overview of oracle inventory

8/12/2019 Overview of Oracle Inventory

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Copyright 2007, Oracle. All rights reserved.

Objectives

After completing this module, you should be able to do the

following:

Describe the overall inventory process from receipt to

issue

Discuss the key integration points between Oracle

Inventory and other Oracle Applications


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Overview

Finished goods

What is inventory?

Raw materials

Spare parts

Consignedinventory

Services


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Inventory Capabilities

AS18947

Define part numbers Define organizationstructures

AS18947 = 1000 on-hand

Track on-hand

inventory

Plan material

replenishment


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Inventory Capabilities (Cont)

Issue

material Forecast demand

Maintain

inventory

accuracy

Reserve

material


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Receipt to Issue Life Cycle

Receive inventory Issue inventory

Transfer inventory


7/187Copyright 2007, Oracle. All rights reserved.

Receiving Inventory

Purchasing Work in process

Inventory

Receiving



Receiving Inventory

Types of Inventory Receipts

Receipt and Deliver (Direct)

Receipt then Deliver (Standard)

Inspection Receipt

Inspect

Deliver



Transferring Inventory

Transfer

Inventory Shipping

Work in Process Order Management



Issuing Inventory

InventoryPurchasing

Work in Process Order Management

Issuing



Oracle Inventory Application Integration

Oracle Project

Manufacturing

Oracle Flow Manufacturing

Oracle Advanced Supply

Chain Planning / Global

Order Promising

Oracle Warehouse

Management

Oracle Purchasing

Oracle Order Management

Oracle Engineering

Oracle Work in Process

Oracle Cost Management

Oracle Field Service

Oracle Bills of Material

Oracle Inventory Integrates with the following applications:



Integration of Oracle Inventory to Financial

Applications

Oracle

Assets

Oracle

Receivables

Oracle

Payables

Oracle

GeneralLedger

OracleInventory

External

Systems

Oracle Cost

Management



R12 Defining Inventory Organizations


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Inventory Organization Structure

Organization

Subinventories

Locators



Multi-Organization Structure

What is multi-organization structure?

Applications and database enhancement

Enables you to consolidate your operations under one

installation of Oracle Applications on a single global

instance

Enables you to keep transaction data secure by line of

business



Setting Up Locations

Physical location

Employees Organizations


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Inventory Parameters

The Inventory Parameters tab enables you to:

Set up organization information

Enable specific products and features

Oracle Process

Execution

Oracle Enterprise

Asset Management

Oracle Warehouse

Management



Costing Parameters

Which Costing method is the organization going to use?

Standard

Average costing is used primarily for distribution and

other industries where the product cost fluctuates

rapidly, No shared costs; average cost is maintained

separately in each organization

Average

Use standard costing for performance measurement and

cost control. Can share costs across organizations when

not using Work in Process

FIFO ( First in First Out)

Costing method where items that were received earliest

are transacted first

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

Item AS5222

Serial #5847329

Serial parameters LPN parameters

LPN101

Revision parameters

Revision A

Lot parameters

Lot 403B



ATP, Pick, Item-Sourcing Parameters

The ATP, Pick, Item-Sourcing Parameters tab 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-Org Information tab enables you to determine the

parameters the organization uses when it transfers

material between organizations.

M1 Seattle

manufacturing

M2 Boston

manufacturing



Other Account Parameters

You use the Other account parameters tab enables you to

set up receiving account information, profit and loss

account information, and other additional accounts.



Warehouse Management Parameters

If you have Oracle Warehouse Management installed you

can enter organization parameters that apply only to

Oracle Warehouse Management.

Oracle WarehouseManagement


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What is a Subinventory?

Finished goods

Raw materials

Defective items


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Defining Subinventories

Subinventory

Physical or logical separation of material

You must define at least one subinventory for each

organization


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Locator Control

RowRack

Bin


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Dynamic and Static Locators

Dynamic Locators

Generate during a

transaction as needed

Static Locators

Predetermined


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Interorganization Shipping Networks

Shipping

organization

Destination

organization

Direct

organization

transfer

Destination

organization

Intransit shipment


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Additional Set Up Steps

Employees Planners

Freight carriers


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Additional Organizational Setups

Organization access Material shortages


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Copying Inventory Organizations

M1 Seattle

manufacturingM2 Boston

manufacturing

Copy organization


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Implementation Considerations

Products and features

Do you need to set up additional products or features?

Oracle Process

Execution

Oracle Enterprise

Asset ManagementOracle Warehouse

Management


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Implementation Considerations (Cont)

Subinventories

Is it necessary to differentiate between receiving and

storage subinventories in your warehouse? Do you

need to link your receipts to a receiving location? Do

you need to track material without it appearing in on-hand quantity?


