You are on page 1of 6

Oracle Apps Tutorial: R12 Changes to Inventory Item Attributes and Inventory Organization Parameters

wanted to share with you the R12 changes to item attributes and inventory organization parameters because I feel these configurations are at the heart of all Supply Chain modules. These configurations will determine how items are planned, purchased, built, costed, ordered, and shipped. The R12 changes to the item attributes and inventory organization parameters are mainly the result of new integrations with Process Manufacturing and Chargeable Subcontract Manufacturing. Before R12, Process Manufacturing was more of a stand-alone module with its own inventory organization setups. Now Discrete Manufacturing and Process Manufacturing share the same inventory module. Chargeable Subcontract Manufacturing is new functionality that allows you to support outsourcing the manufacturing of subassemblies and finished goods. This type of manufacturing is common in Japan, Korea, and Taiwan. In Japan, this is referred as Shikyu. So let’s look at the R12 changes.

R12 Changes to Item Attributes
Here’s my tab by tab analysis for item attributes:

Main Tab – No Changes Inventory Tab
To support the integration of Process Manufacturing, Oracle added additional Lot attributes and new grade control attributes. There is also a new material status field. Material status allows you to control what transactions can occur for a specific status. For example, you can have a material status of called “QC Hold” that will not allow you to pick or ship. Material status can be assigned to a subinventory, a locator, a lot, or an on-hand balance.

R12 Changes Item Attributes - Inventory Tab

R12 Changes Item Attributes . Oracle added an outsourced assembly field.Inventory Tab (part 2) Bill of Materials Tab – No Changes Costing Tab – No Changes Purchasing Tab To support Chargeable Subcontract Manufacturing.R12 Changes Item Attributes . Oracle added a subcontracting component field. .Purchasing Tab Receiving Tab – No Changes Physical Attributes Tab – No Changes General Planning Tab To support Chargeable Subcontract Manufacturing. Also the tax field is now integrated with the E-Business Tax module.

Order Management Tab Invoicing Tab – No Changes . R12 Changes Item Attributes .General Planning Tab MPS/MRP Planning Tab There are new repair attributes to integrate the Depot Repair module with planning. Oracle added the periodicity field.MPS MRP Planning Tab Lead Times Tab – No Changes Work in Process Tab – No Changes Order Management Tab To support recurring charges in Order Management.R12 Changes Item Attributes . R12 Changes Item Attributes .

Inventory Parameters . There was also a Locator Alias Uniqueness flag added. The Manufacturing Partner Organization flag was added to support the Chargeable Subcontract Manufacturing functionality and the Landed Cost Management flag was added to support the new Landed Cost Management module. and new functionality. the changes to inventory organization parameters was the result of integration Process Manufacturing.Process Manufacturing Tab Service Tab – No Changes Web Option Tab – No Changes R12 Changes to Inventory Organization Parameters Like the item attributes.Process Manufacturing Tab All of these fields were added to support the integration of Process Manufacturing into the Inventory module R12 Changes Item Attributes . Landed Cost Management module. Inventory Parameters Tab Four new fields were added to this tab. Here’s my tab by tab analysis of these changes. The Default On-hand Material Status was added to support the new material status functionality. R12 Changes Org Parameters .

These fields are used to support Warehouse Management (WMS) enabled organizations. LPN Tab A new region for Child Lot Control fields and the Auto Create Lot UOM Conversion field were added to support Process Manufacturing. there is a new region for LPN Generating Option fields. R12 Changes Org Parameters . or an on-hand balance. Lot. a lot. The Allow Different Material Status field was added to support controlling transactions by material status (for example.ATP Pick Item Sourcing Inter-Org Information Tab – No Change Other Accounts Tab . not ship items with a status of “QC Hold”). Lastly. R12 Changes Org Parameters . Pick.Revision Lot Serial and LPN ATP. Item-Sourcing Tab A new “Enable Rules Override for Lot-Level Reservations” flag was added to this tab. this flag is most likely used by Process Manufacturing. Since Process Manufacturing required more functionality around lots. Material status can be assigned to a subinventory. Serial.Costing Tab – No Change Revision. a locator.

Other Accounts . R12 Changes Org Parameters . The first one is the Deferred COGS Account field.Two new accounts were added to this tab. This account is used by the new Landed Cost Management module. This account is used by the Sales Order Issue transaction type to deferred COGS until AR recognizes revenue. The second account is the Landed Cost Management (LCM) variance account.