robert smith abeam consulting

Oracle Process Manufacturing Oracle Process Manufacturing Oracle Process Manufacturing Oracle Process Manufacturing

R12 Inventory Transactions 101R12 Inventory Transactions 101R12 Inventory Transactions 101R12 Inventory Transactions 101

Robert Smith

ABeam Consulting, USA

Who am I?

• Robert Smith is a CPA who is currently a Senior Manager with ABeam Consulting, USA

• Spent the last 15 years in the process • Spent the last 15 years in the process manufacturing industry as a user and consultant.

• Speaks frequently on the capabilities of OPM and its integration with Oracle Applications

Presentation Agenda

• Rules of the Game

• Common Inventory Overview

• System Setup Considerations• System Setup Considerations

• Inventory Transaction Process

• Month End Closing Process

• Reporting

• Transaction Accounting

• Q&A

Rules of the Game

• There is no such thing as a dumb question

• Ask questions when you think of them, but they may not be answered until the endthey may not be answered until the end

• Be respectful

• Have fun!

Common Inventory Overview• It’s finally here

Central Item Master – OPM

Attributes

Central Item Master – OPM

Attributes

Central Item Master – OPM

Attributes

Setup Considerations

• Oracle Inventory setup steps are all valid and should be reviewed

• Item Setup• Item Setup

• Organization Setup

• Transaction Setup

• System Profile Options

Item Setup – Item Attribute

Control

• Different orgs can have different valuesdifferent values

Item Setup – Item Categories

• Similar to OPM Classes

• Used for better reportingreporting

Item Setup – Item Categories

• Assign General Ledger Class

• Good time to review current review current setup

Item Setup – Process

Manufacturing Tab• Used to identify

which Costing and Quality being used

• Defines production defaults

Organization Setup

Organization Setup

• Define Org as Process Enabled

• Once defined can’t change

Organization Setup Considerations

11i

Costing and Planning:OPM is at Warehouse level

Discrete is at Inventory Org level

Costing and Planning is done at

Inventory Org level

OPM Resource Costs are

R12.1

Resource Costs are defined

at the OPM Organization level

OPM Resource Costs are

defined

at the Inventory Org level

All documents are defined

at OPM Org (Plant) level

All OPM document are defined

at Inventory Org level

Inventory Balances at a

Warehouse

Level

Inventory Balances at a

Inventory Org

or SubInventory Level

Organization R12 Mapping

Transaction Setup –

Transaction Types/Reasons

• Used to identify purpose of transaction

• Used for • Used for transaction accounting

• Transaction Reason can also be defined (These are like OPM reason codes)

System Profile Options

• GMI: Allow Negative Inventory Replaced with flag on inventory organization parameters

• GMI: Retain Shipped Lot Status Replaced with • GMI: Retain Shipped Lot Status Replaced with flag on inventory organization parameters

• GMI: RMA Lot Restriction Replaced in Receiving Options setup in Purchasing

Inventory Transaction Process

OPM Inventory

Inventory Adjustments/

Create ImmediateMiscellaneous Transaction

Oracle Inventory

Transact Process Move Move Order

Move or TransferMove Orders, Interorg Transfers

or Internal Orders

Inquiries and Summary Views Material Workbench

Inventory Super User Menu

• Transactions• Perform • Perform

transactions– Transaction

Queries– Transaction details

Inventory Super User Menu

• On-hand Quantity– Material

Workbench

– View item quantities and details

Miscellaneous Transaction

• Old inventory adjustment and create immediate

InterOrg Transfers

• Transfer between organizations

Subinventory Transfer

• Transfer within organization

• Similar to move immediate

Inventory Queries • Material Workbench

• Query based on tree structure

• User keeps drilling down

Transaction Queries• Transaction

Summaries

Transaction Queries• Transaction

Summaries• Pending

transactions accessed from Pending Transaction FormForm

Month End Closing Process

• Complete transactions

• Preliminary Inventory Close

Month End Closing Process

• Transfer to GL– OPM Accounting

Pre-Processor –This gets transactions ready to postready to post

Month End Closing Process

• Transfer to GL– Create

Accounting in Draft Mode (Old Draft Mode (Old Test Subledger)

– Create Accounting in Final Mode (Old Final Subledger

Reports

• Inventory Valuation Report

Transaction Accounting

• SLA replaces MAC

• SLA presentationspresentations

• Based on MAC style logic

Conclusion

• R12 major release, even bigger than GEMMS to 11i

• R12.1.1 is stable and worth looking into• Additional benefits require re-learning in many

areas. Oracle User Guides are valuable readingareas. Oracle User Guides are valuable reading• SLA concept what we know (MAC), don’t be afraid• Very important to do assessment for existing OPM

users to review and also consider upgrade vs re-implementation

• End user training should not be overlooked or under estimated

Thank You!

Robert Smith

rsmith@abeam.com

(859) 421-2202(859) 421-2202