the
MTL_MATERIAL_TRANSACTIONS_TEMP table. You are unable to close the period with this condition. Please see
your system administrator. Inventory considers entries in this table as part of the quantity movement.
Closing the period in this situation is not allowed because the resultant accounting entries would have a transaction
date for a closed period, and never be picked up by the period close or general ledger transfer process.
Uncosted material transactions exist for this period
This message indicates you have material transactions in the MTL_MATERIAL_TRANSACTIONS table with no
accounting entries (Standard Costing) and no accounting entries and no costs (Average Costing). You are unable to
close the period with this condition. These transactions are part of your inventory value.
Pending WIP costing transactions exist in this period
This message indicates you have unprocessed resource and overhead accounting transactions in the
WIP_COST_TXN_INTERFACE table. You are unable to close the period with this condition. These transactions are
in your work in process value, and awaiting further processing.

Unprocessed Shipping Transactions
―Pending Transactions‖ in the Unprocessed Shipping Transactions zone indicate there are transactions in the
WSH_DELIVERY_DETAILS table in a status of shipped.
Pending receiving transactions for this period
When you use Purchasing, this message indicates you have unprocessed purchasing transactions in the
RCV_TRANSACTIONS_ INTERFACE table. These transactions include purchase order receipts and returns for
inventory. If this condition exists, you will receive a warning but will be able to close the accounting period. These
transactions are not in your receiving value. However, after you close the period, these transactions cannot be
processed because they have a transaction date for a closed period.
Pending material transactions for this period
This message indicates you have unprocessed material transactions in the MTL_TRANSACTIONS_INTERFACE
table. If this condition exists, you will receive a warning but will be able to close the accounting period. These
transactions are not in your inventory value. However, after you close the period, these transactions cannot be
Pending move transactions for this period
This message indicates you have unprocessed shop floor move transactions in the WIP_MOVE_TXN_INTERFACE
table. If this condition exists, you will receive a warning but will be able to close the accounting period. These
transactions are not in your work in process value. However, after you close the period, these transactions cannot be
Closing a Period
Submitted by Anonymous on Sat, 12/26/2009 - 00:27
Tag:
Inventory
/

1. Enter all transactions.
Be sure you enter all transactions for the period. Perform all issues,receipts, and adjustments. Verify that no hard
copy records exist or are waiting for data entry, such as packing slips in receiving.
2. Check Inventory and Work in Process transaction interfaces.You can set up the material and move
transaction managers to execute transactions immediately, then submit an immediate concurrent request to execute,
or submit a concurrent request periodically at a time interval you specify. If you do not use immediate processing, or
interface external transactions, check the Inventory material transaction manager and the Work in Process move
transaction manager before closing the period.
3. Check Cost Management cost interfaces.
Cost Management processes your inventory and work in process accounting transactions as a concurrent request,
using a specified time interval. Before you close the period, you should check that the Cost Manager is active.
4. Check Order Management transaction processes. If you use Order Management, ensure that all sales order
transaction processes complete and transfer successfully to Inventory.
5. Review Inventory transactions.
Before you close a period, review all of the transactions using the Material Account Distribution Report for the period
with a high dollar value and/or a high transaction quantity. Check that you charged the proper accounts. Correcting
improper account charges before you close a period is easier than creating manual journalentries.
6. Balance perpetual inventory.
Check that your ending perpetual inventory value for the period being closed matches the value you report in the
general ledger. Perpetual inventory value normally balances automatically with the general ledger. However, one of
the following sources can create a discrepancy:
– Other inventory journal entries. Journal entries from products other than Inventory that affect the inventory
accounts.
– Charges to improper accounts: For example, you issued material from a subinventory to a miscellaneous account,
but used one of the subinventory accounts as that miscellaneous account.
– Issue to miscellaneous account: For example, the following miscellaneous transaction issue would cause an out of
balance situation: debit account specified at transaction 123, credit subinventory valuation account 123. The debit
and credit net to zero with no financial charge, but since the inventory quantity decreased, the month–end inventory
valuation reports will not equal the general ledger account balance.
– Transactions after period end reports. This occurs when you run the end of month inventory valuation reports
before you complete all transactions for the period.
If you do not run the inventory reports at period end, you can also run these Reports:
– Inventory Value Report
– Material Account Distribution Detail Report
– Material Account Distribution Summary Report
– Period Close Summary Report
– Period Close Reconciliation report
– Inventory Subledger Report (Average Costing Only)
In a organization using Project Manufacturing Average Costing, if there is more than one cost group, the following
valuation reports should not be used for reconciliation purposes because these reports list the average value across
cost groups.
– Transaction historical Summary Report
– Receiving Value Report
– All Inventories Value Report
– Elemental Inventory Value Report
– Subinventory Account Value Report
– Item Cost Report
7. Validate Work in Process inventory.
If you use Work in Process, check work in process inventory balances against transactions with the WIP Account
Distribution Report.

8. Transfer transactions in advance of closing period (optional).
If time permits, run the general ledger transfer process up to the period end date before closing the period.
Closing a period executes the general ledger transfer automatically. However, you can also run this process without
closing a period using Transfer Transactions to General Ledger. Since you cannot reopen a closed period, running
this process before period close allows you to proof the interfaced transactions and make adjustments to the period
via new inventory transactions as necessary.
9. Close Oracle Payables and Oracle Purchasing.
If you use Payables and Purchasing, you need to close the accounting periods in the following order:
– Payables
– Purchasing
– Inventory
If you only use Purchasing and Inventory, you need to close Purchasing first. Close Payables before Purchasing, in
preparation for accruing expenses on uninvoiced receipts. Doing so ensures that all new payables activity is for the
new month and you do not inadvertently match a prior month invoice in payables to a new month receipt. When you
close Purchasing or Inventory, you cannot enter a receipt for that period. However, as a manual procedure, close
Purchasing before Inventory. This still allows miscellaneous transaction corrections in Inventory.
10. Run the Period Close Reconciliation report.
This report automatically runs in simulation mode for the open period. It is used to match account balances with
inventory value at period end.
11. Close the accounting period and automatically transfer transactions to the general ledger.
This sets your Inventory Accounting Period status to Closed not Summarized. If the CST: Period Summary profile
option is set to Automatic, no other steps are necessary. The period status is set to Closed when the summarization
process has completed.
12. If the CST: Period Summary profile option is set to Manual, create period summarization transactions by
generating the Period Close Reconciliation report.
The concurrent program creates summarized transaction records, and displays the differences between account
balances and inventory value.
Units of Measure
Submitted by oracleug on Mon, 04/20/2009 - 10:11
Tag:
Inventory
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Oracle Inventory provides you with powerful methods for defining and manipulating units of measure. You can easily
convert between the units of measure you define. This enables you to manufacture, order, or receive items in any unit
of measure. With units of measure you can:
1. Define unit of measure classes,
2. Define units of measure,
3. Define unit of measure conversions,
4. Define lot-specific unit of measure conversions
Defining Unit of Measure Classes
Unit of measure classes represent groups of units of measure with similar characteristics.
Creating unit of measure classes is the first step in unit of measure management. Each unit of measure you
define must belong to a unit of measure class.

Each class has a base unit of measure. The base unit of measure is used to perform conversions between
units of measure in the class. For this reason, the base unit of measure should be representative of the
other units of measure in the class, and generally one of the smaller units. For example, you could use CU
(cubic feet) as the base unit of a class called Volume.
Unit of measure classes are not organization-specific. Default unit of measure classes are not provided.
1. Enter a unique name for the unit of measure class.
2. Define the base unit of measure for this class.
3. Define a unique abbreviation for the base unit of measure.
Defining Units of Measure
Submitted by Anonymous on Mon, 04/20/2009 - 12:24
Tag:

Purchasing
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Units of measure are used by a variety of functions and transactions to express the quantity of items.
Defining units of measure is the second step in unit of measure management.
The values defined in the Units of Measure window provide the list of values available in unit of measure
fields in other windows.
Units of measure are not organization-specific.
Primary Unit of Measure
Theprimary unit of measure is the stocking unit of measure for an item in a particular organization. The primary unit of
measure is an item attribute that you specify when defining each item.
Prerequisites
You must define at least one unit of measure class.
Enter UOM from UOM Class FORM
After defining the UOM class click on Uint of measure button to enter a new UOM.
Enter the UOM namd and short name. Save the form
Define a UOM in UOM form
Navigate to the Units of Measure window.

1. Enter a unique name for the unit of measure.
2. Enter a unique abbreviation for the unit of measure with a maximum length of three characters.
For example, EA for each or HRS for hours.
3. Enter a unit of measure class.
4. Indicate if this is the base unit of measure for the unit of measure class.
To delete a unit of measure:
1. You can delete existing units of measure that are not base units of measure if no standard or item specific
conversions are defined.
To make a unit of measure inactive:
1. Enter the date on which the unit of measure becomes inactive. As of this date, you can no longer assign standard
or item-specific conversions to the unit of measure.
To change Base UOM:
It‘s not possible to change the base UOM from one UOM to another UOM.
Defining Unit of Measure Conversions
Tag:
Inventory
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Unit of measure conversions are numerical factors that enable you to perform transactions in units other than the
primary unit of the item being transacted. You can define:

A conversion common to any item (Standard)
A conversion for a specific item within a unit of measure class (Intra-class)
A conversion for a specific item between unit of measure classes (Inter-class)
Unit of measure conversions are not organization-specific.
You must define a conversion between a non-base unit of measure and the base unit of measure before you
can assign the non-base unit of measure to an item
Specifying Which Conversion to Use
When you define an item you decide which type of unit of measure conversion to use:
1. Itemspecific: Only uses unit of measure conversions unique to this item. If none exist, you can only transact
this item in its primary unit of measure.
2. Standard: Uses standard unit of measure conversions for this item if an item-specific conversion is not
available.
3. Both: Uses both item-specific and standard unit of measure conversions. If both exist for the same unit of
measure and item combination, the item-specific conversion is used.
Unit of Measure Conversions During Transactions
Whenever you enter an item's quantity, the default is the primary unit of measure for the item. The list of values for
the unit of measure field displays all units of measure for which you have defined standard and/or item-specific
conversions from the primary unit of measure.
Transactions are performed in the unit of measure you specify. The conversion happens automatically and item
quantities are updated in the primary unit of measure of the item.
Important: Inventory transactions and on hand balance supports decimal precision to 5 digits after the decimal point.
Oracle Work in Process supports decimal precision to 6 digits. Other Oracle Applications support different decimal
precision. As a result of the decimal precision mismatch, transactions another Oracle Application passes may be
rounded when processed by Inventory. If the transaction quantity is rounded to zero, Inventory does not process the
transaction.
It is therefore suggested that the base unit of measure for an item is set up such that transaction quantities in the
base unit of measure not require greater than 5 digits of decimal precision.

Define a Standard conversion for any item
In standrad conversion you specify how one unit of mesaure is related to the primary unit of measure in the
same class.
In standrad conversion you cant do the following
You cant specify any sort of intra class conversion
Relationship between two UOMs not invloving primary UOM
Navigate to the Unit of Measure Conversions window & Select the Standard tabbed region.
1 Enter a unit of measure.
2 Enter the conversion factor by which the unit of measure is equivalent to the base unit of measure established for
this class.
For example, if one DZ (this unit of measure) is equivalent to 12 EA (base unit), the conversion factor is 12. Or, if EA
is equal to one-twelfth of a DZ, the conversion factor is 0.08333.
Define a conversion for a specific item within a unit of measure class (Intra-class)
We have seen in standard conversion we can only do convesrion from one UOM to primary UOM.
Suppose we have defined a UOM convsrion rule for a unit of measure UOM_XYZ as UOM_XYZ = 6 x Primary UOM
but for a particular item the vonvsrion rate is not 6 in that case we define a intra class convesrion for a particular item
and when ever that item is transacted system 'll pick the convesrion rate from either intra class or standrad
convesrion depending upon ITEM master set up.
Notes
We can do intra class conversion between two UOMs for a particular item only for a single class which is the UOM
class of the primary UOM of the item.
For exampe Suppose ITEM001 has a primary UOM as Ea and UOM Ea belongs to class Quantity then we can define
intra class conversion for the item ITEM001 between two UOMs in the class Quantity.
we cant define intra class convesrion between any other UOMs belonging to a differnt UOM class.

Navigate to the Unit of Measure Conversions window.
1. Select the Intra-class tabbed region.
2. Enter an item.

3. Enter a unit of measure.
4. Enter the conversion factor by which the unit of measure is equivalent to the base unit of measure established for
this class.
For example, if one LB (this unit of measure) is equivalent to 16 OZ (base unit), the conversion factor is 16.
Define a conversion for a specific item between unit of measure classes (Inter-class)
Inter class conversion is used to convert an item from one primary UOM in one class to another primary UOM in a
differnt class for a particular item.
Navigate to the Unit of Measure Conversions window and Select the Inter-class tabbed region.
1. Select an item.
2. Select the destination base unit of measure of the class to which you are converting a unit of measure.
3. Enter the conversion factor by which the source base unit is equivalent to the destination base unit.
For example, if one ML (source base unit) is equivalent to one GR (destination base unit), the conversion factor is
one.

Defining Unit of Measure Conversions
Tag:
Inventory
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Unit of measure conversions are numerical factors that enable you to perform transactions in units other than the
primary unit of the item being transacted. You can define:
A conversion common to any item (Standard)
A conversion for a specific item within a unit of measure class (Intra-class)
A conversion for a specific item between unit of measure classes (Inter-class)
Unit of measure conversions are not organization-specific.
You must define a conversion between a non-base unit of measure and the base unit of measure before you
can assign the non-base unit of measure to an item
Specifying Which Conversion to Use
When you define an item you decide which type of unit of measure conversion to use:
1. Itemspecific: Only uses unit of measure conversions unique to this item. If none exist, you can only transact
this item in its primary unit of measure.
2. Standard: Uses standard unit of measure conversions for this item if an item-specific conversion is not
available.
3. Both: Uses both item-specific and standard unit of measure conversions. If both exist for the same unit of
measure and item combination, the item-specific conversion is used.

Unit of Measure Conversions During Transactions
Whenever you enter an item's quantity, the default is the primary unit of measure for the item. The list of values for
the unit of measure field displays all units of measure for which you have defined standard and/or item-specific
conversions from the primary unit of measure.
Transactions are performed in the unit of measure you specify. The conversion happens automatically and item
quantities are updated in the primary unit of measure of the item.
Important: Inventory transactions and on hand balance supports decimal precision to 5 digits after the decimal point.
Oracle Work in Process supports decimal precision to 6 digits. Other Oracle Applications support different decimal
precision. As a result of the decimal precision mismatch, transactions another Oracle Application passes may be
rounded when processed by Inventory. If the transaction quantity is rounded to zero, Inventory does not process the
transaction.
It is therefore suggested that the base unit of measure for an item is set up such that transaction quantities in the
base unit of measure not require greater than 5 digits of decimal precision.
Define a Standard conversion for any item
In standrad conversion you specify how one unit of mesaure is related to the primary unit of measure in the
same class.
In standrad conversion you cant do the following
You cant specify any sort of intra class conversion
Relationship between two UOMs not invloving primary UOM
Navigate to the Unit of Measure Conversions window & Select the Standard tabbed region.

1 Enter a unit of measure.
2 Enter the conversion factor by which the unit of measure is equivalent to the base unit of measure established for
this class.
For example, if one DZ (this unit of measure) is equivalent to 12 EA (base unit), the conversion factor is 12. Or, if EA
is equal to one-twelfth of a DZ, the conversion factor is 0.08333.
Define a conversion for a specific item within a unit of measure class (Intra-class)
We have seen in standard conversion we can only do convesrion from one UOM to primary UOM.
Suppose we have defined a UOM convsrion rule for a unit of measure UOM_XYZ as UOM_XYZ = 6 x Primary UOM
but for a particular item the vonvsrion rate is not 6 in that case we define a intra class convesrion for a particular item
and when ever that item is transacted system 'll pick the convesrion rate from either intra class or standrad
convesrion depending upon ITEM master set up.
Notes
We can do intra class conversion between two UOMs for a particular item only for a single class which is the UOM
class of the primary UOM of the item.
For exampe Suppose ITEM001 has a primary UOM as Ea and UOM Ea belongs to class Quantity then we can define
intra class conversion for the item ITEM001 between two UOMs in the class Quantity.
we cant define intra class convesrion between any other UOMs belonging to a differnt UOM class.

3. Enter a unit of measure.
4. Enter the conversion factor by which the unit of measure is equivalent to the base unit of measure established for
this class.
For example, if one LB (this unit of measure) is equivalent to 16 OZ (base unit), the conversion factor is 16.
Define a conversion for a specific item between unit of measure classes (Inter-class)
Inter class conversion is used to convert an item from one primary UOM in one class to another primary UOM in a
differnt class for a particular item.
Navigate to the Unit of Measure Conversions window and Select the Inter-class tabbed region.
1. Select an item.
2. Select the destination base unit of measure of the class to which you are converting a unit of measure.
For example, if one ML (source base unit) is equivalent to one GR (destination base unit), the conversion factor is
one.
Lot-Specific Unit of Measure Conversions
Lot specific conversions enable you to perform a specific inter-class conversion for a given lot. This enables you to
establish more granular control over the transactional quantities of a lot. For example, the standard inter-class
conversion for a lot controlled item is one gallon equals 15 pounds; however, when you receive a particular lot of the
item, 1 gallon equals 16 pounds. You can create a lot specific unit of measure for this instance.
You can create lot-specific unit of measure conversions for on-hand lots or lots with a zero balance. If you create a
lot-specific conversion for a lot with on-hand quantities, you can automatically update the quantities in the system to
more accurately reflect the on-hand quantity.
You can also view the history of changes made to the lot unit of measure conversion, and the corresponding quantity
changes.

1. Enter the item number in the Item field.
2. Enter the lot number in the Lot Number field.
3. Select the destination base unit of measure of the class to which you are converting the unit of measure.
For example, if 16 pounds (source base unit) is equivalent to 1 Gallon (destination base unit), the conversion factor is
16.
5. Optionally, enter an inactive date for the conversion. This is the date when the unit of measure conversion for the
lot reverts back to the standard inter-class conversion.
6. Optionally, enter a transaction reason for the conversion.
Rules
Picking Rules
When you define an item you choose a picking rule to determine the order in which revisions, lots, subinventories,
and locators are picked for sales order. Oracle Shipping Execution submits requests to Oracle Inventory, which uses
the information you enter in the Picking Rules window to generate pick lists for sales orders.
If you choose None for any of the criteria fields, Inventory ignores that criterion. For example, if you choose None for
Revision, Inventory picks units of an item without regard to revision levels.
Oracle Inventory looks at the picking criteria in the order in which they appear in the Picking Rules window. Then,
Inventory looks at the options (except for None options) for each criterion in the order in which they appear beneath
each criterion.
To define a picking rule

1. Navigate to the Picking Rules window.
2. Enter a unique name for the rule.
3. Select an option for revision order:
Revision: Pick most recent revision.
Effective Date: Pick earliest revision effective date.
None: Do not consider revision levels in the picking process.
4. Select an option for lot order:
Expiration Date: Pick earliest lot expiration date.
Receipt Date: Pick earliest lot receipt date, the date you received items into their current location.
Lot Number: Pick lowest lot number.
None: Do not consider lot numbers in the picking process.
5. Select an option for subinventory order:
Subinventory: Pick by order defined for each subinventory.
Receipt Date: Pick earliest subinventory receipt date.
None: Do not consider subinventories in the picking process.
6. Select an option for locator order:
Locator: Pick items according to the picking order defined for each locator.
Receipt Date: Pick items according to the earliest locator receipt date.
None: Do not consider locators in the picking process.
To delete a picking rule
You can delete a picking rule if there are no references to it.
Transaction Flow
Tag:

Inventory
/
MTL_TRANSACTIONS_INTERFACE table is the Interface between non-Inventory applications and the Inventory
Transactions module. In other words any other module other than Inventory that wants to update Inventory has to
come through this table. Modules such as WIP (Work In Progress) and OE (Order Entry) first pass their records to
the MTL_TRANSACTIONS_INTERFACE (MTI)for validation.
There is an Interface Manager called the Transactions Manager (INCTCM) which reads records from this table,
validates them and moves the successful transactions onto MTL_MATERIAL_TRANSACTIONS_TEMP, and submits
Transaction workers (sub-processes - INCTCW) which then processes these records through inventory. This process
consists of data derivation, validation, and transfer of records from MTL_TRANSCTIONS_INTERFACE,
MTL_TRANSACTIONS_LOTS_INTERFACE and MTL_SERIAL_NUMBERS_INTERFACE into their respective
TEMP (temporary) tables from where the transactions processor processes them.
Both the Lots and Serial number tables above are used when items being updated are under 'Lot' or 'Serial' number
control. Example :- In the case of an Sales Order, the item is being shipped to a client so the lot and serial number if
being used, this needs to be updated to show that it is no longer available in Inventory stock.
It is important to note that in general the processors will not move the transactions from this table if the following fields
are not set as follows.
LOCK_FLAG = 2
PROCESS_FLAG = 1
transaction_mode = 3
Once the transactions have been passed to this table after initial validation by the Transactions Manager (INCTCM)
from the MTL_TRANSACTIONS_INTERFACE a job id is attached and a Transactions Worker (INCTCW) is
submitted by the INCTCM process in order to the get the records processed and moved to the
MTL_MATERIAL_TRANSACTONS table.
This table is also used by Inventory Module and Purchasing module which writes directly onto this table for any
transactions entered within itself and each transaction in turn through a process of strict validation.
Inventory Module Forms like Miscellaneous transactions writes directly into this table. The transactions which are
done through these form are on-line processing. It is from here that the inventory quantities finally get
updated,serial/lot numbers get marked as being used.
Enterprise Structure
Inventory

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You must plan how Oracle Inventory represents your company‘s inventory sites and business units. This includes
defining organizations, locations, subinventories, and locators depending on your company structure. You also must
plan how to implement certain parameters and what level of the structure controls them.
Multi-org often refers to an Oracle Applications setup used to enable multiple business units in a single install. With
multi-org, a business enterprise may set up multiple business units with differing sets of books, operating units, and
legal entities all within a single instance. With multi-org, goods my be sold out of one operating unit or legal entity
and shipped out of another, and the system will process an intercompany sale to properly account for it.
Multi-org, however, should not be mistaken for installs with multiple inventory organizations. You do not have to use
Oracle Applications multi-org to support multiple inventory organizations if all the inventory organizations share the
same set of books, operating unit, and legal entity.
Location: A location is simply a name and address, and is assigned to an organization or used to indicate delivery
information on a purchase order. You may define as many locations as you like, but only one location may be
assigned to an inventory organization.
Business group is a group of companies that does business in different markets under common administrative or
financial control whose members are linked by relations of interpersonal trust on the bases of similar personal ethnic
or commercial background a business group.

Set of Books (SOB): The financial entity that represents the chart of accounts, fiscal calendar, and base currency.
The SOB is set up in the General Ledger.
Legal Entity Organization: An entity used to represent a legal company. Fiscal and tax reporting are done at the
Legal Entity level.
A legal employer is a legal entity that is responsible for employing people in a particular country. Therefore, if you
employ people in a country, then you must have at least one organization classified as a legal entity and a legal
employer.
The Configuration Workbench classifies an organization as a GRE/Legal Entity where your enterprise operates in a
country, and classifies it as an Employer if you employ people in that country also. For example, you can have a legal
entity in a country where you do business, but do not employ people in that country.
Operating Unit Organization: A business unit that shares a common Purchasing, Accounts Payable, Order Entry
and Accounts Receivable setup. An operating unit may consist of multiple inventory organizations, with multiple
manufacturing sites, distribution centers, and sales offices, but they share a common sales order and purchase order
system. For example, a sales order may have lines shipping from different inventory organizations or a purchase
order may have lines destined for different inventory organizations.
Inventory Organization: An entity used to represent a manufacturing or distribution site. Inventory organizations
are where a user tracks on-hand balances, manufactures goods, and transacts the daily ins and outs of material
movement. An inventory organization is the lowest level entity for costing goods, planning material requirements, and
securing system access. Only a single address may be assigned to an Inventory Organization. An inventory
organization is assigned a Set of Books which determines the chart of accounts, fiscal calendar, and base currency
for all financial and value added activities that occur within the organization.
Inventory Organizations are also assigned to a Legal Entity Organization and an Operating Unit Organization.
A variation on the inventory organization is the master item organization. Generally, with Oracle Applications a single
inventory organization is created and designated at the master organization. Items are defined first in the master
organization, then enabled in other inventory organizations as necessary. Some of the item attributes are set as
controlled at the master organization and therefore the attribute values cannot be updated within individual inventory
organizations. Category sets may also be designated as master organization level. Cross-references are also
master level only or master level optional as well.
Subinventory: Physical or logical locations for storing inventory. Subinventories are generally defined to represent
the main stores area as well as stocking points on the production floor. Additional subinventories may be used to
specify supply closets or cabinets and the cage area for discrepant material. Subinventories are flagged as to
availability for planning (nettable), reservations, and available to promise checks, thereby determining the availability
of the material stored in the subinventory. Subinventories are assigned material asset account numbers. As goods
move in and out of a subinventory a transaction posts to the asset account.
Stock Locator: A physical area within a stockroom. The stock locator is a key flexfield that is often defined as a
multiple segment flexfield with the segments representing the physical layout of a stockroom. For example, a
stockroom may be laid out in rows of shelves with bins on the shelves, each numbered so that a row/shelf/bin
combination would direct someone to a particular material storage compartment. Such an implementation would
define a locator flexfield as a 3 segment flexfield with segments for row, shelf, and bin.
Attachment of LE/OU/INV with BG
We never attach any LE/OU/INV with BG in front end...but its available in HR_ALL_ORGANIZATION_UNITS in
column Business_Group_ID..so the question is from where it comes?
First we create a Business Group. When ever we create a business group the system creates an organization with
type businessgroup and attach a business group ID 'N' which is same as the organization ID for that Business group.
After that we attach the business group to a responsibility through the profile option HR : Business Group.
Next we create whenever we create a new LE/OU/Inv with one responsibility the system 'll attach the Business Group
which is attached with the HR : Business group for that particular responsibility.

Defining Planners
Tag:
Inventory
/
You can define and update material planners or planning entities for the current organization and assign them to
inventory items at the organization level.
To define and update material planners or planning entities:
1. Navigate to the Planners window.
2. Enter a unique planner name. A planner can be a person or an entity, such as a department or a division.
3. Enter the electronic mail address of the planner.
4. Optionally, enter a date on which the planner becomes inactive. From this date on, you cannot assign this planner
to an inventory item.

Defining Locations
Tag:
Inventory
/
Use the Locations window to define ship–to, bill-to, receiving, office site, internal site & other location information for
Purchasing documents.

Locations are shared across Business Groups in HRMS and with two other Oracle
applications: Inventory andPurchasing. HRMS does not use some of the fields in the Location window. These fields
are disabled for HRMS users. For example, the Legal Address check box is read-only and supports future
functionality in Oracle Financials.
Header
Uncheck the Global check box if you want the location to only be available within the default Business Group of your
current responsibility. Accept the default if you want the location to be a global location and therefore available to all
Business Groups. If you are setting up a global location, the location name must be unique across all Business
Groups. If you are setting up a location for one Business Group, the location name must be unique within that
Business Group and all global locations, but does not have to be unique across all Business Groups.
Note: You cannot amend the Global check box once you have set up your location.
Address Details Tab
Select a national address style from the list. If a local address style exists for your country, it is displayed as the
default. Otherwise, the international style is displayed.
Shipping Details
Selecting the check boxes means that you are making the location Name a valid location in the list of values on a
Purchasing
document. For example, selecting Ship–To Site makes the location Name a valid choice in the list of values for the
Ship–To field on a purchase order header. Note that if you define a default Ship–To or Bill–To Location in the
Supplier–Purchasing region of the Financials Options window for your organization, that is the location that defaults
onto your purchase orders. But if you wanted to change that default, the location Name that you define here and
enable as a Ship–To or Bill–To site is available in the list of values for you to choose from in the Ship–To or Bill–To
fields.

Contact: Optional contact name for the location Name.
Ship–To Location : Its the receving dock. Usually the same as the location Name. You could select a separate,
previously defined Ship–To Location—for example, if you wanted to create a location Name, Office A, and specify
Receiving Dock A as its Ship–To Location. Note, however, that once you specify a separate Ship–To Location, you
can no longer enable the location Name as a Ship–To Site. In this example, Receiving Dock A is the ship–to site for
Office A; therefore, Office A itself cannot also be the ship–to site.
Ship–To Site: Is this location is a receving dock. Select this option to make the location Name a valid ship–to
organization on a purchase order or requisition.
Bill–To Site: Select this option to make the location Name a valid bill–to site. The Bill–To Site, which is used by
Payables, is specified on a purchase order header.
Receiving Site: Select this option to make the location a valid receiving Location when creating a receipt or receiving
transaction.
Office Site: Select this option to indicate that this location Name is an office site, such as a field office.
Internal Site: Select this option to make the location a valid internal ship–to location when creating an internal
requisition.
Other Details
Inventory Organization: Select an inventory organization within which this location will be available in the list of values
on a Purchasing document. By selecting no inventory organization, this location becomes available on Purchasing
documents
in all organizations.

