Inventory Organizations

Inventory Organization Structure

Organization

SubInventory

Subinventory
Locator Locator

Locations
Setting Up Locations
Define information describing the physical location of employees and organization Locations are shared between Oracle Inventory, Oracle Purchasing and Oracle Human Resources Management Systems. Locations flagged as global locations are available to all business groups Associate organization with only one location,however you can associate more than one organization with same location

Defining Organizations
Sample Inventory Organization
Ledger Operating Unit

Inventory Organization A

Inventory Organization B

Subinventory

Subinventory

Subinventory

Subinventory

Locator

Locator

Locator

Locator

Locator

 Applications and database enhancement

Multi-Organization Structure

Enables you to consolidate your operations under one installation of Oracle Applications on a single global instance Enables you to keep transactions data secure by line of business

Multi-Organization Structure

Inventory Parameters
Enables you to
Setup organization information Enable specific products and features

Oracle Enterprise asset management

Oracle Process Execution

Oracle Warehouse Management

 Organization Features Product Features

Inventory Parameters (continued)

Organization codes Item master organization Oracle Process Execution Oracle Enterprise Asset Management Oracle Warehouse Management

 Which Costing method is the organization going to use?

Standard Average FIFO ( First in First Out)
Costing method where items that were received earliest are transacted first

Costing Parameters

LIFO ( Last in First Out)

Costing method where items that were received most recently are transacted first

Revision, Lot, Serial, and License Plate Number(LPN) Parameters

ATP, Pick, Item-Sourcing Parameters

The ATP, Pick, Item-Sourcing Parameters enables you to
Set the available to promise(ATP) default rule for the organization Set the picking defaults for the organization Set the Item-sourcing defaults for the organization

Interorganization Parameters

The Inter-organization Information tab enables you to determine the parameters the organization uses when it transfers material between organizations

DM1 Organization

DM2 Organization

Other Accounting Parameters

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

 Physical or logical separation of material At least one subinventory must be defined for each organization

Subinventory

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

Locator control

Static Locators
Predefined

Sub inventory Locator Relationship

Interorganization Shipping Network

Relationships between shipping organization and destination organization You must define a shipping network between two organizations
Shipping Method

Additional Organizational Setups

Material Shortage Parameters Define parameters for the system to determine when unsatisfied demand exceeds available supply Organizational Access Controls access to the organization based on users responsibility assigned to user by the system administrator

 Organization Hierarchy enables you to

Organizational Hierarchy
Assign items to organizations Copy item attributes View item information Open and Close accounting information Purge Transactions

Organization Reports
Report Description

Item-subinventory Report
Locator Quantities Report Subinventory Quantities Report Freight Carrier Listing Inter-organization Shipping Information Listing

Lists items assigned to sub inventories

Shows the inventory item quantities stored in specific locators Shows the inventory item quantities by subinventory Lists the freight carrier codes for the current organization Lists the shipping networks for the current organization

Organization Reports
Report

(Continued)

Description

Locator Listing
Organization Parameters Listing Subinventory Listing

Lists the locators for the current organization

Lists the organization parameters for the current organization Lists the sub inventories for the current organization Displays all organizations belong to a legal entity that are not assigned to an organization hierarchy

Organization Hierarchy Exception Report

Profile Options
Profile Option Description INV: Allow Inventory Asset to Transfer Indicates whether you can transfer an item from expensed sub inventory to an asset location INV: Inter-Organization Currency Conversion Indicates the currency conversion for inter organization transfers between organizations using different currencies Indicates whether back flush transactions can drive the inventory negative even if inventory parameter allow negative balances unchecked

INV: Override Neg for Back flush

What is an Item
An item is a part or services you
Purchase Sell Plan Manufacture Stock Distributive Prototypes

Use the Master item window to define and update items and item attributes

Defining Items

 An item master Organization is a logical entity that you use to define items

Item Master Organization

Defining Item Master Organization

Master Organization DMM

Child Organization DM1

Child Organization DM2

 Item attributes are the collection of information about an item.

