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INVENTORY TRAINING MATERIAL

CONTENTS 1. Multi Org Concept---------------------------------------------------------------4 2. Organisation Setup--------------------------------------------------------------12 • Calender------------------------------------------------------------------------12 • Location-------------------------------------------------------------------------23 • Inventory Organisation-----------------------------------------------------25 • Parameters---------------------------------------------------------------------28 • Subinventory------------------------------------------------------------------37 • Stock Locators---------------------------------------------------------------39 3. Inventory Organisation Setups---------------------------------------------Units of Measurements--------------------------------------------------------41 Flexfields------------------------------------------------------------------------Item Attribute Controls--------------------------------------------------------46 Item Categories-----------------------------------------------------------------Item Category Set---------------------------------------------------------------Item Definition--------------------------------------------------------------------Item Relations---------------------------------------------------------------------58 Item Cross Reference----------------------------------------------------------60 Deletion Groups------------------------------------------------------------------64 Shipping Methods----------------------------------------------------------------67 Shipping Network----------------------------------------------------------------68 Transit times for Shipping Methods---------------------------------------70 Organisation Access----------------------------------------------------------Transaction Source Types----------------------------------------------------71 Transaction Reasons-----------------------------------------------------------72

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Account Aliases-----------------------------------------------------------------73 Open Inventory Period--------------------------------------------------------74

4. Transactions---------------------------------------------------------------------75 Miscellaneous Receipts------------------------------------------------------75 Miscellaneous Issues---------------------------------------------------------77 Subinventory Transfers------------------------------------------------------80 Move Orders----------------------------------------------------------------------82 Inter-Org Transfers-------------------------------------------------------------86 5. Item Controls--------------------------------------------------------------------Revision Control---------------------------------------------------------------Locator Control----------------------------------------------------------------Lot Control----------------------------------------------------------------------Serial Control------------------------------------------------------------------100 100 104 107 108

6. Inventory Planning-------------------------------------------------------------111 Min-Max Planning---------------------------------------------------------------111 Re-order Point Planning------------------------------------------------------118 Replenishment Planning----------------------------------------------------Kanban Planning----------------------------------------------------------------

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7. Counting-----------------------------------------------------------------------------124 ABC Analysis----------------------------------------------------------------------124 Cycle Counting-------------------------------------------------------------------Physical Inventory---------------------------------------------------------------133 8. Costing----------------------------------------------------------------------------142 Cost Elements------------------------------------------------------------------143 Cost Sub-elements------------------------------------------------------------143 Cost Types-----------------------------------------------------------------------144 Define Item Cost---------------------------------------------------------------146 Updating Item Cost-----------------------------------------------------------147 9. Appendix-------------------------------------------------------------------------149 Definitions Used In Inventory---------------------------------------------149 Setups of Inventory-----------------------------------------------------------154

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Oracle will automatically create the inter-company sales entries to accounts payable and accounts receivable. Secure access: You can assign users to an ‘Operating Unit’. There is a great deal of confusion about what Multi-Org does. Users will see all customer and supplier headers but will only be able to see the sites which are relevant to that ‘Organization’. Users can then only see and work with data which is relevant to them. Page 4 2/27/2013 . and doesn’t do and how it can be demonstrated to prospects and customers. as a single installation will now support any number of different logical business entities. explain Oracle Multi-Org terms and give some examples of how Oracle Multi-Org can be used by complex business organizations. support for complex organizations has been enhanced. This is no longer required. The most visible example is Customers (Receivables) and Suppliers (Payables). What does Oracle Multi-Org give me? Support for multiple organizations without multiple installations: You can define multiple organizations and the relationships among them in a single installation of Oracle Applications. Here we provide a simple overview of what Oracle Multi-Org does. In the past if you had multiple business entities you would have to install Oracle Applications modules multiple times within the same database. Sell and ship products from different ‘Legal Entities’ (in different ‘Sets of Books’): You can sell goods from one ‘Legal Entity’ in a ‘Set of Books’ and ship the goods from another ‘Legal Entity’ using another ‘Set of Books’.INVENTORY TRAINING MATERIAL MULTI-ORG CONCEPT Introduction In new releases of Oracle Applications.

Oracle Payables or Oracle Receivables the correct inter-company entries will be created automatically. This is limited to transactions within one ‘Set of Books’. Page 5 2/27/2013 . Consolidations: You can consolidate any chart of accounts structure in any ‘Set of Books’ together using the General Ledger Consolidation features..INVENTORY TRAINING MATERIAL Automatic Accounting for Internal Orders: You can create internal requisitions (via Sales Orders) in one ‘Inventory Organization’ and ship the items from another ‘Inventory Organization’ with the correct inter-company invoicing being automatically created.. You cannot create replenishment requests for ‘Inventory Organizations’ outside of the ‘Operating Unit’ you are in when you created the plan. As well as this new Multi-Org specific functionality doesn’t forget the existing functionality of Oracle Applications which is related to solving the same business problems. Plan any ‘Inventory Organization’ in any ‘Set of Books’: Using the ‘Planners Workbench’ you can see and plan any ‘Inventory Organization’ defined in the system regardless of which ‘Operating Unit’ or ‘Set of Books’ it is related to. Automatic inter-company accounting within a single ‘Set of Books’: If you create accounting entries which span more than one ‘Balancing Segment’ in either Oracle General Ledger. The two ‘Inventory Organizations’ must be in the same ‘Set of Books’ Purchase and receive products between ‘Inventory Organizations’: You can enter purchase orders in one ‘Inventory Organization’ and receive the inventory into different ‘Inventory Organization’ (within the same ‘Set of Books’).

INVENTORY TRAINING MATERIAL BUSINESS GROUP SET of BOOKS SET of BOOKS SET of BOOKS LEGAL ENTITY LEGAL ENTITY OPERATING UNIT LEGAL ENTITY INVENTORY ORGANISATION INVENTORY ORGANISATION INVENTORY ORGANISATION SUBINVENTOR SUBINVENTORY SUBINVENTORY Y STOCK LOCATOR Page 6 2/27/2013 .

An ‘Organization’ may be assigned more than one ‘Classification’ e.INVENTORY TRAINING MATERIAL Summary of Terms Set of Books: This is the highest level at which the financial entities are segregated. ‘Operating Unit’. functional currency or calendar must be a separate ‘Set of Books’. Work in Progress. ’Inventory Organization’. Oracle Payables. Oracle Purchasing and Oracle Projects.g. Bills of Material. An ‘Operating Unit’ is associated with a single ‘Legal Entity’. The relationship between ‘Inventory Organization’ and ‘Set of Books’ is used for financial purposes only (creating requisitions and replenishing supplies). Information is secured by ‘Operating Unit’ in the above products with some shared information (e. Oracle Order Entry. Engineering. The consolidated enterprise or a major division of a company. Multiple ‘Legal Entities’ can relate to a single ‘Business Group’. Operating Unit: Any autonomous organization which uses Oracle Receivables. ‘Operating Unit’. the ‘Organization’ Vision Operations may be assigned the ‘Classifications’ of ‘Legal Entity’. Capacity and Purchasing (receiving) secure information by ‘Inventory Organization’. Any entity that has a particular chart of accounts structure. A ‘Legal Entity’ relates to a single ‘Set of Books’. Legal Entity: Represents a legal company for which you prepare fiscal or tax reports. ‘Organizations’ are then assigned ‘Classifications’. Master Scheduling / MRP. ‘HR Organization’ and ‘Inventory Organization’ Business Group: Represents the highest level in the structure. If you request a list of employees (in any module) you will only see those employees in the ‘Business Group’ of which your ‘Operating Unit’ is a part. Currently ‘Legal Entity’ has very limited use outside of Intrastate movement reporting. The ‘Classification(s)’ an ‘Organization’ is assigned determines its type and use. Organization: Any entity you define using the ‘Define Organizations’ form is called an ‘Organization’. ‘Legal Entity’. Page 7 2/27/2013 . and ‘HR Organization’ are all ‘Organization Classifications’. customer and supplier names with sites being specific to each ‘Operating Unit’) Inventory Organization: An ‘Organization’ for which you track inventory transactions and balances. Currently ‘Business Group’ has no other purpose but to segregate HR information. ‘Business Group’.g. ‘Inventory Organizations’ may be related to any ‘Operating Unit(s)’ within the same ‘Set of Books’. Oracle Inventory.

This facilitates a complex organization structure for HR tracking but a more simplified structure for the operational side of the business Note: There is nothing to stop one entity being a ‘Business Group’. multiple ‘Operating Units’ may be associated with a single ‘Legal Entity’ • An ‘Inventory Organization’ may be associated with multiple ‘Operating Units’ within the same ‘Set of Books’ Page 8 2/27/2013 . ‘Legal Entity’. multiple ‘Sets of Books’ may be associated with a single ‘Business Group’ • Each ‘Set of Books’ may have a different chart of accounts structure. ‘Operating Unit’ and ‘Inventory Organization’ all at the same time (or any combination).INVENTORY TRAINING MATERIAL HR Organization: ‘HR Organizations’ are only utilized by Oracle HR and Oracle Projects products and have no impact on the Financial or Manufacturing applications. This would assume a very simple organization structure. multiple ‘Legal Entities’ may be associated with the a single ‘Set of Books’ • Each ‘Operating Unit’ is associated with a single ‘Legal Entity’. The ‘Business Group’ determines which employees will be available to ‘Sets of Books’ and ‘Operating Units’ related to that ‘Business Group’ • ‘Set of Books’ is the highest level which impacts the accounting side of the business • ‘Set of Books’ is associated with a single ‘Business Group’. From the following diagram please note: • A ‘Business Group’ is the highest level of the structure and has no accounting impact. Multi-Org Example 1: Here is a generic example of how Oracle Multi-Org ‘sees’ a multi-level company setup. calendar or functional currency • Each ‘Legal Entity’ is associated to a single ‘Set of Books’.

If you close the period in Oracle Payables.INVENTORY TRAINING MATERIAL B S L O p e r a n it e g a g l O E n p u e s in t O e f s s G r o u p B S o e o t k Os f B o o k s BS o e o t k o s f L e g a t i On l t it y e r a n it t i On E n t i t y t i n g U n n t i n U gp e r a U n i t gp e r a U n i t v e n r g a n O I n v e r g a t o I r ny v e n i z O a r t gi o a n n t o I r ny v e n i z O a r t gi o a n n t o r y iz a t i o n O I n t o r y iz a t i o n Note: Currently it is recommended by Oracle Applications Development to keep a one-one-one relationship between ‘Set of Books’. Page 9 2/27/2013 . ‘Legal Entity’ and ‘Operating Unit’. This restriction is recommended for the following reasons: • • • Document Sequencing (important in European countries) is within the ‘Set of Books’ level Standard reports are at the ‘Operating Unit’ level Period status control is at the ‘Set of Books’ level e.g. all equivalent Oracle Payables periods will close in all ‘Operating Units’ within the same ‘Set of Books/Legal Entity’.

INVENTORY TRAINING MATERIAL Multi-Org Example 2: Given the generic example above. Vision Enterprises is the basis for the new Vision Demonstration environment. an average daily balance based enterprise These entire businesses roll up to a consolidated. UK based holding company called Vision Corporation. • • • • Vision Operations. The following is how this would be setup in Oracle Applications: Page 10 2/27/2013 . a project based services company Vision ADB. accounts payable and accounts receivable organizations. and is defined as a multinational enterprise consisting of four autonomous businesses. Vision Operations has four inventory sites and Vision Distribution has one inventory site. lets describe the setup of a fictitious company ‘Vision Enterprises’. a distribution company Vision Services. All of the Vision businesses have autonomous accounting. a manufacturing operation Vision Distribution. All sales orders are received in Vision Operations with some shipments being made from Vision Distribution.

and Vision Enterprises even though Vision Enterprises has a three segment (co-dep-account) chart of accounts • Vision Corporation has a functional currency of ‘GBP’ (Pounds Sterling).H R v e O n t o r y O r g r g a n i z a t i o n This setup allows the following: • There is a single ‘Business Group’ which means that all employees are available for all parts of the organization • Each of the four ‘Legal Entities’ have their own ‘Set of Books’.tI n D 1 D 2 . Vision Distribution. Vision Distribution has a functional currency of ‘SND’ (Singapore Dollars).INVENTORY TRAINING MATERIAL C L e g a l E n t i S e t o f B o o O p e r a t i n g H R O r g a n t y i s k Vs U np i te O i z a t i o o V i s i o n . e.B u r p o r a t -i o H n R V s i n e s s G r o u p O( Ur g K n ) i z a t i o n a n i o n r a t i o i s i o n V i s io n V i s i o n D s i s t r i b u S t i eo r n v i c e A D B s n P M l a 1 nP t l a nP t l a M 2 S 1 n P t l a n P t l a n . allowing autonomous control over the accounting structure while still allowing segment values to be shared across ‘Set of Books’ where appropriate.g. all others have a functional currency of ‘USD’ (US Dollars) • Consolidations bring financial information together from all subsidiaries into Vision Corporation • Sales orders can be taken into Vision Operations and shipped from Vision Distribution with all correct accounting (and inter-company invoicing) being created automatically • Customer and supplier names are shared across all ‘Operating Units’ however customer and supplier sites are specific to each operating unit Page 11 2/27/2013 . the account segment values in the chart of accounts is shared by Vision Operations.

including accounts a user has access to Material planners can plan all ‘Inventory Organizations’ using the ‘Planners Workbench’.INVENTORY TRAINING MATERIAL • • • Each ‘Operating Unit’ can setup it’s Oracle Payables and Oracle Receivables options to best suit the way that ‘Operating Unit’ does business ‘Security rules’ can limit the data. They must however create the replenishment requests from within the correct ‘Operating Unit’. Page 12 2/27/2013 .