EDI Location: If you use Electronic Data Interchange (EDI) to receive Advance Shipment Notices (ASNs) or ASNs
with billing information (ASBNs), enter a defined location. This location should match the ship-to location specified on
an ASN or ASBN
Organization
Tag:
Inventory
/
Define the following organizaions as per the requirement of business
i. Business group
ii. Legal Entity
iii. Operating Units
iv. Organization
External organizations (for example, tax offices, insurance carriers, disability organizations, benefit carriers, or
recruitment agencies)
Internal organizations (for example, departments, sections or cost centers)
Creating an Organization
1. Enter a name for your organization in the Name field. A check is performed to see if organizations with the same
name already exist.
All Oracle applications you install share the information entered in the Organization window. Therefore organization
names must be unique within a business group, and business group names must be unique across your applications
network.
You can create two organizations with the same name in different business groups but this can cause confusion later,
if the HR: Cross business group profile option is set to Yes and you decide to share certain information across all
business groups. If you decide to create two organizations with the same name, be sure that this will not cause you
problems in the future.
2. Optionally, select an organization type in the Type field.
Organization types do not classify your organization, you use them for reporting purposes only. The type may identify
the function an organization performs, such as Administration or Service, or the level of each organization in your
enterprise, such as Division, Department or Cost Center.
3. Enter a start date in the From field. This should be early enough to include any historical information you need to
enter.
Note: You cannot assign an employee to an organization before the start date of the organization.
4. Enter a location, if one exists. You can also enter an internal address to add more details such as floor or office
number.
If you are using Oracle Payroll in the US, every organization to which employees can have assignments, including
business groups, must have on record a location with a complete address. This is because the system uses the
location of the organization of the employee's primary assignment to determine employee work locations for tax
purposes. This does not apply to GREs, because the assignment to a GRE exists in addition to the assignment to an
organization.
For Dutch users only, if you are setting up external organizations for a tax office, a social insurance provider or a
private health insurance provider, you must enter the postal address and contact details using the
NL_POSTAL_ADDRESS Location EIT.
Note: If you are an Oracle Inventory user, then you must not assign a location to more than one organization
classified as an Inventory Organization.

5. Enter internal or external in the Internal or External field. You cannot assign people to an external organization.
Examples of external organizations that may require entry are disability organizations, benefits carriers, insurance
carriers, organizations that employees name as beneficiaries of certain employee benefits, and organizations that are
recipients of third party payments from employees' pay.
Inventory : Setup -> Organizations -> Organization
Enter Organization Classifications & Additional Information
1. Business Group

Business Group Information.
Budget Value Defaults.
Work Day Information.
Benefits Defaults.
PTO Balance Type.
Recruitment Information.
Payslip Information.
Self Service Preference Information.
2. Attaching Set of Books to Legal Entity

3. Attaching Set of Books & Legal Entity to Operating Unit

4. Attaching Operating Unit to organization

Subinventories
Tag:
Inventory
/
Subinventories are unique physical or logical separations of material inventory, such as raw inventory, finished
goods, or defective material. All material within an organization resides in a subinventory. There are two types of
subinventories within Warehouse Management, storage and receiving.
Storage subinventories are intermediate or final put away locations for material. Material that resides in a storage
subinventory appears in on hand quantity, and is tracked by the system. The system can book orders against, and
use manufacturing processes on material that resides in a storage subinventory. You must define at least one
storage subinventory for your implementation.
Optionally, you can create receiving subinventories to track material in the receiving area. You use receiving
subinventories when you want to track the material as soon as it enters the warehouse before an operator puts it
away. Receiving subinventories enable managers to see where the material resides as soon as it enters the
warehouse. Material located in a receiving subinventory does not appear in on hand quantity, and the system cannot
reserve the material.

An operator can also only specify a receiving subinventory if they are using a mobile device to receive the material.
Note: Operators cannot transfer material from a storage subinventory to a receiving subinventory.
All material within an organization is held in a subinventory therefore, you must define at least one subinventory.

When you create a new subinventory the subinventory is only available to the inventory org(M1 in above pic)
where you are creating it.
Table : MTL_SECONDARY_INVENTORIES
Define new Subinventory
Tag:
Inventory
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Select a source type for item replenishment.
Header
1. Enter a unique alphanumeric name.
2. Indicate the material status of this subinventory, which controls the enabled transactions for all material in this
subinventory. The status is not overridden by the status of any locator, lot or serial, within this subinventory. The

statuses of those objects will be considered when determining transactions that are not enabled. This field is
used if you have Oracle Warehouse Management installed.
3. Indicate the default cost group for this subinventory. If the cost group assignment rules fail to identify a cost group
for newly received material, this cost group will be assigned. This cost group will remain with the material, even
through subinventory transfers, until you perform a cost group change transaction. This feature is available if you
have Oracle Warehouse Management installed, and you are working with a WMS enabled organization.
4. Select the subinventory type from the drop down list. The available choices are as follows:
Storage: Designates the subinventory as a Storage subinventory.
Receiving: Designates the subinventory as a receiving subinventory, and links it to a receiving location. This
subinventory type is used only for receiving material. Material in this type of subinventory cannot be on–hand, or
reserved.
Null: No subinventory designation
Parameters
Following are the important parameters that we must define
1. Quantity tracked Indicate whether each transaction for this subinventory updates the quantity on hand for the
subinventory (Quantity Tracked).
If you leave this option unchecked, on–hand balances are not maintained and you cannot check or update the Asset
Inventory, Include in ATP, Reservable, or Nettable options. You can update this value only if there is no on–hand
quantity, no pending transaction, or no uncosted transaction for the subinventory.
2. Asset Subinventory: Indicate whether to maintain the value of this subinventory on the balance sheet (Asset
Subinventory). You can update this value only if there is no on–hand quantity for the subinventory.
3. Include in ATP: Indicate whether to include items in this subinventory in ATP calculations.
4. Depreciable: Indicate whether to designate items in this subinventory as depreciable.
This data is needed to support depreciable and location information in the Subinventory Setup from the Oracle
Network Logistics product.
5. Allow Reservation: Indicate whether to include this subinventory when you perform available–to–reserve
calculations.
6 Nettable: Indicate whether the planning process uses the on–hand balance of these subinventory items as
available inventory (Nettable).
7. LPN Controlled: Indicate if material may be packed into an LPN in the subinventory. If this is unchecked, all LPNs
transacted into this subinventory will be automatically unpacked, and LPNs cannot be packed into this subinventory.
This feature is available if you have Oracle Warehouse Management installed, and you are working with a WMS
enabled organization
8. Select a type of locator control.
You can select an option only if you selected locator control as Determined at subinventory level in the Locator
Control field in the Organization Parameters window. You can only update this option if there is no on–hand quantity
for the subinventory.
None: Inventory transactions within this subinventory do not require locator information.
Prespecified: Inventory transactions within this subinventory require you to enter a valid predefined locator for each
item.
Dynamic entry: Inventory transactions within this subinventory require you to enter a locator for each item. You may
choose a valid predefined locator, or define a locator dynamically at the time of transaction.
Item level: Inventory transactions use locator control information that you define at the item level.
9. Optionally, enter an inactive date for the subinventory.

10. Enter a location for the subinventory. If the Subinventory type is Receiving, this field is mandatory.
Lead times
Optionally, enter pre–processing, processing, and post–processing lead times for items in this subinventory.
These lead times are used when you use min–max planning at the subinventory level.
Sourcing
Inventory: Replenish items internally, from another organization.
Supplier: Replenish items externally, from a supplier you specify in Oracle Purchasing.
Subinventory: Replenish items internally, from another subinventory in the same inventory organization.Navigate to
the Subinventories Summary folder window. Choose New. The Subinventories window appears.
subinventory account information
Enter the general ledger accounts.The default accounts are those defined for the organization in the Organization
Parameters window. If you are using average costing, you may enter the valuation accounts, but they are not used.
Average costing uses only the Expense and Encumbrance accounts. If you use standard costing, and Oracle Bills of
Material is installed, all asset accounts are required. If you use standard costing, and Oracle Bills of Material is not
installed, you are only required to enter the Material and Material Overhead accounts.
Receiving Sub Inventory
Tag:
Inventory
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Designates the subinventory as a receiving subinventory, and links it to a receiving location. This subinventory type is
used only for receiving material. Material in this type of subinventory cannot be on-hand, or reserved.
You can not enable status attributes (Include in ATP, Allow Reservation, Nettable).
Quantity tracked, Asset Subinventory and Depreciable fields are also not applicable for receiving sub inventory.
Organization Access
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Inventory
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You can specify which organizations a responsibility can access by mapping responsibilities to organizations. Once
this mapping is set up, a user logging into an Oracle Manufacturing product is restricted to the organizations mapped
to the responsibility chosen. The Change Organization window is restricted as well.
Attention: Until you assign an organization to a responsibility in this window, all responsibilities have access to all
organizations. Once you have restricted any responsibility to an organization, you must then explicitly define the
organizations which all responsibilities can access.

Attention: This feature does not restrict access once the user is in the product. Users with access to functions that
cross multiple organizations (such as ATP, Inter–organization Transfers, Item Search, Multi–organization Quantity
Report, and so on) can still specify any valid organization when running these functions.
Organization Parameters
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Inventory
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You can define and update default inventory and costing parameters for your current organization in the following
areas:
1. Inventory Parameters
2. Costing Information
3. Other Account Parameters
4. Revision, Lot, Serial, LPN Parameters
5. ATP, Pick, Item–Sourcing Parameters
6. Defining Inter–Organization Information
7. Defining Warehouse Parameters

1. Enter an organization code for which you want to set up the organization parameter.
2. Select an Item Master organization. Oracle Inventory only defines items in the Item Master organization
of the organization from which you enter the Items window.
3. Select a workday calendar. This is required when Oracle Master Scheduling/MRP and Oracle Supply
Chain Planning is installed.
4. Optionally, select a demand class. Demand classes segregate scheduled demand and production into
groups, allowing you to track and consume those groups independently. Oracle Master Scheduling/MRP
and Oracle Supply Chain Planning uses this demand class during forecast consumption, and shipment and
production relief.
5. In the Move Order Timeout Period field, enter the number of days a move order requisition can wait for
approval.
The workflow approval process sends a notification to the item planner when a move order requisition
requires approval. After the first timeout period, if the recipient has not approved or rejected the order, a
reminder notice is sent. After the second timeout period, the order is automatically approved or rejected,
depending on whether you select Approve automatically or Reject automatically in the Move Order Timeout
Action field. If you want to bypass the move order approval process and automatically approve move order
requisitions, enter 0 days in the Move Order Timeout Period field and select Approve automatically in the
Move Order Timeout Action field.

6. Select a move order timeout action
Approve automatically: After the second timeout period, move order requisitions are automatically approved.
Select this option and set the Move Order Timeout Period to 0 if you want to bypass the move order
approval process and automatically approve move order requisitions.
Reject automatically: After the second timeout period, move order requisitions are automatically rejected.
7. Select a locator control option:
None: Inventory transactions within this organization do not require locator information.
Prespecified only: Inventory transactions within this organization require a valid, predefined locator for each
item.
Dynamic entry allowed: Inventory transactions within this organization require a locator for each item. You
can choose a valid, predefined locator, or define a locator dynamically at the time of transaction.
Determined at subinventory level: Inventory transactions use locator control information that you define at
the subinventory level.
Indicate whether to allow negative balances. Determines whether inventory transactions can drive the
inventory balance of an item negative.
Attention: If insufficient quantity on hand exists in a supply subinventory to satisfy backflush demand,
Oracle Work in Process forces the supply subinventory balance negative, ignoring this option setting.
Auto delete allocation at Move Order cancellation
Indicate whether this organization is an Oracle Warehouse Management enabled organization. You can
use WMS features such as LPNs, task management, warehouse execution rules and cost
groups in this organization. Locator control must be enabled in order to enable WMS. Once this has been
enabled and transactions have been entered in this organization, this box cannot be unchecked.
Indicate whether this organization is enabled for Quality inspection.
Indicate whether this organization is an Oracle Enterprise Asset Management enabled Organization.
Enter a total load weight and unit of measure for this organization.
Enter a total volume and unit of measure for this organization.
New Features in R12
1. Select a Default On-hand Material Status tracking option. This step is optional.
Attention: You cannot update this field for existing organizations. To enable this field, you must submit the Activate
Onhand Level Material Status Tracking concurrent program.
2. Indicate whether locator aliases must be unique across the organization.

Defining Costing Information
Tag:
Inventory
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The costing organization that controls the costs in your current organization and the costing method are displayed.
You cannot make changes to these fields.

1. Costing Organization
2. Costing Method
3. Transfer to GL Indicate whether all transactions are posted in detail to the general ledger.
Caution: Transferring detail transaction distributions to the general ledger increases general ledger posting times due
to the number of records created.
4. Reverse Encumbrance Indicate whether to reverse encumbrance entry upon receipt in inventory.
You normally select this option if you use encumbrances with Oracle Purchasing.
5. Optionally, enter a Cost Cutoff Date
If you leave this field blank, all available transactions will be costed,as usual. If you enter a date, all transactions prior
to this date will be costed. All transactions on or later than this date will not be costed.
For inter–organization transfers, a standard costing, receiving organization will not cost a receipt if the sending
organization did not already cost the transaction.
The default time is the first instant of the date. You can optionally choose another time.

The standard cost update process can be performed on the cost cutoff date. You can restart cost processing by
changing the cutoff date to blank, or a future date.
6. Default Material Sub element
For standard costing, select a material sub–element that this organization uses as a default when you define item
costs. For average costing, the default material sub–element you select can be used for cost collection when Project
Cost Collection Enabled is set.
7. Material Over head Sub element
Optionally, select a Default Material Overhead Sub–Element from the list of values. During the Supply Chain Rollup
process, when costs are merged from another organization, markup and shipping costs will use this value.
The supply chain cost rollup will complete successfully, regardless of whether this field is populated. If the Cost
Rollup identifies an organization with a default material overhead sub–element not set up, a corresponding warning
message will be printed in the log file.
8. Default Cost Group
Indicate the default cost group for the organization. This will default into the Default Cost Group field for each
subinventory. If the WMS cost group rules engine fails to find a cost group, this cost group will be used.
9. Valuation Accounts
You choose a default valuation account when you define organization parameters. Under standard costing, these
accounts are defaulted when you define subinventories and can be overridden. Under average costing, these
accounts (except for Expense) are used for subinventory transactions and cannot be updated. For a detailed
discussion of cost
elements.
Material An asset account that tracks material cost. For average costing, this account holds your inventory
and intransit values. Once you perform transactions, you cannot change this account.
Material Overhead An asset account that tracks material overhead cost.
Resource An asset account that tracks resource cost.
Overhead An asset account that tracks resource and outside processing overheads.
Outside processing An asset account that tracks outside processing cost.
Expense The expense account used when tracking a non–asset item.
Other Accounts
Tag:
Inventory
/

Encumbrance: An expense account used to recognize the reservation of funds when a purchase order is approved.
Inventory A/P Accrual : The liability account that represents all inventory purchase order receipts not matched in
Accounts Payable, such as the uninvoiced receipts account.
Purchase Price Variance : The variance account used to record differences between purchase order price and
standard cost. This account is not used with the average cost method.
Invoice Price Variance : The variance account used to record differences between purchase order price and invoice
price. This account is used by Accounts Payable to record invoice price variance.
Cost of Goods Sold: The profit and loss (income statement) account that tracks the default cost of goods sold
account.
Sales: The profit and loss (income statement) account that tracks the default revenue account.

Project Clearance Account: When performing miscellaneous issues to capital projects, the project clearance
account is used to post the distributions.
Average Cost Variance: Under average costing with negative quantity balances, this account represents the
inventory valuation error caused by issuing your inventory before your receipts.
Note: For standard costing, only the Purchase Price Variance, Inventory A/P Accrual, Invoice Price Variance,
Expense, Sales and Cost of Goods Sold accounts are required. The other accounts are used as defaults to speed
your set up.
Note: For average costing, only the Material, Average Cost Variance, Inventory A/P Accrual, Invoice Price Variance,
Expense, Sales and Cost of Goods Sold accounts are required. The other accounts are used as defaults or are not
required.
Revision, Lot, Serial, LPN Parameters
Tag:
Inventory
/

Enter a starting revision to be the default for each new item.
Lot Number
1. Select an option for lot number uniqueness.
Across items: Enforce unique lot numbers for items across all organizations.
None: Unique lot numbers are not required.
2. Select an option for lot number generation.
User–defined: Enter user–defined lot numbers when you receive items.
At organization level: Define the starting prefix and lot number information for items using the values you enter in the
Prefix, Zero Pad Suffix, and Total Length fields. When you receive items, this information is used to automatically
generate lot numbers for your items.
At item level: Define the starting lot number prefix and the starting lot number when you define the item. This
information is used to generate a lot number for the item when it is received.
3. Indicate whether to add zeroes to right–justify the numeric portion of lot numbers (Zero Pad Suffix).
4. Optionally, select an alphanumeric lot number prefix to use for system–generated lot numbers when generation is
at the organization level.

5. Optionally, define the maximum length for lot numbers. If you use Oracle Work in Process and you set the WIP
parameter to default the lot number based on inventory rules, then WIP validates the length of the lot number against
the length you define in this field.
Serial Number
1. Select an option for serial number uniqueness.
Within inventory items: Enforce unique serial numbers for inventory items.
Within organization: Enforce unique serial numbers within the current organization.
Across organizations: Enforce unique serial numbers throughout all organizations.
2. Select an option for serial number generation.
At organization level: Define the starting prefix and serial number information for items using the information you
enter in the following fields of this window.
At item level: Define the starting serial number prefix and the starting serial number when you define the item.
3. Optionally, select an alphanumeric serial number prefix to use for system–generated serial numbers when
generation is at the organization level.
4. Optionally, enter a starting serial number to use for system–generated serial numbers.
If serial number generation is at the organization level you must enter a starting serial number.
5. Indicate whether the system will suggest serial numbers as part of the move order line allocating process. If you do
not select this option, you must manually enter the serial numbers in order to transact the move order.
ATP, Pick, Item–Sourcing Parameters
Tag:
Inventory
/

Select a default ATP rule.
ATP rules define the options used to calculate the available to promise quantity of an item. If you are using Oracle
Order
Management, the default is the ATP rule for the Master organization.
Picking Defaults
Select a default picking rule.
Picking rules define the priority that order management functions use to pick items.
Notes: This rule will not be employed in a WMS enabled organization. The WMS picking rules will be used.
Enter a default subinventory picking order.
This value indicates the priority with which you pick items from a subinventory, relative to another subinventory, in
which a given item resides. The value you enter here displays as the default when you define a subinventory.
Enter a default locator picking order.
This value indicates the priority with which you pick items from a locator, relative to another locator, where a given
item resides. The value you enter here displays as the default when you define a locator.
Check the Pick Confirmation Required box if you want your pickers to manually pick confirm. If you do not check
the box, pick confirmation will occur automatically.

Item-Sourcing Default
Select a source type for item replenishment.
Inventory: Replenish items internally from another subinventory in the same organization or another organization.
Supplier: Replenish items externally, from a supplier you specify in Oracle Purchasing.
None: No default source for item replenishment.
Select the organization used to replenish items.
You must enter a value in this field if you selected Inventory in the Type field.
Select the subinventory used to replenish items.
You must enter a value in this field if you selected your current organization in the Organization field. You cannot
enter a value in this field if you selected Supplier in the Type field.
Dynamic entry for Locators
Tag:
Inventory
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If we select the dynamic entry for locators then we can directly create the locators while do any transactions. To allow
dynamic entery allowed for locators we need to do following two setups.
1. Make the stock locator as dynamic entery either at oraganization parameter or subinventory or at item level.
2. Allow dynamic insert should be enabled for the stock locator structure.
Now when we do a transaction we can put a predefined stock locator or can a new combination if required.

Inter–Organization Information
Tag:
Inventory
/

Select an Inter–Organization Transfer Charge option.
None: Do not add transfer charges to a material transfer between organizations.
Predefined percent: Automatically add a predefined percent of the transaction value when you perform the inter–
organization transfer.
Requested value: Enter the discrete value to add when you perform the inter–organization transfer.
Requested percent: Enter the discrete percentage of the transfer value to add when you perform the inter–
organization transfer.
Inter–organization cost accounts
Enter default inter–organization cost accounts. These accounts are defaulted when you set up shipping information in
the
Inter–Organization Shipping Networks window
Inter–Organization Shipping Network
Tag:
Inventory
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Use the Inter–Organization Shipping Network window to define accounting information and the relationships that exist
between shipping and destination organizations. You can specify whether an organization is a shipping organization,
a destination organization, or both.
1. From-TO organization
Determine if the organization displayed is the To Organization, From Organization, or the From or To Organization.
Item is transfered from the 'From' organization to the 'To' Organization.
2. Transfer Type: (Intransit/Direct)
For each organization relationship you create, you must indicate what type of shipment is used. If you choose to use
intransit inventory, Oracle Inventory moves material to intransit inventory before it reaches the destination
organization when you perform an inter–organization transfer. Typically, you transfer material through intransit
inventory when transportation time is significant. If you do not choose intransit inventory, Oracle Inventory moves
your material directly to the destination organization when you perform an inter–organization transfer.
For direct transfer type the FOB & receipt routing is disabled.
3. FOB (Shipment/Receipt)
Determines the ownership of the materail. If it is shipment then the owner ship goes to 'To(receving)' organization at
the point of shipping. If it is receipt then the ownership is transfered from the 'From(Sending)' organization to the
'To(receving)' organization when the materail is received at the receving organization.
4. Receiving routing
If you selected Intransit in the Transfer Type field, select a receipt routing option:
Standard: Receive this item first, then deliver without inspection.
Direct: At receipt, deliver this item directly to its location.
Inspection: Receive this item first, inspect it, then deliver.

5. Interanl orders enabled
You must also specify whether internal orders are required from the destination organization to perform inter–
organization
transfers. Oracle Inventory does not allow you to perform inter–organization transfers using the Transfer Between
Organizations window to an organization that requires internal requisitions.
6. inter–organization transfer charge
Select the inter–organization transfer charge type for calculating transfer charges:
None: Do not add transfer charges.
Predefined Percent: Automatically add a predefined percent of the transaction value.
Requested Value: Enter a discrete value to add.
Requested Percent: Enter a discrete percentage of the transfer value to add.
The default value is the value you defined in the Organization Parameters window for the shipping organization.
7. Define account information
Also, you must provide general ledger accounts to record debits and credits involved in an inter–organization
transfer.
1. Enter the general ledger transfer credit account used to collect transfer charges for the shipping organization
The default value is the value you defined in the Organization Parameters window for the shipping
organization.
2. Enter the general ledger account used to collect the purchase price variance for inter–organization receipts
into standard cost organizations. You must enter an account if your receiving organization is using standard
costing.
3. Enter the general ledger receivables account used as an inter–organization clearing account for the shipping
organization.
4. The inter–organization receivable account for the shipping organization should equal the inter–organization
payables account for the receiving organization.

8. Intransit lead time
Select Shipping Methods on the Tools menu to open the Inter–org Shipping Methods window.
Enter the shipping method for which you want to associate an intransit lead time for the displayed from and
to organizations and enter the intransit lead time in days.
Defining Intercompany Relations
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Inventory
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Use the Intercompany Relations window to define, query, and update intercompany relations between two operating
units in a multi–organization environment. These operating units are either the shipping organization and the selling
organization, or the receiving and purchasing organization.
When a sales order is entered in an operating unit, the shipping organization is often part of a separate operating
unit, belonging to a separate set of books. Once the sales order is shipped to the customer, the inventory asset
account for the shipping organization is credited and the cost of goods sold account is debited. On the other hand,
sales revenue must be recognized in the order entry organization. If the two organizations belong to different
operating units, the system must perform accounting distributions to record the intercompany revenue, receivable,
and payable entries.
Oracle Inventory and Oracle Receivables must be installed before you can define intercompany relations. If Oracle
Payables is not installed, the fields in the AP Invoicing for Selling region are not required.

Shortage Parameters
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Inventory
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You can enable the system to send material shortage alerts and shortage notifications when a material shortage
occurs in an organization. A material shortage occurs whenever unsatisfied demand exceeds available quantity for
incoming supply of material.

Check Shortages: Indicates that the material shortage check is enabled for WIP.
Jobs and Schedules regions:
Released: Indicates that all jobs/schedules with status Released, whose scheduled start date is overdue, are
included in the material shortage check. This parameter is separately controlled for jobs and schedules.
Unreleased: Indicates that all jobs/schedules with status Unreleased, whose scheduled start date is overdue, are
included in the material shortage check. This parameter is separately controlled for jobs and schedules.
Days Overdue: Indicates how many days can go by after the jobs/schedules start date until jobs/schedules with
status Released or Unreleased are included in the material shortage check. This parameter functions only if you
checked Released or Unreleased. This parameter is separately controlled for jobs and schedules.
Hold: Indicates that all jobs/schedules with status Hold are included in the material shortage check. This parameter
can be separately controlled for jobs and schedules.
Component Is Due subregions:
Based on required date: Indicates that the required date specified for each component will be used to determine
whether the open requirement is late. This parameter is separately controlled for jobs and schedules.
If assigned operation is due: Indicates that all discrete jobs or repetitive schedules with a current operation that has
assigned open material requirements are included in the material shortage check. This parameter can be separately
controlled for jobs and schedules.
If operation before assigned operation is due: Indicates that all discrete jobs or repetitive schedules with a current
operation before an operation that has assigned open material requirements are included in the material shortage
check. This parameter is separately controlled for jobs and schedules.
Exclusions region:
The shortage check looks at the supply type of components on the job or schedule. The supply type may be Based

on Bill or manually overridden when jobs or schedules are created.
Bulk Components: Indicates that components with supply type Bulk will be excluded in the material shortage check.
Supplier Components: Indicates that components supplied by vendor will be excluded in the material shortage
check.
Pull Components: Indicates that pull components will be excluded in the material shortage check.
Notify region: Select who will receive a workflow notification about the material shortage.
Introduction to Items
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Inventory
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An item is a part or service that you purchase, sell, plan, manufacture, stock, distribute, or prototype. The following
Oracle Applications use items:
• Oracle Inventory
• Oracle Purchasing
• Oracle Order Entry
• Oracle Cost Management
• Oracle Bills of Material
• Oracle Work in Process
• Oracle Master Scheduling/MRP
• Oracle Receivables
• Oracle Payables
• Oracle Services
• Oracle Engineering
• Oracle Quality
• Oracle Sales and Marketing
Below diagram describes the basic work that needs to be done before an item is ready to be used in inventory for
transaction purpose.

Item Master Organization
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Inventory
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You define items in one organization. To distinguish it from others, we call it the Item Master
organization.Other organizations (child organizations) refer to the Item Master for item definition. After you define an
item in the Item Master, you can assign it to any number of other organizations.
There is no functional or technical difference between the Item Master organization and other organizations.
However, for simplicity, Oracle recommends that you limit the Item Master to just an item definition organization.
Oracle also recommends that you do not define multiple item masters. This can make item definition and
maintenance confusing. In addition, multiple item masters are distinct entities, with no relationship to each other. You
cannot associate items in one item master organization with another item master organization. You cannot copy
items across item
master organizations.
To create the item master:
1. Use the Organization window to create the organization you want to use as the Item Master.
2. Use the Organization Parameters window to specify that organization as the Item Master. This is also where you
assign child organizations to the Item Master. The item master organization uses itself as the Item Master.

Item Templates
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Templates are defined sets of attributes that you can use over and over to create many similar items. Templates
make initial item definition easier. Oracle recommends that you use templates—either those Oracle provides or those
you define—when you define your items.
Finished Good
ATO Item
ATO Model

ATO Option Class
Kit
PTO Model
PTO Option Class
Phantom Item
Outside Processing Item
Planning Item
You can also define your own templates using the Item Templates window. Note that the window does not
validate any of the template attributes. In other words, you can define a template with contradictory
attributes. Only when you use a template to define an item does Inventory verify that the attributes are valid
for a given item.
If an attribute is not updatable for an item, the value from the template is not applied. If a combination of
attributes is invalid a warning appears when you save the item.
You can enable or disable the attribute value for each attribute in a template. When you use a template, it
applies only the enabled attributes for that particular template
You can apply the same or different templates to an item multiple times. The more recent attribute values
(from the last template applied) override previous values unless the previous value is not updatable (for
example, the Primary Unit of Measure, which is never updatable). For example, you define a new item and
apply a template that has the Primary Unit of Measure = EACH and Cycle Count Enabled = YES. Next, you

apply a new template with Primary Unit of Measure = DOZ, Cycle Count Enabled = NO, and Carrying Cost
Percent = 3. The attribute values are now: Primary Unit of Measure EACH, Cycle Count Enabled NO, and
Carrying Cost Percent 3
Item Attribute, Item Defining Attributes, Status Attributes & Item
Status
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Item attributes are information about an item, such as order cost, lead time, and revision control.
Item Defining Attributes - An item defining attribute identifies the nature of an item. What designates an item as an
―engineering item‖ is the attribute Engineering Item, but what controls the functionality of the item are the collection of
attributes that describe it. You can buy an engineering item if you want to; simply set Engineering Item, Purchased,
and Purchasable to Yes.
The following table presents item defining attributes:

When you set an item defining attribute to Yes, the item is automatically assigned to the default category set of the
corresponding functional area. For example, if you set Inventory Item to Yes, the item is automatically assigned to the
default category set for the inventory functional area.
Item Status attributes are item attributes that enable key functionality for each item.
Status attributes enable and disable the functionality of an item over time. Each status attribute allows you to enable
the item for a particular use. For example, if you set the status attribute Purchasable to Yes, you can put the item on
a purchase order. The status attributes are related to the item defining attributes. You cannot enable a status attribute
if you do not set the corresponding item defining attribute to Yes.
The following table presents status attributes:
An item status Codes is defined by selecting the value check boxes for the status attributes.
Item Status Codes may be used to set or update the default values for certain item attributes. They can be used to
control the functionality of an item. When you update the values for a status, all items that use that status will be
updated also.
The Item Status Code controls certain item attributes designated as status attributes. Each status attribute has a
Status Setting option. The option determines whether a status attribute value is set by the status code and is not
updateable, defaulted and updateable, or not used when you define an item

Pending Status:
You can assign one or more pending statuses for an item, to be implemented on future dates. These statuses
become effective on their assigned effective dates. You can also view the history of an item status.
(N) Items—>Master Items (M)—>Tools -> Pending Status

You can submit the Update item statuses with the Pending statuses of the concurrent program to update the status of
all items with Pending statuses and current effective dates. When you submit this concurrent program, change its
parameters so that it resubmits itself periodically, automatically updating item statuses to a Pending status, as
effective dates become current. Pending statuses are used in the product development cycle.
Item Attribute Control determines whether you have centralized (Master level) or decentralized (Organization level)
control of item attributes. Both status attributes and item status can be controlled at the item level or organization
levels.

