R12 Inventory a detailed look.

1. Inventory Organizations

2. Inventory Organization Structure
O r g a n iz a tio n
S u b In v e n to ry
S u b in v e n to r y
L o c a to r
L o c a to r

3. 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

4. Defining Organizations
• Sample Inventory Organization
Ledger
Operating Unit
Inventory Organization A
Subinventory
Locator
Locator
Inventory Organization B
Subinventory
Subinventory
Subinventory
Locator
Locator
Locator

5. 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 transactions data secure by line of
business

6. Multi-Organization Structure

7. Inventory Parameters
• Enables you to
• Setup organization information
• Enable specific products and features
Oracle Enterprise asset management
Oracle Process Execution
Oracle Warehouse Management

8. Inventory Parameters (continued)
• Organization Features
• Organization codes
• Item master organization
• Product Features
• Oracle Process Execution
• Oracle Enterprise Asset Management
• Oracle Warehouse Management

9. Costing Parameters
• 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
• LIFO ( Last in First Out)
– Costing method where items that were received most
recently are transacted first

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

11. 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

12. 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

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

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

15. Locator control
– Locators are structures within sub inventories
– Locators may represent rows, aisles or bins in
warehouse
– Dynamic Locators
– Generate during a transaction as needed
– Static Locators
– Predefined

16. Sub inventory Locator Relationship

17. Interorganization Shipping Network
– Relationships between shipping organization
and destination organization
– You must define a shipping network between
two organizations
Shipping Method

18. 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

19. Organizational Hierarchy
– Organization Hierarchy enables you to
–
–
–
–
–
Assign items to organizations
Copy item attributes
View item information
Open and Close accounting information
Purge Transactions

20. Organization Reports
Report
Description
Item-subinventory Report
Lists items assigned to
sub inventories
Locator Quantities Report
Shows the inventory item quantities
stored in specific locators
Subinventory Quantities
Report
Shows the inventory item quantities
by subinventory
Freight Carrier Listing
Lists the freight carrier codes for
the current organization
Inter-organization Shipping
Information Listing
Lists the shipping networks for the
current organization

21. Organization Reports
Report
(Continued)
Description
Locator Listing
Lists the locators for the current
organization
Organization Parameters
Listing
Lists the organization parameters for
the current organization
Subinventory Listing
Lists the sub inventories for the
current organization
Organization Hierarchy
Exception Report
Displays all organizations belong to a
legal entity that are not assigned to
an organization hierarchy

22. 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
INV: Override Neg for Back flush
Indicates whether back flush
transactions can drive the
inventory negative even if
inventory parameter allow
negative balances unchecked

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

24. Defining Items
Use the Master item window to define and update items and item
attributes

25. •
ItemOrganization is a logical entity that you use to
Master Organization
An item master
define items
Defining Item Master Organization
M a s te r O r g a n iz a tio n D M M
C h ild O r g a n i z a t i o n D M 1
C h ild O r g a n i z a t i o n D M 2

26. •
Item Attributes
Item attributes are the collection of information about an item.

27. Item Attribute Groups

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

29. Unit of Measure Attributes
Primary Unit of Measure
– Stocking unit of measure any necessary conversions are
on this unit of measure
Tracking
– 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.

30. Unit
Defaulting of
Measure Attributes
(Continued)
– Attribute controls the behavior of dual unit of measure
controlled Item
Fixed
– 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.

31. Item Statuses and Attributes
•
Item attributes describe an item
•
Status attributes are item attributes that enable the key functionality of an
item.
•
Status Attributes and Functionality
Status Attribute
Functionality 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 Oracle Inventory, Oracle
Order Management,Oracle
Purchasing and Oracle Work in
Process

32. Item Statuses and Attributes
(Continued)
Status Attribute
Functionality Area
Functionality
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
Customer Orders Order Management
Enabled
Enables you to place the item
on Sales Order for the item
Internal Orders
Enabled
Enables you to create an
internal Sales Order for the
item
Inventory, Order
Management,
Purchasing

33. Item Statuses and Attributes
(Continued)
Status Attribute
Functionality Area
Functionality
BOM allowed
Bills of material
Enables you to create the
bills of material for the item
Invoice Enabled
Receivables
Enables you to create an
invoice for an item
Recipe enabled
Process
Manufacturing
Enables you to create a
recipe or formula for this
item in the process
manufacturing
Process Execution
Enabled
Process
Manufacturing
Enables you to use the item
in the production batch as
an ingredient, product or byproduct

34. Status Attribute Dependencies
Attribute
Must be Set to
If
Stockable
No
Inventory Item is set to
Yes
Stockable
Yes
ASL is VMI enabled
Transactable
No
Stockable set to Yes
Transactable
Yes
ASL is VMI enabled

35. Status Attribute Dependencies
Attribute
Must be Set to
If
(Continued)
Purchasable
No
Purchasable set to No
Build in WIP
No
Inventory Item is set to
No or BOM Item Type
is NOT set to Standard
Customer Orders Enabled No
Customer ordered
item is set to No
Internal Orders Enabled
Internal ordered item
set to No
No

36. Status Attribute Dependencies
Attribute
Must be Set to
(Continued)
If
BOM allowed
No
Inventory Item is set to
No
Invoice Enabled
No
Invoiceable item set to
No
Process Execution
Enabled
No
Inventory or Recipe
Enabled flag set to No

37. 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

38. Item Templates
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

39. Organization Assignment and
Organization Items

40. 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.