Item Attributes

Item Attribute Groups

Item Status
When you define an item you use the item status attribute to assign an item status

Primary Unit of Measure Tracking

Unit of Measure Attributes

Stocking unit of measure any necessary conversions are on this unit of measure The System can track the Item in either the primary only or the primary and secondary Unit of Measure. If the system tracks the item by the primary and secondary unit of measure this is called the dual unit of measure control.

Unit of Defaulting
Fixed

Measure Attributes

(Continued)

Attribute controls the behavior of dual unit of measure controlled Item

System stores inventory in both the primary and secondary units of measure Enter an item quantity in one unit of measure, and the system converts the quantity to the secondary units of measure and displays both the quantities.

 Item attributes describe an item Status attributes are item attributes that enable the key functionality of an item. Status Attributes and Functionality Status Attribute Stockable Transactable Functionality Area Inventory Inventory, Order Management, Purchasing, Work in Process Functionality Enables you to store the item in an asset subinventory Enables you to transact the item in Oracle Inventory, Oracle Order Management,Oracle Purchasing and Oracle Work in Process

Item Statuses and Attributes

Item Statuses and Attributes

Status Attribute Purchasable Functionality Area Purchasing Functionality

(Continued)

Enables you to place the item on a Purchase Order Enables you to build the item on a discrete job, a repetitive schedule or both Enables you to place the item on Sales Order for the item Enables you to create an internal Sales Order for the item

Build in WIP

Work in Process

Customer Orders Enabled Internal Orders Enabled

Order Management Inventory, Order Management, Purchasing

Item Statuses and Attributes

Status Attribute BOM allowed Functionality Area Bills of material Functionality

(Continued)

Enables you to create the bills of material for the item Enables you to create an invoice for an item Enables you to create a recipe or formula for this item in the process manufacturing Enables you to use the item in the production batch as an ingredient, product or byproduct

Invoice Enabled

Receivables

Recipe enabled

Process Manufacturing

Process Execution Enabled

Process Manufacturing

Status Attribute Dependencies

Attribute Must be Set to If
Stockable No Inventory Item is set to Yes

Stockable
Transactable Transactable

Yes
No Yes

ASL is VMI enabled

Stockable set to Yes ASL is VMI enabled

Status Attribute Dependencies

Attribute Must be Set to If Purchasable No

(Continued)

Purchasable set to No

Build in WIP

No

Inventory Item is set to No or BOM Item Type is NOT set to Standard

Customer ordered item is set to No Internal ordered item set to No

Customer Orders Enabled No Internal Orders Enabled No

Status Attribute Dependencies

Attribute Must be Set to If

(Continued)

BOM allowed
Invoice Enabled Process Execution Enabled

No
No No

Inventory Item is set to No

Invoiceable item set to No Inventory or Recipe Enabled flag set to No

Item attribute relationships When you define an item , Oracle Inventory enforces particular
relationships between some of the item attributes
Required attributes Interdependent attributes Updateable attributes Control level dependencies

An item template can be assigned when you create or update an inventory item. The template contains values for any number of item attributes
Enabling attributes in a template Enable item attributes and assign them values in each template that you create When you apply template to an item,Oracle Inventory updates only the attributes that are enabled for the template Define templates with relatively few attributes enabled because you can apply more than one template to define one item

Item Templates

Organization Assignment and Organization Items

Control levels
Master Level Controls
An attribute you maintain at the master level has identical values across all organizations that use the Item

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

Attribute Control
Some attributes can be maintained at only the master level or organization level. Units of measure are controlled at the Master level. If you are using multiple organizations, then you should maintain min-max planning at the organization level.