You can choose the status setting level of each status attribute in the Item Attribute Controls window. The status
setting level determines whether you can update the value of each status attribute within an item status.
Sets Value: The status that you assign to the item loads a non updatable value into the status attribute. You can
update the status attribute by changing the status that you assigned to your item.
Defaults Value: The status that you assign to the item loads a default value into the status attribute. You can update
the status attribute as you define your item.
Not Used: The status that you assign to the item does not determine the value of the status attribute. You can enable
or disable the status attribute as you define your item.
Status Setting Level Consideration: You have the flexibility to change individual status attribute settings. Using
meaningful status codes gives you control over item usage.
Defining Item Types
Tag:
Order Management
/
The User Item Type item attribute is a QuickCode you use when you define an item. You can use the types provided
by Oracle Inventory or create your own.
Setup Steps
1. Navigate to the Item Type QuickCodes window. The User access level is selected indicating you can add or
modify QuickCodes without restriction.
2. Enter a unique alphanumeric code describing the item type. You can define a maximum of 250 QuickCodes for a
single QuickCode type.

You cannot change the values in this field after saving them. To remove an obsolete QuickCode you can either
disable the code, enter an end date, or change the meaning and description to match a replacement code.
3. Enter the meaning of the item type. Inventory uses this value in the list of values for the User Item Type item
attribute in the Items window.
Cross–Reference Types
Tag:
Inventory
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Cross–reference types define relationships between items and entities such as old item numbers or supplier item
numbers. For example, you can create a cross–reference type Old to track the old item numbers, and a type
Supplier to track supplier part numbers.

Navigate to INV : Items -> Cross reference , Enter a unique cross–reference type name and save it.
Click on Assign an old/supplier item and its corresponding inventory item.

1. item in cloumn1 represents a current inventory item
2. Indicate whether the cross–reference applies only in the specified organization or to all organizations to which the
item is assigned
3. Enter a cross–reference value. This value is the entity you cross–reference to the item, such as its old item number
or supplier part number.
Cross reference can also be attached from tools in item master
Customer Items
Tag:
Inventory
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The concept of customer item is to link the customer item with the inventory item of the organization so that the
customer can order with their customer item for which we have a refernce to the inventory item. To facilitate the
process we use commodity code to group all the customer items.
Customer items can be defined at customer category level, customer level and customer ship to level.
For a single customer item we can have two differnt inventory items in customer cross reference with rank 1,
2 etc
The process of difining customer cross reference is
1. Define commodity code
2. Define customer item and
3. Enter the customer reference.Use the Customer Items Summary and Customer Items Detail windows to define and
update customer items. You can toggle between these windows with the Summary/Detail option in the Go option on
the Toolbar. You can cross reference customer items to your Oracle Inventory items to support processing orders
and shipments.

A customer item defined at the Customer level is recognized across all address and address categories for that
customer. If you ship an item to multiple customer ship–to sites that have been grouped as an address category, you
can define the customer item for that address category. You would define a customer item at the address level if you
ship the item to only one ship–to site for that customer.
Commodity Codes
Customer Item Commodity Codes are used to group customer items and can be entered during the definition of
customer items.
Navigation : INV -> Setup ->Items -> Customer Item commodity code.
Customer Item
1. Select one of the existing Customer Names (in the Details window, you can use either Customer Name or
Customer Number,).
2. Select the Definition Level: Customer, Address Category, or Address.
A customer item defined at the Customer level is recognized across all address and address categories for that
customer. If you ship an item to multiple customer ship-to sites that have been grouped as an address category, you
can define the customer item for that address category. You would define a customer item at the address level if you
ship the item to only one ship-to site for that customer.
For the Address Category definition level, enter the address category.
For the Customer Address definition level, enter the customer address.
3. Enter the Customer Item number and description.
4. In the Commodity tabbed region, you can assign the customer item to a Commodity Code.
5. In the Container tabbed region, you can enter the default master and detail containers for this customer item as
well as the minimum fill percent for the container.
6. In the Model, Departure Planning tabbed region, you can reference a customer item as a Model by entering the
inventory item number of an existing Model item (the BOM Item Type attribute is set to Model).
You can also check Required to indicate that items must be departure planned before they released and Before Build
to indicate that ATO items must be departure planned before they are built.

7. In the Demand Tolerances, Active tabbed region, you can enter positive and negative tolerance percentages and
select or deselect the Active check box.
Customer Item Cross References
Use the Customer Item Cross References window to define and update cross references between your inventory
items and the customer item numbers defined in the Customer Items Summary/Detail windows.
You can also navigate to this window by selecting the Cross Reference button in the Customer Items Summary
window. Inventory displays the existing cross references for the customeritem on the current line in the Customer
Items Summary window, and you can add new cross references by selecting a new row.
Enter the Rank as a positive number. To permit alternate or substitute inventory items for a customer item, you can
define multiple cross references to inventory items for a single customer item. In these cases, you must specify the
Rank of the cross reference. The highest rank is 1.

Defining Manufacturer Part Numbers
Tag:
Inventory
/
You can define manufacturer part numbers for items. You can use this information for reporting purposes; and in
catalog searches for particular items.
Navigate to the Manufacturers window , Enter the name of the manufacturer & Save your work.

1. Navigate to the Manufacturers window.
2. Choose Parts.
3. Enter a manufacturer part number.
4. Enter an item.
You can assign the same item to multiple manufacturer part numbers.

Creating Custom Deletion Constraints
Tag:
Inventory
/
Use custom deletion constraints to enforce specific business rules. Custom deletion constraints prevent the deletion
of bills or routings if your data meets the conditions set forth in the constraint.

To create a custom deletion constraint:
1. Navigate to the Deletion Constraints window:
Inventory->Setup->Items->Delete Constraints
2. Enter a name for the deletion constraint.
3. Indicate whether the constraint is enabled. An enabled deletion constraint means that it is in effect when the delete
concurrent program runs.
4. Select what kind of delete entity the constraint applies to: item, bill, routing, component, or operation.
5. Enter the SQL Select Statement that the delete concurrent program is to execute. You cannot update SQL
statements for predefined deletion constraints.
6. Indicate whether to delete if there are rows found or no rows found by the SQL Select Statement
7. Enter a failure message from Oracle Application Object Library's message dictionary to display if the delete fails.
Delete an Item
Tag:
Inventory

/
To delete an item which does not violate any delete constraint, navigate to Delete items window
1. Enter a group name at the header and save it.
2. Enter the items needs to be deleted at the line level and save it.
3. Click on delete groups button to delete all the item in the group. Delete item information request is fired.
View the request o/p

Item Master
Tag:
Inventory
/
You must set certain controls and reference options before defining items. These enable you to maintain, group,
reference, query, and delete your items. Once you have defined items, you can set up other parameters, such as
item cross references, to control the use of items.
You define items in one organization. To distinguish it from others, we call it the Item Master organization. Other
organizations (child organizations) refer to the Item Master for item definition. After you define an item in the Item
Master, you can assign it to any number of other organizations.
There is no functional or technical difference between the Item Master organization and other organizations.
However, for simplicity, Oracle recommends that you limit the Item Master to just an item definition organization.
Oracle also recommends that you do not define multiple item masters. This can make item definition and
maintenance confusing. In addition, multiple item masters are distinct entities, with no relationship to each other. You
cannot associate items in one item master organization with another item master organization. You cannot copy
items across item master organizations.
To create the item master:
1. Use the Organization window to create the organization you want to use as the Item Master.
2. Use the Organization Parameters window to specify that organization as the Item Master.
Item Master Business Example
Suppose you have a distribution warehouse and a manufacturing factory. In the warehouse, the item has
independent demand and is min–max planned. In the factory, the item is MRP planned and built.
Using an Item Master with a warehouse and a factory as the other organizations, you define the item just once—in
the Item Master. Next, you assign the item to both the warehouse and the factory. Finally, you change the planning
and build attributes in each organization to
describe the different behavior of the items in those organizations. You do not have to change any other information
about the item; in fact, because information such as unit of measure, description, and so on is maintained at the
Master level, you know it is consistent in each organization

Main Attribute Group
Submitted by Anonymous on Sun, 01/25/2009 - 11:55
Tag:
Inventory
/

Following are the Main attributes and their possible values. You set these attributes when defining or updating items.
Primary Unit of Measure
This is the stocking and selling unit of measure. Any necessary conversions are based on this unit of measure. This
attribute is not updatable.
The default primary unit of measure for new items is defined using the INV:Default Primary Unit of Measure profile
option.
The primary unit of measure is the default for invoices and credit memos entered in Oracle Receivables.
Note:
1. If an item belongs to both a master organization and a child organization, and these organizations belong to the
same costing organization, the primary unit of measure for the item must be the same within both organizations.
2. You can stock items in two units of measure. These dual–controlled items support Oracle Process Manufacturing
environments.
User Item Type
Oracle provides several types by default at installation. These types correspond to the item templates also provided.
Select one of these values, or one you defined with the Item Type window.
• ATO model
• Finished good
• Freight
• Inventory Type
• Kit

• Model
• Option Class
• Outside processing item
• PTO model
• Phantom item
• Planning
• Product Family
• Purchased item
• Reference item
• Subassembly
• Supply item
Item Status
Item status codes set or default the values for attributes under status control. User–defined status codes control
certain item attributes designated as status attributes. The status attributes are:
• BOM Allowed
• Build in WIP
• Customer Orders Enabled
• Internal Orders Enabled
• Invoice Enabled
• Transactable
• Purchasable
• Stockable
These attributes control the functionality of an item over time.
The default item status for new items is defined using the INV:Default Item Status profile option.
Conversions
Both Use both item–specific and standard unit of measure conversions. If you defined an item– specific and a
standard conversion for the same unit of measure, the item–specific conversion is used.
Item specific Use only unit of measure conversions unique to this item.
Standard Use only standard unit of measure conversions.
If you want to use only standard conversions do not create item specific conversions.
Long Description
Indicate the long description for this item. This Long Description is supported in multiple languages.
Inventory Attribute Group
Tag:
Inventory
/
Inventory Attribute Group
Following are the Inventory attributes and their possible values. You set these attributes when defining or updating
items.

1. Inventory Item: Indicate whether to stock and transact this item in Oracle Inventory.
You must turn this option on if you want to enable the following item attributes: Stockable, BOM Allowed,
Transactable, and Build in WIP.
This is an item defining attribute. If you turn this option on, the item is automatically assigned to the default category
set for the Inventoryfunctional area.
2. Stockable: Indicate whether to stock this item in Inventory. You can set this attribute only when you turn on the
Inventory Item option. Turning this option on enables you to set the Transactable item attribute.This attribute is
optionally set by the Item Status code.
3. Transactable: Indicate whether to allow Inventory transactions. You can set this attribute only when you turn on
the Stockable option.
Note: Oracle Order Management uses this along with Stockable and Returnable to determine which authorized
returned items can be physically received into inventory. (See also the OE Transactable attribute.)
4. Revision Control: Indicate whether to track inventory balances by revision. If you turn this option on you must
specify an existing revision number for issues and receipts.
Attention: You cannot change revision control when an item has quantity on hand. If Revision Control is controlled at
the Master Item level, the check for on–hand quantity is against the sum of on–hand quantities in all child
organizations.
Note: For Oracle Order Management, if item attribute Reservable is checked, you can manually reserve a specific
revision at order entry or let Pick Release use Inventory picking rules to suggest the revision when the order is
picked. If Reservable item attribute is not
checked, Inventory picking rules will suggest the revision when the order is picked.
5. Reservable: Indicate whether you can create material reservations. You can reserve an item only when you have
sufficient inventory.
Reservation control for a subinventory overrides reservation control for an item. In other words, if an item is

reservable but a subinventory is not, the item quantity in that subinventory is not reservable.
Note: If the Reservable attribute is checked, Oracle Order Management allows reservation of the item during order
entry. If material hasn‘t been reserved prior to pick release, pick release creates reservations for material when the
pick wave move order is allocated.
6. Check Material Shortages: Indicate whether the system will check this item for material shortages.
Turn this option on to trigger a material shortage alert and shortage notification during transactions of this item Oracle
Inventory and Oracle Shipping execution will automatically backorder a delivery line at pick release if inventory is
unavailable for allocation. In the event that no material is available for allocation, the pick wave move order line will be
immediately deleted and the delivery line status will change to Backordered. In the event that only part of the
required quantity is available, the delivery line will split into the released portion and the backordered portion. The
requested quantity on the move order line will update to reflect the quantity that was available for picking, and the
move order line will close when the available quantity has been picked. The delivery line can be re–released
through the Shipping Transactions form, the Release Sales Orders for, or the Release Sales Orders SRS process.
LOT DETAILS
Lot Control
No control Do not establish lot control for the item.
Full control Track inventory balances by lot number. You must specify a lot number for issues and receipts.
You can establish lot number control only for an item that has no quantity on hand. If Lot Control is controlled at the
Master Item level, the check for on–hand quantity is against the sum of on–hand quantities in all child organizations.
Note: For Oracle Order Management, if an item is Reservable, you can manually reserve a specific lot at order entry
or let pick release use Inventory picking rules to suggest the lot when the order is picked. If the item is not
Reservable, Inventory picking rules will suggest the lot when the order is picked.
Attention: Oracle Work in Process recognizes either lot control or serial number control for an item—but not both. You
cannot transact an item into Work in Process if it has both lot and serial control defined.
Starting Lot Prefix
Enter a starting prefix for all lot numbers you define for this item. When Lot Number Generation is At item level in the
organization parameters, this prefix is used when you define a lot number.
Starting Lot Number
Enter a starting numeric suffix for this item only. When Lot Number Generation is At item level in the organization
parameters, this starting numeric suffix is used when you create a lot number. Thereafter, this number is incremented
for each succeeding lot.
Lot Expiration (Shelf Life) Control
Lot Expiration control governs how long items in a given lot remain available.
Shelf life days Specify a number of days for all lots of an item, beginning on the day you create the lot by receiving
the item. You receive a warning message that the lot expires after the specified number of days.
No control Shelf life control not established for this item User–defined Specify an expiration date as you receive each
lot. You receive a warning but are not prevented from using the lot after expiration.
Attention: You cannot change lot expiration control when an item has quantity on hand. If Lot Expiration is controlled
at the Item level, the check for on–hand quantity is against the sum of on–hand quantities in all child organizations.
Shelf Life Days
Enter the number of days each lot is active. At receipt, the expiration date is determined by adding the shelf life days
to the system date (includes the day you define the lot). This is used only when you choose Shelf life days for Lot
Expiration Control.
Lot Status Enabled
Indicate whether an item is subject to status control at the Lot Level. For example, a lot may be In Test. A company
may have a policy of allowing Lots In Test to be used in planning and reserved, but not shipped. A lot may also be In
Quarantine. For example, a company
may have a policy of not allowing lots In Quarantine to be used in planning.

If an item is lot–controlled, you can indicate the Default Lot Status. For example, a lot of microprocessors may be at
the Quarantine status until a soak test is complete.
Lot Split Enabled
Indicate whether a lot–controlled item may split into many lots during the production of a batch.
Lot Merge Enabled
Indicate whether many lots of a lot–controlled item may merge during the production of a batch.
Lot Translate Enabled
Enables you to translate lots within a lot controlled item.
Lot Substitution Enabled
Enables you to substitute lots during a transaction.
SERIAL DETAILS
Serial Generation
At inventory receipt Create and assign serial numbers when you receive the item. Thereafter, for any material
transaction, you must provide a serial number for each unit.
At sales order issue Create and assign serial numbers when you issue (ship) the item against a sales order. If you
select this option, serial numbers are required at ship confirm. If you receive an item on an RMA (return material
authorization), you must specify the same serial numbers you created at sales order issue. All other material
transactions for this item bypass serial number information.
No control Serial number control not established for this item. All material transactions involving this item bypass
serial number information.
Predefined Assign predefined serial numbers when you receive the item. Thereafter, for any material transaction, you
must provide a serial number for each unit.
The following table presents conditions where you can change back and forth between certain options:

If Serial Generation is controlled at the Item level, the check for on–hand quantity is against the sum of on–hand
quantities in all child organizations.
Starting Serial Prefix
Enter a starting alpha prefix for all serial numbers you define. You must enter a value when you choose Predefined
and when Serial Generation is At item level in the organization parameters. This prefix is used when you define your
serialized units.
Starting Serial Number
Enter a starting numeric suffix for all serial numbers for this item only.
You must enter a value when you choose Predefined and when Serial Number Generation is At item level in the
organization parameters. This starting numeric suffix is used when you define your serialized units.
Thereafter, this number is incremented for each succeeding serial number.
Serial Status Enabled
Indicate whether an item is subject to status control at the Serial Level.
For example, a company may have a policy of allowing all functions on serial numbers that are New, and a policy of
allowing reservations to Reworked serial numbers, not including Reworked items.
If an item is serial–controlled, you can indicate the Default Serial Status. For example, a serial number of analytical
equipment may be at the Quarantine status until a soak test is complete.
LOCATOR DETAILS
Locator Control
Dynamic entry Define locators when you use them, either as you receive or ship items.
No control Locator control not established.
Prespecified Defined locators before you use them.
Note: For Oracle Order Management, if an item is Reservable, you can manually reserve a specific locator at order
entry or let pick release use Inventory picking rules to suggest the locator when the order is picked. If the item is not
Reservable, Inventory picking rules will suggest the locator when the order is picked.
Note: Locator control for an organization or for a subinventory overrides locator control for an item.
Attention: You cannot change locator control when an item has quantity on hand.

Restrict Subinventories Indicate whether to restrict transactions of this item to or from a subinventory specified in a
list you define with the Item/Subinventory
Information window. This option must be turned on if you choose to restrict locators.
Restrict Locators Indicate whether to restrict transaction of this item to or from a locator specified in the list you
define with the Item/Subinventory Information window. You cannot restrict locators unless you also restrict
subinventories
Order Management Attribute Group
Tag:
Inventory
/
Following are the Order Management attributes and their possible values. You set these attributes when defining or
updating items.
Customer Ordered
Indicate whether to allow an item to be ordered by external customers. You can add any customer orderable items to
price lists in Oracle Order Management. This attribute must be turned off if the BOM Item Type attribute is set to
Planning.
If you turn this attribute on, you can temporarily exclude an item from being ordered by turning Customer Orders
Enabled off. This is an item defining attribute. If you turn this attribute on, the item is automatically assigned to the
default category set for the Oracle Order Management functional area.

Customer Orders Enabled
Indicate whether an item is currently customer orderable. If you turn this attribute on you can specify the item in the
Enter Orders window in Oracle Order Management.
You can initially define an item with Customer Ordered Item turned on and Customer Orders Enabled turned off. This
means prices can be defined for the item, but no orders can be placed for it.
Internal Ordered
Indicate whether to allow an item to be ordered on an internal requisition.
If you turn this attribute on, you can temporarily exclude an item from being ordered on an internal requisition by
turning Internal Orders Enabled off.
This is an item defining attribute. If you turn this attribute on, the item is automatically assigned to the default category
set for the Oracle Purchasing functional area.
Internal Orders Enabled
Indicate whether you can currently order an item internally. If you turn this attribute on, you can specify the item on an
internal requisition, if Internal Ordered Item is also on.
If you turn Internal Ordered Item on, you can temporarily exclude an item from being ordered on an internal
requisition by turning this attribute off.
This attribute is optionally set by the Item Status code.
Shippable
Indicate whether to ship an item to a customer. Shippable items are released by Oracle Shipping Execution‘s Pick
Release program, creating confirmable shipping lines, and are printed on the pick slip. A warning is issued if you
change the value of this attribute when open sales order lines exist.
This attribute must be turned off if the BOM Item Type attribute is set to Planning.
OE Transactable
Indicate whether demand can be placed for an item by Oracle Order Management, and whether shipment
transactions are interfaced to Oracle Inventory. Most items with Shippable turned on also have OE Transactable
turned on. For items you do not ship, you may still want OE Transactable turned on if you use the items in forecasting
or planning.
If you also want to reserve the item, turn Reservable on. A warning is issued if you change the value of this attribute
when open sales order lines exist. You cannot turn this attribute off if demand exits.
Pick Components
Indicate whether an item has a bill of material with options, classes, or included items picked from finished goods
inventory. Pick–to–order items must have this attribute turned on. Assemble–to–order items and items without a bill of
material must have this attribute turned off.
Assemble to Order
Turn this attribute on if an item is generally built for sales order demand; a final assembly work order is created based
on sales order details. You must turn on this attribute if you auto create requisitions.
An item cannot have Pick Components turned on and this attribute turned on at the same time.
Returnable
Indicate whether to allow customers to return an item. If an item is returnable, you can enter it on the Returns window
in Oracle Order Management. Order Management uses this attribute along with Stockable and Transactable to
determine which authorized returned items
you can physically receive into inventory.
RMA Inspection Required
Indicate whether inspection is required for items returned by the customer. The item then must be separately
transferred to inventory.
Credits are never automatically generated by Oracle Order Management for customer return items awaiting
inspection.

Financing Allowed
Indicate whether a customer can finance this item.
ORDER DETAILS
Check ATP
Select Check Material Only, Check Material and Resources, Check Resources Only, or None to indicate whether to
check available to promise and/or capable to promise information when placing demand.
This attribute also determines whether you can view component ATP information for material requirements in Work in
Process.
ATP Components
Indicate whether to include, in available to promise checking, additional components in the bill of material for ATO
and PTO items. These components are included in ATP checking if Check ATP for the component is turned on.
ATP Rule
Enter a user–defined available to promise rule. ATP rules define supply and demand sources, time–fence
parameters, and available–to–promise calculation methods. You can give ATP rules meaningful names, such as ATO
ATP Rule.
If there is no ATP rule for the item, the organization‘s default ATP rule is used.
Default Shipping Organization
Enter the Oracle Shipping Execution primary shipping organization. This organization defaults to the Enter Orders
window if Item is the source attribute of the Warehouse object in the standard value rule set for the order. This
organization defaults to the Enter Returns window if a receiving warehouse is not defined on the customer or order
type.
Default SO Source Type
This item attribute determines if an item is to be drop–shipped. If the value is internal, the item will not be drop–
shipped. If the value is external, the item will be drop–shipped.
Picking Rule
Enter the picking rule that defines the order in which subinventories, locators, lots, and revisions are picked. This rule
will not be employed in WMS enabled organizations. Oracle Warehouse Management picking rules will be used.
Purchasing Attribute Group
Tag:
Inventory
/
Following are the Purchasing attributes and their possible values. You set these attributes when defining or updating
items.
Purchased
Indicate whether to purchase and receive an item. Turning this option on allows you to set the Purchasable attribute.
set for the Oracle Purchasing functional area.
If an item is vendor managed, you must turn on this option.
Purchasable
Indicate whether to order an item on a purchase order. You can set this only when Purchased is turned on.
Turning Purchasable off allows you to temporarily restrict the ability to buy. This attribute is optionally set by the Item
Status code.

RFQ Required
Indicate whether to require an item quotation when requesting an item. Oracle Purchasing defaults this value on
requisition lines for this item. Leave this field blank if you want Inventory to use the value defined in the Purchasing
Options window for transactions involving this item.
Taxable
Indicate whether the supplier charges a tax. Oracle Purchasing uses the taxable status together with the tax code you
associate with a location to determine whether a purchase order shipment is taxable, and what the tax code that
applies to this shipment is. Leave this field blank if you want Inventory to use the value defined in the window for
transactions involving this item.
Tax Code
Select the appropriate tax code for the item. The tax code shows the tax authorities and rates that are available to
use for this item. You must select the taxable attribute to enable this field.
Receipt Required (Three–Way Invoice Matching)
Indicate whether you must receive an item before you can pay the invoice. Leave this field blank if you want Inventory
to use the value defined in the Purchasing Options window for transactions involving this item.
Inspection Required (Four–Way Invoice Matching)
Indicate whether to inspect an item upon receipt from the supplier, before paying the corresponding invoice. Leave
this field blank if you want Inventory to use the value defined in the Purchasing Options window for transactions
involving this item.
Outside Processing Item
Indicate whether you can add the item to an outside processing purchase order line. You can turn this option on only
if Purchased is also on. In addition, this option controls whether you can attach an item to a resource in the Resource
window.
Outside Processing Unit Type
Select an option to determine the quantity of an outside processing item you requisition, purchase and receive:
Assembly You purchase an outside processing item based on the number of assemblies you ship to the supplier.
Resource You purchase an outside processing item based on the number of assemblies times the resource usage
rate or amount.

List Price
Enter the value that Oracle Purchasing uses as the default price on a purchase order, requisition, RFQ, or quotation.
Oracle Receivables uses this value as the default unit selling price on a transaction. Note that this is the original
inventory item price used by Purchasing and therefore should be used as a guide only.
When performing supplier inventory replenishment, a List Price must be specified in order to automatically generate a
requisition.
Market Price
Enter the market value for an item. Oracle Purchasing copies the market price to the purchase order lines you create.
Price Tolerance
Enter the price tolerance percent, the maximum price percentage over the normal price range for an item. For
example, if the tolerance percent is 5, the maximum acceptable price on a purchase order is 5% over the requisition
price. Any purchase order price 5% above the requisition price is unacceptable, and you cannot approve the
purchase order.
Receipt Close Tolerance
Enter the percentage tolerance Oracle Purchasing uses to automatically close purchase order shipments. Oracle
Purchasing automatically closes a shipment when your unreceived quantity is within the quantity tolerance
percentage of the shipment.
For example, if the original shipment quantity is 50, and you enter 10 here (10%), Oracle Purchasing automatically
closes the shipment for receiving when you receive 45 or more.
Closed for Receiving is a status change only. You can receive additional items against the shipment later.
Invoice Close Tolerance
Enter the percentage tolerance Oracle Purchasing uses to automatically close purchase order shipments. Oracle
Purchasing automatically closes a shipment when your uninvoiced quantity is within the quantity tolerance
percentage of the shipment.
For example, if the original shipment quantity is 50, and you enter 10 here (10%), Oracle Purchasing automatically

closes the shipment for invoicing when you invoice match 45 or more.
Closed for Invoicing is a status change only. You can invoice match additional items against the shipment later.
Encumbrance Account
This attribute is controlled at the Organization level only.
Enter the default encumbrance account Oracle Purchasing uses when an item is received. If the item encumbrance
account does not exist, Oracle Purchasing uses the subinventory account. You encumber, or reserve against funds,
when the purchase requisition or purchase order is approved. When you deliver into a subinventory you reverse the
encumbrance. The total receipts plus encumbrances equals your total funds spent.
Expense Account
This attribute is controlled at the Organization level only. Enter the default inventory account for expense items. This
attribute is used only when Inventory Asset Value is turned off. Oracle Purchasing debits this account when you
receive an item into inventory only if the item is being expensed. If you receive into an expense subinventory, Oracle
Purchasing uses the expense account you assigned to the subinventory first; if you do not define the account here,
Oracle Purchasing uses the expense account assigned to the item.
Asset Category
Enter the asset category to which the item belongs. Oracle Assets uses this to classify your fixed assets. All assets in
a category share default information, such as the accounts used when you post to the general ledger. You can enter
this field only if you use Oracle Assets.
Receiving Attribute Group
Tag:
Inventory
/
Following are the Receiving attributes and their possible values. You set these attributes when defining or updating
items.

Receipt Date Action
None No receipt date exception enforced.
Reject Reject receipts when the receive date is outside the range defined by Days Early Receipt Allowed or Days
Late Receipt Allowed.
Warning Display a warning message if you attempt to receive an item outside the range defined by Days Early
Receipt Allowed or Days Late Receipt Allowed, but perform the receipt, anyway.
Receipt Days Early
Enter the number of days before the promise date you can receive an item without warning or rejection. For example,
if you enter 3 and the promise date is a Friday, you can receive the item on Tuesday.
Note that Oracle Purchasing uses regular calendar days (including weekends and holidays) in this calculation. If the
promise date does not exist, Oracle Purchasing uses the need by date.
Receipt Days Late
Enter the number of days after the promise date you can receive an item without warning or rejection. For example, if
you enter 2 and the promise date is a Monday, you can receive the item on Wednesday.
Note that Oracle Purchasing uses regular calendar days (including weekends and holidays) in this calculation. If the
promise date does not exist, Oracle Purchasing uses the need by date
Overreceipt Quantity Control Action
None No over tolerance enforced.
Reject Reject receipts over the tolerance quantity. You receive an error message and are prevented from receiving
quantities exceeding the order quantity by more than the Quantity Received Tolerance percent.
Warning A warning message displays if you accept receipts over the quantity determined by the Overreceipt Quantity
Control Tolerance percent, but does perform the receipt.
Overreceipt Quantity Control Tolerance
Enter the quantity received tolerance percent, the maximum acceptable over–receipt percentage, used by the
Overreceipt Quantity Control Action attribute. For example, if the tolerance percent is 5, then the acceptable quantity

on a receipt transaction is within 5% of the quantity you order on a purchase order line. Any quantity more than 5%
over the order quantity is unacceptable.
Allow Substitute Receipts
Indicate whether to allow receipt of defined substitutes in place of this item. You define valid substitutes with the Item
Relationships window. Leave this field blank if
you want Inventory to use the value defined in the Receiving Options window for transactions involving this item.
Allow Unordered Receipts
Indicate whether you can receive an item without a purchase order. If this option is on, you can later match the
receipt to the appropriate purchase order. If this option is off, all receipts for an item must have a corresponding
purchase order. Leave this field blank if you want Inventory to use the value defined in the Receiving Options window
for Items
Allow Express Transactions
Indicate whether you can deliver all distributions for this item with one data entry transaction if the quantity to deliver
equals the purchase order line balance. If this option is turned off, you must deliver individual distributions separately.
Leave this field blank if you want Inventory to use the value defined in the Receiving Options window for
Receipt Routing
Direct At receipt, deliver an item directly to its location.
Inspection Receive an item first, inspect it, then deliver.
Standard Receive an item first, then deliver without inspection.
Enforce Ship–To
Select an option to control whether the supplier can deliver to a location that differs from the ship–to location defined
on the purchase order:
None No ship–to location enforced.
Reject Prevent receipt of items not received to their purchase order ship–to location.
Warning Display a warning message if you attempt to receive an item to a location that differs from the purchase
order ship–to location, but perform the receipt, anyway.
Costing Attribute Group
Tag:
Inventory
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Following are the Costing attributes and their possible values. You set these attributes when defining or updating
items.