Here exception set of holidays. (d) Dates: List of holidays that are to be present in the list in “25FEB-1980” format. Navigation from Inventory for creating workday calendar is Setup  Organization  Calender Exception Template. or extended downtime can be assigned. There is one more concept of calender excemption template. This calender has nothing to do with General Ledger calender. scheduled maintenance. Page 13 2/27/2013 . Once the main screen is opened.INVENTORY TRAINING MATERIAL Before starting defining inventory organization. (c) Inactive On: Date when the exception is to be inactive. location should be defined. the fields that should be entered are: (a) Template: Give here the name of the template that is to be defined. it is mandatory that the workday calender. (b) Description: Description of the template. Creating a Workday Exception and Workday Calender: Workday Calender: This is also known as manufacturing calender or BOM calender that each organization refers for planning and scheduling.

Page 14 2/27/2013 . Leave this field blank if all the dates are to be included. Finally the template is to be saved.INVENTORY TRAINING MATERIAL (e) Days On: Select the list of working days. (e) To Date: Date to which the calendar is to be active. Navigation from Inventory for creating workday calendar is Setup  Organization  Calendar. (b) Description: Description for the calendar. (c) Type: Select from the dropdown. Here the fields that are to be entered are: (a) Name: Give the name of the calendar that is to be defined. (d) From Date: Date from which the calendar is active.

INVENTORY TRAINING MATERIAL

Save the work done. Press on “Workday Pattern” push button.

Fields that are to be entered here are: (a) Sequence: 1 (b) Days On: Number of working days in a week. (c) Days Off: Number of days off in a week. (d) Description: description for the workday pattern.

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Save the work. Click on “Dates” Push button from the workday calendar screen and the calendar dates screen appears. Specifically there are no fields that are to be entered here. All the fields are automatically generated from the calendar details. The screen appears as below.

Click on exception list button and then load button. Then the window that appears is exception calendar window. Here the dates can be given manually or can also be loaded from the template defined earlier. The screen appears as below.

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When the load push button is clicked in the above window, load exceptions screen will be obtained and the fields that are to be entered to load from the template are: Load from: Template Template: Give the name of the template that is created earlier.

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Page 18 2/27/2013 . Close the other remaining windows and go to workday calendar screen.INVENTORY TRAINING MATERIAL Click on OK twice and save the work. Then click on shifts button from workday calendar screen.

Then click on times button for the shift entered.INVENTORY TRAINING MATERIAL Shifts window for the calendar created will be opened. Save the work (Control+S). Fields that are to be entered are: (a) Shift Number: Give the shift number. The fields that are to be entered are start time and stop time. The window can be closed. And the overview of the window will be as below. (b) Description: Give the description for shifts. Page 19 2/27/2013 .

Page 20 2/27/2013 . and their details can be created. When still in workday calendar window. path for building is Tools  Build. it is to be built. Close the window. Once the calendar is created.INVENTORY TRAINING MATERIAL Save. And similarly many shifts.

Page 21 2/27/2013 . View  Requests  (Enter Request Number generated earlier)  Find. To verify whether the calendar building (requested job) is been properly performed or not.INVENTORY TRAINING MATERIAL Request number will be generated automatically by the system.

NOTE: Any changes made in calendar will come into effect only after re-building. And the look of the screen will be as below.INVENTORY TRAINING MATERIAL From the above navigation we have to go to the request screen to find the status of the request given. Page 22 2/27/2013 .

the screen appears as below. (a) Name: Give the name of the location to be entered. Select global if multiple organizations are to be defined to the same location. there are two options. give the address style and the address accordingly. locations are to be defined. And after all this is performed. Select local if only one organization is assigned to the location. (b) Description: Give the description of the location. (c) While in address tab. (d) Go to Shipping tab and check the following details as per requirement.INVENTORY TRAINING MATERIAL Once the workday calendar is through. Creating locations: Each of the organization can be associated only with one location. Page 23 2/27/2013 . global and local. (i) Ship to Site (ii) Bill to Site (iii) Office Site (iv) Internal Site (v) Receiving Site Save the work done. Navigation from Inventory is Setup  Organization  Locations. One or more organizations can be associated with same location. The fields that are to be entered are: In the scope field.

INVENTORY TRAINING MATERIAL Once the Workday Calendar and the Location are created. division or department. warehouse. Page 24 2/27/2013 . the Inventory Organization is to be created. An inventory organization is an inventory location with its own set of books. workday calendar and list of items. costing method. An inventory organization may be a company. subsidiary.

Screen appears as below. select “Plant”.INVENTORY TRAINING MATERIAL Navigation from Inventory is Setup  Organization  Organization. The fields that are to be filled are: (a) Name: Give the name of the organization that is to be defined. (g) Location Address: Selected automatically from the location given above. (d) Date To: Give the date for which the organization is valid. (c) Date From: Give the date from when the organization defined is active. (b) Type: From the dropdown. (e) Location: Give the name of the location that is defined earlier. Select the new item. (h) Internal Address: Leave the field blank. Save the work (CONTROL+S). Page 25 2/27/2013 . (f) Internal or External: Select Internal.

(j) Enabled: Check the box. Page 26 2/27/2013 . select Inventory organization.INVENTORY TRAINING MATERIAL (i) In the organization Classifications field.

Page 27 2/27/2013 . (k) Press the others button and from there select the Accounting Information.INVENTORY TRAINING MATERIAL Save the work and the screen appears as below.

INVENTORY TRAINING MATERIAL Accounting Information: (i) (ii) (iii) Set of Books: Select Vision Operations Legal Entity: Select Vision Operations Operating Unit: Select Vision Operations Page 28 2/27/2013 .

(l) Click the others button and from there select the Inventory Information. Page 29 2/27/2013 . Stay in Inventory tab and fill in the following details. Here again there are 6 tab regions present.INVENTORY TRAINING MATERIAL (iv) Click OK and Save the Work.

Master Organization: Select the master organization where the item is to be created. It can be alpha-numeric and the length should be maximum of 3 digits. Select from the dropdown. Allow Negative Balances: Check the box. say 30 for 30 days. Move Order Timeout Action: What is the action that has to be taken when the move order period is lapsed. For this instance. There are two options of approving automatically or reject automatically. Give the number of days. Calendar: Attach the calendar that is created earlier. Process Enabled: Do not check the box. Page 30 2/27/2013 . The screen for the inventory tab appears as below. Let us say we select “Approve Automatically”. select Vision Operations.INVENTORY TRAINING MATERIAL (i) (ii) (iii) (iv) (v) (vi) (vii) Organization Code: Code that is to be given to the organization created. Move Order Timeout Period: Period for which the move order is to be valid.

Overhead.INVENTORY TRAINING MATERIAL Costing Information: (i) Costing Organization: Select Standard. DETAILS< SUMMARY AND NONE. material Overhead. (Note: The Costing Org cannot be changed once it is saved). Let us say here we select Standard Price. Standard. Select Summary. Page 31 2/27/2013 . select the account as miscellaneous account. FIFO and LIFO. Average. (ii) Costing Method: There are mainly four types of costing methods. (iii) Transfer to GL: There are three options. Valuation Accounts: In all the fields such as Material. Resource and Expense. FIFO and LIFO are not of much use at these times. Outside Processing. Do check the box if reverse encumbrance is to be applied to the organization. (iv) Reverse Encumbrance: Reverse the amount that has been allotted for the particular purpose to GL. Average means running average price and Standard means Fixed Price.

Serial tab: (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x) (xi) Starting Revision: Give the start revision. Page 32 2/27/2013 .INVENTORY TRAINING MATERIAL Revision. Zero Pad Suffix: Check the box. Lot. Say “A”. Lot Control Uniqueness: Across Items. Pot Control Prefix: ABC# Lot Control Total Length: 6 Serial Control Uniqueness: Across Items Serial Control Generation: At Item Level Serial Control Prefix: ABC# Starting Serial Number: 1000001 Allocate Serial Numbers: Check the box. Lot Control Generation: At Item Level.

Picking. Locator: Page 33 2/27/2013 . No DC Picking Default Rule: Picking Defaults. Item Sourcing Tab: (i) (ii) (iii) (iv) ATP Default Rule: Total ATP.INVENTORY TRAINING MATERIAL ATP. Sub inventory: Picking Defaults.

give the percent. We define what is the amount. Page 34 2/27/2013 . And if selected predefined.INVENTORY TRAINING MATERIAL Inter-Org Tab: Here we define the charges that will be incurred while performing the transactions. percentage and the accounts where that is to be hit. such as inter-org transfers. (i) (ii) Inter-org transfer charge: Select one of the options from radio buttons.

INVENTORY TRAINING MATERIAL Other Accounts Tab: Select all the accounts as miscellaneous accounts. Page 35 2/27/2013 .

select the Receiving Information. (c) Action Taken: What will be the action taken if not met the above criteria. From others. (e) Action Taken: What will be action taken. you accept the stocks. (a) Days early: How many days early.INVENTORY TRAINING MATERIAL Save the work and Close the window. (f) Allow Substitute Receipts: Whether we accept substitute receipts or not. (g) Allow Unordered Receipts: Whether we accept unordered receipts or not. And enter the fields below stated. you accept the stocks. (h) Allow Express Transactions: } Allowing immediate Transactions(quick method) Page 36 2/27/2013 . (d) Over Receipt. (b) Days late: How many days late. Tolerance: Give a numeric value what percent do you accept.

And the appears as below. close the receiving information window and then the inventory parameters window.INVENTORY TRAINING MATERIAL (i) Allow Cascade Transactions:} The Cascade function facilitates the distribution of a given quantity of an item from a single (j) supplier across multiple shipments and distributions Both are connected to Purchasing (k) (l) Allow Blind Receiving: Whether we accept blind transactions or not. Defining Sub inventories: Page 37 2/27/2013 . Direct. (m)Receipt Routing: There are three types of receipt routing. Standard and Inspection. (o) ASN Control Action: Save the work done. (n) Enforce Ship-To: Whether substitute shipping location is permitted or not.

Page 38 2/27/2013 . The following fields are to be filled: (a) Name: Give the name. (b) Description: Optionally give the description of the sub inventory. Navigation from Inventory is Setup  Organization  Sub inventories. outside processing account. resource account are all mandatory fields and as of now let us give them all the value of miscellaneous account. finished goods.INVENTORY TRAINING MATERIAL Sub inventories are unique physical or logical separations of material inventory. (f) Include in ATP: Check the box. (g) Allows Reservation: Check the box. All material within an organization is held in a sub inventory and hence one or more sub inventories are assigned to each organization. (i) Locator Control: (j) Picking Order: (k) Inactive On: (l) Material account. (e) Depreciable: Check the box. (d) Asset Sub inventory: Check the box. overhead account. such as raw material. (h) Nettable: Check the box. or defective material. (c) Quantity Tracked: Check the box. material overhead account.

INVENTORY TRAINING MATERIAL Save the work and similarly do create one or two more sub inventories. Page 39 2/27/2013 .

(j) Picking Order: (k) Inactive On: Date when the locator is to be inactive. There can be many numbers of stock locators for each sub inventory. Locators are optional structures within sub inventories. (h) Sub inventory: Name of the sub inventory to which the locator is to be attached. Locators may represent rows and bins in a warehouse. The following fields are found and are to be entered: (a) Row: (b) Rack: (c) Bin: (d) Project: (e) Task: (f) Description: Description of the location. Page 40 2/27/2013 . Save the work done. (g) Type: Location type.INVENTORY TRAINING MATERIAL Define Stock Locators: Locators are used to identify physical areas to store the items. Name of the locator is to be unique across the organization. And close the window. Enter into the parameters tab. Click on new to define a new locator. and there give the name of the locator and the description. And that they are created similarly like above. Items can also be restricted to specific locators. Navigation from Inventory is Setup  Organization  Locators. Locators can track item quantities. (i) Status: Status of the location whether it is active or not.

