Oracle Applications (EBS

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11i or R12
Wednesday, January 14, 2009

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Oracle Inventory Module
Anything that you can transact (Purchase, Sell, Plan, Manufacture, Stock, Distribute, Prototype) that item is an Inventory. Ex: From
Raw materials to wastage materials.
Inventory Management - How to receive, transact, issue out, store, Control, maintain, Standardize, Valuate, Count, Replenish,
Serialization and accuracy the material is called as " Inventory Management"
1) Item: Item is a part/ service you can purchase, sell, plan, mfg, stock, distribute.
2) Item categories: Grouping of similar items. (Family. Class, Metal. Ferrous, Liquid. Consumable etc)
3) CCID: Code Category Id is the id in which the item stores (Family. Class)
by default all CCID's are not transact able, after creating we have to assign
4) Category sets: Group of similar (item) categories.

set (DCS)

Asset Management EAM
Product family
All other fn
Default category set: for each functional area default category sets are there


• Whenever an item is attached to a function DCS- DCC combination gets attached to the item. They cannot be deleted. They are
mandatory ( Item master -tools- category assignment)
• Assigning is automatic, whereas un assigning is manual. ( except BOM type)
• Controlled at Master level (after assigning u cannot change in org) and org level (can be changed in org)
• Item can be assigned to many categories and a Category can be assigned to many items. (many-many)
• An item cannot appear in more than one category in a default category set.
5) Item cross reference: referring an item (oracle) with old legacy number ( free text). ( Inv-Items-cross reference, enter and
6) Customer item cross reference: relegating customer item (PO item) with our (oracle) number.
Note: For both Item cross references u can enter customer item/ legacy item is S.O line. In shipping transaction line the oracle
number will be referenced.
When the item is referenced/ related the color will change in S.O line
7) Item relationship: relating two oracle numbers by up sell, substitute (after enter state if u change the item the new line will be
created), cross sell, related, superseded (after committing u can change).
8) Manufacturing Part number: used in souring rule if u choose distributor.
9) Attributes: are information.
10) Item attributes: collection of information about an item.
1. Mater Items :
Item can be a component, service, Assembly which could be Purchase, Sell, Plan, Manufacture, Stock, Distribute, Prototype
Status control attributes: (8) – all are Master level
Inventory: Stockable, Transactable
Purchase: Purchasable, Invoice Enabled


Allows you to transact the item in Oracle Inventory. Select the attributes and save 2.Order Management: Customer Order Enabled and Internal Orders Enabled. Work in Process Purchasing Build in WIP - Work in Process Customer Orders Enabled Internal Orders Enabled BOM Allowed Invoice enabled Customer Ordered Item Internal Ordered Item Inventory Item Invoiceable Item Status Attribute Order Management Inventory.1 Item Defining Attributes (IDA) Main (T) : Item Status Primary Unit of Measure Master Master Inventory (T) Inventory Item Master Stockable Transactable Reservable Revision Control Lot Control Starting Lot Number Starting Lot Prefix Serial No Generation Starting Serial Number Starting Serial Prefix Lot Expiration Org Shelf Life Days Restrict Sub inventories Locator Control Restrict Locators Master Master Org Org Org No control / full control Org Org Org No control/at receipt/at sales order issue/predefined Org Org No / Self life days / user defined Org Org Org No control / prespecified / dynamic entry Org Bills of Material (T) BOM Allowed Master BOM Item Type Base Model Master Master Std/Model/option class/planning/product family Asset Management (T) www. Stockable Item Defining Attribute Inventory Item Transactable Inventory Item Purchasable Purchased Functional Area / Oracle Product Inventory 3/20 .erpstuff. Allows you to place the item on a purchase order. Assign it to the required Org. and/or repetitive schedule. Status attributes are dependent on at least one other attribute. Oracle Purchasing and Oracle Work in Process. Purchasing. Allows you to place the item on a sales order. BOM and WIP: BOM allowed and Build in WIP Status Attributes are item attributes that enable key functionality of an item. Oracle Order Management. Order Management. 1. Order Management. Purchasing Bills of Material Receivables Functionality Allows you to store the item in an asset sub inventory. Allows you to create an internal sales order for the item Allows you to create a bill of material for the item Allows you to create an invoice for the item Inventory (N) -> Items -> Master items 1. Allows you to build the item on a discrete job.