Costing Enabled
Indicate whether to report, value, and account for any item costs. For example, you might disable costing for
reference items, or for invoice only (non–stock) items that you never ship and never hold in inventory.
Attention: Organizations using average costing always maintain their own item costs, regardless of the control level
set for the Costing Enabled attribute.
set for the Oracle Cost Management functional area.3
Inventory Asset Value
Indicate whether to value an item as an asset in inventory. Turning this option off indicates an expense item.
Include in Rollup
Indicate whether to include an item in the cost rollup.
Cost of Goods Sold Account
This attribute is controlled at the Organization level only. Enter a general ledger account to use as a source for the
Cost of Goods Sold Account. The default cost of goods sold account is set when you define organization parameters.
Standard Lot Size
Enter the standard lot size Oracle Bills of Material uses to calculate assembly lead times. Oracle Cost Management
uses this value to calculate unit costs for sub–elements with a Lot basis type. This lot size is separate from the lead
time lot size.
Bills of Material Attribute Group
Tag:
Inventory

/
Following are the Bills of Material attributes and their possible values. You set these attributes when defining or
updating items
BOM Allowed
Allows you to define a bill of material for an item, or to assign the item as a component on a bill.
This attribute is optionally set by the Item Status code.
BOM Item Type
This attribute is co
ntrolled at the Master level only.
Select a type to control bill functionality. You must enter a value here if BOM Allowed is turned on.
Model The item‘s bill of material lists option classes and options available when you place an order for the model
item.
Option Class This item‘s bill of material contains a list of related options. Option classes group like options together.
Oracle Order Management does not allow ordering of classes outside a model.
Planning This item‘s bill of material contains a list of items and planning percentages. A planning item can represent a
product family or demand channel. Its bill of material facilitates master scheduling and/or material planning.The total
component planning percentages on a planning bill can exceed 100%. Oracle Order Management does not allow
ordering of Planning bills.
Product Family This item can be used as a product family for planning at an aggregate level.
Standard Any item that can have a bill or be a component on a bill, except planning, model, or option class items.
Standard items include purchased items, subassemblies, or finished products.
Notes

When to use Planning Bills or Product Families
Nesting Required: Use Planning Bill
End item must be forecasted via multiple parent forecast items: Use Planning Bill
End items will be used with one parent: Use Product Family
Automated Planning item forecast consumption: Use Product Family
Base Model
This attribute is controlled at the Master level only.
Displays the model from which an ATO configuration was created. In Oracle Order Management, you can place an
order for an ATO model, choosing from the list of options. Oracle Bills of Material creates a new configuration item,
bill, and routing that captures the chosen options. The configuration item lists the ordered model item as its base
model.
Configurator Model Type
This attributes determines the behavior of configurable models in configurator.
Standard
Container
Engineering Item
Indicates that the item was created using Oracle Engineering. This attribute is not updatable.
Effectivity Control
This attribute is used by Oracle Bills of Material when calculating lead times from the Routings form.
Date A concurrent program uses the date as the parameter.
Model/Unit Number A concurrent program uses the Unit Number as the parameter.
Work In Process Attribute Group
Tag:
Inventory
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Following are the Work In Process attributes and their possible values. You set these attributes when defining or
updating items.

Build in WIP
Indicate whether to create discrete jobs or repetitive assemblies in Oracle Work in Process. See: Defining Discrete
Jobs Manually, and Defining Repetitive Schedules Manually, Oracle Work in Process User‘s Guide.
This attribute must be turned off if the Inventory Item attribute is turned off or if the BOM Type attribute is not set to
Standard. This attribute is optionally set by the Item Status code.
Supply Type
Select a supply type for components.
Push
Assembly pull
operational pull
Bulk
Supplier
Phantom
Supply Subinventory
This attribute is controlled at the Organization level only. Enter the primary subinventory from which to issue (push) or
backflush (pull) an item to work in process.
Supply Locator
This attribute is controlled at the Organization level only. Enter the supply locator from which to issue (push) or
backflush (pull) an item to work in process. You can also define a WIP supply locator for any bill that uses this item;
the bill supply locator overrides the supply locator you define here. You must enter a WIP supply subinventory before
you can enter a locator.
Overcompletion Tolerance Type
Select Percent or Amount, or leave the field blank. If you do not select an Overcompletion Tolerance Type, the

tolerance defaults to the tolerance that you set at the organization level. If you did not set a tolerance at the
organization level, the default is Null, which signifies that no over–completions are allowed.
Overcompletion Tolerance Value
The value for this attribute is the number value for the Overcompletion Tolerance Type that you selected. It
determines the acceptable percent or quantity of assemblies that you will allow to be over–completed. For example, if
you choose Percent as the Overcompletion Tolerance Type, and enter 100 as the Overcompletion Tolerance Value,
you allow over–completions up to 100 percent of the original job or schedule quantity. If you did not select an
Overcompletion Tolerance Type, you will not be able to enter a value in this field.
Scheduling Penalty Inventory Carry
Specify, in units per day, an Inventory Carry penalty for jobs that are not completed before they are scheduled to be
finished. For example, the Inventory Carry penalty for a job that is not completed for an item might be 10 per day.
Scheduling Penalty Operation Slack
Specify, in units per day, the operation slack penalty for items having lag time between operations.
General Planning Attribute Group
Tag:
Inventory
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Following are the General Planning attributes and their possible values. You set these attributes when defining or
updating items.
Inventory Planning Method
Select an option for organization level planning.
Min–max You define a minimum quantity that you want on hand. When you reach this quantity, you reorder. You also
define a maximum on–hand quantity that you do not want to exceed.
Not planned No planning method used. Select this option for MRP/MPS planned items.
Reorder point The reorder point is calculated based on the planning information you define for this item.
Planner
This attribute is controlled at the Organization level only. Enter the material planner assigned to plan this item. You
must define planner codes for your organization before updating this attribute. The planner defined here is
responsible for approving all move order lines requesting the item if move order approvals are used.
If an item is vendor managed, you must enter a planner for the item.
Make or Buy
Select the option that applies to items with Inventory Item set to Yes. The Planner Workbench uses this to default an
appropriate value for implementation type. You cannot change the value of the flag if open orders exist for the item.
Make Usually manufactured. The Planner Workbench defaults the implementation type Discrete job. The planning
process passes demand down from manufactured items to lower level components.
Buy Uslly purchased. The Planner Workbench defaults the implementation type to Purchase Requisition. The
planning process does not pass demand down from purchased items to lower level components.
Attention: You must also set Purchasable to Yes to create purchase requisitions and purchase orders. If you also set
Build in WIP to Yes, you can use the Planner Workbench to implement planned orders as discrete jobs.

MIN-MAX
Min–Max Minimum Quantity
Enter the quantity minimum for min–max planning. If an item is min–max planned, the Min–Max Planning Report
suggests a new order when quantity drops to the min–max minimum.
Min–Max Maximum Quantity
Enter the quantity maximum for min–max planning. If an item is min–max planned, the Min–Max Planning Report
suggests an order that brings on–hand up to the min–max maximum
ORDER QUANTITY
Minimum Order Quantity
Enter the minimum order quantity or repetitive rate (units per day). Planning algorithms (reorder point, min–max,
MPS, and MRP) use this to modify the size of planned order quantities or repetitive daily rates. For discrete items,
when net requirements fall short of the minimum order quantity, planning algorithms suggest the minimum order
quantity. For repetitive items, when average daily demand for a repetitive planning period falls short of the minimum
order quantity, planning algorithms suggest the minimum order quantity as the
repetitive daily rate. For example, use this to define an order quantity below which it is unprofitable to build the item
Maximum Order Quantity
Enter the maximum order quantity or repetitive rate (units per day) of the item. Planning algorithms (reorder point,
min–max, MPS, and MRP) use this to modify the size of planned order quan tities or repetitive daily rates. For
discrete items, when net requirements exceed the maximum order quantity, planning algorithms suggest the
maximum order quantity. For repetitive items, when average daily demand for a repetitive planning period exceeds of
the maximum order quantity, planning algorithms suggest the maximum order quantity as the
repetitive daily rate. For example, use this to define an order quantity above which you do have insufficient capacity
to build the item

COST
Order Cost
Enter the fixed cost associated with placing an order of any quantity.
Carrying Cost Percent
Enter the percentage used to calculate the annual carrying cost. This is the percentage of the unit cost that
represents your internal cost to stock one unit for one year.
SOURCING
Source Type (Replenishment)
Inventory Fill requests by creating internal requisitions that become internal sales orders, pulling stock from existing
inventory.
Supplier Fill requests by creating purchase requisitions that become purchase orders, procuring the item from a
supplier. Subinventory Fill requests by creating move order requisitions that become move orders, pulling stock from
an existing subinventory.
Attention: If you are using Supplier Scheduling, it is generally recommended that this field be left blank. Otherwise, it
could override your sourcing rules.
Source Organization
Optionally enter the organization from which an internal requisition draws the item. This applies only when Inventory
is the replenishment source type
You can choose organizations that meet the following criteria:
• the item is assigned to the source organization
• the source organization has a valid inter–organization relationship with the current organization
The source organization can be your current organization if the item is MRP planned and you choose a non–nettable
Source Subinventory.
Source Subinventory
Enter the subinventory within the source organization from which an internal requisition draws the item. This applies
only when Inventory or Subinventory is the replenishment source, and only when you specify a source organization.
For MRP planned items, you must enter a non–nettable source subinventory when the source organization is the
current organization.
SAFTY STOCK
Safety Stock Method
Select an option to plan use of fixed or dynamically calculated safety stock quantities.
For MRP/MPS planned items, you must set the Inventory Planning Method attribute to Not planned, then choose the
MRP planned percent option here. MRP planned percent Calculate safety stock as a user–defined percentage
(Safety Stock Percent) of the average gross requirements for a user–defined number of days. For discrete items, the
user–defined number of days is the Safety Stock Bucket Days. For repetitive items, the user–defined number of days
is the repetitive planning period. Note that safety stock for an item varies as the average gross requirements vary
during the planning process.
Non–MRP planned Calculate safety stock using methods defined by the Enter Item Safety Stocks window. You can
use mean absolute deviation or user–defined percentage of forecasted demand.
For Oracle Master Scheduling/MRP and Oracle Supply Chain Planning and Supply Chain Planning, these safety
stock quantities are fixed. The Snapshot portion of the planning process loads them, and they do not vary during the
planning process itself.
Safety Stock Bucket Days
Enter the number of days to dynamically calculate safety stock quantities. The planning process multiplies the Safety
Stock Percent by the average gross requirements and divides by the number of days you enter here.
Safety Stock Percent
Enter the percent to dynamically calculate safety stock quantities for the item. The planning process multiplies this

percent by the average gross requirements and divides by the Safety Stock Bucket Days. The planning process uses
this attribute when you set Safety Stock to MRP planned percent.
ORDER MODIFIERS
Fixed Order Quantity
Enter the quantity used to modify the size of planned order quantities or repetitive daily rates. When net requirements
fall short of the fixed order quantity, the planning process suggests the fixed order quantity. When net requirements
exceed the fixed order quantity, the planning process suggests multiple orders for the fixed order quantity. For
discrete items, use this attribute to define a fixed production or purchasing quantity. For repetitive items, use this
attribute to define a fixed production rate. For example, if your suppliers can provide the item in full truckload
quantities only, enter the full truckload quantity as the fixed order quantity.
Fixed Days Supply
Enter the number of days used to modify the size and timing of planned order quantities. The planning process
suggests planned order quantities that cover net requirements for the period defined by this value. The planning
process suggests one planned order for each
period. For example, use this to reduce the number of planned orders for a discrete component of a repetitive item.
Fixed Lot Multiplier
Enter the fixed lot multiple quantity or repetitive rate (units per day). Planning algorithms (reorder point, min–max,
MPS, and MRP) use this to modify the size of planned order quantities or repetitive daily rates. When net
requirements fall short of the fixed lot size multiplier quantity, planning algorithms suggest a single order for the fixed
lot size multiplier quantity. When net requirements exceed the fixed lot size multiplier quantity, planning algorithms
suggest a single order that is a multiple of the fixed lot size multiplier
Invoicing Attribute Group
Tag:
Inventory
/
Following are the Invoicing attributes and their possible values. You set these attributes when defining or updating
items

Invoiceable Item
Indicate whether to include an item on an Oracle Receivables invoice. If you turn this option on, you can temporarily
exclude from invoicing when Invoice Enabled is turned off. This option must be on if Invoice Enabled is on.
Invoice Enabled
Indicate whether to activate an item for invoicing in Oracle Receivables. If Invoiceable Item is turned on, you can
temporarily exclude from invoicing by leaving Invoice Enabled turned off. If you turn this option on, the item appears
in the Invoice Entry item list of values in Oracle Receivables. If you turn this feature off, the item does not appear in
the list of values and AutoInvoice rejects the item. This attribute is optionally set by the Item Status code.
Payment Terms
Enter a valid payment terms code. This attribute is for reference information only.
Accounting Rule
Enter an accounting rule to identify special revenue recognition rules for an item, such as recognizing revenue over
time. See: Defining Invoicing and Accounting Rules, Oracle Receivables Reference Manual, This attribute is for
reference information only.
Invoicing Rule
Enter an invoicing rule to determine the period in which you send an invoice when you recognize revenue over time
(using accounting rules).This attribute is for reference information only.
Tax Code
Enter a tax code to use when calculating tax based on location and tax codes. You assign specific rates to a Tax
Code in the Other Tax Rates window.
Sales Account
This attribute is controlled at the Organization level only. Enter the general ledger account Oracle Receivables uses

to record revenue when you bill the customer. If AutoAccounting is based on items, accounting entries are created at
that time.
Inventory Controls
Tag:
Inventory
/
With Oracle Inventory you can implement locator, revision, lot, and serial number control.
Flexible Controls
You can implement any combination of the four controls (locator, revision, lot, and serial number) for each
item.
Inventory controls are optional for all items. You can choose to implement inventory controls for specific
items.
Locator Control Hierarchy
Oracle Inventory uses the following hierarchy to determine which locator control option to enforce during transaction
entry:
1. Org level overrides subinventory and item level.
2. Subinventory level overrides item level.
3. If decision is pushed to item level, Oracle Inventory uses item level.
Defining Locators
Locators are 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. You can receive items directly into and
ship items
directly from locators.

You can structure your Oracle Inventory installation so that some of the subinventories and items have locator control
while others do not. Each locator you define must belong to a subinventory. Each subinventory can have multiple
locators.
Defining Revision Quantity Control
A revision is a particular version of an item, bill of material, or routing. By using the revision quantity control option
you can track item quantities by item revision. To do so you must specify a revision for each material transaction. You
can enable revision quantity control for items for which you must track version changes or changes that are
significant enough to track but are not affecting the function and feature of the item and therefore do not require an
item change.
Defining Lot Control

A lot is a specific batch of an item
that you receive and store in your
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. With Oracle
Inventory you can establish lot
control for specific items in your
organization.
Defining Serial Number Control
A serial number is an
alphanumeric piece of
information that you assign to
an individual unit of an item.
A serialized unit is a
combination of an item and a
serial number.
You can track individual
units of items by using serial
numbers. Serial number
control is a system technique
for enforcing the use of serial
numbers during a material
transaction. You can use
serial numbers to track items
over which you want to
maintain very tight control.
Locator Control
Tag:
Inventory
/

1. Choose the number of segments in the flexfield.
2. Indicate the number of characters in each segment of the flexfield.
3. Specify whether you want to validate the values that you assign to the segments.
4. Freeze and compile your flexfield definition.
5. Even if you do not implement locator control, you must still compile the Stock Locators flexfield because
transaction and on-hand reports require a frozen flexfield definition.
6. Locator control provides locator uniqueness within an organization.
2. Organization-Level Locator Control Options

None Oracle Inventory never requests locator information while you perform a transaction for this
organization.
Prespecified only Oracle Inventory requires locator information while you perform a transaction for this
organization. You must choose a locator from a list of locators that you have prespecified.
Dynamic entry allowed Oracle Inventory requires locator information while you perform a transaction for this
organization. You may either choose from a prespecified list of locators or define a locator dynamically when
you enter the transaction.
Determined at subinventory level You can use the Subinventories window to set locator control for each
individual subinventory.
Note: Locator control options that you choose at the organization level override the locator control options that you
choose at the subinventory and item levels.
3. Sub Inventory-Level Locator Control Options

None Oracle Inventory never requests locator information while you perform a transaction for this
subinventory.
Prespecified Oracle Inventory requires locator information while you perform a transaction for this
subinventory. You must choose a locator from a list of locators that you have prespecified for this
subinventory.
Dynamic Entry Oracle Inventory requires locator information when you perform a transaction for this
subinventory. You may either choose from a predefined list of locators or define a locator dynamically when
you enter the transaction.
Item level This determines whether Oracle Inventory requires locator information when you perform a
transaction for this item.
Note: If your organization-level locator control choice is ―Locator control determined at subinventory level,‖ you must
choose a locator control option for each subinventory in your organization.
4. Item-Level Locator Control Options

No control Serial number control not established for this item. All material transactions involving this item
bypass serial number information.
At inventory receipt Create and assign serial numbers when you receive the item. Thereafter, for any
material transaction, you must provide a serial number for each unit.
At sales order issue Create and assign serial numbers when you issue (ship) the item against a sales order.
If you select this option, serial numbers are required at ship confirm. If you receive an item on an RMA
(return material authorization), you must specify the same serial numbers you created at sales order issue.
All other material transactions for this item bypass serial number information.
Predefined Assign predefined serial numbers when you receive the item. Thereafter, for any material
transaction, you must provide a serial number for each unit.
5. Define locators
Tag:
Inventory
/
Prespecified Locators

You must define locators if your item is under Prespecified locator control.
When you enter a transaction for an item that is under Prespecified locator control, you must choose a
locator that you have prespecified in this window.
You do not have to prespecify locators if your item is under Dynamic Entry locator control.
Locator Capacity

You can optionally specify locator capacity information. Oracle Inventory does not check for capacity limits and
possible violations, but you can use the Locator Listing report to display locator loads.
You can develop extensions to the standard product to generate locator overloading checks and warnings using this
information and item physical information that you specify in the Master Item window.
Receving Locator
Below table shows the type of locators you can create in a receiving/storage sub inventory.

6. Item Transaction Defaults
Tag:
Inventory
/
Default Shipping Locator
You can enter a default shipping locator for each item/subinventory combination. If you disable reservations for your
system, Oracle Order Entry uses the default shipping subinventory and locator in the pick release process. You can

override the default
shipping locator at ship confirm time.
Default Receiving Locator
You can enter a default receiving locator for each item/subinventory combination. When you deliver items to an
inventory location, if the source document does not have subinventory/locator information, Oracle Purchasing uses
the default receiving
subinventory and locator that you specify in Oracle Inventory.
You can override the default receiving locator if you decide to receive the item into another locator.
7. Restrict Items to Locators
Tag:
Inventory
/
Reasons to Restrict Items to Locators
Security You may decide to restrict high-security items to specific aisle/bin locations in warehouses.
Transaction entry You can limit items to specific locators to make the transaction entry process easier.
Fixed storage All your items are always stocked in a particular range of bins and aisles.
Options to Restrict an Item to Specific Locators

In the Inventory region of the Master Item window, select the Restrict Subinventories and Restrict Locators
check boxes.
In the Item Subinventories window, enter the list of restricted subinventories and locators for each item.
You can restrict an item to a list of locators only if your locator control is Prespecified or ―No Control.‖
Revision Control
Tag:
Inventory
/
A revision is a particular version of an item, bill of material, or routing. You use revision quantity control to track item
quantities by item revision. To do so you must specify a revision for each material transaction.
You can enable revision quantity control for items for which you must track version changes or changes that are
significant enough to track but are not affecting the function and feature of the item and therefore do not require an
item change.
Steps to Implement Revision Control for Items in Your Organization
1. Define a default starting revision for each organization.
2. Enable revision quantity control for items.
3. Define revision numbers to use for each revision-controlled item.
4. Enter revision numbers when you perform transactions.
Uses in Oracle Inventory
Material Transactions You can enter revision numbers for revision-controlled items during inventory
transactions.
Reservations You can place holds on specific revisions of items.
Accuracy You can enter revision numbers for revision-controlled items whenever you enter physical
inventory counts and cycle counts.
Reports and Inquiries Oracle Inventory reports and inquiry windows display revision information for revision-
controlled items.

Starting Default Revision for an organization
You can define a starting revision that Oracle Inventory uses when creating items. Revisions can be in numerical or
alphabetical order. If you do not enter a starting revision, Oracle Inventory makes the starting revision number zero.
When you save your item, Oracle Inventory assigns to the item the starting revision number from the Organization
Parameters window. This is the base revision of your item. If you introduce additional versions of the item, you must
first define them in the Item Revisions window.
Enable Revision Control Attribute
Revision control is an item attribute. If you maintain the revision control attribute at the item master level, each item
must have the same kind of revision control in each organization that carries the item.If you maintain the revision
control attribute at the organization level, each item may have a different kind of revision control in each organization
that carries the item.
Revision Quantity Control : If you select the Revision Control check box for an item, you must enter a revision
number when you enter transactions for the item.
If you clear the Revision Control check box for an item, you do not have to enter revision information when you enter
a material transaction for the item. You will not be able to track quantities of each different version of the item.

Defining Item Revisions
You can define multiple revision numbers and effective dates for each revisioncontrolled item. You can assign
revisions in sequence by effective date. Revisions must be in alphabetical or numerical order, and you must choose
one of the revision
numbers when you enter transactions, physical inventory counts, and cycle counts. You must enter a revision number
for each revision-controlled item that you transact.
Engineering Change Order
You can add a revision number when you enter an engineering change order or when you transfer items, bills, and
routings from engineering to manufacturing. Oracle Inventory displays the engineering change order that added the
revision.
Oracle Inventory displays the date on which you entered the engineering change order or when you transferred the
item using the Transfer to Manufacturing window.
Defining Item Revisions
Tag:
Inventory
/
Navigate to the Item Revisions window from one of the following windows:
i.Master Items Summary folder or Master Item window
ii. Organization Items Summary folder or Organization Item window
iii. Bills of Material window
iv. Engineering Change Orders window

You can use letters, numbers, and characters (such as *, &, and #) to label revisions. 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. Valid revisions can include: A, B, 01, 02, A1, B1, 1A, 1B, 0.0, 0.1, A.0, A.1, and so on.
Revisions are sorted according to ASCII rules. Each revision must be greater than the previous revision. Therefore,
you cannot use revision 10 after revision 9 because, according to ASCII sorting, 10 precedes 9.
The value you entered in the Starting Revision field in the Organization Parameters window displays as the starting
revision for the item. For revisions that have the same effective date, the revisions sort in descending order starting
with the last revision you entered.
Lot Control
Tag:
Inventory
/
A lot is a specific batch of an item that you receive and store in your 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.
Oracle Inventory enables you to establish lot control for specific items in your organization.

Steps to Implement Lot and Shelf Life Control in Your Organization
1. Choose organization-level lot number generation and uniqueness options.
2. Enable lot and shelf life control for your items.
3. Perform transactions for lot-controlled items.
4. Update information for specific item lots.
Material transactions You can trace item movements by lot number.
Reservations You can place holds on batches of items.
Perishable items You can establish shelf life control to regulate the use of perishable items.
Accuracy You can enter lot number information when you enter physical inventory counts and cycle counts
for lot-controlled items.
Reports and inquiries Oracle Inventory displays lot number information on reports and inquiry windows that
list item quantity and transaction information.
Organization level lot number defaults

Uniqueness Level of Lot Numbers
None You can assign the same lot number to multiple part numbers in the same organization and across
organizations.
Across items You can assign a specific lot number to only one item in the same organization.
Lot Number Generation Options
At Item Level You can specify a starting lot number prefix and a starting lot numberwhen you define an item
under lot control. When you receive the item, Oracle Inventory uses this information to generate a default lot
number for the item.You can always override default lot numbers.
At Organization Level You can specify the starting prefix and lot number information when you enter the
organization parameters. When you receive a lotcontrolled item, Oracle Inventory uses this information to
generate a default lot number for the item. You can always override default lot numbers.
User-Defined Oracle Inventory does not generate a default lot number when you receive your item.
Enabling Lot Control Options
Full Control You can specify a lot number for the item whenever you enter a transaction for the item. You can
establish lot number control for an item only if that item has no quantity on hand.

Establishing Shelf Life Control
You can establish shelf life control for items under lot control and use shelf life control to regulate the use of
perishable items.
Shelf Life Days All lots of this item have the number of shelf life days you define. Oracle Inventory calculates
the expiration date of the lot by adding the shelf life days to the date on which you receive the item.
User-defined You can enter an expiration date when you receive each lot and issue items from an expired
lot to a scrap account. If you perform any other transaction from an expired lot, Oracle Inventory displays a
message warning you that the lot has expired.
Lot Number Entry

(N)Transactions—>Miscellaneous Transaction
(B) Transaction Lines—>Lot/Serial
Update LOT information
Viewing Existing Lots
You can query any lot number used in the organization. Oracle Inventory displays the item with which the lot is
associated and its expiration date.
Disabling Lot
You can disable an item lot combination if you no longer want to view the lot in a List of Values.
Updating Expiration Dates
If necessary, you can update the expiration date and the lot number combination for an item.

Viewing Supplier Lot Information
If you entered the supplier lot number during your receipt transaction, you can use the Supplier Lots button to trace
your lot number back to the supplier lot number.
Item Lot Control
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Oracle Inventory provides complete lot number support for inventory transactions. You can enable lot control for
specific items in your inventory. For items under lot control, you assign lot numbers to each receipt into inventory and
thereafter reference the same lots each time you perform material transactions. This allows you to have tight control
over batches of items in your inventory.
Assigning Lot Numbers
1. You must assign lot numbers whenever you receive items under lot control into inventory. You can also add
quantities to existing lot numbers and split an inventory receipt into several lots, as necessary.
2. Inventory assists you in entering lot numbers by generating defaults using the default lot number generation
method you chose in the Organization Parameters window.
3. If the item you are receiving is also under User–defined expiration date Lot Expiration (shelf life) Control, you
must specify the expiration date for the lot.

Issuing Material from Inventory
When you issue items under lot control from inventory, you must specify a lot number for that item. You can
specify more than one lot to cover the transaction quantity. If you attempt to transact an item to or from an
expired lot, Inventory displays a warning message but does not prevent you from using the lot.
Assigning Lot Numbers to Assemblies
When you complete an assembly under lot control into inventory, you must assign a lot number in the WIP
Completion Transaction form in Oracle Work in Process. For assembly completions on discrete jobs, Oracle
Work in Process defaults the job‘s lot number.
Purging Lot Transactions
You can purge all lot transaction information from your current organization. Note that the transactions must
be in closed accounting periods.
Attention: Purging lot transactions eliminates information used in lot genealogy reports and inquiries
(Supplier Lot Trace Report, Job Lot Composition Report, and Job Lot Composition Inquiry).
Maintaining Lot Number Information
You can use the Item Lots window to update the expiration date of lots for items under lot expiration (shelf–
life) control. Inventory lets you view all lots you created in your current organization and the supplier lot
information associated with them.
Expired Lots
You can determine whether a lot has an expiration date by assigning a number of lot control shelf life days
or by entering an lot expiration date. The expiration date controls the availability of the lot for transacting and
planning purposes. 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, including inventory valuation 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
Disabled Lots
Disabling a lot only prevents it from appearing in a list of values when performing receipt transactions. If you
type in the lot number it is valid and acccepted even though it was not in the list of values. Disabling is used
only for tailoring this specific instance of the list of values for lot numbers. 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

Cycle Counting
Inventory includes the lot numbers of the items to cycle count when it generates a cycle count listing. You
must assign lot numbers to all items under lot control for which you enter counts. If there is a difference
between the count quantity and the system on–hand
quantity, Inventory adjusts the item quantity in that lot.
Performing Physical Inventories
Inventory includes the lot numbers of the items to count in your physical inventory when it generates tags.
You must assign lot numbers to all items under lot control for which you enter counts in the Physical
Inventory Tag Counts window. If there is a difference between the count quantity and the system on–hand
quantity, Inventory adjusts the item quantity in that lot.
Lot Control Setup
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Before using the lot control we need to have the following 3 setups
1. Lot information in inventory tab of item master
http://www.oracleug.com/user-guide/oracle-inventory/inventory-attribute-group

2. Lot information in Revision, Lot & Serial tab of organization parameter
http://www.oracleug.com/user-guide/oracle-inventory/revision-lot-serial-lpn-parameters

3. Use the Work in Process Parameters window to set up lot control in Oracle Work in Process. You choose the
option by which Oracle Work in Process defaults and verifies lot numbers during backflush transactions. You also
specify the method by which Oracle Work in Process defaults lot numbers on discrete jobs for lot controlled
assemblies.
Maintaining Item Lot Information
Submitted by oracleug on Wed, 01/28/2009 - 14:41
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You can update the disable status and expiration date associated with item lot information.