INVENTORY TRAINING MATERIAL Page 41 2/27/2013 .

Page 42 2/27/2013 . Navigation from Inventory Setup  Unit of Measurement  Classes. Each UOM defined should belong to some UOM class. Creating UOM class is the first step in UOM management. Classes and Conversions: Unit of Measure: It is the unit in which the material in the inventory will be measured.INVENTORY TRAINING MATERIAL Unit of Measure. Defining Unit of Measure Classes: Unit of measure classes represent the group of units of measure with similar characteristics. Each class has a base UOM and that is used for conversions in that particular UOM class.

Here a set of units is already listed and if wanted to create other units. The fields that are to be filled are: (a) Name: Give the name of the class. Or it can be directly done from the Navigation from Inventory is Setup  Unit of Measure  Unit of Measure. And from here we enter the Unit of Measure screen wherein we define the new UOMs. click on new icon and create the unit of choice. (d) Class: Give the class to which the UOM belongs. (d) Inactive On: Give the date when this class is to be inactive.INVENTORY TRAINING MATERIAL Click on new. (e) Click on the “Unit of Measure” push button. (e) Inactive On: Date when the UOM is to be inactive. (b) Description: Optionally Description for the name given. (c) Base Unit: Whether the unit created is base unit or not. The following details are to entered: (a) Name: Give the name of the unit. And the screen appears as below. (b) UOM: Maximum 3 digit code for UOM. (c) Base Unit: Base unit is the unit that will be considered as standard unit for conversions. Give the name of the UOM that is to be used as base UOM. Save the work. Page 43 2/27/2013 .

INVENTORY TRAINING MATERIAL Close the window and click on the conversions push button. Page 44 2/27/2013 . We directly enter into unit of measure conversions screen. The navigation for this from Inventory is Setup  Unit of Measure  Conversions.

INVENTORY TRAINING MATERIAL Here in this screen. there are 3 tabs. Page 45 2/27/2013 . (b) Class: Mention the class for which the unit belongs to. Enter into standard tab. (e) Inactive On: Date when the conversion is to be expired. Here the fields that are to be filled are: Enter the new window. (d) Base Unit: Give the base unit of the class. (a) Unit: Give the unit for which the conversions are to be made. (c) Conversion: Give the conversion factor.

etc. l. Page 46 2/27/2013 . save the work..e. Once all the fields are filled. Intra-class tab. This type of conversion is known as interclass UOM. And at the same time that is also measured in Cubic Centimeter. i. etc. Inter class unit of conversion means the conversion of units from one class to another. Example: Volume will be measured in ml. Intra class unit of conversion means the conversion of units from the same class.INVENTORY TRAINING MATERIAL Select the next tab.

For example. you have to enter into the item definition window by the Navigation. Organization Level Item Attribute Control: If a particular attribute is controlled at organization level.  Items  Master Items). first you change the working organization to M1 and then Navigate through  Items  Organization Items and enable the attribute inventory item. When ever you update an attribute that is controlled at the Organization Level. The way in which we set the attributes decides the functionality of the item. the made change will not reflect in any organization other than the organization where the change is done.  Items  Organization Items). you will find that the attribute inventory item is still disabled. (That is. In this case if you want to enable inventory item in M1. suppose the attribute inventory item is controlled at organization level. (That is. Page 47 2/27/2013 . When you defined an item. (1) Master and (2) Organization. If you check the organization attribute in M1 or M2 for the above item. you have to enter into the item definition window by the navigation from Inventory. the made change will reflect in all organizations to which the item is assigned.INVENTORY TRAINING MATERIAL Define Items: Define Item Attribute Control Levels: One hundred and fifty eight attributes are there for every item. If you want to enable this attribute in M2 also. After that you update the item by definition by setting “Yes” to inventory item from the item master organization (V1). Master Level Item Attribute Control: If a particular attribute is controlled at Master Level. then change your working organization to M2 and then Navigate  Items  Organization Items and enable the attribute inventory item. The attributes can be controlled at two levels. you will be able to update it only at the Organization Level. you set the above attributes to “No” and assigned to two organizations M1 and M2. When ever you update an attribute that is controlled at the Master Level. you will be able to update it only at master level.

Attributes That Can Be Controlled Only At The master Level (1) Base Model (2) BOM Item Type Attributes That Can Be Controlled Only At The Organization Level (1) Engineering Item (2) Preprocessing Lead Time (3) Processing Lead Time (4) Post Processing Lead Time (5) Cumulative manufacturing Lead Time (6) Cumulative Total Lead Time (7) Fixed Lead Time (8) Variable Lead Time (9) Cost of Goods Sold Account (10) Encumbrance Account (11) Expense Account (12) Sales Account (13) Planner (14) Planning Exception Set Page 48 2/27/2013 . but an item attribute controlled at organization level can have different values in different organizations.INVENTORY TRAINING MATERIAL In short we can say that an attribute controlled at Master Level will have the same value always in all the organizations. Out of the 158 attributes the below given 2 attributes can be controlled only at the master level and 18 can be controlled only at the organization level.

Page 49 2/27/2013 .INVENTORY TRAINING MATERIAL (15) Source Organization (16) Source Sub inventory (17) WIP Supply Locator (18) WIP Supply Sub inventory Navigation from Inventory for viewing all the attributes is Setup  Items  Attributes.

Page 50 2/27/2013 . in the care of status attributes. a user will not be able to update the values even at the master level. 150 attributes are listed and then in the lower block. the users will be able to make changes whenever they want. if Sets Value is selected. In the upper block. Optionally enter a description. In the upper block. the 8 status attributes or key attributes are listed. you have to choose a value for the field: status Setting”. against each attribute you can choose a value for the “Controlled At” field. Apart from the control level setting. On the contrary. you can choose either Defaults Value or Sets Value. Define Item Status Templates: Navigation from Inventory is Setup  Items  Status Codes. In the lower block also you can choose a value of Master or Organization for the “Controlled At” field. Status Setting of the Key Attributes In the “Status Setting” field of the key attributes. (Master or Organization). Enter the name of the template. If Defaults Value is selected.INVENTORY TRAINING MATERIAL This window is divided into two blocks. The window of the Attribute control will be accessible only by a very high authority of the organization in a real situation.

suppose you have selected a value of defaults value for the attribute “BOM Allowed”. For example. in the attribute control window. In the current window you will see the following values in the “Usage” field.INVENTORY TRAINING MATERIAL You can see that all the 8 status attributes are listed below with a check box against each one of them. The “Usage” field is only a display field where you can see what is the status setting for each key attribute. Page 51 2/27/2013 . a value of Sets Value for the attribute “Build in WIP” and the value of none for the attribute purchasable. You can check or uncheck the check box as per your requirement.

(e) Optionally enter the description. ‘Purchased Item’ we get an idea about the possible attribute setting of that item. Similarly. Navigation from Inventory is Setup  Items  Item Types. (f) Optionally enter ‘effective from’ date. (c) Enter a code for the item type. we get an idea about the possible attribute setting of that item. ‘Finished Good’. even from the master organization nobody will be able to update the attribute Build in WIP. (b) If no blank row is available. The words you enter. (a) Click on the lines. you have to change the Status Setting of Build in WIP to ‘Defaults Value’ from the ‘Attribute Control’ window. By seeing the name. say. If any situation arises in which you want to update the Build in WIP attribute of the above-mentioned item. To save a user from the difficulty mentioned above. Page 52 2/27/2013 .INVENTORY TRAINING MATERIAL Status Attribute BOM Allowed Build in WIP Purchasable Status Setting Defaults Value Sets Value None Usage Default Item Attribute Sets Item Attribute Not Used. The Attribute Control window will be normally available for a higher authority of an organization. (g) Check the check box ‘Enabled’. In a given time when a user wants to find out the general functionality of an item. as meaning will be the words that are going to be displayed in the dropdown of the field named “User Item Type” in the item definition window. say. by seeing the name. Once when this template is applied to an item and saved. we use a label or name or Item Type to roughly understand the way in which the attributes are set in general. create one by pressing the keys Control and down arrow together. (d) Enter a meaning for the code. This name or better to say this User Item Type is assigned in the first window of the item definition. Define User Item Types: User item Types are nothing but a label for the item. it is difficult to go through all the regions of the item definition window.

The screen appears as below: Define User Item Type templates: Navigation from Inventory is Setup  Items  Templates. Page 53 2/27/2013 .INVENTORY TRAINING MATERIAL (h) Save the work done. (a) Enter the name of the template.

(e) Save the work Define Asset Items and Assign to Organizations: Caution: The primary unit of measure assigned to an item CANNOT be changed after saving. otherwise leave this field blank. (c) Choose an organization code only if you want to restrict the use of this template only in a particular organization. (d) Choose values for all those attributes that are common for a set of items. Navigation from inventory is Items  Master Items.INVENTORY TRAINING MATERIAL (b) Optionally give the description. Page 54 2/27/2013 .

Setting the Attributes by Copying from a User Item Type template: (c) TOOLS  Copy From…. Page 55 2/27/2013 . (e) Click on the push button “Done”.INVENTORY TRAINING MATERIAL (a) Enter name (code) for the item. (d) Choose the required template name (leave the item field blank). (b) Enter description for the item (mandatory field).

Assigning the Items to Different Organizations: This must de done in continuation to the above step. Page 56 2/27/2013 .INVENTORY TRAINING MATERIAL (f) Save the work. (g) Tools  Organization Assignment (This option in the special menu will be available only if the item definition is saved).

Page 57 2/27/2013 . Check the above said check box against all those organization names to which you want to assign the current item.INVENTORY TRAINING MATERIAL (h) The names and codes of all organizations that are coming under the current item master organization will be there in this window with a check box to the right of each organization name. Save the work.

Vision Operations is selected as item master organization. then you will not find your organization in the above window.INVENTORY TRAINING MATERIAL Note: In your organization definition. Here the mail item screen will be opened and all the required item attributes are to be defined manually and then is to be assigned to the Page 58 2/27/2013 . if any organization other than V1. The other conventional way of defining an item is from the navigation from inventory is Items  Master Item.

INVENTORY TRAINING MATERIAL Define Item Relationships We can define relationships between items. Navigation from Inventory  Items Item Relationships Screen: Item Relationships (V1) Click on New icon. From item TXX-10001000 Click on SAVE icon. We must define a list of substitutes before we receive a substitute item in place of an originally ordered 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. This allows us to search for items through these relationships. Item Relationships with Oracle Purchasing Within Oracle Purchasing we can define acceptable substitute items for receiving. Except in Oracle Purchasing. Attention: If you receive a substitute item. To Item TXX-10001001 Type Substitute Reciprocal Check the Box Page 59 2/27/2013 . these relationships are for inquiry and reporting purposes only.

INVENTORY TRAINING MATERIAL Page 60 2/27/2013 .

and a type Supplier to track supplier part numbers Type Description Click on New icon TXX Substitute Inactive On TXX Substitute Click on Save icon N/A Page 61 2/27/2013 . For example.INVENTORY TRAINING MATERIAL Define Cross reference Types Navigation from Inventory is  Items  Cross References Screen: Cross reference Types Cross-reference types define relationships between items and entities such as old item numbers or supplier item numbers. we can create a cross-reference type Old to track the old item numbers.

INVENTORY TRAINING MATERIAL Click on Assign Button Item TXX-10001000 Applicable to Organizations Check the Box All Org N/A Value TXX-10000000 Description Old Supplier Item Page 62 2/27/2013 .

Page 63 2/27/2013 .INVENTORY TRAINING MATERIAL Click on Save icon Close the window.

Code Finished Good Description Description Defaults Click on Save icon Click on “Cross Reference” Button Customer Item CXX-ACNT001 defaults Item TXX-10001000 Item Description Defaults from Item Master Rank 1 Active Leave the default. We can cross reference customer items to your Oracle Inventory items to support processing orders and shipments Navigation from Inventory is Items  Customer Items  Customer Items Screen: Field Name Customer Items Summary (V1) Remark Click on New icon Stay on Commodity Tab Customer Name Choose “A. Page 64 2/27/2013 . C. Box is checked.INVENTORY TRAINING MATERIAL Define Customer items and Cross References Use the Customer Items Summary and Customer Items Detail windows to define and update customer items. We can toggle between these windows with the Summary/Detail option in the Go option on the Toolbar. Networks” from LOV Customer item Enter “CXX-ACNT001 Level: Customer Use default. ( Checked) Click on Save icon Close the window.

delete and optionally archive. Entities can include items. Deletion Groups Set up groups of entities to check. routings. Query the Deletion Group “TXX-DG” Page 65 2/27/2013 .INVENTORY TRAINING MATERIAL 8. bills of material. After successful completion. Navigation: Screen: Inventory > Items > Delete items Deletion groups Field Name Group Type Description Entities to Delete Item Description Organization Type Alternate Remarks TXX-DG Item TXX-Deletion Group Stay on the Details tab TXX-10001000 Defaults Defaults Defaults Click on Save icon Click on “Delete Group” Button. View the status of the concurrent request to Complete. Concurrent request will be fired. or operations. components.