Costing (T) Costing Enabled Inventory Asset Value Include in Rollup Cost of Goods Sold A/c Standard Lot Size Org Org Org Org Org Purchasing (T) Purchased Purchasable Default Buyer Use Approved Supplier List Price Outside Processing Item Master Master Org Org Org Org Receiving (T) Receipt Routing Receiving sub inventory Org Direct / Standard / Inspection / none Org Org Org Org Org Org Org Org Org Org Org Org None / Min-max / Reorder point / VMI Physical Attributes (T) General Planning (T) Inv Planning Method Planner Make or Buy Min-Max Mini Qty Min-Max Max Qty Safety Stock Minimum Order Quantity Maximum Order Quantity Fixed Lot Size Multiplier Source Type Source Organization Source Sub inventory Make / Buy Non MRP planned / MRP planned % MRP / MPS planning (T) Lead-time (T) Preprocessing Lead Time Org Processing Lead Time Org Post processing Lead Time Org Fixed Lead Time Org Variable Lead Time Org Cum Manufacturing Lead Time Cumulative Total Lead Time Org Lead Time Lot Size Org Work in Process (T) Build in WIP Master WIP Supply Type Org Order Management (T) Customer Ordered Customer Orders Enabled Internal Ordered Internal Orders Enabled Shippable Master Master Master Master Master Org Operation pull/Assembly pull/push/bulk/supplier/phantom 4/20 .erpstuff.

OE Transactable Master Picking Rule Master Pick Components Master Assemble to Order Master Check ATP Org ATP Components Org ATP Rule Master Ship Model Complete Master Default Shipping Organization Org Default SO Source Type Master Returnable Master RMA Inspection Required Master Over Shipment Tolerance Master Under Shipment Tolerance Master Over Return Tolerance Master Under Return Tolerance Master Financing Allowed Org Invoicing (T) Invoiceable Item Invoice Enabled Internal / External Master Master Service (T) Web Options (T) Back Orderable Master Tools Menu : 1.. Catalog – to assign to item catalog 3. you need not search each tab 12. Find Attribute – select the attribute and find. Interdependent attributes--you can enter only certain values depending on other attribute values.erpstuff. Updatable attributes--you can update values under certain conditions. Organization Assignment 11. Item sub inventories 6. Cross references 9. 7. Categories – to assign to item categories 2. Item relationships – Related / Substitute / cross-sell / up-sell / Service etc. Pending status – item status history 4. Copy from – used to copy from template or template Profile Option: INV: Default Item Status: Indicates the default item status for new items you define INV: Default Primary Unit of Measure: Indicates the default primary unit of measure for new items you define INV: Item Master Flex filed: Indicates which flex field is used to define items in MTL_SYTEM_ITEMS INV: Updateable Customer Item: Indicates if you can change the customer item number. Relationships between Attributes When you define items. Item cost – to update the cost elements 10. Revisions 5. Oracle Inventory enforces particular relationships between some of the item attributes: Required attribute--you must enter a value for the attribute based on the settings for other related attributes. INV: Updateable Item Name: Indicates whether you can update the item flex field. Manufacture part numbers – Manufacture & Part number 8. 5/20 .