41. Revision Control
• 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

42. Revision Control
(Continued)
• 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

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

44. 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

45. Categories and Category Sets
(Continued)
When you install Oracle Inventory, you must
assign default Category set
•
•
•
•
•
Inventory
Purchasing
Order Management
Costing
Engineering and Planning

46. 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

47. 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.

48. 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.

49. 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

50. Item Reports
Report
Description
Item statuses Report
Lists Item Statuses
Item Template Listing
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

51. Item Reports
Report
(Continued)
Description
Customer Items Report
Lists customer items
Inactive Items Report
Lists items that have not
had inventory transaction
since the date you
specify
Item Organization Assignment Report
Assigns an item, range of
items, category set or
range of categories to
multiple organizations
belonging to the same
Item Master
Organization.
Item Definition Details
Lists comprehensive item
information

52. Profile Options
Profile Option
Description
INV: Default Status
Indicates the default item
status when you define an
item
INV: Item Master Flex Field
Indicates which flex field is
used to define items in
MTL_SYSTEM_ITEMS
INV: Use Model & Options for
Configuration Pricing
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

53. Profile Options
Profile Option
(Continued)
Description
INV: Default Item Template
This profile option enables you to set
a default item template for all items
you create
INV: Cross reference type
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
INV: View Item category type
This profile option enables you to
show only current organization
employees in the people LOV of the
category grants window

54. 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.

55. Lot Control
(Continued)
– 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.

56. Child Lots
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.

57. 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

58. 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

59. 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

60. 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

61. 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

62. Lot Number Purging
– 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.

63. Cycle Counts Under Lot Control
– 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.

64. Physical Inventory 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.

65. Serial Number Overview
– 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

66. Generating as you want for any item
Serial Numbers
– Many serial numbers
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.

67. Generating uses the starting serial number
Serial Numbers
– Oracle Inventory
(Continued)
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.

68. Maintaining Serial Numbers
– 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

69. Lot Genealogy
– 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.

70. Lot and Serial Report
Report
Description
Lot Transaction Register
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
Expired Lots Report
You use this report to isolate lots that
are about to expire,find expired lots,
and find serial assigned to expired lots
Serial Number Transaction
Register
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

71. Lot and Serial Report
(Continued)
Report
Description
Lot Inventory Report
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.
Lot Master Report
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.
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

72. Profile Option
Profile Options
Description
INV:Genealogy prefix or suffix
You use this to determine if and how
the item number is displayed on the
object Genealogy form.
INV: Target preferred grade
Determines whether data for picking
and reservations must be filtered to
match the preferred grade that is
defined on the order line.
INV: Genealogy Unlimited
Allows you to pick the character that
appears between the item name and
lot number in the genealogy tree.

73. 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.
INV: Validate Returned Serial
This profile option determines whether
component serials that are returned from
WIP should be validated against serials
that are issued to the same job.
INV: Restrict Receipts of
Serials
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.

74. Material Status
Material Status enables you to control the
movement and usage of material for portions of
your inventory.

75. Material Status Control
– 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.

76. Material Status Transactions

77. Cumulative Effect

78. Material Status Example

79. .
Setting Up
Define Transaction Types
Enable Transaction
Types for Material
Status Control
Define Material Status
Enable Material Status
Enable Profile Option
Assign Material Status

80. .
Defining Item Material Status
Control

81. .
Assigning Material Status Control to
Sub inventories Locators

82. Assigning Planning Statuses
.

83. Disabling Material Statuses
.

84. Material Status Reports
.
Report
Description
Material Status Definition Report
Provides you an overview of
each material status and how
it is used
Material Status History Report
Provides you the full status
history of who changed the
material status and what
reason was given

85. 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

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

87. Order Planning

88. How Much to Order

89. 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

90. Forecasting Types

91. Forecast setup and Maintenance

92. Inventory Replenishment Methods

93. Replenishment Methods Levels
• Inventory Replenishment can be performed at Organization or Sub
inventory Level
Planning Method
Organization
Sub inventory
Reorder-point
Yes
No
Min-Max
Yes
Yes
Replenishment Counting
No
Yes
Kanban
N/A
N/A

94. Reorder Point Planning
– 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.

95. Reorder Point Planning(Continued)

96. Uses of Reorder Point Planning

97. Reorder Point Planning Steps

98. Min- Max Planning
– 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
doesn’t need strict monitoring.

99. Min- Max Planning
Maximum Level
Quantity
Stock Level
Minimum Level
Time

100. Min- Max Planning
Min-Max at Org Level
Set Inventory Planning Method to
Min-Max
Specify Min & Max Qty
Run the Min-Max Report

101. 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.

102. 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.

103. 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.

104. Kanban : Using Cards

105. Replenishment Counting
– 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.

106. Replenishment Counting

107. Profile Option
Profile Options
Description
INV: fill Kanban on Partial Move Order
Receipt
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
Enable you to create only one
move order header per request
TP: INB Enter Replenishment Count
Form
Indicates processing control in
the Enter Replenishment count
window.

108. Profile Options (Continued)
Profile Option
Description
INV: Replenishment Count Requisition
Approval
Indicates the status of sub
inventory Replenishment
requisition created by the
replenishment processor.
INV:Replenishment Count Line Failure
Indicates the action taken
when a failure is detected while
processing a replenishment
count line
INV: Minmax Reorder Approval
Indicates the status of
requisitions created by the
min-max planning report