Query the item TXXSelect Organization assignment to your deleted is unassigned Results Status Item Query Page 66 2/27/2013 . Close the window.INVENTORY TRAINING MATERIAL Field Name Remarks Click on the “results” tab Shows as “Deleted” if no references are found against the item. Open the Master Item and 10001000 Click on Tools Menu and Assignment Notice that Organization organization in which item is from the Organization. Close the window.

Page 67 2/27/2013 . Check the check box ‘Enabled’.INVENTORY TRAINING MATERIAL We get a query number and the status of the same can be viewed from  View  Requests. Optionally enter a description. Give the request number and find. Enter a meaning for the above code. Enter a code for the new shipping method. Save the work. This means that the value that is been entered here is going to be displayed in the list of values wherever a shipping method is to be selected. Enter an effective from date. Define Shipping Methods • • • • • • • Navigation from inventory is Setup  Organisation  Shipping Methods.

Page 68 2/27/2013 . Choose the current organization in the field organization.INVENTORY TRAINING MATERIAL Define Shipping Networks If the material is to be transferred between the organizations. Move cursor to the lines. • • • • Navigation from Inventory is Setup  Organisations  Shipping Network. or From or To Organisation). For example. From Organisation. we have to define the shipping networks between the organizations. let us assume that we want to transfer from M1 to M2 and M2 to M1. Choose a scope (To Organisation.

Choose M2 in the from field. If this check box is checked. • Check or uncheck the check box ‘Internal Orders Required’. And repeat the above three steps to completely fill the details. Shipment :The destination organization owns the goods as soon as the shipping organization ships it. then the remaining two fields will be disabled. Choose M1 in the To field. then choose a Receipt Routing (Direct. we will have to create an Internal Sales Order whenever we want to transfer material from M1 to M2. Standard or Inspection Required). If we choose Direct as the transfer type. Save the work. • Choose the transfer type (Direct or Intransit). • If the transfer type is selected as Intransit.INVENTORY TRAINING MATERIAL • Choose M1 in the From field. then choose FOB. And if Intransit is selected as theTransfer type. • • • • • Page 69 2/27/2013 . Move cursor to the next line. • Choose M2 in the To field. Receipt : The shipping organization owns the goods until the receiving organization receives it.

INVENTORY TRAINING MATERIAL Define Transit Times For Shipping Methods Page 70 2/27/2013 .

Move the cursor to the next line and repeat the required steps till the transit times for all the possible shipping methods are defined. Choose the from organization and the location.INVENTORY TRAINING MATERIAL • • • • • • • • Navigation from Inventory is Setup  Inter location Transit Times. Save the work. Enter the number of days the specified shipping methods will take to transfer material between the organizations mentioned in the above steps. Define Transaction Source Types Page 71 2/27/2013 . Choose the shipping methods. Check the check box ‘Default Method’ only for that shipping method which will be used frequently. Choose the to organization and the location.

Choose a Source type. Choose an action. Save. Change the region to ‘User-defined’. Define Transaction Reasons Page 72 2/27/2013 .INVENTORY TRAINING MATERIAL • • • • • Navigation from Inventory is Setup  Transactions  Types.

Optionally enter the description. Define Account Aliases Page 73 2/27/2013 . Enter a transaction reason. Save the work.INVENTORY TRAINING MATERIAL • • • • Navigation from Inventory is Setup  Transactions  Reasons.

Choose an account for which the alias is defined. Save the work. Enter an alias. Open Inventory Accounting Period Page 74 2/27/2013 . Optionally enter description.INVENTORY TRAINING MATERIAL • • • • • Navigation from Inventory is Setup  Account Aliases.

Choose the option open. • • • • Navigation from Inventory is Accounting Close Cycle  Inventory Accounting Periods.INVENTORY TRAINING MATERIAL We will be permitted to do any transactions in Oracle Inventory only if the periods are opened. Move the cursor one line upwards and repeat the above steps till all the required month’s status is changed to open. Keep the cursor in the current month and click on the push button ‘Change Status’. TRANSACTIONS Page 75 2/27/2013 .

You can use this feature to issue items to individuals. Click the pust button ‘Transaction Lines’.INVENTORY TRAINING MATERIAL With a miscellaneous transaction you can issue material to or receive material from general ledger accounts in your current organization. and then issuing that material from inventory to another account. You can also make manual adjustments to the general ledger by receiving material from one account to inventory. • • • • • • • • • Navigation is Transactions  Miscellaneous Transactions. Choose the subinventory. There are basically two types of miscellaneous transactions. or to issue damaged items to expense accounts such as scrap. Choose the account. Miscellaneous Issues. You can also use this feature to load all item on-hand quantities when you start implementing Oracle Inventory. You can perform the receipts for items that were acquired by means other than a purchase order from a supplier. or projects. You can use your user-defined transaction types and sources to further classify and name your transactions. Choose an item. Choose the type as Miscellaneous Receipt. Miscellaneous Receipts. Optionally choose the reason. receiving. Miscellaneous Receipts. or work in process such as a research and development group or an accounting department. Page 76 2/27/2013 . Save. This allows you to issue material to groups that are not inventory. Enter the quantity. departments.

We can see the subinventory wise distribution of the item.INVENTORY TRAINING MATERIAL Checking the On-hand Quantities • • • • • Navigation is On-hand availability  On-hand quantities. Page 77 2/27/2013 . Click on the push button ‘Find’. If On-hand quantity exists for the item a new window will be opened with details of the on-hand quantities. Click on the push button ‘Subinventory’. Enter the item.

Choose the subinventory. Choose an item. • • • • • • • • • Navigation is Transactions  Miscellaneous Transactions. Choose the account.INVENTORY TRAINING MATERIAL Miscellaneous Issues. Page 78 2/27/2013 . Enter the quantity. Click the pust button ‘Transaction Lines’. Choose the type as Miscellaneous Issue. Optionally choose the reason. Save.

INVENTORY TRAINING MATERIAL Checking the On-hand Quantities • • • • • Navigation is On-hand availability  On-hand quantities. We can see the subinventory wise distribution of the item. Click on the push button ‘Find’. If On-hand quantity exists for the item a new window will be opened with details of the on-hand quantities. Enter the item. Page 79 2/27/2013 . Click on the push button ‘Subinventory’.

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INVENTORY TRAINING MATERIAL Page 81 2/27/2013 .

We must see that the quantity entered in the above step is incremented in the To Subinventory and decremented in the From Subinventory. Optionally choose a reason. Oracle Inventory allows you to use user-defined transaction types when performing a sub inventory transfer. Enter the quantity to be transferred. Choose the type as ‘Subinventory Transfer’.INVENTORY TRAINING MATERIAL SUBINVENTORY TRANSFERS You can transfer material within your current organization between sub inventories. you can only transfer material from and to sub inventories in that list. If an item has a restricted list of sub inventories. You can transfer from asset to expense sub inventories. as well as from tracked to non-tracked sub inventories. Save. Navigation is Transactions  Subinventory Transfer. Check the On-hand quantities. Click on the push button ‘Transaction Lines’. Navigation from Inventory is Transactions  Subinventory Transfer. Page 82 2/27/2013 . or between two locators within the same sub inventory. Choose the Item. Choose the Subinventory (From Subinventory). Choose the Subinventory (To Subinventory).

Page 83 2/27/2013 .INVENTORY TRAINING MATERIAL Observe the On-hand quantities for both From and To organizations.

approving.) Stay on Item tab 1 Defaults Nokia 6680 Ea Defaults NL Sub-inventory Transfer Defaults to Today’s date Click on the Source tab Enter the source details Enter the locator name. material storage relocations. Manage all material requisition and request processes within an organization by manually or automatically creating. Click on the Destination tab Enter the destination details. Inventory > Move Orders > Move Orders Move Orders (M1) Field Name Number Description Default Line Item UOM Transaction Type Date Required Subinventory Locator Subinventory Values Tab out of the Number field to have this automatically assigned. and quality handling.INVENTORY TRAINING MATERIAL Move Orders • • • Move orders are requests for the movement of material within a single organization. Used for movement of material within a warehouse or facility for purposes like replenishment. Nokia 6680 Tab through the Default section (this will give you more flexibility in the body of the transaction. and transacting a move order. Navigation: Screen: Region Page 84 2/27/2013 .

The transaction is committed by the Approve step Page 85 2/27/2013 .INVENTORY TRAINING MATERIAL Region Approve order your move Field Name Values Click on “Approve” Button Note your move order number.

Navigation: Screen: Inventory > Move Orders > Transact Move Orders Find Move Order Lines (M1) 1. Enter your move order number on the Header tab and press Tab. 2.INVENTORY TRAINING MATERIAL Find your move order number. Review the details of your move order Click on Transact button. Click on View/Update Allocations button. Close the windows Page 86 2/27/2013 . Select the line of the move order you created. 4. 3. Click Find. Allocate the line of the move order you created. 2. 1.

Check your subinventories to see that the Quantities of items changed. Availability > On-hand Quantity Find On-hand Quantities (M1) 1. Page 87 2/27/2013 . Fill in your item Nokia 6680 and click on Find button 3.INVENTORY TRAINING MATERIAL View the results to make sure your material moved Navigation: Screen: Inventory > On-hand.

Page 88 2/27/2013 . Choose the ‘To Organisation’. There are two types of inter-org transfers. Direct and Intransit. Direct Inter-Organisation Transfer: Navigation from Inventory is Transactions  Inter-Org Transfers.INVENTORY TRAINING MATERIAL INTER-ORGANISATION TRANSFERS: Here the material is been transferred from one organization to another organization.

Enter the percentage of transaction value we wish to include as transfer charge. Page 89 2/27/2013 . Entering inter-org transfer charge: If requested value is selected as the option in the organization definition for the field ‘Inter-org Transfer Charge’. Optionally enter the Freight Carrier. Save the work. Click on the push button ‘Transaction Lines’. then the actual percent can be entered while doing the inter-organisation transfer as follows. Choose the (destination) ‘To Sub inventory’. The type will default as per the definition in the shipping networks. Enter the quantity. If requested percent is selected as the option in the organization definition for the field ‘Inter-org Transfer Charge’. Choose the item. This percentage here reflects the percentage of the transaction value. then the actual value can be entered while doing the inter-organization transfer as follows. Choose the (source) ‘From Sub inventory’. This is a mandatory field and makes a note of this number. Containers. Save the work done. Entering Freight Charges: Move cursor to the field named ‘Transportation Cost’. Enter the value in this field. and expected receipt date. Enter a value in the field named ‘Number’ in the ‘Shipment’ block. Move cursor to the field named ‘Transfer Charge’. Waybill/Air bill. Enter the freight charge in this field.INVENTORY TRAINING MATERIAL Control+L. Optionally enter the reason. Move cursor to the field named ‘Added Value”. Save the work.

Click on the push button ‘Find’. Enter the transferred item. Check On-hand Quantities: The navigation from inventory is On-hand Availability  On-hand Quantities. Page 90 2/27/2013 .INVENTORY TRAINING MATERIAL Change organization to the Destination Organization.

Enter a value in the field named ‘Number’ in the ‘Shipment’ block. This is a mandatory field and make a note of this number. Intransit/Standard Inter-Organisation Transfer: Navigation from Inventory is Transactions  Inter-Org Transfers. The type will default as per the definition in the shipping networks.INVENTORY TRAINING MATERIAL Observe to that the transferred quantity is incremented in the Destination Organisation. Page 91 2/27/2013 . Control+L. Choose the ‘To Organisation’.

Move cursor to the field named ‘Transfer Charge’.INVENTORY TRAINING MATERIAL Optionally enter the Frieght Carrier. Enter the quantity. Save the work. Choose the (destination) ‘To Subinventory’. Enter the value in this field. Choose the (source) ‘From Subinventory’. then the actual value can be entered while doing the inter-organisation transfer as follows. and expected receipt date. Click on the push button ‘Transaction Lines’. Choose the item. This percentage here reflects the percentage of the transaction value. Enter the freight charge in this field. Optionally enter the reason. Entering Freight Charges: Move cursor to the field named ‘Transportation Cost’. Page 92 2/27/2013 . then the actual percent can be entered while doing the inter-organisation transfer as follows. Save the work. Save the work done. Enter the percentage of transaction value we wish to include as transfer charge. Entering inter-org transfer charge: If requested value is selected as the option in the organization definition for the field ‘Inter-org Transfer Charge’. If requested percent is selected as the option in the organization definition for the field ‘Inter-org Transfer Charge’. Waybill/Airbill. Containers. Move cursor to the field named ‘Added Value”.