1. To view lot Genealogy Choose the View Genealogy button.

2. To view material transactions for an item lot, Select an item and lot and choose the Transactions button.

Serial Number Control
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A serial number is an alphanumeric piece of information that you assign to an individual unit of an item. A serialized
unit is a combination of an item and a serial number. You can track individual units of items by using serial numbers.
Serial number control is a system technique for enforcing the use of serial numbers during a material transaction. You
use serial numbers to track items over which you want to maintain very tight control.
Steps to Implement Serial Number Control for Your Items
1. Choose organization-level serial number uniqueness and default generation options.
2. Enter item-level serial number control options.
3. Define serial numbers to assign to serial-controlled items./Enter transactions for serial-number-controlled
items.
4. Update information for specific serialized units.
Material Transactions: You can enter serial numbers when you use inventory transactions to move serialized
units.
Cycle Counts: You can enter cycle counts for items under serial number control.
Physical Inventory: You can enter physical inventory counts for items under serial control.
Reports and Inquiries: Oracle Inventory reports and inquiry windows display serial number information for
items and transactions.
Types of Serial Number Uniqueness
You can choose one of three types of serial number uniqueness control for your organization:
Within inventory items

Within organization
Across organizations
Uniqueness applies only to the organization establishing the type of control.For example, if organization M1 Mfg.
establishes unique serial numbers across organizations, it cannot use a serial number already used by organization
Sacramento Mfg. However, M2 Mfg., with a different type of control, can still use serial numbers already used by
Austin Mfg. Therefore, if you choose unique serial numbers across organizations for one of your organizations, you
should make sure that you set the same uniqueness control for all other organizations.
Serial Number Generation Options @organization parameter
At Item Level
You can specify a starting serial number prefix and a starting serial number when you define the item. Oracle
Inventory uses the starting serial number prefix and the starting serial number for each item to generate serial
numbers for that item.
At Organization Level
You can specify a starting serial number prefix and a starting serial number when you enter organization parameters.

Oracle Inventory uses the starting serial number prefix and the starting serial number to generate serial numbers for
all items.
Serial Number Generation Options @Item
No Control: Do not enter serial number data when you transact your item.
Predefined: You must enter serial number data whenever you use the item in a material transaction in Oracle
Inventory. Use the Generate Serial Numbers window to generate serial numbers for the item. You can assign
predefined serial numbers to receive the item into inventory.
At Receipt: You must enter serial number information whenever you use the item in a material transaction. Create
and assign serial numbers when you receive the item in to inventory. You do not have to generate your serial
numbers ahead of time; you can enter them dynamically at transaction time.
At Sales Order Issue: Create and assign serial numbers when you issue the item against a sales order. You do not
have to use serial number information for any other types of material transaction. You do not have to generate your
serial numbers ahead of time; you can enter them at transaction time.
If you receive an item with this control option back into inventory on a return materials(s) authorization (RMA), you
must specify the serial numbers you created on sales order issue.
Item Serial Number
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Oracle Inventory provides complete serial number support for inventory transactions. You can enable serial number
control for specific items in your inventory. For items under serial number control, you assign unique serial numbers
to individual units and
thereafter reference the same serial numbers each time you perform material transactions. This allows you to have
tight control over every unit of every item in your inventory. If your item is under dynamic entry At sales order issue,
you can only assign serial numbers when you perform a shipment transaction in Oracle Shipping Execution.
Serial Number Validation
Oracle Inventory enables you to perform two optional validations for serial numbers that have been used in Oracle
Work in Process. This validation is enabled by setting the profile option, Inventory: Restrict Receipt of Serials to Yes.
• Validation of serialized components:
Enabling the profile option will validate that a given serial number for an item may not be received via purchase order
receipt, miscellaneous receipt, or account alias receipt, if that same serial number has been issued to Oracle Work In
Process.
• Validation of serialized end–assemblies:
Enabling the profile option will validate that a given serial number for an end assembly item may not be completed
into Oracle Inventory for a Discrete Job, Repetitive Schedule, Flow Schedule, and Work Order–less Completion, if
that same serial number has a state of, Issued out of stores.
Issuing Material from Inventory
If you issue items with a serial number control type of dynamic entry At inventory receipt or Predefined, you must
choose from the list of serialized units that you have already received into inventory. If you issue items with a serial
number control type of dynamic entry At sales order issue, you must assign serial numbers when you ship the item
against a sales order.
Assigning Serial Numbers to Assemblies
When you receive into inventory a completed assembly with a serial number control type of dynamic entry At

inventory receipt or Predefined, you must assign a serial number in the WIP Completion Transaction window in
Oracle Work in Process. You either accept the default serial number or enter another valid one.
Returning Serialized Units to Suppliers
You can return serialized units to the supplier in the Enter Returns and Adjustments window. Oracle Inventory
updates the serial number information with the purchase order number and transaction date of the return so that the
location of the serialized unit is known.
When you receive replacement units, you can issue new serial numbers. When you receive repaired units, you
should reference the original serial numbers so that Oracle Inventory can properly update the existing serial numbers
Detailed Steps to Implement Serial Number Control for Your Items
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1. Choose organization-level serial number uniqueness and default generation options.
2. Enter item-level serial number control options

3. Define serial numbers to assign to serial-controlled items
/Enter transactions for serial-number-controlled items.
4. Update information for specific serialized units.
Setting Up Serial Number Control
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1. Item master setup
http://www.oracleug.com/user-guide/oracle-inventory/inventory-attribute-group

http://www.oracleug.com/user-guide/oracle-inventory/lot-control-setup
i. Uniqueness
You use the Organization Parameters window to choose a type of serial number uniqueness for your organization.
You can choose to enforce uniqueness Within inventory items, Within an organization, or Across organizations. The
three levels for serial uniqueness are cumulative the definitions are as follows:
• Within Inventory Items: Once you assign a serial number to a particular item you cannot assign the same serial
number to the same item regardless of the organization. For example if you assign serial number SN100 to item A,
you cannot assign serial
number SN100 to any other instance of item A in any organization. This also includes CTO items derrived from base
model A. However you could receive item B with serial number
SN100 in any organization.
• Within Organizations: In addition to the restrictions Within Inventory Items control, the same serial number cannot
exist twice within the same organization. For example if you assign SN100 to item A, you will not be able to receive
item B with the serial
number SN100 in the same organization. However, you could receive item B with the serial number SN100 in any
other organization.
• Across Organizations: In addition to the restrictions Within Organizations, you cannot assign the same serial
number to any other item regardless of the organization. For example if you assign SN100 to item A you will not be
able to receive item B
with the serial number SN100 in any organization. If you assign Across Organization uniqueness to any organization

it restricts the serial generation in all other organizations. If one organization dictates Across Organizations, all other
organizations must do so.
ii. Generation
You can establish serial number control for an inventory item when you define it. You can choose from No control,
Predefined serial numbers, control At inventory receipt, or control At sales order issue.
If you specified Predefined as the serial number control type for an item, you must predefine serial numbers for that
item using the Generate Serial Numbers window. If you specified entry At inventory receipt or At sales order issue,
you can optionally predefine serial numbers for the item. Oracle Inventory uses the starting serial number prefix and
the starting serial number you specify in the Item window to load the number of predefined serial numbers you
request. You can load as many serial numbers as you want for any item under serial number control.
Generating & Assigning Serial Numbers
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Generating Serial Numbers
If you specified Predefined as the serial number control type for an item, you must predefine serial numbers for that
item.
If you specified entry At inventory receipt or At sales order issue, you can optionally predefine serial numbers for the
item. The process of generating serial numbers does not assign serial numbers to units in inventory, it simply
reserves specific serial numbers for an item, for later use. When you run the serial generation program if you have
the same serial prefix number across organizations, the concurrent program searches across the organizations, and
generates serial numbers using the highest start number across the organizations.

Serial Number Assignment
You must assign serial numbers whenever you receive items under serial number control into inventory. If an item is
under Predefined control, you can choose from the list of predefined serial numbers for that item. If an item is under
dynamic entry At inventory receipt, you can choose from a predefined list of serial numbers or enter any serial
number, depending on the uniqueness control for your organization. You can create and assign serial numbers
individually or as a range to speed up data entry. If your item is under dynamic entry At sales order issue, you can
only assign serial numbers when you perform a shipment transaction in Oracle Shipping Execution.
Once you assign a serial number to an item, the combination of the serial number and the item is an entity known as
a serialized unit. From that point on, Oracle Inventory tracks all movements and maintains the following information
for each serialized unit:
• Receipt or Ship Date
The date on which you last performed a material transaction for your serialized unit. Material transactions update this
information when you move your serialized unit.
• Serial State
Oracle Inventory assigns one of the following states to your serialized unit: Defined but not used, Resides in
inventory, Issued out of inventory, or Resides in intransit.
Status Codes
---------------------
1 Defined but not used
3 Resides in stores
4 Issued out of stores
5 Resides in intransit
6 Pending status
7 Resides in receiving
8 Resides in WIP
You can get a full list of the codes with the following SQL: select
lookup_type,
lookup_code,
meaning
from mfg_lookups
where lookup_type = 'SERIAL_NUM_STATUS'
order by lookup_type, lookup_code
• Location
The organization, subinventory, and locator in which the serialized unit currently resides. Material transactions update
this information when you transfer the serialized unit.
• Revision level
The revision of the item when you assign the serial number to the unit.
• Lot number
During material transactions, you first specify the lot number and then the serial number. Oracle Inventory tracks the
lot from which a specific serialized unit originates.
Maintaining Serial Number Information
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You can view location, job and state information, as well as update supplier information associated with your
serialized units.
1. Navigate to the Serial Numbers window. The Find Serials window appears.
2. Enter search criteria. If you do not enter criteria, a query for all serial numbers is performed.
3. Choose the Find button to display the serial number and item information in the Serial Numbers window.
Item Control
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In this chapter we‗ll discuss some advance controls that oracle provides on items

Item Relationships
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You can define relationships between items. This allows you to search for items through these relationships. Except
in Oracle Purchasing, these relationships are for inquiry and reporting purposes only.
Item Relationships with Oracle Purchasing
Within Oracle Purchasing you can define acceptable substitute items for receiving. You must define a list of
substitutes before you receive a substitute item in place of an originally ordered item. Attention: If you receive a
substitute item, you must have previously defined a unit of measure conversion between the unit of measure on the
purchase order and the unit of measure on the receipt.

Cross–Sell: This relationship indicates that one item may be sold in lieu of another item.
Up–Sell: This relationship indicates that a newer version of the item exists, and can be sold in place of the older item.
Service: This relationship establishes service items for a repairable item.
Prerequisite: This relationship indicates that you must possess one of the items as a requirement to possessing the
other item.
Collateral: This relationship indicates collateral, such as marketing brochures, that you possess for an item.
Superceded: This relationship indicates that one item has replaced another item that is no longer available.
Complimentary: This relationship indicates if a customer purchases one item, the other item is received for free.
Impact: This relationship is used to relate items to each other but only under special conditions.
Conflict: This relationship indicates that these items may never be used together.
Mandatory Charge: This relationship indcates a mandatory charge if the customer purchases both items.
Optional Charge: This relationship indicates an optional charge if the customer purchases both items.
Promotional Upgrade: This relationship enables a customer to upgrade from one item to another item or equal or
higher value, without an additional charge.

Split: This relationship enables you to split support for an item so you do not have to manually split support at contract
renewal. To use this relationship, you must be in a planning enabled organization.
Merge: This relationship enables rules based consolidation of contracts. You may use the earliest or latest target end
date for consolidation. This allows you to choose how contracts are consolidated. To use this relationship, you must
be in a planning enabled organization.
Migration: During contact renewal you are given the option of renewing contracts based on new licenses, or old
licenses. To use this relationship, you must be in a planning enabled organization.
Repair to: You use the Repair to item relationship with field service operations that use spares management
functionality. If a part has been superseded by another part, the Repair to item relationship determines the
replacement part.
Assigning - Subinventories & Item
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Assigning Subinventories to an Item
You can assign a list of subinventories to an item. You restrict an item to the list of subinventories by setting the
Restrict Subinventories attribute when you define or update the item.

You also use the item/subinventory relationship to specify valid subinventories for zero quantity cycle counts for an
item, and to specify items for an ABC analysis performed at the subinventory level. In these cases you do not have to
set the Restrict Subinventories attribute, only establish the relationship between the item and subinventory.
You can also specify planning information and locators for the item in its assigned subinventories. This information is
used to perform min–max planning and replenishment processing at the subinventory level.

Assigning Items to a Subinventory
You can assign items to a given subinventory. Assigning items to a subinventory does not restrict the subinventory to
that list of items. Rather, the items are restricted to that subinventory. Thus, you can always issue and receive
unrestricted items to any subinventory, but you can only issue and receive restricted items to their list of
subinventories. You activate the list of subinventories for a restricted item by setting the Restrict Subinventories
attribute when defining or updating items.
You also use the item/subinventory relationship to specify valid subinventories for zero quantity cycle counts for an
item, and to specify items for an ABC analysis performed at the subinventory level. In these cases you do not have to
set the Restrict Subinventories attribute, only establish the relationship between the item and subinventory.
You can also specify planning information related to the items you assign to a given subinventory.

Notes:
1. Assigning items to subinventory or subinventory to item does the same thing i.e it 'll restrict the item to those
assigned subinventories if restrict subinventory option is enabled in item master inventory tab for that item.
When an item is restricted to a sub inventory, you 'll only get the restricted subinventories in LOV of subinventory
while doing any transaction
2. While assigning subinventories to an item, go to the required organization parameter first.
3. If you attach an item to a subinventory in item/subinventory then the subinventory‘ll be available in assigned
subinventories form for that item in item master tool
Transaction Setup
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You must set certain controls and options before performing inventory transactions. These include:
Setting transaction profile options:
Oracle Inventory provides you with the following transaction processing profiles:
• Enter Replenishment Count
• Inter–Organization Transfer
• Miscellaneous Issue and Receipt

• Transaction Processing Mode
• Transfer Between Subinventories
• Update Average Cost
• Server Side On–line Processing
• Allow Expense to Asset Transfer
• Project Miscellaneous Transaction Expenditure Type
• RPC Timeout
• Restrict Receipt of Serials
• Transaction Date Validation
• Use New Trx Manager for Processing
• Override negative for Blackflush
• Quantity Tree Timeout for Lock
• Maximum Number of Quantity Trees
• Cycle Count Approvals
• Cycle Count Entries
Transaction Processing Mode
You can set processing control globally for all transactions or you can choose different options for each type of
transaction. You establish the method of transaction processing by choosing one of the following options when you
set up your TP:INV Transaction Processing Mode profile:
On–line processing Processes transactions while you wait and returns control to you once it finishes.
Background processing Returns control immediately to you. With this option, Oracle Inventory processes transactions
on a periodic basis via the Inventory Transaction Manager.
Immediate concurrent processing Spawns a concurrent process when you commit the transaction and returns control
immediately to you, allowing you to continue working.
Form level processing Processes transactions using the processing control option you choose for that particular type
of transaction. You must also set the Inventory profile options for Inter–Organization Transfer, Miscellaneous Issue
and Receipt,
Receive Customer Return, Return to Customer, and Transfer Between Subinventories. If you are using Oracle Work–
in–Process, you must set the WIP profile options Completion Material Processing, Completion Transaction Form,
Material Transaction Form, Move Transaction, Operation Backflush Setup, and Shop Floor Processing.
If you choose Form level processing for the Transaction Processing Mode profile you can set up different processing
controls for each type of transaction.
On–line Processing If you use On–line processing, you can choose whether transactions are processed on the server
or client side by setting the Server Side On–line Processing profile. The default value is server side processing.
Inventory Remote Procedure Manager Server side on–line processing uses the Inventory Remote Procedure
Manager to allow a transaction initiated on the client to process on the server. System managers maintain the
Remote Procedure Manager.
Launching Transaction Managers
The transaction managers execute the following processes:
material transaction,
move transaction,
resource cost transaction,
material cost transaction,
demand reservation &
remote procedure call.
These run at periodic intervals you specify until you delete them with the concurrent manager. They control the
number of transaction workers, processing intervals, and number of transactions processed by each worker during
each interval.

Transaction Actions
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A transaction action is a generic type of material movement or cost update with no specificity regarding the source
of the transaction. Along with a transaction source type, a transaction action identifies a transaction type. Oracle
Inventory provides the following transaction actions:
• Issue from stores
• Subinventory transfer
• Direct organization transfer
• Cycle count adjustment
• Physical inventory adjustment
• Intransit receipt
• Intransit shipment
• Cost update
• Receipt into stores
• Delivery adjustments
• WIP assembly scrap
• Assembly completion
• Assembly return
• Negative component issue
• Negative component return
• Staging Transfer
Transaction Source Types
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The relationship between transaction source type, transaction action and transaction type is shown in below picture.

1. A transaction source type is the type of entity against which Oracle Inventory charges a transaction. Along with
atransaction action, it uniquely identifies the type of transaction you perform. Oracle Inventory provides the
following predefined transaction source types:
• Account
• Account Alias
• Cycle Count
• Internal Order
• Internal Requisition
• Inventory
• Job or Schedule
• Move Order
• Periodic Cost Update
• Physical Inventory
• Purchase Order
• RMA (Return Material Authorization)
• Sales Order
• Standard Cost Update
2. You can define additional transaction source types in the Transaction Source Types window. You can then
use these user–defined transaction source types and predefined transaction actions to define a new transaction type.
This user–defined transaction type is now a customized form of tracking transactions with which you can group
and sort reports and inquiries.

3.When you perform a transaction, you specify a transaction type and a source. For example, for a PO receipt
transaction, the transaction source type is Purchase Order and the actual PO number is the source.
Transaction source type = Purchase Order
Transaction source = Purchase Order Number
Transaction Action = Receipt
Transaction type = PO Receipt
Transaction Types
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A transaction type is the combination of a transaction source type and a transaction action. It is used to classify a
particular transaction for reporting and querying purposes. Oracle Inventory also uses transaction types to identify
certain transactions to include in historical usage calculations for ABC analysis or forecasting. The following table
presents predefined transaction types:

Use the Transaction Types window to define additional transaction types to customize transaction entry. A user–
defined transaction type is a combination of a user–defined transaction source type and a predefined transaction
action. For example, if you frequently donate items to charity, you might want to define a transaction source type
called ‖Charity‖ and a transaction type called ‖Issue to Charity‖. In this case, the transaction action would be Issue
from Stores. You would then use the Miscellaneous Transactions window to actually issue an item to charity, using
the ‖Issue to Charity‖ transaction type. You would also specify the actual charity to which you are issuing, such as
Goodwill, and the expense account that specifies the source (Goodwill).
You define transaction types by combining transaction actions and transaction source types. You define transaction
source types in the Transaction Source Types window. Oracle Inventory provides the list of transaction actions.

You must specify a transaction type when you perform a miscellaneous receipt or issue, a subinventory transfer, a
WIP transaction, or an inter–organization transfer.

Defining Transaction Reasons
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A transaction reason is a standard means of classifying or explaining the reason for a transaction. Transaction
reasons can be used in all transaction forms.
You can use these standard transaction reasons with any type of material transaction. Oracle Inventory provides
transaction reporting and inquiring capabilities by transaction reason.

In the reason type from the list of values. The available choices are as follows:
• Load
• Drop
• Receiving
• Replenishment
• Cycle Count
• Shipping
• Update Status
• QA Update Status
Note: The Replenishment reason type is disabled.
If you selected Picking as the Reason Type, select a Reason Context from the list of values. The available choices
are as follows:
• Curtail Pick: End the pick after picking a few LPNs or Lots and load the contents.
• LPN Exception: Pick partial quantity of the scanned fully consumable LPN.
• Pick None: End the pick without picking anything.
• Pick Over: Pick more than the requested quantity.
• Pick Partial: Split the pick and allow confirmation of less than the requested quantity. You must still pick the entire
quantity, but can pick in stages.
• Pick Short: Specify a quantity less than the requested quantity, and back order the rest of the required quantity.
• Change Source Locator: Change the location from which the material is picked.
• Change UOM: Change the transaction unit of measure for the task.
Defining Item Transaction Defaults
Tag:
Inventory

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Use this form to define a default subinventory and/or locator for an item for shipping, receiving, and move order
transactions. Oracle Shipping Execution displays the default shipping information when you ship an item. Oracle
Inventory displays the default receiving information when you receive an item. For move orders, Oracle Inventory
derives the default put away locator when you transact an item into a locator controlled subinventory if no locator was
specified by the creator of the move order.
1. Navigate to the Item Transaction Defaults window.
2. Select the Subinventories tabbed region
a. ITEM -
Enter an item for which you want to assign a default transaction subinventory.
b. DEFAULT FOR -
Select the type of default:
Shipping: Assign a default shipping subinventory to the item.
Receiving: Assign a default receiving subinventory to the item.
Move Order Receipt: Assign a default move order subinventory to the item.
c. SUBINVENTORY -
Enter a subinventory to use as the default transaction subinventory for the item. If you restrict the item to
specific subinventories using either the Subinventory Items window or the Item subinventories window, you can
only choose those subinventories in this field.

3. Select the Locators tabbed region.
a. ITEM -
Enter an item for which you want to assign a default transaction locator.
b. DEFAULT FOR -
Select the type of default:
Shipping: Assign a default shipping subinventory to the item.
Receiving: Assign a default receiving subinventory to the item.
Move Order Receipt: Assign a default move order subinventory to the item.
c. SUBINVENTORY -
Enter a subinventory to use as the default transaction subinventory for the item.
If you restrict the item to specific subinventories using either the Subinventory Items window or the Item
subinventories window, you can only choose those subinventories in this field.
d. LOCATOR -
Enter a locator to use as the default transaction locator for the item in this subinventory.
Defining Account Aliases
Tag:
Inventory
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An account alias is an easily recognized name or label representing a general ledger account number. You can view,
report, and reserve against an account alias. During a transaction, you can use the account alias instead of an
account number to refer to the account.
To define an account alias:

1. Navigate to the Account Aliases window.
2. Enter a unique account alias name derived from concatenated segments of the account alias name key flexfield.
3. Enter the general ledger account to which you charge all transactions that use this account alias. You can change
this account only if the account alias has not been referenced.
4. Enter the effective date on which the account alias is enabled. Date must be greater than or equal to the current
date.
5. Save your work.
To make an account alias inactive:
Enter the date on which the account alias becomes inactive. As of this date, you can no longer use the account alias.
Date must be greater than or equal to both the effective date and the current date.
Transaction Managers
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Inventory
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The transaction managers execute the following processes: material transaction, demand reservation, move
transaction, resource cost transaction, remote procedure call, and material cost transaction. These run at periodic
intervals you specify until you delete them with the concurrent manager. They control the number of transaction
workers, processing intervals, and number of transactions processed by each worker during each interval. For
descriptions of the available managers see: Transaction Managers.
You do not have to launch these transaction managers if you decide to process all your transactions on-line
and do not use the transaction interface.

The use of multiple transaction workers enables parallel processing of transactions. This is especially helpful
when processing a large batch of transactions.
Material transaction
The material transaction manager immediately executes a material transaction after you save your changes in a
transaction window. By starting the transaction manager, you can determine how to execute transactions:
immediately through immediate concurrent request submissions, or through periodic concurrent request submissions.
You define this transaction mode for individual transaction windows in the Personal Profile Values window.
Move transaction
The move transaction manager processes move transactions in Oracle Work in Process and move transactions you
import from devices such as portable bar code readers or your custom data entry forms using the Open Move
Transaction Interface.
Resource cost transaction
The resource cost transaction manager processes resource transactions in Oracle Work in Process and resource
transactions you import from barcode readers, payroll systems, time cards, routing sheets, and custom data entry
forms using the Open Resource Transaction Interface.
Material cost transaction
The material cost transaction manager costs material transactions in Oracle Inventory and Oracle Work in Process in
the background.
To view and update the transaction managers
1. Navigate to the Interface Managers window. All existing transaction managers and their current status are
displayed.
2. Enter the maximum number of rows to assign to the worker.
3. For WIP Move Transactions only: Specify the processing timeout in hours and minutes. After this time the move
transaction manager no longer processes pending transactions and marks them as an error.
4. Save your work.

To launch a transaction manager:
1. Select a transaction manager in the Interface Managers window.
2. Choose Launch Manager from the Tools menu.
The Launch Inventory Managers window appears displaying the transaction manager you choose as the process to
be submitted.
Note: If the transaction manager is already active, Oracle Inventory displays a warning before displaying the new
window.
3. Select a resubmit level.
You can enter the start date and time to resubmit the transaction manager or an interval of time that the transaction
manager polls the interface table for pending transactions.
4. Choose Submit.
Transactions
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Inventory
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Oracle Inventory, with Oracle Order Management, Oracle Purchasing, and Oracle Work in Process, provides you with
a complete set of transactions and reports for maintaining inventory control. This allows you to control the flow of
material from the time you receive items to the time you ship finished goods to the customer.
Inventory transactions and on hand balance supports decimal precision to 5 digits after the decimal point. Oracle
Work in Process supports decimal precision to 6 digits. Other Oracle Applications support different decimal precision.
As a result of the decimal precision mismatch, transactions another Oracle Application passes may be rounded when
processed by Inventory. If the transaction quantity is rounded to zero, Inventory does not process the transaction. It is
therefore suggested that the base unit of measure for an item is set up such that transaction quantities in the base
unit of measure not require greater than 5 digits of decimal precision.
Performing Miscellaneous Transactions
Tag:
Inventory
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With a miscellaneous transaction you can issue material to or receive material from general ledger accounts in your
current organization. This allows you to issue material to groups that are not inventory, receiving, or work in process
such as a research and development group or an accounting department. You can also make manual adjustments to
the general ledger by receiving material from one account to inventory, and then issuing that material from inventory
to another account.
You can use your user–defined transaction types and sources to further classify and name your transactions. You
can use this feature to issue items to individuals, departments, or projects; or to issue damaged items to expense
accounts such as scrap. You can perform the receipts for items that were acquired by means other than a purchase
order from a supplier. You can also use this feature to load all item on–hand quantities when you start implementing
Oracle Inventory.
You will receive a material shortage alert while performing a miscellaneous transaction if you have enabled shortage
alerts for the miscellaneous transaction type being performed. Also, a miscellaneous transaction can trigger a
shortage notification to be sent to various pre–defined individuals.

Subinventory transfer
Tag:
Inventory
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You can transfer material within your current organization between subinventories, or between two locators within the
same subinventory. You can transfer from asset to expense subinventories, as well as from tracked to non–tracked
subinventories. If an item has a restricted list of subinventories, you can only transfer material from and to
subinventories in that list. Oracle Inventory allows you to use user–defined transaction types when performing a
subinventory transfer.

To do a subinventory transfer from expense to asset subinventory set the profile option INV: Allow Expense to Asset
Transfer to "Yes."
If it has not been set it to "Yes," it is possible to issue from an asset to an expense subinventory, but issue from an
expense to asset subinventory is not possible. Oracle Inventory expects the consumption of material at the expense
location. If you return an asset item to an expense subinventory, you must be first issue it from the expense
subinventory using the Miscellaneous
Transaction form and transfer it to the subinventory expense account. Then, no accounting occurs and you only
transfer quantities. To receive the asset item back to the asset subinventory, perform the Miscellaneous
Transaction account receipt using the same expense account as the expense subinventory.
For receiving an ASSET item back, you use the Miscellaneous Transaction instead of the subinventory transfer.
Move Orders
Tag:
Inventory
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Move orders are requests for the movement of material within a single organization. They allow planners and facility
managers to request the movement of material within a warehouse or facility for purposes like replenishment,
material storage relocations, and quality handling. You can generate move orders either manually or automatically
depending on the source type you use.

Note: Move orders are restricted to transactions within an organization. If you are transferring material between
organizations you must use the internal requisition process.
Managed Material Flow in a Facility:
Move orders allow you to distinguish between inventory management processes and the actual material transaction
process. This provides for the following:
Move Order Source Types:
Oracle provides three types of move orders:
1) Move order requisitions,
2) Replenishment move orders, and
3) Pick wave move orders.
4) Manufacturing component pick.
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: sub inventory transfer or account issue.
Move Order Requisitions
A move order requisition is a manually generated request for a move order. It is available for subinventory transfers
and account transfers. Once a requisition has been approved, it becomes a move order. These requests can
optionally go through a workflow-based approval process before they become move orders ready to be sourced and
transacted.
Replenishment Move Orders
You can automatically create pre-approved move orders using the following planning and replenishment functions.