Conversions a.Control level dependencies--you can update the control level of some attributes only under special conditions and with certain consequences. Oracle recommends that you use templates--either those Oracle provides or those you define--when you define your items. Unit of Measurement : 1. Eg: heavy items www. Inter-class – conversion between 2 different classes Example : Class : XX_Quantity UOM : Each (base uom). Lot. Name : UOM code : 3. Locator control 3. Serial. Oracle inv checks all possible references to item and does not allow it be deleted until every reference is removed.6 Item copy: a) if a template / item is copied on new item. Templates make initial item definition easier. a mathematical relationship between two different UOMs (1kg=1000g) b. Example. A UOM class is a group of units of measure with similar characteristics.3 Organization Item Items specific to the organization.2 Item Templates Templates are defined sets of attributes that you can use over and over to create many similar items. Intra class . The Org level parameters can be changed for the Org item. Gram. It is a way of stocking pattern. you should have any one in primary uom and transaction uom. d) u cannot copy items across IMO. b) If template / item is copied on existing item. "each" is a unit of measure that you would use to specify the number of units of an item 6/20 . 1. Insert new record Name : Description : Base unit & UOM code 2. Inventory controls : 4 types Revision. a. c) If template and item is copied at same time first the template will be copied followed by item. 1.1 Locator control : A technique used to enforce the storage of items in a SI . For example. So you could see one UOM in transaction and another uom in final storage uom.X_ Case=24 X_each. 3.5 Deletion constraints: are seed used to protect the integrity of your system. the enabled fields in the item wont get disturbed. U cannot delete an item if on-hand qty exists or performed any type of action of an item. Dozen.erpstuff. "Weight" can be a unit of measure class with UOM’s such as Kilogram. The characteristic controls and attributes of the same item will vary among the sub-inventories. 1. Gross Conversion : Standard : X_Dozen=12 X_each. A unit of measure is a value that specifies the quantity of an item. X_Gross=144 X_each Intra-class : Box01=25 X_each Inter-class : Basket02=5 X_each 3. only the enabled and filled attributes get copied. Intra-class – different conversion can be specified for specific items which has the UOM of this class as base UOM of the item c. 2. Case. A UOM conversion has 2 classes.4 Item subinventory Item specific or exclusive to the sub-inventory. Unit of Measure (B) The first uom will be defaulted from the class as base unit for the class. UOM class : Inventory (N) -> Setup -> Unit of measure -> Classes 1. Pound and Ounce. From this Class. the values will be overridden by the new values. 1. Standard – creating a standard conversion among the UOMs of the class which is applicable for all the Items b. Inter class – is an user defined logic which won't have any standard relationship (1box=5each) Set-up : 1.

Uniqueness among the items. all reports. 4) Lot expiration: expiry date/ shelf life – after the specified day the lot expires a) U can transact a expired lot but warning will be displayed.. Subinventory. At item level .after splitting. Org level parameter will have no impact. d) Expired lots are considered as On-hand.Prefix and starting no is mandatory in Org item attribute. 6) Lot splitting: Splitting of lots. Transactions in closed accounting period can only be purged. Unique lot no across 3 org. Item) Slno Org parameter Sub-inv parameter Item attribute 1None Defaults from the org None / Prespecified/Dynamic entry 2Prespecified -do-do3Dynamic entry -do-doNone / Prespecified / -doDetermined at 4sub-inv Dynamic entry 5-doItem level None / Prespecified/Dynamic entry Result / (Precidence) No locator control (Org) Prespecified (Org) Dynamic entry (Org) None / Prespecified/Dynamic entry (Subinventory) None / Prespecified/Dynamic entry (item) Note : If the control is at. But u can manually enter the lot number during transaction and proceed. Slno Uniqueness Generation Item attribute Result Automatically generate lot 7/20 . level. Item level will have no impact. Unique lot no. Lot split enables attribute should be enabled. b) Disabled lots are included as On-hand for Planning. 4) Items can be restricted to locator ( in item attribute. b) Partial. the remaining qty lies in the parent lot 7) Lot Merging: combining two or more lots www... 5) Disabled lots: Manual holding a) Disabled lots does not appear in Lot. But item/ SI relation has to be specified.Prefix and total length is mandatory in Org parameter. restrict SI and restrict locator should be enabled.It is applicable to all the sub inventories & items under this Organization 2) Sub-inventory level . reservation.. Same lot no used in different items 2 Automatically generate lot nos. Two types a) Full – after splitting . the parent lot has no on-hand qty.should be stored at bottom rack etc.Applicable to this sub-inventory and other sub-inventories can have different values in the same organization 3) Item level . Lot control is a technique for enforcing the use of lot numbers during material transaction. 5) Locator control can be changed even if on hand qty exists. sequence maintained at org Across items At organization level . Locator listing report 3. MRP) c) Expired lots cannot be reserved. thus enabling the tracking of batches of items through out their movement in and out of inventory. sequence maintained at .The same item can behave in different manner in different sub inventories of the same Organization. 3) Lot number purging: eliminates info used in lot reports and inquires. and Physical inventory. At item level .erpstuff. 1) Organization level . Reports: Locator quantities report. 1) Organization level . 5 -anyUser defined Full control Manual generation and rest are same 6 -any-anyNo control No control Note : If generation is at. sequence maintained at . It is determined or defined at three level (Organization. Item level but manual override is possible. Automatically generate lot nos.. ROP. 2) Item level . sequence maintained at org None At organization level Full control 1 level but manual override is possible Automatically generate lot nos. cycle count. ATP. 4 Item level.2 Lot control Lot: represent/ identifies a batch of item you receive and store.but only option is Predefined). b) Expired lots are not considered as On-hand for Planning ( Min-max.