 A revision is a particular version of an item, bill of material, or routing. Use the Revision control to track the item quantities by item revision and specify a revision for each material transaction. Enable revision control for items you must track version changes that are significant enough to track but do not affect the function and feature of the item. You cannot change the revision control item attributes when an item has quantity on hand

Revision Control

 If revision control is controlled at the master item level, the check for on-hand quantity is against the sum of on-hand quantity in all child organizations. If revision control is controlled at the organization level, the check for on-hand quantity is against the sum of on-hand quantity in that organization Use letters, numbers, and characters such as A, A1, 2B, and so on to define revision numbers

Revision Control

(Continued)

Item Relationship
You can define relationship between items. This allows you to search for items through these relationships.

Categories and Category Sets

A category is a logical classification of items that have similar characteristics A Category set is a distinct grouping scheme and consists of categories You can define an unlimited number of categories and group subsets of your categories into category sets A category can belong to multiple category sets

Categories and Category Sets

Inventory Purchasing Order Management Costing Engineering and Planning

(Continued)

When you install Oracle Inventory, you must assign default Category set

Item Catalog
Item catalogs enable you to add descriptive information to items and to partition your Item Master into groups of items that share common characteristics

Deletion Constraints and Deletion Groups

If you want to enforce specific business rules and add custom checks before you can delete an item, you must define the delete constraints to supplement the standard predefined item deletion conditions You can delete items that have incorrect attribute information.
For Example, if you make a mistake in entering an Item number, use the Deletion Groups window to delete the item

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

Deletion Constraints
If you want to enforce specific business rules and add custom checks before Oracle Inventory allows deletion of an item, you must define item deletion constraints to supplement the standard predefined item deletion conditions The major use of item deletion is to correct the data entry errors

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

Deletion Constraints

(Continued)

After an item is used, for example in an assembly Oracle Inventory automatically creates references to it. Oracle Inventory checks all possible references to an item and does not allow it to be deleted until every reference is removed

Item Reports
Report
Item statuses Report Item Template Listing

Description
Lists Item Statuses Lists item template definitions

Customer Item Commodity Codes Listing Lists customer item commodity cods and inactive dates Customer Item Cross Reference Report Lists customer item cross references

Item Reports
Report Customer Items Report Inactive Items Report

(Continued)

Description Lists customer items Lists items that have not had inventory transaction since the date you specify Assigns an item, range of items, category set or range of categories to multiple organizations belonging to the same Item Master Organization. Lists comprehensive item information

Item Organization Assignment Report

Item Definition Details

Profile Options
Profile Option INV: Default Status Description Indicates the default item status when you define an item Indicates which flex field is used to define items in MTL_SYSTEM_ITEMS This profile option determines the price for Model & options or configured items. The available options are Yeas and No.this profile option is only update at the site level

INV: Item Master Flex Field

INV: Use Model & Options for Configuration Pricing

Profile Options
Profile Option
INV: Default Item Template

(Continued)

Description
This profile option enables you to set a default item template for all items you create This profile option communicates to the receiving pages of the mobile device to use assignments for this particular cross reference type to validate the items while receiving receipt This profile option enables you to show only current organization employees in the people LOV of the category grants window

INV: Cross reference type

INV: View Item category type

Lot Control

A lot can represent a quantity of an item that shares the same specifications. You can divide each lot into child lots that can reflect whatever characteristics you choose for items within a lot.

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

Lot Control

(Continued)

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

Child Lots

Setting up Lot Control (Organization Parameters)

Lot Control uniqueness Lot generation Child lot generation control
Format validation Copy lot attributes

Auto create lot UOM conversion Allow different lot status

Setting Up Lot Control ( Item Attributes)

Lot Control

Starting prefix and number Maturity and hold days

Child lot enabled

Format validation Copy lot attributes

Lot Expiration

Shelf life days Retest interval Expiration action interval and action
Grade Control

Grade

Assigning lots

Managing Lots

Pre assign on lot master Assign during transactions Add quantities to existing lots Split Inventory receipts into several lots
Maintain Lots

Update lot expiration date View lot information View Supplier lot information

An expired lot

Expired Lots

Is not considered as on hand supply when you are 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 Included in all inquiries and reports, including inventory valuation reports Included in a cycle count and count entry and adjustments are allowed Included in a physical inventory and tag entry and adjustments are allowed

Disabled Lot

Disabled Lots

Is included in available to transact, available to promise, and to available to reserve calculations Is included as on-hand supply when you are performing min-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 Transactions Open Interface Can be reserved

 You can purge all lot transaction information from your current organization. The transactions must be in closed accounting period. Purging lot transactions eliminates information used in lot reports and inquiries.