Page 93 2/27/2013 . Click on the push button ‘Find’.INVENTORY TRAINING MATERIAL Change organization to the Destination Organization. Enter the transferred item. Check On-hand Quantities: The navigation from inventory is On-hand Availability  On-hand Quantities.

e.. Shipment number). Receiving the Item in the Destination Organisation Navigation from Inventory is Transaction  Receiving  Receipts. Page 94 2/27/2013 . Click on the push button ‘Find’. Enter the number you entered earlier (i. we will have to receive the material in the Destination Organisation. Close the receipt header. Here in this type of transfer.INVENTORY TRAINING MATERIAL Observe to that the transferred quantity is not incremented in the Destination Organisation.

Page 95 2/27/2013 . Save the work. Click on the push button ‘Find’. Ensure that the current organization’s location is defaulted as value for the field named ‘Deliver-To’. Enter the transferred item. Click on the push button ‘Header’. Note down the ‘Receipt Number’.INVENTORY TRAINING MATERIAL Observe that there is a value of Receiving in the field named ‘Destination’. Close the window. Check the check box at the extreme left side of each line. Check On-hand Quantities: The navigation from inventory is On-hand Availability  On-hand Quantities.

Check On-hand Quantities: Navigation is On-hand Availability  On-hand Quantities. Choose subinventory name to which we want to deliver the received item as value for the field named ‘Subinventory’. Check the check box at the extreme left side of each line. Now we observe that the delivered quantity is incremented in the destination organization. Save the work done. Delivering the Received Item to a Suitable Subinventory of the Destination Organisation: Navigation from Inventory is Transactions  Receiving Transactions. The type will default as per the definition in the shipping networks. Observe that the ‘Destination’ is automatically changed to Inventory. Click on the push button ‘Find’. Click on the push button ‘Find’. Control+L. Enter the transferred item. Choose the ‘To Organisation’.INVENTORY TRAINING MATERIAL Observe to that the transferred quantity is still not incremented in the Destination Organisation. Page 96 2/27/2013 . Intransit/Inspection Inter-Organisation Transfer: Navigation from Inventory is Transactions  Inter-Org Transfers. Enter the receipt number noted down earlier while entering receiving the item into destination organization.

If requested percent is selected as the option in the organization definition for the field ‘Inter-org Transfer Charge’. Choose the (source) ‘From Subinventory’. This percentage here reflects the percentage of the transaction value. Save the work. Choose the item. Optionally enter the reason. Click on the push button ‘Transaction Lines’. Containers. Optionally enter the Frieght Carrier. Save the work. Move cursor to the field named ‘Transfer Charge’. and expected receipt date.INVENTORY TRAINING MATERIAL Enter a value in the field named ‘Number’ in the ‘Shipment’ block. then the actual value can be entered while doing the inter-organisation transfer as follows. Enter the quantity. Entering inter-org transfer charge: If requested value is selected as the option in the organization definition for the field ‘Inter-org Transfer Charge’. then the actual percent can be entered while doing the inter-organisation transfer as follows. This is a mandatory field and make a note of this number. Waybill/Airbill. Entering Freight Charges: Move cursor to the field named ‘Transportation Cost’. Enter the freight charge in this field. Enter the value in this field. Enter the percentage of transaction value we wish to include as transfer charge. Choose the (destination) ‘To Subinventory’. Move cursor to the field named ‘Added Value”. Page 97 2/27/2013 .

Check the check box at the extreme left side of each line. Page 98 2/27/2013 . Here in this type of transfer. we will have to receive the material in the Destination Organisation. Note down the ‘Receipt Number’. Close the receipt header. Click on the push button ‘Find’. Ensure that the current organization’s location is defaulted as value for the field named ‘Deliver-To’. Enter the number you entered earlier (i.e. Observe to that the transferred quantity is not incremented in the Destination Organisation. Enter the transferred item. Click on the push button ‘Header’. Click on the push button ‘Find’. Save the work. Change organization to the Destination Organization. Check On-hand Quantities: The navigation from inventory is On-hand Availability  On-hand Quantities.INVENTORY TRAINING MATERIAL Save the work done. Observe that there is a value of Receiving in the field named ‘Destination’. Shipment number). Receiving the Item in the Destination Organisation Navigation from Inventory is Transaction  Receiving  Receipts..

INVENTORY TRAINING MATERIAL

Close the window. Check On-hand Quantities: The navigation from inventory is On-hand Availability  On-hand Quantities. Enter the transferred item. Click on the push button ‘Find’. Observe to that the transferred quantity is still not incremented in the Destination Organisation. Inspecting the Received Item: Navigation from Inventory is Transactions  Receiving  Receiving Transactions. Enter the Receipt Number that is been noted down earlier. Observe that the ‘Destination’ is still receiving. Click on the push button ‘Inspect’. Enter an action. Choose a Status Accept. Enter the quantity accepted. Move cursor to the next line if the received quantity is less than the received quantity. Enter an action. Choose a status ‘Reject’. Enter the quantity to be rejected. The total of the accepted quantity and the rejected quantity should match with the quantity received. Save the work done. Check On-hand Quantities: The navigation from inventory is On-hand Availability  On-hand Quantities. Enter the transferred item. Click on the push button ‘Find’.

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Observe to that the transferred quantity is still not incremented in the Destination Organisation.

Delivering the Received Item to a Suitable Subinventory of the Destination Organisation: Navigation from Inventory is Transactions  Receiving Transactions. Enter the receipt number noted down earlier while entering receiving the item into destination organization. Click on the push button ‘Find’. Check the check box at the extreme left side of each line. Observe that the ‘Destination’ is automatically changed to Inventory. Choose subinventory name to which we want to deliver the received item as value for the field named ‘Subinventory’. Save the work done. Check On-hand Quantities: Navigation is On-hand Availability  On-hand Quantities. Enter the transferred item. Click on the push button ‘Find’. Now we observe that the delivered quantity is incremented in the destination organization. Tracking the Material in Intransit Inventory:

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Intransit Inventory Intransit Inventory is not a defined subinventory. The material is in Intransit Inventory means that the material is on the road or better to say that the material in on the move. Till the transferred quantities are received in the Destination organization, we will be able to see the Intransit Inventory only from the source organization. Change organization to the organization from where the transfer is made. Navigation from Inventory is Transactions  Transaction Summaries. Enter an item. Click on the push button ‘Summerize’. Change region to ‘Intransit’. Here we can observe the quantities of material lying in the Intransit Inventory.

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INVENTORY TRAINING MATERIAL Inventory Controls Inventory controls means how individual items or group of items can be tracked when transactions are performed on it. they are not one and the same. Oracle inventory is capable of handling four different types of controls on the items that are assigned to an organization. Even though the name Oracle Applications remains the same for all the versions. Let us understand this concept better with an example – Oracle Applications as an item. Depending on the version number. the item named Oracle Applications varies though the difference is marginal in many cases. Thus to identify the changes made in an item. Page 102 2/27/2013 . They are: (1) Revision Control (2) Locator Control (3) Lot control (4) Serial control REVISION CONTROL Revision control is normally adopted for identifying a modified item. • Navigation is Items  Organisation Items. the item is to be placed under revision control.

Click on the push button ‘Find’. Change region to ‘Inventory’.INVENTORY TRAINING MATERIAL • • • • • Enter the item that is to be placed under revision control. Save. Page 103 2/27/2013 . Check the check box ‘Revision Control’.

If the revision control is controlled at master level. TESTING OF REVISION • • • • • • • • • • Navigation is Transactions  Miscellaneous Transactions. Do not choose a value in the field named ‘Rev’. Enter quantity. the check for on-hand quantity is against the sum of on-hand quantities in all the child organizations. Caution: the revision control cannot be changed when an item has on-hand quantity. Page 104 2/27/2013 . Choose the type as Miscellaneous Receipt. Choose the account. Optionally choose the reason. Choose the item selected earlier while defining revision control.INVENTORY TRAINING MATERIAL Hereafter. any transactions with the above item cannot be performed without specifying a valid revision. Choose the subinventory. Save. Click on the push button ‘Transaction Lines’.

Now choose a revision in the field ‘Rev’ and save.INVENTORY TRAINING MATERIAL Observe that the system does not permit to save it as the valid value for revision is not provided. Page 105 2/27/2013 . And observe that the transaction is effected.

Bin.INVENTORY TRAINING MATERIAL Locator Control: Locator control is adopted to find out where exactly the item is lying in a store. Rack. Item Locator key flexfield can be customized to suit the exact requirements. The locators are defined as Row. Page 106 2/27/2013 . Normally locator control is adopted to items smaller in size.

ensure to select the option ‘Determined at Subinventory Level’ for the field named ‘Locator Control’. DEFINING LOCATORS FOR A SUBINVENTORY • • Navigation is setup  Organisation  Subinventories. ensure to select the value ‘Item Level’ for the field named ‘Locator Control’. • Choose a value ‘Prespecified’ in the field named ‘Locator Control’. • Click on the push button ‘Find’. • Save. • Change region to ‘Inventory’. Page 107 2/27/2013 . • Enter the item that is to be placed under locator control.INVENTORY TRAINING MATERIAL Pre-specified Locator Control • In the organization definition (Inventory Parameters region). • Navigation is Items  Organisation Items. Query for the subinventory name. • In the subinventory definition.

Now transactions cannot be performed with the above item without choosing a valid locator. The lower block named ‘locators for this item subinventory’. TESTING: • Navigation is Transactions  Miscellaneous Transactions. Page 108 2/27/2013 . By keeping the cursor in the first item. Move cursor to the next item in the upper block and repeat the above step.INVENTORY TRAINING MATERIAL • • • • • Click on the push button ‘Open’. define the locators for it. Save. Click on the push button ‘locators’.

Navigation from Inventory is Items  Organisation Items. Page 109 2/27/2013 . Click on the push button ‘Transaction Lines’. Choose the account. Change region to ‘Inventory’. Click on the push button ‘Find’. ensure that we have selected the value ‘Item Level’ for the field named ‘Locator Control’. WE OBSERVE THAT THE TRANSACTION IS EFFECTED. Choose the item selected earlier to define the locator control. Enter the item that we want to place under ‘Locator Control’. Dynamic entry locator control. In the organization definition (Inventory Parameters region). We observe that the system will not permit to save it as valid locator is not provided. Save the work. Choose a value in the field named ‘Rev’. Save. ensure that we have selected the option (Determined at Subinventory Level’ for the field named ‘Locator Control’.INVENTORY TRAINING MATERIAL • • • • • • • • • • Choose the type as ‘Miscellaneous Receipts’. Do not choose a value for the field named ‘locator’ Choose the subinventory. Optionally choose the reason. Now choose a LOCATOR IN THE FIELD ‘LOCATOR’ AND SAVE. Enter quantity. In the subinventory definition. Choose a value ‘Dynamic Entry’ in the field named ‘Locator Control’.

Lot. Choose a value of FULL CONTROL for the field named lot control. Save the work. Prefix : Enter an alphanumeric character as prefix. Choose the item that is earlier selected under lot control. Choose the subinventory. Enter a starting lot prefix (an alphanumeric character). Enter quantity. Change region to ‘Inventory’. Choose a value for the field named ‘Locator’. the cotton that we receive may be placed under lot control. Serial region) in the organization defined. Generation : At Item Level.INVENTORY TRAINING MATERIAL LOT CONTROL: Lot control is adopted to identify a group of items. Uniqueness : Across Items. Total Length : Enter a value of 6 if we want to generate 5 digit lot number. Navigation from Inventory is Items  Organisation Enter the Item that is to be placed under Lot Control. Choose the account. Enter a starting lot number. Page 110 2/27/2013 . Choose the type as Miscellaneous Receipt. Items. Each truck load of cotton may be treated as one lot. Example: If we are a Textile manufacturer. Ensure the following values for Lot Control fields (Revision. Choose a value in the field named ‘Rev’. Click on the push button ‘Transaction Lines’. Click on the push button ‘Find’. (The extra one digit is for Prefix). TESTING Navigation from Inventory is Transactions  Miscellaneous Transactions.

Click on the push button ‘Generate’. After finishing all thw quantities. Click the push button ‘Generate’. SERIAL CONTROL Serial number control is adopted when we want to track the individual pieces of an item. Move the cursor to the next field. Page 111 2/27/2013 . Serial region) in the organization defined.INVENTORY TRAINING MATERIAL Optionally choose a reason. At Item Level. Observe that a new lot number appears in the field named Lot. then it is not required to repeat the lot generation steps again and again. Enter the partial quantity of the total received quantity in the field named quantity. Click on the push button ‘Lot/serial’. Uniqueness : Generation : Within Inventory Items. In this case enter the full quantity in the quantity field. Save the work. Ensure the following values for the serial control fields (Revision. Observe that the system will not allow to save the transaction as we have not selected a valid lot number for the quantity received. Enter the remaining quantity in the field button. This is generally used for costly items. Lot. If we want to have all the quantity as a single lot. click on the push button ‘Done’.