Slno Type Level Parameter Result 1 Organization Uniqueness Across organizations unique numbers throughout all organizations 2 . You use a revision when you change (three 3Fs) form. 6 . Query the Item in Org Items or create a new item. Serial control: system technique for enforcing the use of serial numbers during a material transaction. Org level parameter will have no impact. Cannot change revision control attribute when on hand qty exists.Prefix and starting no is mandatory in Org item attribute.. It changes the qty. 9 numbers and use it in-future At Sales order issue Generation before ship confirm in shipping transaction form – tools .Prefix and total length is mandatory in Org parameter. We can use a number or letter to signify the number of times that you change an item. Setup: 1. Item level will have no impact. Uniqueness Within organization unique numbers within the current organization 3 . Generation At item level Automatically generate numbers.. 1) Organization level . It is used to classify a particular transaction for reporting and querying purpose. One serial number is assigned to per unit of an item. out of inventory. Generated by ASCII rules. location.8) Lot Genealogy: enables to view transaction history. Generation At organization level Automatically generate numbers.. bill of material and routing. Transaction : 1. Tools(M) -> Revisions. Transaction managers control the number of transaction workers. 3. Only 6 actions are performed for all the transactions.. 2. (i) cost update (ii) Receipt into stores (iv) sub inventory transfer (v) Direct Org transfer (iii) Issue from stores (vi) In transit shipment Transaction source types : Inventory / Sub-inventory / Supplier / None Transaction destination types : Inventory / Sub-inventory / Customer 8/20 . It is Organization specific.erpstuff. 3) Serial Genealogy: enables to view transaction history. for tracking from component to final assy. Generation User defined Manual generation and rest are same 7 Item No control No serial control 8 ... 2) Item level . 3.. Serial number detail report.. fit and function. 10 menu Note : If generation is at. Save 4. INV: Genealogy delimiter INV: Genealogy prefix or suffix 9) Reports: Lot transaction register. www.1 Transaction types : A transaction type is the combination of a transaction source type and a transaction action. Insert a new record and update the revision. These run at the periodic intervals that you specify until you disable with the concurrent manager. 4) Report: Serial number transaction register . Transaction is an item movement into. 5 . At Receipt Numbers will be generated at receipt Prespecified Run: Serial number generation concurrent – to generate serial . sequence maintained at org level.3 Serial control : Serial number is a alphanumeric / numeric piece of information assigned to an individual item.4 Revision control : A revision is a particular version of an item. Ex: Colors of Mobile. processing intervals and number of transactions processed by each worker during each interval. planning responsibility and cost of an item. within. Enter the starting the revision no in the Org parameters 2. sequence maintained at Item level. Uniqueness Within inventory item unique numbers for inventory items (within items) 4 . 3.