Lot Number Purging

 The cycle count listing includes the lot numbers of the items to be cycle counted Assign lot numbers to all items under lot control for which you enter counts If there is a difference between cycle count quantity and the system on-hand quantity. Oracle Inventory adjusts the item quantity in that lot.

Cycle Counts Under Lot Control

 Oracle Inventory includes the lot numbers of the items to count in your physical inventory when generating Inventory tags. You must assign lot numbers to all items under lot control for which you enter counts in the Physical Inventory Tags count window If there is a difference between cycle count quantity and the system on-hand quantity. Oracle Inventory adjusts the item quantity in that lot.

Physical Inventory Under Lot Control

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

Serial Number Overview

 Many serial numbers as you want for any item under serial number If you specify No Control as the serial control type then the system does not enforce serial number control. If you specify Predefined as the serial number control type, then you must predefine serial numbers for that item. If you select At Inventory receipt or At sales order issue, then you can optionally predefine serial numbers for the item.

Generating Serial Numbers

 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 control. The process of generating serial numbers is done through a concurrent report. The process does not assign numbers to units in inventory, it simply reserves specify serial numbers for an item for later use.

Generating Serial Numbers

(Continued)

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

Maintaining Serial Numbers

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

Lot Genealogy

Lot and Serial Report

Report Lot Transaction Register Description You can use this report to audit lot transaction for a specified time interval,for a range of dates, for ranges of items or categories, of for other criteria You use this report to isolate lots that are about to expire,find expired lots, and find serial assigned to expired lots You can use this report to audit serial number transaction for a specified time interval, location or group of locations, reason or group of reasons or other criteria

Expired Lots Report

Serial Number Transaction Register

Lot and Serial Report

Report Lot Inventory Report Description

(Continued)

This report provides you with an overview of item lots,quantities and lots statuses in all or the selected sub inventories or locators within the organization. This report provide you with an overview of an information you set up in the lot matter. You can run this report for a specific item, or all items in the organization.

Lot Master Report

Grade History Change Report This report enables you to view all of the grade changes made during a given period for a particular item within an organization

Profile Options
Profile Option Description

INV:Genealogy prefix or suffix

You use this to determine if and how the item number is displayed on the object Genealogy form.
Determines whether data for picking and reservations must be filtered to match the preferred grade that is defined on the order line. Allows you to pick the character that appears between the item name and lot number in the genealogy tree.

INV: Target preferred grade

INV: Genealogy Unlimited

Profile Option

Profile Options Description

(Continued)

INV: Validate Returned Lot

This profile option determines whether the component lot that is returned from WIP should be validated against lots that are issued to the same job. This profile option determines whether component serials that are returned from WIP should be validated against serials that are issued to the same job.
Indicate whether the system performs two validation checks for serial numbers Oracle work in process uses. This profile option also indicates if you can re-receive a serial number via a RMA receipt for an item with serial control set at sales order issue.

INV: Validate Returned Serial

INV: Restrict Receipts of Serials

Material Status Material Status enables you to control the

movement and usage of material for portions of your inventory.

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

Material Status Control

Material Status Transactions

Cumulative Effect

Material Status Example

Define Transaction Types

Setting Up

Enable Transaction Types for Material Status Control

Define Material Status

Enable Material Status

Enable Profile Option

Assign Material Status

Defining Item Material Status Control

Assigning Material Status Control to Sub inventories Locators

Assigning Planning Statuses

.

Disabling Material Statuses

.