Click on the push button ‘Find’. Choose the following parameters for the report. Enter the total number of serial numbers we want to generate.INVENTORY TRAINING MATERIAL Prefix : Enter the alphanumeric character as prefix. Starting Serial Number: Enter a number. Change region to ‘Inventory’. Click on the push button ‘Find’. Enter the item that has been placed under Serial Control. Generating Serial Numbers: Navigation from Inventory is On-hand Availability  Generate Serial Numbers. Navigation from Inventory is Items  Organisation Items. Page 112 2/27/2013 . TESTING Navigation is Transactions  Miscellaneous Transactions. Enter a starting serial number. Click on the push button ‘Submit’. Choose a value of PREDEFINED for the field named Serial Generation. Item : Quantity : Choose the item selected under serial and lot controls. View for the request from the navigation view  view my request. Enter a starting serial prefix (an alphanumeric character). Save the work. Click on OK.

If the item is under lot control also. Choose the radio button ‘range’. Click on the push button ‘Lot/Serial’. Optionally choose a reason. Enter the quantity. then Click on the push button ‘Generate’. Suppose we are receiving 100 items. Choose a value for the field named ‘Locator’. INVENTORY PLANNING Page 113 2/27/2013 . Click on the push button ‘Transaction Lines’. we must ensure that 100 or more serial numbers are generated before trying to receive the item. Choose the item selected above.INVENTORY TRAINING MATERIAL Choose the Type as Miscellaneous Receipt. Enter a quantity. Choose the value in the field named ‘Rev’. Save the work done. Choose the subinventory. Click on the push button ‘Serial’. Observe that the system does not allow to save the transaction as the value for valid lot number and serial number are not selected for the item. Choose the account. Choose the last number that is to be assigned to the last item of the received quantity. Save the work. The quantity field will display the total quantity we are receiving.

Min – max planning can be defined for both buy items and make items. (m)Save. (h) Enter a minimum quantity. which are regularly purchased. let us consider the purchase of automobile spare parts. Create Purchase Requisition Automatically: Page 114 2/27/2013 .INVENTORY TRAINING MATERIAL Min – Max Planning: This planning is generally adopted for items. we can make arrangements to create purchase requisitions automatically when the items on-hand quantity falls below the minimum level fixed for it. (e) Choose Buy as value for field named “Make or Buy”. Organization Level Min – Max Planning for Buy Items (a) Navigation from Inventory is Items  Organization Items. So. (c) Click on push button “Find”. (i) Enter a maximum quantity. The consumption of these items will be almost the same every month. (g) Choose the MIN – MAX planning as value for the field named “inventory planning method”. (k) Enter the maximum order quantity. Once the item is placed in min – max planning. (d) Change region to GENERAL PLANNING. (j) Enter the minimum order quantity. (f) Choose Supplier as value for the field named “Source Type”. we can do the planning to generate purchase requisitions at two levels that are at organization level and sub inventory level. If a make item is placed under min – max planning the system creates WIP Discrete Jobs instead of purchase requisitions. (l) Optionally enter the fixed lot multiplier. we can fix a minimum and maximum stock level for these items considering the consumption level. If a buy item is placed under min – max planning. Min – max planning for the make item can be done only at organization level. (b) Enter the item that is to be placed under organization level min – max planning. For example.

Page 115 2/27/2013 . Click on No Click on the push button “Refresh” till the server processes our request. Items From: Choose the item.INVENTORY TRAINING MATERIAL Ensure that the on-hand quantity of the item is well below the min – max minimum quantity. Click on the push button “Submit a New Request”. Note: when we run the “MIN – MAX PLANNING REPORT”. Restock: Yes Include PO supply: No Include WIP supply: No Include Interface Supply: No (f) (g) (h) (i) (j) (k) Click on OK Click on the push button “Submit”. Select the following parameters for the report. (a) (b) (c) (d) (e)  View  request. To: Choose the same item. the data required to generate a purchase requisition are transferred to the Interface Tables. We have to see that all the relevant data have come there. Planning Level: Organization. Click on the push button “View Output”. Choose the report “MIN – MAX PLANNING REPORT”. This data will be converted into a purchase requisition only when we do “REQUISITION IMPORT” from Oracle Purchasing. Item Selection: Items under minimum quantity. Click on the push button “Next”. Click on push button “Find”.

INVENTORY TRAINING MATERIAL Requisition Import from Oracle Purchasing Caution: Before doing the requisition import from purchasing. Help  View my Request. Page 116 2/27/2013 . Click on the push button ‘Submit a New Request’. (l) Enter the Item. Click on push button “Submit”. (2) Our employee name is attached to our User name. Finding the Number of the Created Requisition (k) Requisition  Requisition Summary. (a) (b) (c) (d) (e) Switch responsibility to “Purchasing”. we can find out the requisition number. (3) We have been defined as a buyer. we must ensure the following. (m)Click on the push button ‘Find’. In the window that appears. Select the following parameters for the report Import Source: INV Group By: Item Click on OK. Click on the push button ‘View Output’ (f) (g) (h) (i) (j) We must see that the message requisition is created. (1) We have been defined as an Employee. Click on the push button ‘Refresh’ till then the server process our request. Click on NO. Choose the report ‘Requisition Import’.

Create Purchase Requisition Automatically: Ensure that the on-hand quantity of the item is well below the min – max minimum quantity. Page 117 2/27/2013 . (c) Click on push button “Find”. Item Selection: Items under minimum quantity. Planning Level: Sub inventory.INVENTORY TRAINING MATERIAL Sub inventory Level Min – Max Planning for Buy Items (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) Setup  Organizations  Sub inventories. (a) Help  View my request. (f) Select the following parameters for the report. Save. (e) Choose the report “MIN – MAX PLANNING REPORT”. (d) Click on the push button “Submit a New Request”. Enter the maximum quantity. Choose item-sourcing supplier. Optionally enter the fixed lot multiplier. Query for the sub inventory name (using F11 and Control F11). To: Choose the same item. Enter the maximum order quantity. Enter the minimum order quantity. Items From: Choose the item. Enter the minimum quantity. Click on the push button ‘Item/Sub inventory’ Click on that particular line whose item we want to place under min – max planning. Sub inventory: Choose the sub inventory. Check the check box ‘Min – Max Planning’.

(b) Help  View my Request.INVENTORY TRAINING MATERIAL Restock: Yes Include PO supply: No Include WIP supply: No Include Interface Supply: No (g) Click on OK (h) Click on the push button “Submit”. We have to see that all the relevant data have come there. Note: when we run the “MIN – MAX PLANNING REPORT”. (k) Click on the push button “View Output”. (f) Select the following parameters for the report Page 118 2/27/2013 . we must ensure the following. (c) Click on the push button ‘Submit a New Request’. (i) Click on No (j) Click on the push button “Refresh” till the server processes our request. the data required to generate a purchase requisition are transferred to the Interface Tables. (a) Switch responsibility to “Purchasing”. (l) Click on the push button “Next”. (2) Our employee name is attached to our User name. (3) We have been defined as a buyer. Requisition Import from Oracle Purchasing Caution: Before doing the requisition import from purchasing. This data will be converted into a purchase requisition only when we do “REQUISITION IMPORT” from Oracle Purchasing. (1) We have been defined as an Employee. (e) Choose the report ‘Requisition Report’.

we can find out the requisition number. (j) Click on the push button ‘Refresh’ till then the server process our request. Enter the minimum order quantity. Page 119 2/27/2013 . Enter the maximum quantity. Enter the maximum order quantity.INVENTORY TRAINING MATERIAL Import Source: INV Group By: Item (g) Click on OK. Organization Level Min – Max Planning for Make Items (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) Items  Organization Items. Choose make as value for the field named ‘Make or Buy’. Click on push button “Find”. (i) Click on NO. In the window that appears. Finding the Number of the Created Requisition (l) Requisition  Requisition Summary. (h) Click on push button “Submit”. Enter the item that we want to place under organization level min – max planning. Change region to “General Planning”. Optionally enter the fixed lot multiplier. Enter the minimum quantity. (m) Enter the Item. (n) Click on the push button ‘Find’. Choose the min – max planning as value for the field named ‘Inventory Planning Method’. (k) Click on the push button ‘View Output’ We must see that the message requisition is created.

(p) Uncheck the check box named ‘Purchasable’. Include PO supply: No Include WIP supply: No Include interface supply: No Click on OK. Planning Level: Organization. To: Choose the same item. Click on push button ‘Refresh’ till our request is processed. Click on the push button ‘Submit’. Click on OK. Item Selection: Items under minimum quantity. Click on the push button ‘View Output’. (n) Query for the item with name using F11 and Control F11. Restock: Yes For Repetitive Item: Create discrete job. (q) Save Create Discrete Job Automatically Ensure that the on-hand quantity of the item is well below the min – max minimum quantity. (a) (b) (c) (d) (e) (1) (2) (3) (4) (5) (6) (7) (8) (f) (g) (h) (i) (j) Help  View my Request. (o) Change the region to purchasing. (m) Navigation is Items  Master Items. Page 120 2/27/2013 . Click on the push button ‘Submit a new request’. Choose the report ‘Min – Max Planning Report’. Click on the push button ‘Find’. Select the following parameters for the report. Items From: Choose item.INVENTORY TRAINING MATERIAL (l) Save.

Inventory planning Method: Reorder point Make or Buy: Buy Order Cost: Enter a value. Change region to ‘General Planning’. Choose a level (item). Page 121 2/27/2013 . Source Type: Supplier. Optionally enter a description. Enter the item. Safety stock bucket days: Enter a value. Click on the push button ‘Find’. Safety stock percent: Enter a value. Safety Stock method: Non-MRP Planned. Click on the lines. (A) SET THE REQUIRED ITEM ATTRIBUTES. Reorder Point Planning A complete reorder point planning involves the following steps.INVENTORY TRAINING MATERIAL We will get the number of the discrete job created from this window. Carrying Cost Percent: Enter a value. (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) Navigation is Items  Organization Items. (B) DEFINE A FORECAST (a) (b) (c) (d) (e) (f) Navigation is Planning  Forecasts  Sets. Choose a bucket type (in days). Enter a ‘Forecast Set’ name.

(r) Click on the push button ‘Details’. (q) Choose the second item and so on. (aa) Close the forecast items window. (i) Move cursor to the next line. (o) Choose the item. (bb) Click on second forecast name (cc) Repeat the above steps. (u) Choose the last date of our demand in the field named ‘end date’. (j) Enter the second forecast name. (z) Click on details window. Page 122 2/27/2013 . (w) Optionally enter a ‘Confident Percent’. if our bucket type is selected days and we enter a quantity of 100 means that our demand for the item is 100 per day. If we entered quantity of 100 and a confidence percent of 90. (k) Optionally enter description for second forecast. (x) Close the window.INVENTORY TRAINING MATERIAL (g) Enter a forecast name. (t) Choose the starting date of our demand in the field named (From date). (s) Choose the bucket type (days). If the selected bucket type is weeks and if the quantity is 100. (v) Enter the demand in the field named (current0 quantity. means that our demand for the item is 100 per week. The quantity we enter here is the requirement per bucket. (n) Click on the push button ‘Forecast Items’. (y) Click on the second step and repeat the above steps. (l) Repeat till all the forecast names are entered. Example. (p) Move cursor to next line. (m)Click on the first forecast name. the actual demand will be considered as (100 x 90 /100) = 90. The confidence percent represent the accuracy of forecast. (h) Optionally enter a description.

Page 123 2/27/2013 . Forecast: Choose the forecast (we should choose forecast name and not forecast set name). Safety stock %: Enter a value. Selection: Specific inventory item. Click on push button ‘New’. Choose/Enter the following report parameters. Save. Enter the quantity that we want as safety stock. Click on push button ‘Open’. Choose the item.INVENTORY TRAINING MATERIAL (dd) Save. (C) DEFINE OR GENERATE SAFETY STOCK Define a safety stock manually. Enter an effective date. (a) (b) (c) (d) (e) (f) Navigation is Planning  Safety Stocks. a forecast can be used to define the demand for specific period of a year or to define the demand for a particular region of sales. Note: One ‘Forecast Set’ can contain multiple ‘Forecasts’. Special  Reload. GENERATE SAFETY STOCK AS A PERCENTAGE OF FORECAST DEMAND (a) (b) (c) (d) (e) Navigation is Planning  Safety Stock. Query for item entered earlier using F11 and Control F11. (f) Click on OK. Item: Choose the item Method: User-defined percent.