These processes generate move orders if the material is sourced from another inventory location within the
organization.
Min-Max Planning:
Replenishment Counting
Kanban Replenishment
Pick Wave Move Orders
Pick wave move orders are pre-approved requests for sub inventory transfers to bring material from a source location
in the warehouse to a staging sub inventory. These move orders are generated automatically by the Oracle Shipping
Execution pick release process.
Manufacturing Component Pick
Created my component pick release in WIP
Workflow for Move Order Approval Process:
If you require planner approval for move order requisitions, you can use the move order approval process, which
forwards move order lines to the designated item planner for approval. Oracle Inventory manages the approval
process through Oracle Workflow.
To govern the move order approval process, you set two inventory organization parameters: Move Order Timeout
Period and Move Order Timeout Action. The Move Order Timeout Period attribute determines the number of days the
order can wait for approval. After one time out period, if the recipient has not approved or rejected the order, a
reminder notice is sent. After a second time out period, the order is automatically approved or rejected, depending on
the Move Order Timeout Action attribute you set. Upon approval, additional notifications can be sent to specified
individuals.
The item planner is an item attribute. If no planner is specified on the item, the requisition line will be automatically
approved.
Once the order line is approved, notices are sent to a notification list that is attached to the source and destination
sub inventories to let the sub inventory planners know that material will be moved to or from their areas.
Note: Replenishment and pick wave move orders are pre-approved
Express Pick Release
Customers who use Oracle Inventory primarily for financial purposes as opposed to operational purposes can user
express pick release to enhance pick release performance.
The overall process for this method is as follows:
1. Create detailed reservations.
2. Pick release order.
3. Populate reservations in shipping delivery details.
4. Ship confirm order.
Express pick release makes the following assumptions:
• There are no locators in the warehouse.
• The same subinventory is used for storing and staging shipped material.
• Detail level reservations are created before you run pick release, or during order or after order import.
• For plain and serial controlled items, the reservation must specify the subinventory.
• For lot-controlled items, the reservation must specify the subinventory and lot number.
• For revision controlled items, the reservation must specify the revision.
If the above conditions are met, the logic in pick release is set to bypass creating of move order lines, quantity tree
and reservations, and pick confirm.
Setting Up Move Orders
Tag:
Inventory
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Define the Subinventory source type
To automatically create move orders using min-max planning and replenishment counting, you must define the sub
inventory source type at once of the following levels:
Subinventory
Item Subinventory
To automatically create move orders using the kanban system, you must define the Subinventory source type at the
pull sequence level.
Define approval process parameters
To require planner approval for move order requisitions, you must define two parameters at the organization level:
Move Order Timeout Period and Move Order Timeout Action.
If you want to bypass the move order approval process and automatically approve move order requisitions, enter 0
days for the Move Order Timeout Period and select Automatically Approve for the Move Order Timeout Action.
You must also assign the planner who approves move order lines to the item or the organization.
You can also specify individuals to be notified if a shortage occurs.
Note: If the requested item does not have an assigned planner, the approval process is not enabled.
Define item transaction defaults
If you want to populate move order line allocations with item transaction defaults for the destination locator, you must
first define the item transaction defaults.
Note: You do not need to perform this step if you specify the locator at the time you create or allocate the move order
lines.
Define lot level UOM conversions
If you define a lot level conversion for a specific lot the move order quantity reflects the lot quantity to transact.
Setup Material Status
You can transact only material that permits move order transactions. You must that verify you can transact the
material before you perform move orders.
Workflow for Move Order Approval Process
Tag:
Inventory
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If you require planner approval for move order requisitions, you can use the move order approval process, which
forwards move order lines to the designated item planner for approval. Oracle Inventory manages the approval
process through Oracle Workflow.
To govern the move order approval process, you set two inventory organization parameters:
Move Order Timeout Period and
Move Order Timeout Action.
The Move Order Timeout Period attribute determines the number of days the order can wait for approval. After one
time out period, if the recipient has not approved or rejected the order, a reminder notice is sent. After a second time

out period, the order is automatically approved or rejected, depending on the Move Order Timeout Action attribute
you set. Upon approval, additional notifications can be sent to specified individuals.
The item planner is an item attribute. If no planner is specified on the item, the requisition line will be automatically
approved.
Once the order line is approved, notices are sent to a notification list that is attached to the source and destination
sub inventories to let the sub inventory planners know that material will be moved to or from their areas.
Note: Replenishment and pick wave move orders are pre-approved
Defining Pick Slip Grouping Rules
Tag:
Inventory
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You can create grouping rules to organize how picking lines for released sales orders and manufacturing tasks are
grouped on pick slips. For example, if you select Delivery as a grouping criteria, all picking lines for the same delivery
are grouped together on a pick slip.
You can also select additional grouping attributes for your grouping rules. For example if you select Delivery and
Carrier as grouping criteria, picking lines for the same delivery and carrier are grouped together on a pick slip.
Move Order Components

Tag:
Inventory
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A move order comprises the following:
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. The header also stores the default source and destination (if known), the order number, and
the requested date.
Move Order Number
Status
Move Order Type
Move order lines
Move order lines are the requests on a move order. They store the item, requested quantity, completed quantity (if
the move order has been partially fulfilled), and source and destination (if known). The move order lines also include
any project and task references if the organization is Oracle Project Manufacturing enabled. You can also request
specific serial and lot numbers on the move order line.
Source
Destination
Control - Status

Move order line allocations
The line allocations are the transactions that occur to fulfill a particular move order line.
You can set up your system to have Oracle Inventory's picking engine automatically fill in the allocations, or you can
manually fill in the line details and edit them before you transact. If the material is locator, lot, or serial controlled, the
system fills in this information at the line detail level.
Move Order Process Flow
Tag:
Inventory
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The move order process follows the following steps:
1.1. Create a move order for required material. You can manually create a move order requisition or set up your
system to automatically generate replenishment or pick wave move orders.

1.2. Approve the move order lines. If the move order requisitions require approval, the item planner must approve the
move order lines.
2. Allocate the move order. Once the move order is approved, you can allocate it, or cancel it. Allocating is the
process that uses Oracle Inventory picking rules to determine where to source the material to fulfill a request line. The
allocating process fills in the move order line details with the actual transactions to be performed and allocates the
material to the move order.
You can also cancel partially allocated move order requisitions and replenishment move orders. Oracle Inventory
provides a profile option INV: Kill Move Order which allows the system to cancel partially allocated and transacted
move orders.
Note: 1. Allocating creates a pending transaction the will be executed when you transact the line. It therefore
decrements the available quantity (i.e. it creates a soft reservation).
2. You can cancel move order lines that have no allocations. You can select an individual move order line, or multiple
move order lines. It does not matter if the move order lines belong to different move orders.
You can cancel move order lines only for move order requisitions and replenishment move orders.
3.1. Print a pick slip. Before you transact the move order, you can print a pick slip or push the move order line
allocations to mobile devices for transaction through the move order APIs.
Print Move Order Pick Slips:
You can print move order pick slips before or after the move order transaction is committed. The Move Order Pick
Slip report generates pick slips for move order requisitions and replenishment move orders.
To generate a pick slip for pick wave move orders, you submit the Oracle Shipping Execution Pick Slip report.
3.2. Transact move order lines. You can either transact all the move order lines at once or transact one allocation line
at a time as the items are moved. If you transact less than the requested quantity, the move order stays open until the
total quantity is transacted or until the order is closed or cancelled. You can cancel partially allocated and transacted
Move Order Requisitions and Replenishment Move Order lines.
Inter–organization Transfers

Tag:
Inventory
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You can define multiple inventories, warehouses, and manufacturing facilities as distinct organizations. With Oracle
Inventory you can perform inter–organization transfers as direct or intransit shipments.
Inter-Org transfers can be done within or accross operating units but you can not generate intercompany invoice with
inter-org transfer. Intercompany invoicing is possible for inter-org transfers of type ‗In-transit‘ only through ‗Internal
sales Orders‘. No intercompany invoicing is possible if you perform org transfers between two inventory orgs
belonging two different operating units without ‗internal sales Orders‘. Also note that intercompany invoice cannot be
raised for inter-org transfers of type ‗Direct Transfer‘ through Internal sales Orders.
You can transfer one or more items in a single transaction. You can also transfer partial quantities of the same item to
different subinventoriesand locators in a single transaction.
Required Setups
1. The items you transfer must exist in both organizations. You can also transfer expense and asset items from one
organization to another using intransit inventory.
2. There must exist a shipping network(direct/intransit) between the two organizations.

Accountings
1. Direct Org Transfer
From org - Inter-org receivables debited
Inv valuation is cedited
To Org - Inv valuation debited
Inter-org payables credited
Direct Inter–organization Transfers
Tag:
Inventory

/
You 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 you have defined in both the
shipping and destination organizations for the items you want to transfer. For example, you can transfer item A from
organization X to organization Y, even though item A is under lot control only in organization X (you can specify the
lot numbers for item A in organization X during the transfer transaction). However, you cannot transfer item B from
organization X to organization Y if item B is under lot control only in organization Y (you cannot specify lot numbers
for item B in the destination organization because you are performing a
direct transfer).
The following tables present direct, inter–organization transfers.(As given in oracle user guide)

If destination is Asset/Serial controlled/Lot controlled/ Revision Controlled then the source needs to be Asset/Serial
controlled/Lot controlled/ Revision Controlled
Inter–Organization Transfers via Intransit Inventory

Tag:
Inventory
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You usually transfer material to intransit inventory when transportation time is significant. When you perform the
transfer transaction, you do not need to specify the delivery location. You only need to enter the subinventory you 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.
If the FOB point is set to Receipt in the Shipping Networks window, the destination organization owns the shipment
when they receive it. If it is set to Shipment, the destination organization owns the shipment when the shipping
organization ships it, and while it is intransit.
While your shipment is intransit, you can update shipping information such as the freight carrier or arrival date in the
Maintain Shipments window.
At the time of shipment, you must define your receiving parameters for the destination organization. You can receive
and deliver your shipment in a single transaction or you can receive and store your shipment at the receiving dock.
The validity of a transfer transaction depends on the controls you have defined in both the shipping and destination
organizations for the items you want to transfer. For example, you can transfer item A from organization X to
organization Y, even though item A is under lot control only in organization X (you can specify the lot numbers for
item A in organization X during the transfer transaction). You can also transfer item B from organization X to
organization Y if item B is under lot control only in organization Y (you can specify lot numbers for item B in the
destination organization when you perform the receiving transaction).
1. The following tables present inter–organization transfers via intransit inventory.

2. In case of inter organization transfer via Intransit we required to put the shipment number

After completing the inter org transfer, go to the receiving form of the 'to org' and receive the shipment with the
shipment number.
Serial Number Restrictions
Tag:
Inventory
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There are certain restrictions and expected behaviors when transferring items between organizations where the serial
control in the source and destination organizations are different. The following tables explain the expected results.

Consignment Inventory
Tag:
Inventory
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Consignment Inventory is inventory that is
in the possession of the customer, but is still owned by the supplier. In other words, the supplier places some of his
inventory in his customer‘s possession (in their store or warehouse) and allows them to sell or consume directly from
his stock. The customer purchases the inventory only after he has resold or consumed it. The key benefit to the
customer should be obvious; he does not have to tie up his capital in inventory. This does not mean that there are no
inventory carrying costs for the customer; he does still incur costs related to storing and managing the inventory.
From the "Consigned inventory from supplier" User's Guide: Consigned inventory from supplier exists when inventory
is in the possession of one party (a dealer, agent, distributor, and so on), but remains the property of another
party(such as the manufacturer or primary contractor) by mutual agreement. Consigned inventory from Supplier
refers to one type of consigned inventory practice where you receive and maintain goods belonging to one or more of
your suppliers. Both suppliers and customers benefit through a consigned inventory strategy:
Suppliers can compete on the basis of availability and delivery when finished goods are at the customer site,
particularly when lead times are lengthy.
Holding material on consignment reduces the lead time for items that might be required to fill sales orders.
Customers experience increased inventory turns thus, reducing funds invested in inventory. Financial
resources are free until customer commitments are ensured, or items are used in production.
Consigned VMI with Customers Is defined as the process that allows you to manage inventory at your customer sites
(monitoring of on-hand, as well as the replenishment), and to operate a consigned inventory (pay-on-use) scenario
where the material ownership remains with you until it is consumed by the customer. Traditionally, this process is
highly laborious and transactional oriented and provides little visibility into the customer inventory and demand
position. It is prone to stock outs and increased expediting costs. What you want to do is move to a more automated
planning and execution process.
Benefits of consignment include:
Supplier:
1. Does not need to store material 2. Reduced delivery costs, less rush orders, transportation efficiencies 3. Material
closer to point of sale Buyer
1.Reduced lead time 2. Reduced funds invested 3. Easier access to material

Consignment Inventory Buyer Prospective (With Supplier)
Currently, Purchasing does not allow encumbrance and consignment to be active at the same time (they are mutually
exclusive in the same Operating Unit)
Setups
1.Item : Nothing special here, just make sure that the item is stockable and purchasable.
2. Define and assign a Sourcing Rule for this Item :
Create a Sourcing Rule specifying Both a Supplier and Supplier Site. Make sure the supplier site is a valid purchasing
site. Assign the sourcing rule to the Default assignment set (as specified in MRP: Default Sourcing Assignment Set).
3. Create a Blanket Agreement (ASL source document)
Create a normal Blanket Agreement specifying pricing for this Item as appropriate.
Take care that the supplier and supplier site used here must be the same as those in the sourcing rule and ASL.
4. Create ASL entry
Take care that you MUST specify a supplier site here otherwise you will not be able to enable consignment for this
ASL entry. Also ensure that the supplier and supplier site used here are the same as those in the Blanket Agreement
and Sourcing Rule.
Specify the Blanket Agreement number.
If you are unable to select the Blanket Agreement you have created here please check for the following :
A – The Blanket Agreement is not approved
B – The Supplier/Supplier Site combination on the Blanket Agreement is not the same as on the ASL entry
C – The Item on the Blanket Agreement is not the same as on the ASL entry
Now click on the Inventory tab. This is the part of the setup that is different from automatic sourcing.
Make sure to check the ‘Consigned from Supplier’ check box. This is the most important part of the setup.
Business Cycle
1. Create a standard PO
Even though we have created a Blanket Agreement as the source document, consignment requires a PO (and not a
Release) to begin the cycle.
Obviously the PO should contain the same Item, Supplier and Supplier Site as those in the Blanket Agreement,
Sourcing Rule and ASL.
Approve the PO. Please note that no accounting is expected at this point since encumbrance is disabled
(Encumbrance is not compatible with consignment).
2. Receive the Goods
Receive the goods in the destination inventory.
Save the receipt. The goods are now in the specified subinventory. If this was a normal PO, the appropriate
accounting transaction would have been created
(Dr Receiving Area account / Cr Inventory AP Accrual account). However, since this is a consigned PO, we do not
expect any accounting transaction to have been created.
we can receive the material w/o creating a standard PO and bu just doing a misc. receipt. The owning party should
be selected as the supplier.
3. Convert consigned goods to regular goods
Consigned stock is automatically converted to regular stock when certain inventory transactions take place (e.g.
shipping), however there is an inventory process that allows consigned stock to be transferred to regular stock (and
vice versa). Once consigned stock has been converted to regular stock, the receipt accounting transactions are
generated.
To transfer consigned stock to regular stock navigate to Inventory Responsibility->Transactions->Consigned
Transactions

Once you specify the Item and Subinventory, the system will check the available and on-hand consigned stock in this
subinventory. If you have received the goods correctly then there will be consigned stock which is eligible for transfer
to regular stock.
Once this transaction is saved, the item is now regular stock. If you try to create a new transaction the consigned
stock will have decreased and if there is no consigned stock left, you will not be able to complete this transaction. Let
us now check that the appropriate accounting transaction has been created.
Navigate to Inventory Responsibility->Transactions->Material Transactions form and query the Item.
Goods can also be automatically transferred to regular stock through other means.
From the Oracle Inventory Consigned Inventory from Supplier Process Guide :
The system automatically generates a Transfer to Regular transaction whenever consumption takes place.
Consumption transactions are performed either explicitly or implicitly. Explicit consumption is performed whenever
the user specifies the external owning party (the consignor) whose goods will be transferred to the internal
organization. Explicit consumption is performed by using the consigned transactions window and performing a
transfer to regular transaction, or for example, by performing a miscellaneous issue and indicating the owning party
in the transaction line. Implicit consumption refers to any type of consumption in which the system automatically
determines that consumption is necessary, and selects the owning parties whose stock will be used up to complete
the required transaction.
Some transactions always consume consigned materials. These transactions include the following:
1. Sales Order issues
2. WIP issues
3. Inter-organization transfers
4. Miscellaneous issues
Other transactions can be set up to consume according to rules in the Consumption Transaction Setup window—
located in Oracle Inventory. These transactions include Subinventory Transfers, Move Orders, Backflush Transfers,
and others.
4. Consumption advice
Once the goods have been consumed, the quantities consumed should be communicated to the supplier to provide
the necessary information for billing.
Nav: Reports >Consigned Inventory (when you click on this you see a window open for you).
Once you select all the parameters for example Supplier Item, item and Supplier and select go button. you will
information below that page and you can drill down that information.This OA framework report it not written in regular
Oracle reports.
The normal invoicing and payment cycles and cycle can take place once the supplier has sent the invoice, with the
only difference being that invoices are matched to the consumption advice rather than the receipt.
Download the consignment demo from a buyer prospective @
http://www.forum4pmp.com/sites/default/files/consignment_buyer.swf
On–hand and Availability
Tag:
Inventory
/
Oracle Inventory provides a variety of windows to view

1. on–hand quantities,
2. reservations,
3. supply/demand,
4. available to promise,
5. supply chain available to promise,
6. and capable to promise information.
The available to promise (ATP) features help you determine when you can commit to fulfilling a customer‘s request.
The ATP calculation determines the uncommitted portion of your company‘s inventory and planned supply. This
enables you to determine if a requested item and quantity is available at a specified date.
The supply chain ATP feature provides a global view of material availability for the requested demand. You can view
all possible supply sources for an order line, ship set, or configuration.
The capable to promise (CTP) feature lets you determine the availability of resources as well as material.
Material Workbench
Tag:
Inventory
/
You use the material workbench to view on–hand quantities. The Material Workbench enables you to view on–hand
balances for inventory items by

• Location: Location information includes the subinventory and associated locators. You can also view subinventory
quantities, including the packed and unpacked quantities.
• Cost Group: Cost Group information assigned to the item.
• Status: Status information that includes the statuses assigned to subinventories, locators, lots, and serials.
• Item: Item information includes the organization, item number, UOM, available quantity lot and serial number.
• LPN: If you are in a warehouse management enabled organization you can view LPN information for the item.
• Serial: Serial information lists the serial numbers generated for an organization, and the items associated with the
serial numbers.
• Lot: Lot information lists the lot numbers generated for an organization and the items associated with the lot
numbers.
The Material Workbench enables you to query on–hand balances for inventory items by: location, project, cost group,
ownership, vendor, and planning party.
You can also use the Material Workbench create move orders, request cycle counts, and change material
statuses.
1.
The following information is available on the Quantity alternate region of the Material Workbench
Planning Party: The vendor that manages the inventory.
Owning Party: The third party owner of the inventory.
2. Item Availability
You can use the material workbench to view item availability. Item availability can be calculated for a given item at the
subinventory, locator, lot or revision. Availability cannot be calculated by serial number.
You can view the following information in the Availability window:

• Organization: The organization where the item resides
• Item / Revision: The item and revision number
• Subinventory: The subinventory within the organization where an item resides.
• Locator: The row rack and bin where the item resides.
• Lot Number: The item lot number.
• Cost Group: The item cost group.
• On Hand: The number of items available in the subinventory
• Available to Reserve: The available quantity of an item you can reserve across an organization.
• Available to Transact: The available quantity of an item you can transact across an organization.
3. Item Status Information
You can use the Material Workbench to item view status information. You can view the Subinventory, Locator, Lot or
Serial status. You can also see the allowed and Disallowed transaction types for the item.
Note: If you selected Cost Group as the display option, you cannot choose status.
You can view the following information in the effective status window.
• Subinventory Status: The subinventory status.
• Locator Status: The locator status. This field is blank if the item is not locator controlled.
• Lot Status: The lot status. This field is blank if the item is not lot controlled.
• Serial Status: The serial status. This field is blank if the item is not serial controlled.
• Transaction Types: The transaction types alternative region displays the allowed and disallowed transaction types
for the
item.

4. Attribute Information
You can view the attributes of a particular lot, serial, or LPN (warehouse management only) from the Material
Workbench. For lots or serials, the system displays the item attributes and categories. For LPN‘s the system displays
the weight and volume of the selected LPN.
5. Material Workbench Transactions
You can use the Material Workbench tools menu to perform the following transactions:
• Mass Move: Moves the selected items to a new subinventory.

• Mass Issue: Enabled you to mass issue an item.
• Status Update: Enables you to change status information.
• Cost Group Transfer: Enables you to transfer the item to another cost group.
• Cycle Counting: Enables you to initiate a cycle count for the selected subinventory.
Multi–Organization Quantity Report
Tag:
Inventory
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Use the Multiple Organization Inventory Report to show the inventory quantity on hand for items in more than one
organization. The report has no limitations on the number of organizations you can enter. The report is sorted by
inventory item for all of the organizations. You can include quantities that are in transit. If you have revision control
items, you can report on the revision quantities individually (for each revision) or summed for the item. You can run
the report for all items, or you can specify a range of items.

Viewing Item Supply/Demand Information
Tag:
Inventory
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You can view supply/demand information, and the current and projected available quantities of an item.

Supply/Demand Type: The supply source or demand source type, such as Account number, Purchase order, Sales
order, and WIP discrete job.
Identifier: The identifier for the supply source or demand source, such as the purchase order number or work in
process discrete job number.
Quantity: The scheduled supply quantity or demand quantity for the item. Demand quantities are displayed as
negative numbers. Supply quantities are displayed as positive numbers.
Available Quantity: The projected on–hand quantity of the item, defined as Current Available plus all future sources
of supply and less all future sources of demand

Available to Promise
Tag:
Inventory
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Calculating the Available to Promise (ATP) is a method of checking the projected supply of an item at a given time.

The basic formula for ATP is ATP quantity = on-hand quantity + supply - demand.
Oracle Inventory lets you define different rules that govern what is considered supply and demand.
In oracle inventory you can view the earliest available date for a specific quantity of an item or a group of
items and the available quantity of an item for a specific date.
ATP Rule
Tag:
Inventory

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To implement available to promise, you begin by defining your ATP rules. ATP rules let you tailor the ATP calculation
to suit your business needs. Each rule is a combination of ATP computation options, time fence options, and
supply and demand sources to use during an ATP inquiry. You cannot delete an ATP rule, but you can rename or
redefine existing rules by updating fields.
You can define multiple ATP rules to reflect th
e specific needs of your organization, and then use different rules to calculate availability for different items or groups
of items. Each time you run an ATP check, the rule determines how existing supply and demand are matched. You
can choose one of the ATP rules you define as the default ATP rule for your organization. You can update the item
attribute ATP Rule to specify a default ATP rule for each item.
ATP Computation Options
You can choose a variety of computation options to suit your business needs. ATP computations use the
consumption and accumulate available features. Consumption resolves negative ATP after it is already determined
that there is not enough available inventory.
Accumulation uses excess inventory from a period to determine where new demand can be placed. You can choose
any combination of the following options:
Backward consumption only
ATP calculates availability for your item period by period. If the available supply quantity for the period does not meet
the existing demand for that period, ATP works backward, period by period, and checks if the available supply within
each period is sufficient to meet the excess demand. ATP does not combine the available quantities from multiple
periods to meet an existing demand.
Backward consumption and accumulate available
ATP accumulates the excess supply from period to period. When demand in a period exceeds supply, this
accumulated quantity is dipped into and reduced. When you perform an availability check, the accumulated quantity
is available for your demand.

Forward consumption and backward consumption
ATP consumes backwards first. If the available supply quantity for a period is not enough to meet the period‘s
demand, ATP
steps back period by period to try to satisfy demand. If the demand cannot be met, ATP then moves forward into
future periods to check on available supply.
Keep in mind that the ATP rule applies to existing demand and supply, and determines the quantity available on a
period by period basis. Your quantity check is done against the results. ATP does not try to forward consume or
backward consume your ATP check quantity.
ATP Time Fence Options
You can specify time fences for your ATP rules to restrict the use of both supply and demand. Time fences help you
filter the noise out of the ATP calculation. You can implement the following time fence options:
Past Due Demand Days
ATP does not include any demand orders with a due date before this time fence. ATP uses the number of
manufacturing workdays you enter for this fence to back off from the current system date and determine the past due
time fence.
Use this time fence if you have sales orders, jobs, repetitive schedules, or other demand outstanding with past due
dates that you do not plan to fill from existing or planned supply. If the due dates are before the time fence, ATP does
not include these orders as demand.
Past Due Supply Days
ATP does not include any supply orders with a due date before this time fence. ATP uses the number of
manufacturing workdays you enter for this fence to back off from the current system date and determine the past due
supply fence.
Use this time fence if you have purchase orders, jobs, repetitive schedules or other supply orders with past due dates
that you do not want to rely on as a source of supply for your ATP calculations. If the due dates are before the time
fence, ATP does not include these orders as supply.
Infinite Supply Time Fence
Use this time fence to specify the end of your ATP horizon. ATP considers any demand that falls beyond this time
fence as available. Use this time fence as the practical lead time you need to acquire components and build any
quantity that a customer may order. You can choose from the following options to determine the infinite supply time
fence:
• Cumulative manufacturing lead time
• Cumulative total lead time
• Item total lead time (does not include lead time of components)
• User–defined time fence (specify the number of supply days for your rule)
Accumulation Window
If you choose to accumulate expected surplus in one ATP period to the next, you can limit this accumulation to a
specific number of workdays. Oracle Inventory does not treat excess supply as available supply beyond this
accumulation window. Oracle Inventory also uses this option in backward consumption calculations, preventing
excess supply from a period beyond the accumulation window from covering a shortage in a future period.
You can use the accumulation window to prevent the commitment of supply to satisfy demand with requirement dates
far into the future. This is particularly useful if you have an item with high turnover and would likely be able to sell it
quickly.
ATP Supply Source Options
You can choose the supply sources for each ATP rule. The ATP rule you use during the ATP inquiry then determines
which sources of supply to include in the ATP calculation. Note that supply that falls on a non–manufacturing workday
is considered available on the next manufacturing workday. All supply must have a scheduled due date within the
ATP rule‘s past due supply days window.
Inventory Planning and Replenishment
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Inventory
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Oracle Inventory lets you manage your inventory levels using any combination of the system‘s planning and
replenishment features, including min–max planning, reorder point planning, kanban replenishment, and a
replenishment system for generating orders.
Inventory planning involves answering 3 questions:
When to Order?
Typically, you should order when:
on-hand quantity + supply - demand < minimum inventory level
The minimum level is a safety stock designed to be on an exception basis to meet
demand or inventory while waiting for replenishment.
How Much to Order?
Typically you should order a quantity that balances the cost of placing an order with the cost of carrying inventory
while covering expected demand. You then create a requisition to replenish inventory from another organization or a
supplier.
Which Planning Methods to use ?
• Reorder-point planning (organization)
• Min-max planning (organization and subinventory)
• Replenishment Counting
• Vendor managed
• Kanban planning
• Material-requirements planning: Master Production Scheduling/Master Demand Scheduling (organization)
Item Safety Stocks
Tag:
Inventory

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Oracle Inventory uses item safety stocks in the reorder point planning process. Safety stock is a floor or base level of
inventory from which Oracle Inventory performs all planning. In other words, the item is planned as if the safety stock
quantity for the period is the zero inventory balance of the item. This ensures that the safety stock quantity remains in
inventory to cover any fluctuations in demand.
In businesses such as aerospace and defense manufacturing, or construction, it is normal to segrate supplies and
demands by inventory ownership. Safety stock definition in such environments can be project specific. You can enter
your own safety stock quantities or let Oracle Inventory calculate them based on an existing forecast for the item.
1. To manually enter a safty stock against an item.
Navigate to Inventory ->Planning -> Safty stock
and enter the item and safty stock
2. To have Oracle Inventory calculate safety stock based on an existing forecast for the item:
Navigate to the Safety Stock Update window or choose Reload from the Tools menu in the Enter Item Safety Stocks
window.

Select the method for loading the safety stock:
Mean absolute deviation (MAD): Calculates demand using the mean–absolute deviation method. You must enter the
service level percentage and forecast information.
If you chose Mean absolute deviation (MAD) in the Method field, enter the service level percentage. This is the
desired level of customer service in satisfying the product demand immediately out of inventory. The higher this value
is, the more safety stock quantity should be carried to provide protection against irregularities or uncertainties in the
demand or the supply of an item.
Enter a value between 50 and 100 as the service level. This represents the probability that you can fill an order from
available inventory. A 90% service level means that on average you can fill an order immediately 90% of the time.
If there is sufficient demand and forecast history available, you can use the mean absolute deviation method. This
method compares the forecast to actual demand to determine forecast accuracy and, therefore, how much safety
stock is required to prevent stock–outs. If the forecast has been very accurate in the past, only a small safety stock is
required. The formula for safety stock using this method is:
MAD is the mean absolute deviation of the historic forecasts from the actual demand.
Z is the number from the normal distribution probabilities corresponding to the service level specified by the user.
User–defined percentage: Calculates safety stock based on a user–defined percentage of a demand in specified
forecast.
If you chose User–defined percentage in the Method field, enter the safety stock percentage of demand.
To calculate safety stock as a percentage of forecast demand, enter a forecast name and safety stock percent.
Oracle Inventory calculates the safety stock quantity for each forecasting time bucket by multiplying the two. For
instance, if the forecast demand for a particular period is 120 units and you specify a 10% safety stock buffer, the
safety stock
level is set at 120 * 10% = 12 units.
Enter the starting date on or after which the existing safety stock
quantities are replaced by the results from the safety stock calculation.
Order Modifiers
Tag:

Inventory
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When you define an item or an item–subinventory relationship, you can specify attributes that modify your order
quantities. You can use them to model supplier constraints that restrict the size of an order or mandate a specific lot
size. You can specify minimum and maximum order quantities and fixed lot size modifiers. For replenishing
subinventories, these same order modifiers can be set by item at the subinventory level.
If an order is smaller than the minimum order quantity, Inventory modifies the order upward to the minimum order
quantity. Likewise, if the order is larger than the maximum order quantity, it modifies it downward to the maximum
order quantity. An order must be a multiple of the fixed lot size multiplier. If it is not, it is revised upward so that the
order is such a multiple.

Kanban Replenishment
Tag:
Inventory
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Kanban is a means of supporting pull–based replenishment in manufacturing systems. A Kanban system is a self–
regulating pull system that leads to shorter lead times and reduced inventory. Kanban systems are typically applied to
items that have relatively constant demand and medium–to–high production volume.
Kanbans represent replenishment signals that are usually manual and highly visible, such as a color–coded card that
moves with the material, a light that goes on when replenishment is required, or an empty bin that is moved to the
supply location to trigger replenishment.
The system includes an API that can be called by external systems, such as bar code readers, to trigger
replenishment signals. Kanbans can be replenished from an external supplier or an internal organization.
The four types of kanbans available in the system trigger transactions that pull material from different replenishment
sources.
Inter Org Creates internal requisitions
Intra Org Triggers material movement from a subinventory in the same organization
Production Creates or releases a production job (discrete job, repetitive schedule, or flow schedule)
Supplier Creates a purchase requisition

Kanbans are generally replenishable and cycle through the system from full to empty, remaining active until they are
withdrawn. One–time signals, called non–replenishable kanbans, are used primarily to manage sudden spikes in
demand.
Coined from the Japanese word kan which means ―card‖, and ban which means ―signal‖, kanban is simply described
as a system for ―pull‖ production control. When we talk of ―pull‖, it is more of a control measure to release materials
into production ―only when they are needed.‖
On the other hand, the ―push‖ system is a transposition of the ―pull‘ production system. ―Push‖ is thereby releasing
materials into production as customers‘ orders are processed and the materials become available. Material
Requirement Planning or Manufacturing Resource Planning (MRP) modules are typical ―push‖ systems.
Some may say that Kanban is more of a visual scheduling system. The emphasis here is that Kanban is not a system
where everything is put on schedule, it must be made clear that Kanban is a production control system intended to
enable the process owner to easily view production requirements and ensure that parts or supplies are
ordered/procured only if necessary.
Kanban is generally used in two instructional forms:
1. A simple production instruction (shikake) indicating what, where and when it is needed, and where materials are
coming from or going to; and
2. The other form is for parts withdrawal (hikitori) or an illustrated piece to visually communicate materials that have
been consumed and their quantities that need to be replaced by upstream processes.