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Locator control

Do you need to implement locator control?

Do you need to need to implement locator control for

the organization, for individual subinventories, or at the

item level?

Should locator control be predefined, just-in-time, or

both?


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Organization access

Should all responsibilities have access to the

organization?

Which responsibilities should have access to the

organization?


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Shipping networks

Do you need to ship material between organizations?

Do you need to track inventory between transfers?

How do you want to ship material between

organizations?

Do you ship material to Japan, Korea, or Taiwan?


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Summary

You should now be able to:

Understand the structure of an inventory organization

Understand the multi-organization structure in Oracle

Applications

Understand organization implementation

considerations


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R12 Units of Measure


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Units of Measure

A unit of measure is a value that specifies the quantity of

an item.

Each Liter


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Uses of Units of Measure

Planning

Bills of Materials

Work in Process


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Unit of Measure Class

Each Box of 4 Box of 8

Volume Weight Temperature


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Unit of Measure Conversions

Base UOM

Yes

No

No

UOM

lbs

kg

g

1 kg = 2.208 X lbs

1 g = 0.002208 X lbs

UOM Class = Weight UOM Conversion

UOM Interclass Conversion

Conversion

2Weightlbs

Item

Keyboard

Destination

Base UOM

Destination

UOM Class

Source

Base UOM

Source

UOM Class

QuantityEach

2 Each = 1 lb


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R12 Defining and Maintaining Items

Fundamentals


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Objective

After completing this module, you should be able to do the

following:

Understand how to define, setup and maintain items,

Understand item templates

Understand item control levels

Understand item categories and catalogs


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What is an Item?

Component

Assembly

Service

Container


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Defining Items

Enter attribute values

Enable in child organizations

Update organization level attributes

Define item costs

Copy templates or items

1


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Item Master Organization

Manufacturing

(Dallas)

Assembly

(Chicago)

Distribution

(Seattle)

Item

master orgDefine items in the

Item Master

Transact items in the inventory organizations


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Item Master

Master organization

V1

Child organization

M1

Child organization

M2

Child organization

D1


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Item Attributes

Item

Serviceable Weight

Buy MakePlan

Attributes


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Item Attribute Groups

Main

Inventory

Bills of Material

Costing

Asset Management Costing

Purchasing

Receiving

Physical

General Planning

MPS / MRP

Lead Times

Work In Process

Order Management Invoicing

Process Manufacturing

Service

Web Option


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Item Status

When you define an item, you use the Item Status attribute

to assign an item status.

Item number = AS1359

Item status = prototype

Item number = AS1359

Item status = active


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Unit of Measure Attributes

Each Liter


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Status Attributes and Functionality

Status Attribute Functional Area Functionality

Stockable Inventory Enables you to store the

item in an asset

subinventory.

Transactable Inventory, Order

Management, Purchasing,Work in Process

Enables you to transact

the item in OracleInventory, Oracle Order

Management, Oracle

Purchasing and Oracle

Work in Process.

Purchasable Purchasing Enables you to place the

item on a purchase order.Build in WIP Work in Process Enables you to build the

item on a discrete job, a

repetitive schedule, or

both.


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Customer Orders Enabled Order Management Enables you to place the

item on a sales order.

Internal Orders Enabled Inventory, Order

Management, Purchasing

Enables you to create an

internal sales order for the

item.BOM Allowed Bills of Material Enables you to create a

bill of material for the

item.

Invoice Enabled Receivables Enables you to create an

invoice for the item.

Recipe Enabled Process Manufacturing Enables you to create a

recipe or formula for this

item in process

manufacturing.


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Process Execution

Enabled

Process Manufacturing Enables you to use the

item in a production batch

as an ingredient, product,

or by-product.


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Creating Item Templates

If you regularly define items that share the same values

for a number of attributes, you can define item

templates that predefine these attributes.

An item template contains values for any number of

item attributes. Oracle Inventory has several predefinedtemplates that you can use to define and update items.

You may also define your own item attributes.


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Enabling Attributes in a Template

You can enable attributes and assign them values in

each template that you create.

When you apply a template to an item, Oracle Inventory

updates only the attributes that are enabled for the

template. You can define templates with relatively few attributes

enabled because you can apply more than one

template to define one item.