Control F11. Do not use both methods one after the other. Choose/Enter the following parameters for the report. Click on the push button ‘submit a new request’. We will see that the system has assigned a new value for the field ‘Quantity’.INVENTORY TRAINING MATERIAL (g) (h) (i) (j) Click on the push button ‘Submit’. (l) F11. enter the item. Also we can see that a value of 0 is assigned for the field named ‘Quantity’ from the day on which there exists no demand for the item as per the forecast selected for the ‘Reorder point report’ parameter. VIEWING THE GENERATED SAFETY STOCK (k) Navigation is Planning  Safety stock. (D) RUN THE REORDER POINT REPORT Ensure that the on-hand quantity of the item is well below the safety stock quantity. we need to generate a safety stock using anyone of the methods described above. Choose the report named ‘reorder point planning’. (a) (b) (c) (d) Help  View my requests. Click on the push button ‘Find’. Item Selection: Sort By: Inventory Item. From: Enter the item Page 124 2/27/2013 . (m)Click on the push button ‘Open’. Range: Full listing. Click on ‘Refresh’ till our request is processed by the server. Note: For doing the reorder point planning. Help  View my request.

Choose a report named Requisition Import. We have been identified as a buyer. We must see that all the relevant data are available here. we must ensure the following: We have been defined as an Employee. Supply cutoff date: enter today’s date or date ahead of today. Click on the push button ‘Submit’.INVENTORY TRAINING MATERIAL To: enter the same item selected above. Choose the following parameters for the report. Our employee name is attached to our User name. Click on the push button ‘Next’. Click on the push button ‘Refresh’ till then our request is processed. Page 125 2/27/2013 . Click on the push button ‘Submit a new request’. Help  View my request. DO REQUISITION IMPORT FROM PURCHASING Caution: before doing requisition import from purchasing. Create requisitions: yes Forecast: Choose a forecast name. Click on the push button ‘Find’. (a) (b) (c) (d) (e) Switch responsibility to ‘Purchasing’. Click on the push button ‘View Output’. Demand cutoff date: Choose the current date. Click on NO. (e) (f) (g) (h) (i) (j) (k) Click on OK.

(b) Enter the item.INVENTORY TRAINING MATERIAL Import Source: INV Group By: Item (f) (g) (h) (i) (j) (k) Click on OK. due to missing transactions or inaccurate entries of transactions. Click on the push button ‘find’. Click on push button ‘submit’. We must get the message ‘Requisition Created’. in the system on-hand quantities and the actual quantities lying in the subinventory. Click on the push button ‘Refresh’ till our request is processed. In the window that appears. ACCURACY In any organization. Click on the push button ‘View Output’. we can find out the requisition number. Click on NO. In order to correct the Page 126 2/27/2013 . FIND OUT THE REQUISITION NUMBER FROM THE REQUISITION SUMMARY WINDOW (a) Navigation is Requisition  Requisition Summary. there will be every possibility for differences. (c) Click on the push button ‘Find’.

• Assign items to Various Classes.INVENTORY TRAINING MATERIAL differences. (b) Physical Inventory: In Physical Inventory we will have to count all the items. ABC Analysis A complete ABC Analysis includes the following. • Define ABC Classes. Page 127 2/27/2013 . This is equal to the Half Yearly or Annual Stock Taking of an organization. we can plan and count only a few items every day or week. people physically count the items and correct the system on-hand quantities periodically. Normally high value items are placed under Cycle Counting. we must set the item attribute Enable Cycle Counting to Yes. The two ways are (a) Cycle Counting and (b) Physical Inventory. (a) Cycle Counting: Instead of counting all the items simultaneously. This we generally call as Stock Taking. • Define a ABC Compile. Oracle Inventory is capable of managing the stock taking in two ways. For planning the number of times an item to be counted per year. we can use an ABC compile. Define an ABC Compile: An ABC Compile is nothing but sorting the items based on a specific criterion. For doing Cycle Counting of an item. • Define ABC Assignment Group and Assign Classes to it.

(9) Click on the push button ‘Refresh’ till then the server processes request.INVENTORY TRAINING MATERIAL (1) ABC Codes  ABC Compiles. (2) Enter a name for Compile. (8) Click on the push button ‘Find’. (6) Click on the push button ‘Compile’. we can see the result of the ABC Compile. (Current on-hand value). In this window. (7) Help  View my Request. (3) Choose a ‘Content Scope’ (Organisation) (4) Choose a ‘Valuation Scope’ (Organisation) (5) Choose a criterion in the ‘Compile Specification’ block. Page 128 2/27/2013 . (10) Click the push button ‘View Output’.

if Subinventory is selected as the Content Scope and Organisation is selected as the Valuation Scope. then we have to specify a subinventory. For example. all the items assigned to a current organization will be included in the ABC Compile.INVENTORY TRAINING MATERIAL Content Scope: The content scope specifies list of items to be considered in the ABC Compile. 7. 9. 2. Current on-hand value. Previous cycle count adjustment value. 6. Forecasted usage quantity. Historical usage quantity. Previous cycle count adjustment quantity. (2) Enter a Class name. Forecasted usage value. 8. 5. MRP demand usage value. Historical number of transactions. Define ABC Classes: (1)  ABC Codes  ABC Classes. 10. Compile Criteria that we can Use: 1. In this case. 3. the items assigned to the selected Subinventory only will be included in the ABC Compile. Historical usage value 4. Current on-hand quantity. in which all areas the system should search for the items as per the ‘Content Scope’. Valuation Scope: The Valuation Scope specifies. If a value of ‘Subinventory’ is selected. MRP demand usage quantity. 11. If a value of ‘organisation’ is selected here. Page 129 2/27/2013 . thenthe system will search all subinventories of the current organization for the finding the items assigned to the Subinventory selected in the Content Scope.

Define ABC Assignment Group and Assign Classes to it: (1)  ABC Codes  ABC Assignment Groups. (8) Save. Page 130 2/27/2013 . (7) Repeat steps 4 to 6 till all the class names are entered. (6) Optionally enter the description for the second Class.INVENTORY TRAINING MATERIAL (3) Optionally enter description for the above class. (4) Move cursor to the next line. Need not to limit to only three classes named A. B and C. (5) Enter the name of the second Class. Note: you can enter the number of classes.

means that the items from 101 to 200 listed in the ABC Compile is assigned to the B Class. Page 131 2/27/2013 . Choose a workday calender. (5) Choose a ‘Priority’ (say 1). Assign Items to Various Classes: (1) Close the ‘Group Classes’ window opened in the earlier steps. (7) Move cursor to the next line and repeat steps 5 and 6. Enter the name of the cycle count. suppose we entered a value of 100 in the above step. suppose we entered a value of 200 in the above step. Cycle Counting Using ABC Compile: Navigation from Inventory is Counting  Cycle Counting  Cycle Counts. (9) Save. (7) Save. (3) Choose an ABC compile name in the field named ‘Compile Name’. Choose an adjustment account. (6) Choose an ABC class name in the field named ‘Class Name’. (6) Repeat the above two steps till all the items are assigned. Optionally enter the description for the Cycle Count. (5) Enter a value for the field named ‘Seq’. (4) Click on the push button ‘Group Classes’. Refer to the last step of define ABC Compile. (2) Click on the push button ‘Assign Items’. (8) Repeat till all the classes are assigned to the Group. (4) Move cursor to next line. (3) Enter a value in the field named ‘Seq’. means that the first 100 items listed in the ABC Compile is assigned to the A Class. All the classes belong to the group defaults.INVENTORY TRAINING MATERIAL (2) Enter the group name.

Enter a value in the field named Starting Seq. Enter the tolerances.INVENTORY TRAINING MATERIAL Check the check box ‘Auto Schedule’. Choose an auto schedule frequency (day). Page 132 2/27/2013 . Choose the option none in the field named ‘Option’ in the above block. ABC’. Check the check box ‘Unscheduled Entries’. Choose the option ALL for ‘Count Subinventories’. Choose If out of tolerance as value for the field named ‘Required’ in the Approval block. Choose the ABC Assignment Group as value for the field named Group in the ABC Initialisation block. Check the check box ‘Display System Quantity’. Change the region to ‘Adjustments. Check the check box ‘Count Zero Quantity’.

Click in the field ‘Parameters’ of the second report and enter the following parameters. Enter the number of times we wish to count the A class items in the field named ‘Counts per Year’. All Cycle Counts Cycle Count Name Include Control Items : : : No Choose the cycle count name. Query for the Cycle Count Name using F11 and Control+F11. Enter the number of times we wish to count the B class items in the field named ‘Counts per Year’. Move cursor to the next line. Generating and Listing the Count Schedules Navigation from Inventory is Counting  Cycle Counting  Cycle Counts. Generate Cycle count requests. Choose the second class name. Special  Perform Full Cycle Count. This request is comprised of three reports as follows: Generate automatic schedule requests. Click in the field ‘Parameters’ of the first report and enter the following parameters. Click on the push button ‘Open’. Repeat the above steps till count frequencies are entered for all the items. Cycle count listing. No Click on OK. Choose the first class name.INVENTORY TRAINING MATERIAL Entering Count Frequencies Click on the push button ‘Classes’. Page 133 2/27/2013 .

No Click on OK. Click on the push button ‘Find’. Click on the report name ‘Cycle Count Listing’. Click on the push button ‘Find’. Enter the counted quantities for all the listed items in the field named ‘Quantity’. All Cycle Counts Cycle Count Name Include Control Items : : : No Choose the cycle count name. No Click on OK. Entering Count Quantities Navigation from Inventory is Counting  Cycle Counting  Cycle Count Entries. Click on the push button ‘Submit’. Observe the items scheduled for cycle counting. Click on the push button ‘Refresh’ till the server processes the request. Click on the push button ‘View Output’.INVENTORY TRAINING MATERIAL All Cycle Counts Cycle Count Name Include Control Items : : : No Choose the cycle count name. Enter the Cycle Count name. Save the work. Page 134 2/27/2013 . View  View my Request. Click in the field ‘Parameters’ of the third report and enter the following parameters.

Save the work.INVENTORY TRAINING MATERIAL Approving the cycle count entries Navigation from Inventory is Counting  Cycle Counting  Approve Counts. Rejected. Choose each of the radio button (None. Enter the Cycle Count Name. Approved. Click on the push button ‘Find’. or Recount) for each line as appropriate. Page 135 2/27/2013 .

Collect all the tags. Take snap-shot of system on-hand quantity. Page 136 2/27/2013 . Attach the tags to the respective items. Print the generated tags. Count the actual quantities and enter them the respective tag.INVENTORY TRAINING MATERIAL Physical Inventory The complete physical inventory involves the following steps: Define Physical Inventory. Generate physical inventory tags.

Save the work. Check the check box named ‘Allow Dynamic Tags’. Enter the tolerances. Define Physical Inventory Navigation from Inventory is Counting  Physical Inventory  Physical Inventories. Optionally enter the description. Launch adjustments. Take the snapshot of System On-hand Quantities. Enter the name for the physical inventory.INVENTORY TRAINING MATERIAL Enter the quantities recorded in the tag in the system. Choose if out of tolerance as value for the field named ‘Required’ in the approvals block. Approve the physical inventory. Page 137 2/27/2013 . Choose ‘All’ as value for the field ‘Count Subinventories’.

then the digit increment must be entered as 0111. Page 138 2/27/2013 . Enter a starting tag.INVENTORY TRAINING MATERIAL Click on the push button ‘Snapshot’. Choose the type as default. If the starting tag is entered as A001. Check or uncheck the check box ‘Show Serial on Tags’. Generate Physical Inventory Tags Navigation from Inventory is Counting Physical Inventory  Tag Generation. Enter the digit increment. Choose the physical inventory name in the ‘Name field’.

Click on the push button ‘Refresh’ till the request is processed by the server. Choose the report ‘Physical Inventory Tag Report’. Click on the push button ‘Generate’. The number of tags will default. Click on the push button ‘Submit’.INVENTORY TRAINING MATERIAL Enter an ending tag. Click on the push button ‘Submit a new request’. Page 139 2/27/2013 . Click on NO. Print the generated tags View  view my request.

Page 140 2/27/2013 . All the items will be listed now in the lines. Click on the push button ‘Find’. Count the actual quantities and enter them in the respective tag This step is to be performed manually. which are not deliberately counted. Attach the tags to its respective item This step is to be performed manually.INVENTORY TRAINING MATERIAL Click on the push button ‘view output’. Enter the counted quantities in the field named ‘QTY’ for each item. Save the work. Enter the physical inventory name. Enter the quantities recorded in the tag in the system Navigation is Counting  Physical Inventory  Tag Counts. the system will take for granted that the quantity of zero when posting adjustments. Action  Print. Check the check box named ‘Void’ for all those items. If voiding is not done for any missing entry. Collect all the tags This step is also to be performed manually.