The purpose of Kanban is, therefore, to automate the inventory controls without the need of analysis or planning.
Defining Pull Sequences
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Inventory
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SOURCE TAB
For every kanban planned item, you must define a pull sequence, which is a series of kanban locations that model
the replenishment network on the shop floor. A kanban location can be a subinventory or an inventory locator. The
replenishment source for a kanban location can be another kanban location, a production line, or an external source.
You can use locators even if locator control is turned off at the organization, subinventory, and item levels.
Kanbans can be sourced from an external supplier or an internal organization. A Supplier Source Type kanban
triggers a purchase request to the supplier, while an inter-org. Source Type kanban results in an interorganization
transfer.
KANBAN TAB

Planning Only
Choose Planning Only if you want the program to perform the kanban calculations for you, but you will use a manual
system to execute the kanbans. You will be able to calculate kanban sizes but will not be able to generate and print
kanban cards or execute the replenishment cycle.
Auto Request
Select the Auto–Request check box enable auto requests for the pull sequence. This calls the Auto Replenishment
for manufacturing concurrent request, which picks up the pull sequences and generates non–replenishable kanban
cards for the pull sequences
Caluclate
Specify what you want the kanban system to calculate, it can either be Number of cards, Kanban size and do not
calculate.
See next chapter for details
Kanban Size and Number of Kanban Cards
You will choose what you want the program to calculate: kanban size or kanban cards. The product of kanban size
and number of kanban cards (or containers) will satisfy the demand at capacity for the planning horizon. Kanban size
refers to the number of items in each kanban container. Each kanban container has one kanban card, so the number
of kanban cards is the same as the number of kanbans for each item.
Enter Minimum Order Quantity (Optional)
Minimum Order Quantity represents the minimum number of units per kanban container. It is used when calculating
kanban size or during the kanban execution process to aggregate kanbans smaller than the minimum order quantity.
This field defaults from the Item Master window but can also be overridden.
Replenishment Lead Time
The Replenishment Lead Time must be expressed in days. This is how long it will take to physically replenish the
kanban. For example, if you enter two days, the Kanban Planner will size the kanban to two times the average daily
demand. If you leave the field blank, the program will assume replenishment is one day when calculating kanban
sizes.

Additional Information: Production kanbans use the replenishment lead time to calculate the size of the kanban but
use the Lead Times on the Item Master window to determine when to schedule jobs created by replenishing the
production kanban. This allows you to add lead time on the pull sequence of the production item for transportation, or
desired ‖queue
time.‖
Supplier and inter–org kanbans use the replenishment lead time to calculate the size of the kanban and to schedule
the ‖need date‖ for the purchase requisition. However, if you leave this field blank, the program will use one day to
size the kanban and will use the lead time defined in the Item Master window for the ‖need date‖ on the requisition.
(Need date = sysdate + pre–processing + processing + post processing time if the replenishment lead time on the
pull sequence is left blank.)
Allocation Percent (Optional)
The allocation percent represents the percent of independent demand for the kanban item that is to be supplied from
this pull sequence.
Lot Multiplier (Optional)
When kanban planning sizes the containers at the location, it will size in multiples of this quantity. For example, if the
supplier sells wire in a roll of 500 feet, then a multiplier of 500 would result in bin sizes of multiples of 500 feet. If
demand called for 510 feet, the kanban planner would size the kanban for 1000 feet (500 + 500).
Safety Stock Days (Optional)
Safety Stock Days is the number of days demand that will be added to the kanban for safety stock. Kanban planning
sizes kanbans to the average daily demand of the forecasted period.
Kanban Calculation Formula
Tag:
Inventory
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One of the most important tasks of a kanban planning system is determining the optimal number of kanban cards.
The kanban planning software takes care of this calculation provided you enter correct values for kanban size,
average daily demand for the kanban item, and the lead time to replenish one kanban.
By default, the standard calculation is:
(C – 1) * S = D * A * (L + SSD)
where:
• C is the number of kanban cards
• S is the kanban size
• D is the average daily demand
• A is the allocation percent
• L is the lead time (in days) to replenish one kanban
• SSD is the Safety Stock Days
In addition to this basic formula, when the calculation program calculates kanban size, it takes into account the values
for the following order modifiers (specified in the pull sequence), in the following order:

Minimum Order Quantity
Lot Multiplier
For example, suppose you‘ve specified the Minimum Order Quantity for a particular item to be 50. You want the
formula to calculate the kanban size (S), so you enter values for C and L. Even though strictly based on the values
you enter for C and L the formula should yield 40, the actual kanban size will be 50 because of the Minimum Order
Quantity. If a Lot Multiplier of 15 is specified, the kanban size is rounded to 60 in oder to meeth both the Minimum
Order Quantity and Lot Multiplier order modifiers.
Note: The program uses order modifiers only when calculating the kanban size. If you specify the kanban size and
want the
program to calculate the number of kanban cards, the program does not use order modifiers.
How the Program Determines Average Daily Demand
The program calculates the average daily demand by following these steps:
It identifies all the kanban items that you want to include in your kanban calculation, using the parameters
you enter when you launch a kanban calculation.
It finds location information for each kanban item.
For each kanban item, it identifies every BOM in which the item appears so that it can explode the demand
from the assemblies down to the kanban item.
Using the MDS, MPS, Actual Production, or forecast you specify in the Kanban Names window – it identifies
all the demand entries for each kanban item for which the demand is independent. For example, suppose
that from the forecast you specified in Kanban Names, the program finds independent demand for 600 of
kanban item A.
It uses the Allocation Percentage specified in the pull sequence for each kanban item to determine how to
distribute demand for the item among its different locations. For example, if the allocation percentage for
item A at location L1 is 20%, then the program places demand of 120 (that is, 20% of 600) at location L1.

Using the MDS, MPS, Actual Production, or forecast you specify in the Kanban Names window – it
calculates demand for each kanban item for which demand is dependent on the demand for other items. It
does so by using the following information:
– Quantity per Assembly. For example, if there are 2 of kanban item R per one assembly of item K, and the demand
for K is
10, then the demand for R is 20.
– Component Yield. The program divides the demand for the child item by that item‘s component yield to determine
the
actual demand for the child item. For example, if the component yield for item R is 50%, the new demand for R is
40 (because 20 divided by 50% is 40).
– Reverse Cumulative Yield. The program further divides the demand for the child item by the Reverse Cumulative
Yield
(specified in the operation sequence of the flow routing for the parent item) to determine the actual demand for the
child
item. For example, if the reverse cumulative yield for K is 10%, the new demand for R is 400 (because 40 divided by
10% is 400). See and .
– Net Planning Percentage. The program then multiplies the demand for the child item by the Net Planning
Percentage
(specified in the operation sequence of the flow routing for the parent item) to determine the actual demand for the
child
item. For example, if the net planning percentage for K is 80%, the new demand for R is 320 (because 400 multiplied
by
80% is 320).
Finally, the program sums up the demand entries that fall within the kanban planning horizon for each
kanban item at each location and divides the demand for each item at each location by the number of
workdays. For example, if the number of workdays on the planning horizon is 20, then the average daily
demand for item A at location L1 is 6 (because the total demand for item A at location L1 for the planning
horizon is 120). The program prorates the demand from periodic forecasts for those days between the
Demand window specified for the calculation program.
Using the Kanban Calculation Program
Calculating the kanban size or the number of kanban cards involves two steps:
1. telling the application what demand information to use - we do that by specifying the kanban name in work
bench as shown in above screenshot.
2. submitting a request for the calculation program.

Viewing and Updating Kanban Calculations
You can view the recommended kanban size for each item at each location. You can compare plans and update
parts of your production plan with your kanban simulation plan. You can also re–launch the kanban calculation
program to see the effects of changing one or more variables, including kanban size, number of kanban cards, and
source types.

Defining/Generating/Printing Kanban Cards
Tag:
Inventory
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Defining Kanban Cards
Use the Kanban Cards Summary window to view, define, and update kanban cards. You can also automatically
generate kanban cards with the Generate Kanban Cards process.

Generating Kanban Cards
Use the Generate Kanban Cards process to automatically generate kanban cards. You can generate cards for
individual pull sequences in the Pull Sequences Summary and Pull Sequences windows.
Printing Kanban Cards
Use the Print Kanban Cards process to batch print kanban cards with card status Active and Hold. You can print
cards individually in the Kanban Cards window.
Replenishing Kanban Cards
When a kanban is empty, you can replenish it systematically. This will change the card status to empty and will
trigger the necessary transactions to refill the kanban.
Prerequisites
❑ Generate kanban cards, with card status as Active and supply status as Full.
❑ Lot based jobs, To replenish lot based jobs you must complete the following prerequisites:
• The supply type for the Kanban pull sequence equals production.
• The item is lot controlled.
• The primary routing for the kanban Item is network routing.
Master Item: MPS/MRP Planning
Tag:
Inventory
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Inventory: (N) Items—>Master Item
To define a kanban planned item, you must set the Release Time Fence attribute in the MPS/MRP Planning attribute
group to Kanban Item (Do Not Release). Only kanban planned items can be used in defining a pull sequence.

Process flow and Kanban Card status
Tag:
Inventory
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Kanban cards are created for an item, subinventory, and locator (optional). They are uniquely identified by a kanban
number. For cards generated from a kanban pull sequence, the number is automatically generated. For manually
defined cards, both replenishable and non–replenishable, you can enter an unused kanban number or let the system
create the number.
Card Status
Kanban cards are generated with a default Card Status of Active. When you define a card manually, you can initially
give it either Active or Hold status.
If the Supply Status is Full, you can temporarily pull a card out of the replenishment chain by changing the Card
Status to Hold. You can later change the status back to Active. You can terminate use of a card by changing the Card
Status to
Canceled, but you cannot reverse this change. Only Canceled cards can be deleted.
Supply Status
All the following Supply Status codes can be set either manually or automatically.

New The kanban has just been created and is not yet part of the replenishment chain.
Empty The kanban is empty and a replenishment signal has been generated (available only for Inter Org and
Supplier source types).
Full The kanban has been replenished.
Wait The kanban is waiting until the minimum order quantity has been met by the aggregation of cards.
In–Process For the Supplier source type, the purchase order has been approved. For the Inter Org source type, the
internal requisition has been approved.
All cards are generated with a status of New. You can switch this status to Empty to trigger a kanban replenishment
signal. During initial setup, you can switch the status to Full if you are starting out with a full bin. When you are
defining a card manually, you can create a card with a status of Empty, Full, or New.
Min–Max Planning
Tag:
Inventory
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You can use min–max planning to maintain inventory levels for all of your items or selected items. With min–max
planning, you specify minimum and maximum inventory levels for your items. When the inventory level for an item
(on–hand quantities plus quantities on order) drops below the minimum, Oracle Inventory suggests a new purchase
requisition, internal requisition, move order, or job to bring the balance back up to the maximum.
Oracle Inventory performs min–max planning for your items at either the organization level or the sub inventory level.
Sub inventory level planning cannot generate jobs and does not consider WIP jobs as supply or WIP components as
demand.

Requesting the Min–Max Planning Report
To request a min–max planning report you define parameters for min–max planning calculation, choose the sorting
criterion for the report, and choose whether to create internal requisitions. The INV:Minmax Reorder Approval
profile option governs the approval status of internal requisitions created by the Min–Max Planning Report. (Move
Orders are automatically approved.)
1. When you run the Min–Max Planning report, you can have Oracle Inventory create requisitions for buy items and
unreleased jobs for make items by answering Yes to Restock. You must also specify a location to serve as the
default deliver to location on the requisitions.
2.
Oracle Inventory creates purchase requisitions for Buy items when the item attribute Replenishment Source Type is
set to Supplier. Oracle Inventory creates internal requisitions for internal sales orders for Buy items when the item

attribute Replenishment Source Type is set to Inventory. For internal requisitions, Oracle Inventory uses the item
attribute Source Organization to determine the organization from which the internal requisition sources the item.
3. You can define a default item source at the organization, subinventory, or item levels. Oracle Inventory uses the
information from the lowest level to determine the source from which to requisition the item. The ascending hierarchy
is:
i) Item in a subinventory,
ii) Source in a subinventory,
iii) Item in an organization,
iv) Source in an organization.
Reorder Point Planning
Tag:
Inventory
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Reorder point planning uses demand forecasts to decide when to order a new quantity to avoid dipping into safety
stock.
Reorder point planning suggests a new order for an item when the available quantity—on–hand quantity plus planned
receipts—drops below the item‘s safety stock level plus forecast demand for the item during its replenishment lead
time. The suggested order quantity is an economic order quantity that minimizes the total cost of ordering and
carrying inventory. Oracle Inventory can automatically generate requisitions to inform your purchasing department
that a replenishment order is required to supply your organization.

When the sum of onhad and planned receipts reaches the point A( i.e. the reorder point) the system suggests that we
should create a requisition (or the system can automatically create) of the value of reorder quantity. So, at the time
(Point B) we receives the material in inventory the total onhand would be at safety stock and after receipt the total
onhand would increase by reorder quantity(EOQ) to C.
Reorder-point planning uses the following pieces of information:
• Available Quantity
• Reorder point
• Safety stock
• Item demand
• Replenishment lead time
• EOQ
• Order cost
• Carrying cost
Available Quantity
Its the sum of = Inventory On hand + Quantity on order
Quantity on Order: The sum of purchase order, requisition (internal and supplier), and intransit quantities owned by
the organization. Quantity on order represents supplies that you have not received in your organization.
Reorder point
Timing of Reorders Reorder when the following is true:
(quantity on hand + quantity on order) < reorder point
where reorder point = safety stock + [(lead time) * (average demand during lead time)]
Safety Stock Safety stock for an item is the quantity of an item that you plan to have in inventory to protect against
fluctuations in demand and supply. You can enter your own safety stock quantities, or Oracle Inventory can calculate
safety stock based on an existing forecast for the item.

Item Demand The reorder point planning routine uses the average demand during the replenishment lead time.
Oracle uses forecast information to calculate average demand.
On a normal circumstance its a summation of all the forecats.
Replenishment Lead Time Replenishment lead time is the total time between recognizing the need for items and
the receipt of items. You can enter three components of order-processing lead times:
• Preprocessing lead time
• Processing lead time
• Postprocessing lead time
Oracle Inventory calculates reorder point planning lead time by adding all three components of processing lead time.

EOQ/Reorder Quantity
Reorder quantity = Economic Order Quantity (EOQ)
The economic order quantity is the quantity that minimizes the total cost of ordering and storing inventory.
EOQ = SQRT {[2 * (annual demand) * (order cost)]/(carrying cost percent *unit cost)}
Annual carrying cost = carrying cost percent*unit cost
Oracle Inventory calculates annual demand information from the forecast that you provide when you perform reorder
point planning.
The EOQ increases as demand increases, since the cost of carrying a larger order is smaller because the inventory
is not carried as long. EOQ also increases when the cost of preparing an order increases. This is to avoid making too
many orders and thus incurring this cost more often than necessary. On the other hand, the more it costs to carry
inventory, the smaller the EOQ since it costs more to carry the excess inventory.
You can constrain the reorder quantity by specifying the following information for each item:
• Fixed-lot multiplier
• Minimum order quantity
• Maximum order quantity
Order cost
The cost associated in ordering the item.
Carrying cost
The cost associated in carrying the item in inventory.

ABC Analysis and Cycle Count
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An ABC analysis determines the relative value of a group of inventory items based on a user–specified valuation
criterion. ‖ABC‖ refers to the rankings you assign your items as a result of this analysis, where ‖A‖ items are ranked
higher than ‖B‖ items, and so on. You can optionally use the ABC analyses you compile to drive your cycle counts,
where you might count items of high value (A items) very frequently, items of lower value less frequently, and items of
lowest value very infrequently.
Steps Involved in ABC Analysis
Define ABC classes.
Define and run an ABC compilation.
Define Assignment groups.
Assign items to ABC classes within a group.
Update item assignments.
Purge ABC information.
Cycle counting is the periodic counting of individual items throughout the course of the year to ensure the accuracy
of inventory quantities and values. Accurate system on–hand quantities are essential for managing supply and
demand, maintaining high service levels, and planning production.
You can perform cycle counting instead of taking complete physical inventories, or you can use both techniques

side–by–side to verify inventory quantities and values. Inventory supports serialized cycle counting, and the following
chapters discuss the steps involved.
Overview of Cycle Counting & Serialized Cycle Counting
1. Defining and Maintaining a Cycle Count
2. Cycle Count Items & Defining Cycle Count Items
3. Cycle Count Scheduling
Generating Automatic Schedules
Entering Manual Schedule Requests
4.1 Count Requests
Count Requests for Items with Zero Count
Generating Cycle Count Requests
Requesting the Cycle Count List
4.2 Entering Cycle Counts
4.3 Approval Options and Tolerances
Count Adjustments and Approvals
Approving Cycle Count Adjustments
5. Purge Cycle Count
ABC Analysis
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Defining ABC Classes
You use ABC classes to identify the value groupings to which your items belong. You define these classes using your
own terminology.
For example, you might define classes High, Medium, Low, and later assign your 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. You can add to the list of
classes you have already defined.
Attention: You must assign an ABC class to at least one ABC group.
You can use ABC classes to group items for a cycle count where you count ―A‖ items more frequently than
―B‖ items. When you use ABC classes in this way, you perform an ABC analysis and assign items to classes
based on the results of that analysis.
You can also use ABC classes to group items for planning purposes. For example, the Planning Detail
Report allows you to choose an ABC class to report on.
To define an ABC class:

1. Navigate to the ABC Classes window
2. Enter a unique name for the class.
3. Save your work.
To delete an ABC class:
You can delete a class if it is not in use in a cycle count or ABC assignment group.
To make an ABC class inactive:
1. Enter a date on which the class becomes inactive.
2. As of this date, you can no longer assign the ABC class to an ABC group.
Defining and Running an ABC Compile
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You can define and compile an ABC analysis for your entire organization or for a specific subinventory within your
organization.
You choose the compilation criterion, the scope of your analysis, the cost type to use in determining item values, and
any additional information that may be conditionally necessary, based on your compilation criterion. The combination
of all these parameters constitutes an ABC compile header, identified by the ABC compile name. You use this name
to identify any activity pertaining to this ABC analysis.

To define an ABC compile:
Navigate to the ABC Compiles folder window and choose New. The Define ABC Compile window appears.
1. Enter a unique name for the ABC compile.
2. Determine the scope of the analysis by selecting the content level for items to include in the compile. If you use the
entire organization, Oracle Inventory includes all items defined for your current organization in the ABC compile, even
those with zero cost or zero quantity. If you use a particular subinventory, Oracle Inventory includes all items for
which you have defined an item/subinventory relationship.
Attention: You cannot compile an ABC analysis for a subinventory that is defined as a non–quantity tracked
subinventory. You can, however, use non–asset (expense) subinventories for which you track quantities.
3. Select the valuation scope for determining the ranking of items. Ranking must be done at the Organization level if
you did not select a subinventory in the Content Scope field.
If you only want to include items in a subinventory but you want the ranking to be done based on the organization
wide ranking, select Organization.
4. Select the compile criterion or method of ranking items in the ABC compile.
Oracle Inventory uses the compile criterion to value the items you include in your ABC compile. After determining
each item‘s compile value, Oracle Inventory ranks all the items in your ABC compile.
4.2 Enter a cost type.
You can select a value here only if you selected Current on–hand quantity, Current on–hand value, Forecasted usage
quantity, Forecasted usage value, MRP demand usage quantity, or MRP demand usage value
in the Criterion field. If you are compiling by quantity criterion, the cost type is used for reporting purposes only.
4.3 Select an MRP forecast name: You can select a value here only if you selected Forecasted usage quantity or
Forecasted usage value in the Criterion field.

4.4 Select an MRP plan name :You can enter a value here only if you enter MRP demand usage quantity or MRP
demand usage value in the Criterion field.
4.5 Enter a start (from) date: You must enter a value in this field if you choose an option other than Current on–hand
quantity or Current on–hand value in the Criterion field.
4.6 Enter an end (to) date : You must enter a value in this field if you choose an option other than Current on–hand
quantity or Current on–hand value in the Criterion field
To view ABC Compile results:
1. Navigate to either the ABC Compiles window or the Define ABC Compile window.
2. Choose View Compile from the Tools menu. The ABC Compile Items window appears.
To print the ABC Descending Value Report:

1. Navigate to either the ABC Compiles window or the Define ABC Compile window.
2. Choose Print Compile from the Tools menu.
Oracle Inventory uses the compile criterion to value the items you include in your ABC compile. After determining
each item‘s value, Oracle Inventory ranks all the items in your ABC compile in descending order to produce the ABC
Descending Value Report.
You can use this report as a guide in assigning your items to ABC classes.
Define Assignment groups
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ABC assignment groups link a particular ABC compile with a valid set of ABC classes. This allows you to selectively
reduce or increase the number of ABC classes you want to use in your item assignments for a particular ABC
compile. For example, you might have five classes, A, B, C, D, and E, defined for your organization where you
perform your ABC analysis by subinventory. The first subinventory is rather small. You need only three classes in
which to divide your items. You define
an ABC group, associating the ABC compile for the first subinventory with the classes A, B, and C. The second
subinventory for which you compile an ABC analysis is much larger. There are five distinct value groupings of items.
You define a second ABC group, associating the BC compile for the second subinventory with all five classes defined
for your organization, A, B, C, D, and E.

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. ABC assignment groups
associate ABC classes with an ABC compile. You assign items to ABC classes within a particular group. This allows
you to assign items to different ABC classes in different groups.
For example, suppose you define ABC groups ―Cycle Counting‖ and ―Planning‖. You can assign different ABC
classes to these two groups. You can then assign an item to a different ABC class in each group. This allows you to
prioritize items differently for cycle counting and planning.
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. Using the ‖A‖, ‖B‖, and ‖C‖ classes in the example above, you might assign the ‖A‖
class a sequence number of ‖1‖, the ‖B‖ class a sequence number of ‖2‖, and the ‖C‖ class a sequence number of ‖3‖.
(Sequence numbers ‖10‖, ‖20‖, and ‖30‖ would give the same result.) When you later assign your items to ABC
classes, the first grouping of items in the descending value list are assigned to class ‖A‖, the next to ‖B‖, and the last
to ‖C‖.
You may update an assignment group to add new classes. However, you cannot delete a class. If you need to delete
a class, you must create a new assignment group with only the desired classes.
Assign items to ABC classes within a group.
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You can assign and update ABC classes to an ABC assignment group where an ABC compile was also entered.
From the ABC Descending Value Report you determine the cutoff points for assigning ABC classes. You can then
use the classifications for other purposes such as determining how often you cycle count a given item.
To define ABC assignments:
1. Navigate to the Assign ABC Items window, or navigate to the ABC Assignment Groups window and choose the
Assign Items button.
2. Enter the ABC group for which to assign items to classes. If you navigate from the ABC Assignment Groups
window this field is already entered The Compile Name, Subinventory, Number of Items, and Total Compile Value
fields display information for the compile used by the ABC Group.
3. Specify the cutoff point for each ABC class. Each ABC class must have at least one item assigned to it, and all
items in the ABC compile must be assigned to an ABC class. You can use any of the following fields to determine the
cutoff points:
Seq: You can enter the sequence number from the ABC Descending Value Report for the last item to be included in
each ABC class. Oracle Inventory automatically calculates this value if you choose to assign classes by another
method. Oracle Inventory displays the last sequence number as the default for the last class.
Inventory Value: You can enter the cumulative value from the ABC Descending Value Report for the last item to
include in each ABC class. Oracle Inventory automatically calculates the maximum value. This maximum value is
restricted to the total inventory value compiled and is displayed in the Total Compile Value field. Oracle Inventory
displays the total inventory value as the default for the last class.
% Items: You can enter the percent of number of items compiled from the ABC Descending Value Report to include
in each class. Oracle Inventory automatically calculates this value if you choose to assign classes by another method.
% Value: You can enter the percent of total compile value from the ABC Descending Value Report to include in each
class. Oracle Inventory automatically calculates this value if you choose to assign classes by another method.

Attention: It is possible to have several items in the ABC compile with zero value. If any item with zero value is in a
class other than the last class, you may only assign items using the sequence number or item percent.
For the Inventory Value, % Item, and % Value fields, if the value entered does not exactly match any item, Oracle
Inventory chooses the first item with a value greater than the value entered.
4. Choose the Assign button to launch the concurrent request to assign the items to the classes in the ABC group.
Updating ABC Item Assignments
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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, assume you compiled your ABC analysis based on historical usage value. You have
a relatively new item in your inventory that was ranked toward the bottom of your ABC Descending Value Report
since it has very little transaction history on record. Therefore, after the assignment process, this item was assigned
to a class of low rank.
However, you know that in the future, this item will have a high usage value and should really be classified as a high
rank item. You use the Update ABC Assignments form to reclassify this item to now be a high rank item.
Attention: Whenever you recompile an ABC analysis or change the method by which you assign your ABC
classifications, you lose any changes you might have made to your item assignments. All items are reclassified based
on their new ranks in the ABC Descending Value Report and the method you choose to determine cutoff points.
You can also update an ABC group to include those items that were not a part of the initial ABC compile. This allows
you to expand the scope of your existing ABC compiles without having to rerun any processes. For example, if you
start stocking a new item in your inventory, you can make it a part of your existing ABC groupings through the update
process. Otherwise, you would have to start all over by recompiling your ABC analysis and reassigning your items to

ABC classes. With the whole process starting from the very beginning, you also run the risk of losing any changes
you might have made to your item assignments.
Purging ABC Information
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You can submit a request to purge either ABC assignment group or ABC compile information.
Purging an ABC group deletes all item assignments to ABC classes for the assignment group you specify, as well as
the ABC group itself. Purging an ABC compile deletes all item values and rankings for the ABC compile you specify,
as well as the ABC compile itself. You can purge an ABC compile if no ABC groups are using it.
Cycle Counting
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Inventory
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Cycle counting is the periodic counting of individual items throughout the course of the year to ensure the accuracy of
inventory quantities and values. Accurate system on–hand quantities are essential for managing supply and demand,
maintaining high service levels, and planning production.

You can perform cycle counting instead of taking complete physical inventories, or you can use both techniques
side–by–side to verify inventory quantities and values. Inventory supports serialized cycle counting, and the following
modules discuss the steps involved.
Defining and Maintaining a Cycle Count
A combination of parameters constitutes a cycle count header, identified by the cycle count name. You use this name
to identify any activity pertaining to this cycle count.
You can define and maintain an unlimited number of cycle counts in Oracle Inventory. For example, you can define
separate cycle counts representing different sets of subinventories in your warehouse.
Prerequisites
❑ Define ABC classes.
❑ Define your workday calendar.
❑When determining cycle count classes based on ABC analysis, you must compile an ABC analysis and assign your
compiled items‘ ABC classes.
To define a new cycle count:
Navigate to the Cycle Count Summary folder window by selecting Cycle Counts on the menu and choose New to
open the Cycle Counts window.
1. Enter a unique name for the cycle count.
2. Enter the workday calendar to use for this cycle count. Inventory uses this calendar to determine the days on which
to automatically schedule cycle counts.
3. Enter the general ledger account to charge for cycle count adjustments.
4. Enter the Count Controls:
Optionally, enter the date on which the cycle count becomes inactive. As of this date, you cannot generate
schedules or perform any counting activities for this cycle count.