Material Status Reports

.
Report
Material Status Definition Report

Description
Provides you an overview of each material status and how it is used Provides you the full status history of who changed the material status and what reason was given

Material Status History Report

Profile Option
. Report
Description INV: Material Status Support This Profile Option determines whether Material Status is enforced. If Material Status is not used in the installation, it is recommended to switch it off to increase the performance of the system

Overview of Inventory Planning

Oracle Inventory provides four types of Replenishment Methods:
Min-Max Planning Reorder-point Planning Kanban Replenishment Planning Replenishment Counting

Order Planning

How Much to Order

Overview of Inventory Forecasting

Inventory Forecasting is the process of extrapolating the expected demand of an item over a number of periods in the future

Forecasting Types

Forecast setup and Maintenance

Inventory Replenishment Methods

Replenishment Methods Levels Inventory Replenishment can be performed at Organization or Sub

inventory Level
Planning Method Reorder-point Min-Max Replenishment Counting Kanban Organization Yes Yes No N/A Sub inventory No Yes Yes N/A

 Reorder Point Planning as the name suggests places an Order when the Inventory level falls to a predefined Re-order Point. The Order Size is equal to the EOQ. Reorder Point Planning is recommended for those items, which are not very expensive.

Reorder Point Planning

Reorder Point Planning(Continued)

Uses of Reorder Point Planning

Reorder Point Planning Steps

 In this method, the Inventory is planned based on user defined Minimum and Maximum Quantity. Inventory is replenished to the Maximum level whenever the Stock Level falls to the Minimum level. It can be applied to All or selected Items. It is a simple method used for low value item which doesnt need strict monitoring.

Min- Max Planning

Min- Max Planning

Maximum Level

Quantity

Stock Level

Minimum Level

Time

Min- Max Planning

Min-Max at Org Level

Set Inventory Planning Method to Min-Max

Specify Min & Max Qty

Run the Min-Max Report

Kanban Planning
Kanban is a Pull based replenishment in Manufacturing System.

It leads to shorter lead times and reduced inventory.

Kanban is typically applied to items with relatively constant demand and medium-to-high production volume. Kanban represents replenishment signals that are usually manual and highly visible like Color-coded Cards, Light and Empty bin.

Types of Kanban Replenishment

Inter Org: Replenishes by creating Internal Requisition

Intra Org: Triggers Material movement from a subinventory in the same Organization.
Production: Creates or releases a Production Job Supplier: Creates a Purchase Requisition.

Kanban Elements
Pull Sequence is a group of information that defines a Kanban location, source information, and planning parameters for an Item.

Kanban chain is a series of Pull Sequences, which defines the replenishment network. E.g.: Assembly to Stores.
Kanban Cards are created for Item, Subinventory and Locator (optional) and uniquely identified by a Kanban number Replenishable Cards can be created automatically through Pull Sequence or manually through Kanban Cards window.

Kanban : Using Cards

 Replenishment Counting is a method of ordering Items for non-Tracked Subinventory. Non-Tracked subinventories are expense subinventory, for which On-hand balances are not maintained. Whenever an Item is moved into Expense Subinventory, the Expense account is charged and the quantity is discarded. Items are replenished in Non-Tracked Subinventory by periodically counting the items physically.

Replenishment Counting

Replenishment Counting

Profile Options
Profile Option INV: fill Kanban on Partial Move Order Receipt Description Determine whether or not a Kanban card can be considered filled if the move order created to fill it was only partially transferred.

INV: Replenishment Move Order Grouping

TP: INB Enter Replenishment Count Form

Enable you to create only one move order header per request
Indicates processing control in the Enter Replenishment count window.

Profile Options (Continued)

Profile Option INV: Replenishment Count Requisition Approval Description Indicates the status of sub inventory Replenishment requisition created by the replenishment processor. Indicates the action taken when a failure is detected while processing a replenishment count line Indicates the status of requisitions created by the minmax planning report

INV:Replenishment Count Line Failure

INV: Minmax Reorder Approval