Choose the action None. Click on the push button ‘Find’. Enter the physical inventory name.INVENTORY TRAINING MATERIAL Approve the Physical Inventory Navigation is Counting  Physical Inventory  Approve Adjustments. Approve or Reject for each line. Page 141 2/27/2013 .

INVENTORY TRAINING MATERIAL Save the work. Query for Physical Inventory name using F11 and CONTROL+F11. Page 142 2/27/2013 . Launch Adjustments Navigation is Counting  Physical Inventory  Physical Inventories.

Enter an adjustment account. Enter an adjustment date. Click on the push button ‘Launch Adjustments’. Page 143 2/27/2013 .INVENTORY TRAINING MATERIAL Special  Launch Adjustments.

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Inventory Costing: Costing is broadly classified into Standard Costing and Average Costing. Under Standard Costing, we will have to manually define the item cost. The system will not generate the cost by averaging the PO prices. In Average Costing, we need not define the item Cost. The system will automatically generate the Cost by averaging the PO prices. If BOM and WIP are installed, we cannot adopt Average Costing. The only option to select is Standard Costing.(The Costing Method for an organization is selected in the organization definition.).Because of this reason, we will discuss only the things that we are supposed to do under Standard Costing. (The Costing Method for an organization is selected in the organization definition.) . Because of this reason, we will discuss only the things that you are supposed to do under Standard Costing. Using Oracle Inventory is installed you can do the Inventory Costing. In Inventory Costing, we can define and update the item costs. If Inventory and BOM are installed, we can find out the Expected Cost of manufacturing of an item. If Inventory, BOM and WIP are installed, we can find out the Actual Cost of manufacturing of an item.

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Cost Elements:

The following are the Cost Elements
   

Material (Material Cost) Material Overhead (Procurement cost of materials) Overhead (Any overhead cost other than the Material overhead) Outside processing (the cost incurred due to outside processing)

These elements are standard you cannot add or remove the above stated Cost Elements. But, for each Cost Element, you can define as many Sub-elements as you like. When you define a Sub-element, you have to specify, for which Cost Element you are defining the Sub-element. Cost Sub-elements: Sub-elements are containers to hold a piece of cost of a particular Cost Element. For example, you can have two Subelements named Order Cost and Unloading Cost for the Element Material of a particular item.

Material Sub-elements: NSetupCostsSub-elementsMaterial (for defining Material Sub-elements). Enter a Sub-element name in the field named ‘Material’.

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Enter an Overhead Sub-element name in the field named ‘Overhead’. Cost Types: Cost Types are logical containers for holding the cost of an item. Page 147 2/27/2013 . Choose the Default Basis as Item. Overhead Sub-elements: Using this form you can define sub-elements for Material Overheads and Overheads.INVENTORY TRAINING MATERIAL Optionally enter a description for the Sub-element. Choose the Cost Element as Overhead. you have to define a Material Sub-element for holding that piece of cost. Save. Optionally enter a description. Choose an Absorption Account. say. It should be noted that the values of cost are held by Sub-elements and not by Cost Elements. Save. A Cost Type is made up of certain or all Cost Elements and their corresponding Sub-elements. Material. Even if there is only one piece of cost for a particular Cost Element. NSetupCostsSub-elementsOverhead (for defining Overhead Sub-elements).

INVENTORY TRAINING MATERIAL Oracle Inventory provides two predefined Cost Types: (1) Frozen and (2) Current. you got three Cost Types with values in it. Frozen is used as the Default Cost Type under Standard Costing and Current is used as the Default Cost Type under Average Costing. The updation cannot be done directly by changing the values once after transacting the item. Under standard costing. Click on the push button ‘New’.Now. NSetupCostsCost Types. You can now make comparison among the costs of 2000 and 2001. Page 148 2/27/2013 . only the Cost Type name will be available to other organizations and not the cost defined in it. Check the check box named ‘Multi-Org’ if you want this Cost Type name to be available in organizations other than your current organization. Choose the default Cost Type as Frozen. If this check box is checked. In this way you can create any number of costs for an item using different Cost Types. we have seen that a user defines the item cost manually. This will necessitate to updating the cost of an item periodically.’Cost 2001’ for holding the item costs of the year 2000 and 2001. One is the running cost held by the Default Cost Type (Frozen) and the other is the cost held by another Cost Type created for updating the Default Cost. Suppose you have created Cost Types named ‘Cost 2000’. What you have to do for updating the cost of an item is to create a separate set of costs under a different Cost Type and then update the original cost from the new Cost Type created. Now the item is having two Cost Types associated with it. Enter a name for the Cost Type. Optionally enter a description. if you want. you can compare the costs of different Cost Types.You used this Cost Types to update the Default Cost Type (Frozen) in the years 2000 and 2001..Afterwards.

Choose a Sub-element. Enter the Rate or Amount. Choose the Cost Element (Material). Click on the push button ‘Costs’. Choose a Sub-element defined for the Cost Element ‘Material’. Define Item Cost: You will be able to define the cost of an item directly only before performing transactions on the item. Move cursor to the next line.INVENTORY TRAINING MATERIAL Check the check box named ‘Allow Update’. Save. Check the check box named ‘Component Yield’. Check the check box named ‘Operation’. Choose the item. Choose the Basis item. you have to define the costs in a new Cost Type and then update the existing cost from the new Cost Type. Check the check box named ‘Available To Engineering’. Navigation from Inventory is CostsItem Costs. Choose the Cost Element (Material Overhead). Page 149 2/27/2013 . Choose the Cost Type Current. If any transaction is performed. In such cases. Check the check box named ‘Element’. the system will assign a cost of zero for the item and you will not be permitted to change it directly.

View  View My Request. Choose/enter the following parameters: Cost Type : Choose the Cost Type from which you want to update Existing cost. Enter a Rate or Amount. Move cursor to the next line. Click on the push button ‘Find’. Click on the push button ‘Submit’. Adjustment Account Description Item Range Update Option Specific Item: Choose. Specific Item. Click on the push button ‘Refresh’ till then the Server processes your request. : : : : Choose. Save. Enter. Click on OK. Save Details: Yes. the Page 150 2/27/2013 .INVENTORY TRAINING MATERIAL Choose a basis Lot. Updating Item Cost: Navigation from Inventory CostsStandard Cost UpdateView Cost Update. Item costs. The entered value will be divided by the Lot Size entered to derive the Unit Cost due to this sub-element.

Keep the cursor in the Cost Type Frozen and click on the push button ‘Open’. F11. Click on the push button ‘Find’. Navigation is CostsStandard Costs UpdateView Cost History. Page 151 2/27/2013 . Enter the item name. Click on the push button ‘Views’. Enter the item whose cost you want to see. You can now see the various costs under different Cost Types.INVENTORY TRAINING MATERIAL Testing: Navigation CostsItem Costs. You must see that the item cost is changed. Viewing Different Costs of an Item at Different Times. Ctrl+F11.

INVENTORY TRAINING MATERIAL

APPENDIX Definations used in Inventory Item Validation Organization: The organization that contains your master list of items. You define it by setting the OE: Item Validation Organization profile option. Logical organization: A business unit that tracks items for accounting purposes but does not physically exist. Organization: A business unit such as a plant, warehouse, division, department, and so on. Order Management refers to organizations as warehouses on all Order Management windows and reports. Destination organization: An inventory organization that receives item shipments from a given Organization. Workday calendar: A calendar that identifies available workdays for one or more organizations. Master Scheduling/MRP, Inventory, Work in Process, and Capacity plan and schedule activities based on a calendar’s available workdays. Workday exception set: An entity that defines mutually exclusive sets of workday exceptions. For each organization, you can specify a workday calendar and exception set. Primary unit of measure: The stocking unit of measure for an item in a particular organization.

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Unit of measure: The unit that the quantity of an item is expressed. Unit of measure class: A group of units of measure and their corresponding base unit of measure. The standard unit classes are Length, Weight, Volume, Area, Time, and Pack. Unit of measure conversions: Numerical factors that enable you to perform transactions in units other than the primary unit of the item being transacted. Category: Code used to group items with similar characteristics, such as plastics, metals, or glass items. Category set A feature in Inventory where users may define their own group of categories. Typical category sets include purchasing, materials, costing, and planning. Purchased item: An item that you buy and receive. If an item is also an inventory item, you may also be able to stock it. Standard item: Any item that can have a bill or be a component on a bill except planning items, option classes, or models. Standard items include purchased items, subassemblies, and finished products. Substitute item: An item that can be used in place of a component. Master Scheduling/MRP suggests substitutes items on some reports. Inventory item: Items you stock in inventory. You control inventory for inventory items by quantity and value. Typically, the inventory item remains an asset until you consume it. You recognize the cost of an inventory item as an expense when you consume it or sell it. You generally value the inventory for an item by multiplying the item standard cost by the quantity on hand. Item attribute control level: To maintain item attributes at the item master attribute level or the Organization specific level by defining item attribute control consistent with your company policies. For example, if your company determines serial number control at headquarters regardless of where items are used, you define and maintain serial number attribute

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control at the item master level. If each organization maintains serial number control locally, they maintain those attributes at the organization specific level. Item attributes: Specific characteristics of an item, such as order cost, item status, revision control, COGS account, etc. Item master level attribute: An item attribute you control at the item master level as opposed to controlling at the organization level. Item status: Code used to control the transaction activity of an item. Deletion constraint: A business rule that restricts the entities you can delete. A deletion constraint is a test that must succeed before an item, bill, or routing can be deleted. Current on–hand quantity: Total quantity of the item on–hand before a transaction is processed. On–hand quantity: The physical quantity of an item existing in inventory. Subinventory: Subdivision of an organization, representing either a physical area or a logical grouping of items, such as a storeroom or receiving dock. Locator: Physical area within a subinventory where you store material, such as a row, aisle, bin, or shelf. Locator control: An Oracle manufacturing technique for enforcing use of locators during a material transaction. Revision A particular version of an item, bill of material, or routing. Revision control: An inventory control option that tracks inventory by item revision and forces you to specify a revision for each material transaction. Lot: A specific batch of an item identified by a number.

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Serial numbers control: A manufacturing technique for enforcing use of serial numbers during a material transaction.INVENTORY TRAINING MATERIAL Lot control: An Oracle Manufacturing technique for enforcing use of lot numbers during material transactions thus enabling the tracking of batches of items throughout their movement in and out of inventory. Page 155 2/27/2013 . Cycle counting: An inventory accuracy analysis technique where inventory is counted on a cyclic schedule rather than once a year. report. Safety stock: Quantity of stock planned to have in inventory to protect against fluctuations in demand and/or supply. safety stock. such as annual dollar volume or your company’s transaction history. Physicals inventory: A periodic reconciliation of item counts with system on–hand quantities. Inter–organization transfer: Transfer of items from one inventory organization to another You can have freight charges and transfer credits associated with inter–organization transfer. carrying cost. Reorder point planning: An inventory planning method used to determine when and how much to order based on customer service level. order setup cost. You may view. Serial number: A number assigned to each unit of an item and used to track the item. Account alias: An easily recognized name or label representing an account charged on miscellaneous transactions. ABC classification: A method of classifying items in decreasing order of importance. You can choose to ship items directly or have them go through intransit inventory. Min–max planning: An inventory planning method used to determine when and how much to order based on a fixed user–entered minimum and maximum inventory levels. lead time and average demand. and reserve against an account alias.

the system uses the transaction price or cost and automatically recalculates the average unit cost of your items. Any deviation in actual costs from the predetermined standard is recorded as a variance. Issue of component items from inventory to work in process. As you perform transactions. Average costing: A costing method which can be used to cost transactions in both inventory only and manufacturing (inventory and work in process) environments. job close. Transaction manager: A concurrent program that controls your manufacturing transactions. and cost update transactions and valuing inventory. issue from. Page 156 2/27/2013 . or adjustment to an inventory organization. receipt to.INVENTORY TRAINING MATERIAL Material transaction: Transfer between. Accounting period: The fiscal period a company uses to report financial results. Receipt: A shipment from one supplier that can include many items ordered on many purchase orders. Receipt of completed assemblies into inventory from a job or repetitive schedule. Transaction cost: The cost per unit at which the transaction quantity is valued. such as a calendar month or fiscal period. subinventory. period close. Transaction interface: An open interface table through which you can import transactions. overhead. or locator. Supplier: Provider of goods or services. Return to supplier: A transaction that allows you to return to the supplier items from a fully or partially received purchase order and receive credit for them. Standard costing: A costing method where a predetermined standard cost is used for charging material. resource.

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