Enter the number of workdays that can pass after the date the count request was generated, before a
scheduled count becomes a late count.
Enter the sequence number to use as the starting number in the next count request generator. The count
sequence number uniquely identifies a particular count and is used in ordering the cycle count listing.
Determine whether you can enter counts for items not scheduled to be counted (Unscheduled Entries).
Determine whether to display system on–hand quantities during count entry.
5. Determine whether Inventory automatically assigns a status of Recount to out–of–tolerance counts and includes
them in the next cycle count listing.
If you turn this option on, navigate to the Maximum field and enter the maximum number of times Inventory can
generate an automatic recount request. Once this number is reached the adjustment must be approved or rejected.
6. Determine the subinventories to include in the cycle count.
If you choose Specific subinventories, you can navigate to the Subinventory region and select the subinventories to
include in the cycle count.
Serial number control and Autoschedule
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Four options set in this window govern the handling of serial controlled items:
Count
Not Allowed: Serialized items are excluded from the cycle count.
One Per Request: A separate count request is generated for each serial number.
Multiple Per Request: Serial numbers for the same item/location are grouped in one count request.
Detail

Quantity and Serial Numbers: Serial number and quantity are required and are validated when entering
counts.
Quantity Only: Serial number entry is required if the count quantity does not match the system quantity.
Serial number entry is optional if the count quantity matches the system quantity, regardless of whether the
serial numbers match. If you do not enter serial numbers, the count is marked as completed, and no
adjustments are performed. If you do enter serial numbers, both quantity and serial numbers are validated
when determining whether adjustments are required.
Adjustment
Review All Adjustments: No automatic adjustments are attempted. Serialized items that require adjustment
must go to an approver for review.
Adjust if Possible: If a discrepancy exists between the count quantity and system quantity or if the entered
serial numbers do not correspond to the serial numbers already in the specified location, then the system
will attempt to make adjustments if the adjustment variance and value are within tolerances, as long as
serial uniqueness constraints are not violated. These adjustments consist of receipts and issues of the
appropriate serial numbers to and from the specified location and are applicable only to instances in which
new serial numbers or shipped serial numbers are counted. If the adjustment quantity or value for a
serialized item falls outside the specified tolerances, the item is sent for recount or approval, just like a non–
serialized item.
Discrepancy
Allow Discrepancies: When a count includes a serial number already assigned to the same item elsewhere
in the system, an adjustment is created if it would be within tolerances. No adjustment is ever allowed for
counts including serial numbers already assigned to another item.
Do Not Allow Discrepancies: Adjustments are not made for items not found in the specified location.
Automatic Scheduling
If you turn automatic scheduling on, enter the following information:
Frequency: Indicate whether to schedule cycle counts Daily, Weekly, or By period. Inventory uses this information,
along with the count frequency of each cycle count class, when performing automatic cycle count scheduling. The
value you enter here dictates the window of time within which you can enter counts against a schedule bucket.
Schedule Interval Example
If you choose weeks as your schedule interval, Inventory schedules a week‘s worth of counts each time the automatic
scheduler executes. You then have that week to complete all these counts. On the other hand, if you choose days,
Inventory schedules only that one day‘s counts, and you need to complete those counts on that given day.
Last Date: Inventory displays the last date this cycle count was automatically scheduled.
Next Date: Inventory displays the first workday for the next schedule interval when this cycle count is scheduled. You
can enter a later date in this field if you want to override the automatic schedule and skip one or more intervals. If
your schedule interval is Weekly or By period, the date you enter must be the first workday of the period for which you
want to generate schedule requests.
Count items with an on–hand quantity of zero: Optionally, determine whether to automatically generate requests to
count items with an on–hand quantity of zero.
Adjustments and ABC information
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1. Determine when approval is required for adjustments:
Never: Inventory automatically posts adjustment transactions where entered counts differ from system
balances.
If out of tolerance: Inventory does not automatically post adjustment transactions for counts outside a
specified approval tolerance. You must approve such adjustments before posting.
Always: You must approve all cycle count adjustments, regardless of tolerance levels, before Inventory can
post any of them.
2. If you choose to require approval for adjustments If out of tolerance, enter positive and negative tolerances.
Qty Variance: Enter the percentage variances of count quantity to on–hand quantity beyond which
adjustments are held for approval.
Adjustment Value: Enter the adjustment values beyond which adjustments are held for approval.
Hit/Miss Analysis: Enter the percentage variances of count quantity to on–hand quantity beyond which
Inventory considers a count entry a miss for hit/miss reporting.
3. Optionally, enter ABC initialization or update information:
Group: Enter the ABC group name on which to base the cycle count item initialization or update.
Option: Choose one of the following options:
– None: Do not change to the list of cycle count items.
– (Re)initialize: Use the ABC group you specified to load all items and their ABC assignments into the list of items to
include in your cycle count. If you already had items defined for your cycle count, this action deletes existing
information and reloads the items from the ABC group.
– Update: Use the ABC group you specified to insert new cycle count items.
If you chose the update option:
– Indicate whether to update classes. If an item‘s ABC class assignment in the ABC group you specified is different
from the cycle count class this item is assigned, Inventory updates the cycle count class for the item with the ABC
assignment in the specified ABC group.
– Indicate whether to delete unused item assignments that are no longer referenced in the specified ABC group.

Defining Cycle Count Classes
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You can enter ABC classes to include in your cycle count. You can also enter approval and hit/miss tolerances for
your cycle count classes.
To define cycle count classes
Navigate to the Cycle Count Summary folder window.
1. Select a cycle count and choose Open.
2. In the Cycle Counts window choose Classes. The Cycle Count Classes window appears.
3. Enter the name of the ABC class to use to define your cycle count classes.
4. Enter the number of times per year you want to count each item in this class.
The counts per year for a class ensures that all items in that class are scheduled at least that many items in a
year.That is, if the counts per year for a class is 10 and the class has 100 items, then each of the 100 items in the
class are scheduled at least 10 times.
5. Optionally, enter positive and negative tolerances. If you do not enter tolerances, Inventory uses the values you
entered in the Cycle Counts window.
Quantity %: Enter the percentage variances of count quantity to on–hand quantity beyond which
adjustments are held for approval.
Adjustment Value: Enter the adjustment values beyond which adjustments are held for approval.
Hit/Miss %: Enter the percentage variances of count quantity to on–hand quantity beyond which Inventory
considers a count entry a miss for hit/miss reporting. Note that the hit/miss percentage is based on the first
count of an item, not recounts.

Cycle Count Items
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You need to load items into your cycle count before you can schedule or count them. There are two methods you can
use to do this. The first is to specify an existing ABC group from which to load your items. Oracle Inventory
automatically includes all items in the ABC group you choose in your cycle count. Inventory also copies the ABC
classes for that ABC group into the current cycle count classes and maintains the same classifications for the
included items. You can then change the classifications of your items for your cycle count independent of the ABC
classes.
Once you have generated your list of items to count from an ABC group, you can periodically refresh the item list with
new or reclassified items from a regenerated ABC group. Using the Cycle Counts window, you can choose whether
to automatically update class information for existing items in the cycle count based on the new ABC assignments.
You can also choose to have any items that are no longer in the ABC group automatically deleted from the cycle
count list. Any new items are added.
The second method of maintaining the cycle count item list is to manually enter, delete, or update the items you want
included/excluded using the Cycle Count Items window. You may want to use this form to load all your items for a
cycle count, or to simply add items as they are defined in the system rather than recompiling your ABC group and
doing a complete reinitialization of your cycle count items.
Defining Control Group Items
When you choose the items to include in your cycle count, you can specify which items make up your control group.
When you generate automatic schedules you can indicate whether to include items in your control group as a control
measure.

Schedule Cycle Count
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Automatic Scheduling
Oracle Inventory uses the number of items in each cycle count class, the count 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.
In order for Inventory to perform automatic scheduling you must:
Set the Cycle Count Enabled item attribute to Yes for the items you want to include in the cycle count.
Enable automatic scheduling when you define your cycle count.
Request the schedule using the Generate Automatic Schedule Requests window.
Each time the auto scheduler runs, it schedules counts only for the schedule interval you defined for the cycle count
header. So if your schedule interval is weeks, Inventory schedules all items that need to be counted on all of the
workdays in the current week. If your schedule interval is days, then Inventory only schedules those items that are
due for counting on the current date.
To generate automatic schedules:
1) Navigate to Cycle Counts Summary folder window or the Cycle Counts window.
2) Select a cycle count and choose Cycle Count Scheduler from the Tools menu. The Cycle Count Scheduler
Parameters window appears.

3) Indicate whether to include items belonging to the control group in the list of items for which to generate schedule
requests.
4) Choose OK to submit the request to the concurrent manager.
Logic for Cycle Count Auto Schedule (As given in metalink)
The first criteria of selecting the items to schedule, is whether these items are marked as a control group items or not
and what is the criterion on which the Cycle count scheduler is being run (Include Control Group Items is checked or
not). Based on this the scheduler will select the Control Group Items or Non Control Group Items to schedule counts.
The second criteria is Max items to Schedule, which is defined as:
MaxItemsToSchedule = (TotalItemsInClass * NWorkingDays) /ClassCountInterval + 1;
where,
TotalItemsInClass = the number of items defined in the class
NWorkingDays = BeginDate - EndDate + 1 (this will be printed in the concurrent log file of the scheduler).
ClassCountInterval = NumWorkDaysThisYear / NumCountsPerYear (these will also be printed in the concurrent log
file of the scheduler).
Once MaxItemsToSchedule is calculated, these number of items are picked randomly and will get scheduled and will
be marked, so that these not picked in the scheduled run.
Now lets consider the following possible cases :
CASE : 1
No. of items in class = 100
Counts per year for class = 1
No. of working days in the year = 200 (taken, for easy calculation)
Count Frequency = Daily
Now since the count frequency is 'Daily' you can run the scheduler on every working day.Using the above formula,
Maximum Items to schedule = ((100*1*1)/200)+1 = 0+1 = 1 The above formula has integer division and so instead of
0.5+1 we have 0+1.
So, in this case all the 100 items in the class will be counted twice in a year. But, now if you change the count
frequency from 'Daily' to 'Weekly' as shown in Case 2.
CASE : 2
No. of items in class = 100
Counts per year for class = 1
No. of working days in the year = 200 (taken, for easy calculation)
Count Frequency = Weekly (say 5 work days in a week)
Maximum Items to schedule = ((100*1*5)/200)+1 = 3
Here, all the 100 items will be counted at least once, but some of the items may be counted twice since in our formula
we are doing the ROUNDING off.In this case 80 items were counted only once and 20 items got counted twice.
If we do not do the rounding off (using integer division and adding 1), then in the above case we will have 2.5 items to
schedule. Now, we can schedule either 2 or 3 items.So, if we schedule 2 items then all the 100 items will not be
scheduled at least once (20 items will be left out). So we do the rounding off so that all the items are scheduled at
least once.
You can see that by changing the count frequency from 'Daily' to 'Weekly' the number of items that are getting
counted twice have been reduced from 100 as in Case 1, to 20 in Case 2. Since we are doing 'Rounding off' in the
formula, some items of the class may be counted more than the number of counts specified.But, as I have mentioned
before, Counts per year is the minimum guaranteed number of counts per year for all items in the class.
In cases where you have very few items and count frequency is 'Daily', the magnitude of the difference between
'actual number of counts' and 'counts per year specified' will be much higher. In these cases, by changing the count

frequency from 'Daily' to 'weekly/period', will reduce the magnitude of difference. Also, we allow the user to change
the 'Counts per year' at any point in time in the year. So, once this value is changed then all the items in the class are
scheduled afresh,
irrespective of their scheduling before the change of value for counts per year.
The logic for Cycle counting is forward looking.
1. The counts per year for a class ensures that all items in that class are scheduled at least that many items in a
year.That is, if the counts per year for a class is 10 and the class has 100 items, then each of the 100 items in the
class are scheduled at least 10 times.
2. In cases where you have very few items in the class and have high count frequency (say Daily), there are chances
that it will be counted more number of times, then specified in its class. However, in those cases you would ideally
like to reduce the count frequency (say, from 'daily' to 'weekly').
3. The counts per year for a class can be changed by the user at a later point in time. Cycle counting does not take
into account the number of counts that have already been done before the change of value for 'counts per year'. It
now takes into account the new value of 'counts per year' for all the items in the class.
Manual Scheduling
You can manually schedule counts in addition to, or instead of those generated with automatic scheduling. You can
request counts for specific subinventories, locators, and items, and set the count for any inventory date. For example,
you could enter a request to count item A wherever it can be found in subinventory X. Or you could request to count
all item quantities in subinventory Y, locator B–100.
Since manually scheduled counts have no impact on automatically scheduled counts, you can potentially count some
items more frequently than you had initially planned.
To manually schedule cycle count requests:

1) Navigate to the Manual Schedule Requests window or choose the Schedule button on the Cycle Counts Summary
folder window.
2) Enter the cycle count name you are scheduling.
3) Select the item or location (subinventory) for counting. You can manually schedule specific items by entering
values in
different combinations of the item, revision, lot, serial number, subinventory, and locator fields.
If you do not enter an item, you must enter a subinventory.
Inventory schedules a count of all items stocked in this subinventory. If you enter an item and a subinventory,
Inventory
schedules the item to be counted only in this subinventory.
4) Enter the date on which Inventory is to schedule the count you have specified. The date you enter cannot be
before today‘s date and must be a valid workday as defined by the workday calendar for your cycle count.
5) Indicate whether to generate count requests for this item, revision, lot, serial number, subinventory, or locator
combination even if the system on–hand quantity is zero. This may be useful in performing exception–based counting
to verify that the actual on–hand quantity is indeed zero.
Physical Location Scheduling
You can use this feature to execute location–based cycle counting. You first need to generate a schedule for counting
each subinventory and locator. You then need to enter the schedule requests for each locator, specifying the
schedule date.
Count Requests
Tag:
Inventory
/
After you have successfully scheduled your counts, you can submit the process to generate count requests. 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.
Count Requests for Items with Zero Count
By default Inventory does not automatically generate requests to count items with an on–hand quantity of zero. To
include such items:
Define all sourcing details and inventory controls for the item. For example, if an item is under predefined
locator control, be sure it is assigned to a subinventory and locator.
Select the Generate Zero Counts option when you define your cycle count.
The count request generation process then automatically creates a count request. If a quantity is found and counted,
an adjustment is made.
At count entry, you may receive a warning message stating, ‖Zero count, no adjustment performed.‖ Inventory
generates this warning if it cannot find all levels of inventory control defined for the item. In this situation, enter the

count, but no adjustment is performed. To make an adjustment and update the missing information, enter an
unscheduled count using either the Cycle Count Entries or Approve Adjustments window.
To submit a request set to perform a full cycle count
1. Navigate to Cycle Counts Summary folder window or the Cycle Counts window.
2. Choose Perform Full Cycle Count from the Tools menu. The set includes the following processes and report:
• Generate automatic schedule requests: Enter parameters for cycle count to use and indicate whether to include
control items.
• Generate cycle count requests: Enter parameters for cycle count to use.
• Cycle count listing: Enter parameters for cycle count to use, start and end dates, recounts, and subinventory to
count.
3. Choose Submit.
To submit the program to generate cycle count requests:
1. Navigate to Cycle Counts Summary window or the Cycle Counts window.
2. Choose Generate Count Requests from the Tools menu to submit the process to the concurrent manager.
Requesting the Cycle Count List

After you generate count requests you can submit the request for the Cycle Count Listing report. This report lists all
counts that you need to perform within a given date range.
To request a cycle count list:
1. Navigate to Cycle Counts Summary folder window or the Cycle Counts window.
You can also navigate to the ABC and Counting Reports window to submit the listing.
2. Choose Cycle Count Listing Report from the Tools menu.
3. Enter start and end dates for the list. Inventory reports counts falling on the start date through the end date.
4. Enter the specific subinventory for which to report scheduled counts.
5. Indicate whether the cycle count list includes only recounts or scheduled counts and recounts.
6. Choose OK to submit the request to the concurrent manager
Count Adjustments and Approvals
Once you enter and save your cycle counts, Oracle Inventory determines whether any adjustments need to be made
depending on the approval options and tolerances you set when you defined the cycle count.
Automatic Recounts
If you turned the Automatic Recount option on when you defined your cycle count, Inventory automatically submits
recount requests for items that are outside the limits of the approval tolerances you specify. Inventory submits
recounts as many times as necessary, limited by the maximum automatic recounts you specify for the cycle count.
After you reach the maximum number of recounts, Inventory holds the count for approval. Any count request with the
Recount status automatically appears on the next cycle count listing.
You can also manually request recounts when you are approving adjustments. The count request for which you want
a recount is also automatically included in the next cycle count listing.
Attention: When generating the cycle count listing, you must include a from date far enough back to include the
recount‘s
original count date, or it is not on the report.

Approving Cycle Counts Held for Approval
Employees with access to the Count Adjustments Approvals Summary window can query, request the recount of, or
approve cycle counts pending approval. When you select the Find button, you can query all counts or only those
pending approval. You can then approve adjustments, recount an item in question, reject the count or take no action
until further investigation.
You can display count history information or open the Count Adjustment Approvals window.
To approve a count check:
Select Approved to approve the selected count entry and post the adjustment to the transaction manager for
processing.
To reject a count check:
Select Rejected to reject the selected count record. An adjustment is not posted. No further processing of this count
entry takes place.
To request a recount check:
Select Recount to process a recount request for the selected count request. An adjustment is not posted.
To display count history information:
Select the Count History button to open the Count History window for the current item. For the current item, this
window displays count and variance information for the current, prior, and first counts.
To open the Count Adjustment Approvals window:
Select the Open button to open the Count Adjustment Approvals window for the current line. This window is a
combination block which you can use to view and enter approval and adjustment information for the current line
instead of using the Count Adjustment Approvals Summary window.
Entering Cycle Counts
Tag:

Inventory
/
You can use the same window to enter counts of items requested via automatic or manual cycle count scheduling. If
unscheduled count entries are allowed for your cycle counts, you can enter those also. 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.
To select the cycle count to use:
1. Navigate to the Cycle Count Entries window from the menu or choose Counts from the Cycle Counts Summary
folder window.
2. Enter the name of the cycle count for which to enter counts.
This information is provided if you navigate from the Cycle Counts Summary folder window, and the Find button is not
available.
3. Enter the date the cycle count was performed.
4. Enter the name of the employee who performed the cycle count.
5. Enter the general ledger account to which to charge adjustments from this cycle count. The default is the
adjustment account you entered while defining your cycle count.
Inventory performs a cycle count adjustment by creating a material transaction for the quantity and sign (plus or
minus) of the adjustment. The transaction debits or credits the adjustment account depending on the direction of the
transaction.
6. Display the count requests you want to enter.
You can choose the Find button to query all open count requests. If you choose not to query all open requests, you
can either:
Enter counts individually by entering existing sequence numbers. When you enter an existing sequence
number the details for that request display. You only need to enter the quantity counted.

Use the find feature on the Query menu to query a subset of count requests matching the search criteria you
enter. You can search by any combination of count sequences, item, revision, subinventory, locator, or lot.
You can also indicate whether to include recounts.
To enter scheduled counts:
1. Select the Count tabbed region.
2. Enter the quantity that you counted for your item. Inventory uses this quantity with the specified unit of measure to
determine the value of the cycle count adjustment.
Note: When you perform a recount, the quantity field on the adjustments tab is populated with the previously entered
count.
3. Save your work.
To enter unscheduled counts:
1. Navigate to the Cycle Count Entries window from the menu.
2. Choose the Find button and select No. This enables you to enter items and counts manually.
3. Enter the item for which you are entering counts.
4. If your item is under revision control, enter the revision for which you are entering counts.
5. Enter the subinventory for which you are entering counts. You can enter only subinventories that track quantity on
hand.
6. If this item is under locator control, enter the locator for which you are entering counts.
Physical Inventory
Tag:
Inventory
/
Oracle Inventory provides a fully automated physical inventory feature that you can use to reconcile system–
maintained item on–hand balances with actual counts of inventory. Accurate system on–hand quantities are essential
for managing supply and demand, maintaining high service levels, and planning production.
1. Define a physical inventory for your whole warehouse or subdivisions within your warehouse.
2. Take a snapshot of system on–hand quantities. You must procedurally coordinate the snapshot of your physical
inventory with your actual counting, and ensure that no transaction activity occurs in a particular location until after
you have performed your adjustments.
3.1 Generate alphanumeric tags.
3.2 Count the TAGs. Void unused or lost tags.
3.3 Approve or reject physical inventory adjustments based on approval tolerances.
4. Automatically post adjustments to inventory balances and general ledger accounts.
5. Purge physical inventory information.
Defining a Physical Inventory
Tag:
Inventory

/
You can define and maintain an unlimited number of physical inventories in Oracle Inventory. A physical inventory is
identified by a unique name you assign. You use this name to identify any activity, such as adjustments, pertaining to
this physical inventory.
You can define multiple physical inventories to count selected portions of your inventory, or you can count your total
inventory. For example, if your warehouse has two large stockrooms, each represented by a subinventory, you can
define two physical inventories, one for each subinventory. You can then perform your physical inventory of the first
stockroom, independent of the second.
To define a physical inventory:
Navigate to the Physical Inventories Summary folder window and choose New. The Define Physical Inventory
window appears.
1. Enter a unique physical inventory name.
2. Select approval requirements for adjustments.
Always: Require approval of all physical inventory adjustments.
If out of tolerance: Hold for approval those counts that are outside the limits of the positive and negative quantity
variance or value tolerances.
Never: Allow any adjustment to post without approval.
3. Enter positive and negative approval tolerances If approval is required for adjustments out of tolerance you
must
enter a value in at least one of these fields. You cannot update these values after you perform physical inventory
adjustments.
Qty: Enter acceptable Positive and Negative limits (expressed as a percentage) for the difference between the

system–tracked on–hand quantity and the actual tag count quantity.
Value: Enter acceptable Positive and Negative limits for the total value of a physical inventory adjustment.
4. Select the scope of the physical inventory.
Determines whether the physical inventory is for all subinventories or for one or more specific subinventories. Only
enter a quantity tracked subinventory.
5. Indicate whether to allow dynamic entry of tags.
Determines whether you can dynamically enter tags you manually created. If you choose not to allow dynamic tag
entry all tags must generated before use If you do not want to allow dynamic tag entry but you need blank tags, you
can generate numbered blank tags for counting miscellaneous items.
Taking a Snapshot of Inventory Quantities
Tag:
Inventory
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Before you can generate tags for a physical inventory, you must take a snapshot of all system on–hand quantities for
your items. The snapshot saves all current item on–hand quantities and costs. Oracle Inventory uses this information
as the basis for all physical inventory adjustments. All tag counts you enter for this physical inventory are compared
with these static quantities. This allows you to resume normal inventory operations after you have entered your
counts but before you have authorized all final physical inventory adjustments. You can perform your recounts or
investigate certain results without holding up transaction processing.
Notes :
1. Oracle Inventory does not stop inventory processing during a physical inventory. Therefore, you must procedurally
coordinate the snapshot of your physical inventory with your actual counting, and ensure that no transaction activity
occurs in a particular location until after you have performed your adjustments.
2. It is recommended to clear the Pending Transactions and Transactions Open Interface, before taking a snapshot of
inventory.
To freeze the system on–hand quantities

1. Navigate to the Physical Inventories Summary folder window.
2. Select the physical inventory you want to use.
3. Choose Perform snapshot from the Tools menu. This launches the snapshot concurrent process.
Note: You can also choose Snapshot from the Define Physical Inventory window.
4. When the concurrent process is finished, re–query the physical inventory to see the effects of the snapshot. The
effects include:
The Snapshot Complete box is checked on the Physical Inventories Summary folder window.
The Snapshot Complete box is checked, the Snapshot Date is updated, and the Tags button is enabled in
the Define Physical Inventory window.
Generating Physical Inventory Tags
Tag:
Inventory
/
You use physical inventory tags to record the physical counts of inventory items. Physical inventory tags represent
actual hard copy tags that some companies use to count inventory items. A tag contains the count for a group of a
given item. Although you can record only one item on a tag, multiple tags can reference the same item, with each
tag referring to a unique physical location for an item.
Note: A tag represent a single item number in a particular subinventory, locator with a given revision, lot, and serial
number.
If we are not considering serial and lot number then the single TAG might have n number of items (in a particular sub-
inventory, locator combinatio)

Oracle Inventory can generate default or blank tags for your physical inventory.
If you choose to generate default tags for each item, specify the starting tag number and the increment by which you
want to increase each digit in the tag number. Your tag numbers may be alphanumeric, but you can increment only
the numeric portion. The alphabetic characters in the tag number stay constant. Inventory then uses these tag
numbers to generate a tag for every unique combination of item number, subinventory, locator,revision, lot, and serial
number for which the system has an on–hand quantity not equal to zero.
If you want to have some empty tags handy to record counts for stock–keeping units for which Inventory has no on–
hand quantity (and therefore does not generate default tags), you can generate blank tags. Inventory assigns tag
numbers to blank tags, but does not include any item or location detail. You specify this information when you enter
your tag counts. You can generate as many blank tags as you want.
You can also exclusively use blank tags to perform a physical inventory. If you need to perform a complete wall–to–
wall physical inventory, you can go through your warehouse and attach blank tags to every item and/or location you
see. As you perform the count, you record the item and stock–keeping unit information along with the actual on–hand
quantity.
PI Tag Counts
Tag:
Inventory
/
Use the tags that you generated to record your physical counts. If you use default tags for your physical inventory,
you can automatically query all tags and fill in the counts. You can also query a subset of your tags by any
combination of tag number, item, revision, subinventory, locator, lot, and serial number. You would use this partial tag
query feature if you prefer to enter your counts by location or item, or for a particular tag number range.

If you use any blank tags in your physical inventory, you can query up the tags by tag number. You can then enter
the necessary item, revision, subinventory, locator, lot, and serial number information, as well as the actual count
quantity and the name of the employee who performed the count.
If you enable dynamic tag entry for your physical inventory, you can enter counts for any item and stock–keeping
unit combination without a pre–generated tag number.
Adjustments and Approval
Oracle Inventory uses the counts you enter for your tags to determine if your items need quantity adjustments; and if
so, whether you need to approve them.
1. If you set your approval option for your physical inventory to Not required for adjustments, you are ready to process
your
adjustments.
2. If you set your approval option to Required for adjustments out of tolerance, Oracle Inventory holds for approval all
tags with counts that are outside the limits of the quantity variance or adjustment value tolerances.
3. If you set your approval option to Required for all adjustments, Oracle Inventory holds all counts for approval.
Void Tags
It is important for auditing purposes to track the status of each physical inventory tag. Therefore, if you do not use
one or more of the tags Oracle Inventory generates, you should void them in the Physical Inventory Tag Counts
window. A voided tag is not reported as a missing tag in the Physical Inventory Missing Tag Listing.
If you generated a certain number of blank tags at the beginning of your physical inventory, and ended up not using
all of them, you would void the unused tags. When you run the Physical Inventory Missing Tag Listing for the whole
range of tags you initially generated, the unused ones are accounted for and appear as missing tags.
If you void a default tag, (i.e. a tag that identifies a stock–keeping unit for which there is system on–hand quantity),
Oracle Inventory adjusts the quantity in that location to zero. This indicates that you did not use the tag in question,
presumably because the stock–keeping unit corresponding to the tag did not exist.

Entering and Voiding Physical Inventory Tag Counts
Navigate to the Physical Inventory Tag Counts window or choose the Counts button from the Physical Inventories
Summary folder window.
1. Enter the physical inventory.
2. Enter the employee that performed the physical inventory in the Default Counter field. Oracle Inventory uses this
value as the default for the Counted By field of each tag.
3. Enter or query the tag numbers for which to enter counts using one of the following options:
Choose the Find button. Choose Yes or No to query all tags. If you choose No, you can either enter tag
numbers individually or use the Find feature on the Query menu to query a subset of tags.
Enter tag numbers individually. You can enter existing tags individually. When you enter a tag number the
item information for that tag appears.
Use the Find feature on the Query menu. You can query a subset of tags matching the search criteria you
enter in the find window.
You can search by any combination of tag number, item, revision, subinventory, locator, lot, serial number, or tag
status. With tag status you can find voided or missing tags.
4. Enter counts for default tags: Since you generated default tags the item, revision, subinventory, locator, lot, and
serial number information for each item is displayed. You enter the count Quantity, unit of measure (UOM), and
Counted By information.

5. Enter counts for blank or dynamic tags
Enter the item associated with the tag.
Enter the revision of the item. You can enter a value here if the item is under revision quantity control.
Enter the subinventory in which you counted the item.
Enter the locator associated with the subinventory. You can enter a value here if the item is under locator
control.
Enter the count quantity (number counted) for the tag.
Enter the count unit of measure (UOM).
Enter the name of the employee who counted the item (Counted By).
Enter the lot number associated with the item. This entry is required if the item is under lot number control.
Enter the serial number associated with the item. This entry is required if the item is under serial number
control.
6. Voiding Physical Inventory Tags
You can void tags that you deliberately discarded during the physical inventory. Voiding tags allows you to account
for all tags; thus, any tag numbers that appear on the missing tag report are actually missing.
Approving Physical Inventory Adjustments
Tag:
Inventory
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Approval Tolerances
Oracle Inventory supports two types of physical inventory approval tolerances. For each type, you can specify a
positive and a negative limit. When a particular physical inventory tag count entry results in an adjustment that
exceeds any one of these limits, you have a physical inventory adjustment that exceeds approval tolerances. Based
on the approval option you chose when you defined your physical inventory, this adjustment is or is not held for
approval.
If you decide that approval is required for adjustments out of tolerance you must enter at least one positive or
negative value for one type of approval tolerance. The quantity variance tolerance is a user–defined limit for the
difference between the system–tracked on–hand quantity and the actual tag count quantity. You express positive and
negative quantity
variance tolerances as percentages of the system on–hand quantity. You enter these percentages when defining
your physical inventory.
The adjustment value tolerance is a user–defined limit for the total value of a physical inventory adjustment:
adj value = (system on–hand qty – actual count qty) x current cost,
where: – Current cost is the cost at inventory snapshot.
You express positive and negative adjustment value tolerances as amounts in your functional currency. You enter
these tolerances when defining your physical inventory.
Approving Physical Inventory Adjustments

You can view, reject, or approve physical inventory adjustments pending approval. The adjustments you can view
from this window are determined by the approval option you defined for your physical inventory. If you approve a
particular adjustment, the Process Physical Inventory Adjustments program adjusts your inventory balance by that
quantity. If you reject an adjustment, Oracle Inventory does not change the system on–hand quantity.
Notes:
1. Even after saving a count as approved/or rejeceted we can change the quantity in TAG count till the physical
inventory adjustment is processed.
Example: we entered quantity 1 for item001 in tag count window and then saved it as approved in approve PI
adjustment winodw. We can again go back and change the quantity of item001 and save it. if we requry the item in
adjustment window then it would be shown in None status though previously we had saved it as approved.
Processing Physical Inventory Adjustments
Tag:
Inventory
/
After you finish entering all your tag counts and approving those adjustments that need approval, you can submit the
process that automatically posts your physical inventory adjustments. Oracle Inventory automatically creates a
material transaction adjusting the item quantity and debiting or crediting the adjustment account you specify for your
physical inventory.

If the count of an item matches the snapshot system on–hand quantity, there is no adjustment transaction
posted.
Once you run the adjustment program for your physical inventory, Oracle Inventory does not allow new tag
generation or any further updates of tag counts. You are no longer able to make any changes to that
physical inventory.
Due to the irreversible nature of this program, Oracle Inventory posts no physical inventory adjustments if
you have any adjustments that are still pending approval. You must approve or reject all of your adjustments
before you can process them.
You can preview your adjustments before actually posting them by running the Physical Inventory
Adjustments Report. You can run the actual adjustment program after you have used the report to verify
your tag quantities and the value impact of your adjustments.
Once the process "Perform physical inventory Adjustments" is complete one can verify the
physiacl inventory adjustment material transactions and corresponding distribution accountings in material
distribution window.

Purging Physical Inventory Information
Tag:
Inventory
/

Use this form to purge a physical inventory definition from the database. Oracle Inventory deletes all information
associated with the physical definition. However, the purge does not affect any adjustments or adjustment
transactions made using the physical definition. Those adjustments are not changed. You can also purge just tags if
you made a mistake and want to start over.

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