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Organization Assignment and Organization Items

Master organization

Child organization

Child organization

AS18947

Enabled

Not Enabled


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Control Levels

Master organization

Child organization

Child organization


Build in Wip = yes



Build in Wip = no

R i i C l


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Item # AS5488

B&W display device

Revision A

Item # AS5488

Color display device

Revision B

Revision Control

It R l ti hi


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Item Relationships

Up-sell

Substitute

C t i d C t S t


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Categories and Category Sets

Computer

category

Peripherals

category

Hardware category set

A i i It t C t i


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Assigning Items to Categories

Computer

category

Hardware category set

Item

AS18947

D l ti C t i t


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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 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 incorrectlydefining it and before using it anywhere in the system,

you will be able to delete it.

D l ti C t i t (C t)


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Deletion Constraints (Cont)

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.


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Lot and Serial Control

Lot Control O er ie


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Lot Control Overview

Item AS3339

Lot# C1498

Lot controlled item

Item AS1129

Item without lot control


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Setting up Lot Control


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(Organization Parameters)

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

Lot Number Uniqueness


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Lot Number Uniqueness

Item AS100

Lot LN100

Item AS101

Lot LN100

Not Set to Across Items Set to Across Items

Within

Organization

Across

Organizations

Item AS100

Lot LN100

Item AS101

Lot LN100

Within

Organization

Across

Organizations

Item AS100

Lot LN200

Item AS100

Lot LN400

Item AS101

Lot LN300

Item AS101

Lot LN600



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(Item Attributes)

Lot control (Full Control)

Starting prefix and number

Maturity and hold days

Lot Expiration (Shelf Life)

Shelf life days

Retest interval

Expiration action interval

and action

Child lot enabled

Format validation

Copy lot attributes

Grade control

Grade

Expired Lots


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Expired Lots

Item: AS2005

Lot: C3100

Lot expiration action: Dispose

Item: AS2005

Lot: C3102

Lot expiration action: Retest

X

X

Disabled Lots


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Disabled Lots

XItem CS100Lot S246

Disabled

Item CS100

Lot S247

Active

Lot Number Purging


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Lot Number Purging

You can purge all lot transaction information from your

current organization. The transactions must be in

closed accounting periods.

Purging lot transactions eliminates information used in

lot reports and inquiries.


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Serial Number Overview


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Serial Number Overview

Item AS5222

Serial #5847329

Item AS5222

Serial #3798490

Serial Controlled Items

Generating Serial Numbers


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Generating Serial Numbers

Item AS5222

Serial #5847329

Predefined

Item AS5488

Serial #005363

At inventory receipt

Serial Uniqueness


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Item: AS100

Serial: SN100

Item: AS101

Serial: SN101

Serial Uniqueness

Item AS100

Serial SN100

Item AS101

Serial SN100

Item: AS100

Serial: SN100

Item: AS101

Serial: SN101

Within items Within an organization Across organizations

Lot Genealogy


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Lot Genealogy

Item: OJ100

Lot: Juice100

Item: CM200

Lot: SR100

Item: CM300

Lot: WR100

Item: CM600

Lot: OR500

Serial Genealogy


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Serial Genealogy

Item:AS100

Serial: SN100

Item: CM100

Serial: SN200

Item: CM200

Serial: SN300

Item:CM300Serial: SN400

Item:CM400

Serial: SN500


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R12 Transaction Setup

Transaction Source Types


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Transaction Source Types

The type of entity against which OracleInventory charges a transaction.

Transaction

source type

Purchase order

Job

Transaction Action


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Transaction Action

A generic type of material movement or cost update.

Transaction Action

Assembly Return

Transaction Reasons


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Transaction Reasons

A standard means of classifying or explaining thereason for a transaction

User defined

Used in all transaction forms

Use these with any type of material transaction Reports available by Transaction Reason


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Predefined Transaction Types


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Predefined Transaction Types

Source Type Action Type

Purchase Order Receipt into Stores PO Receipt

Cycle Count Cycle Count Adjmt Cycle Count Adjmt

RMA Issue from Stores Reject Cust Return

Job or Schedule Assy Completion WIP Assy Compl

Internal Order Issue from Stores Internal Order Issue

Inventory Receipt into Stores Miscellaneous Receipt

Transaction Managers


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g

Transaction managers control the number oftransaction workers, processing intervals, and number

of transactions processed by each worker during each

interval.

Transaction managers run at the periodic intervals youspecify until you disable them with the concurrent

manager.

Running Transaction Managers


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g g

Cost Transaction Manager

Move Transaction ManagerMaterial Transaction Manager

Lot Move Transaction Manager

Creating Picking Rules


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Picking rule

Sort criteria

(Subinventory)

Applies to

(Sales order)

Account Aliases


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An account alias is an easily recognized Name or label thatrepresents a general ledger (GL) account number.


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Material Shortage Alerts and Notifications


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