Direct shipment – to move inventory directly from shipping Org to destination Org.Ways (1) Order Management: (i) Sale Order (ii) Internal Order (2) Purchasing (i) Return to Vendor Materials (3) Work in Process (i) Component Issue (ii) Assembly Return (4) Inventory (i) User defined (ii) Inter-Org Transfer (iii) Cycle Count Negatvie (iv) Request Issue 4.7 Sub-inventory transfer Transferring the material between sub inventories within the current Organization Inventory (N) -> Transactions -> Sub inventory transfer 4. can be modified (vi) Primary and secondary accounts are also defaulting from Org parameters. can be modified 2. Cost and transit-time is not significant and will be accounted. Cost and transit-time is not significant.3 Transferring Inventory . Inspect then Deliver 4.Receipt and Deliver (ii) Standard .Ways (1) Purchasing Module: (i) Purchase Order receipt (ii) Internal Requisition (iii) In-transit Receipt (iv) Return Material Authorization (v) Unexpected Receipt (2) Work in Process Module : (i) Component Return (ii) Negative Component Issue (iii) Assembly Return (3) Inventory Module: (i) Miscellaneous Account (ii) Receipt from Project (iii) User defined (iv) Inter-Organization receipt 4.Receipt.6 Miscellaneous transaction : * Issue material to or receive from general ledger accounts in the current organization * Receive items without documentation * Return expired or damaged item Inventory (N) -> Transactions -> Miscellaneous transactions 4. control is with the destination organization. Shipping network Inventory (N) -> Set-up -> Organizations -> shipping networks (i) From & To Orgs (ii) Transfer type: direct / in-transit (iii) FOB: Shipment / Receipt (Receipt: The shipping organization owns the shipment until the destination organization receives it.5 Receipt routing : (i) Direct .2 Receiving Inventory . Inter-org Transfer Inventory (N) -> Transactions -> Inter-Org transfer www.Slno It is used to identify certain transactions to include in historical usage calculations for ABC analysis or forecasting.Locator 3Transfer between in Sub inventory Move order transfer Sub inventory transfer 4Transfer between Organization ISO – Internal sales order IOT – Inter Org transfer 5Issue Move order issue Miscellaneous Issue 4. TYPE WITH DOCUMENT WITHOUT DOCUMENT 1Receipt PO Receipt Miscellaneous Receipt 2Transfer with in Sub inventory Locator -to. Open accounting period for both the orgs. shipment number. Inventory (N) -> Accounting close cycle -> Inventory accounting period Open the current / required period 2. % of transaction value or discrete amount.Receipt then Deliver (iii) Inspection . freight info.erpstuff.Ways (1) Order Management : (i) Shipping .Move the stock from a finished Goods area to Staging area for shipping. 2. Set-up : 9/20 .4 Issuing Inventory . (2) Work in Process: (i) It transfers to acquire components for a project (3) Inventory : (i) Transfer between Organization (ii) Replenish materials (iii) Request transfers 4. Shipment: The destination organization owns the shipment when the from organization ships it) (iv) Receipt routing: direct / standard / inspection Note: FOB & Receipt rounding is applicable only to In transit-mode (v) Transfer charge – is defaulting from Org parameters.8 Inter Org transfer (IOT) 1. In-transit shipment – enter sub inventory.

Cancelled Process flow : 1. the item won't be displayed in the LOV.on-line processing 9.move transaction for WIP components issue (iv) Pick-way . 4. Transfer between sub inventories form . This will be very useful in categorizing the transactions.on-line processing www. It is mostly for the purposes like replenishment. available for sub inventory and account transfers. Create move order and approve it 2. Transfer type : should be in-transit If it is “direct”. Transaction processing mode – on-line processing 6. Profile option – TP:INV Move Order Transact Form = on-line processing In Org parameter . define transaction types by combining transaction actions & transaction source types. Approved. In future. issue out of material to staging area Components of Move order Header – MO no. Replenishment count. Create transaction types based on the required actions for the source type [Transaction types (B)] 4.Move order time-out period & action controls the move order.Lot and Serial no have to be generated if it is controlled.erpstuff. Server side on-line processing – Yes 8. Move orders are generated manually or automatically depending on the source type used. source. Closed. TP:INV:Cycle count approvals form – on-line processing 2. destination Status – incomplete. In direct transfer. Transaction type.Item. destination : has LSR controls. 4. Enter Replenishment count form – concurrent processing 4. Only 6 actions are performed for all the transactions. Kan-ban cards when pull sequence calls for sub-inv 10/20 . Cycle count entries form .10 Customized Transaction type creation 1. material storage and quality handling. Detail move order – the process that uses picking rules to determine where to source the material to fulfill the request line (reservation allocation qty). issue and receipt form . Move order transact form . Move orders requests for the movement of material within a single organization.allocate the line you want to transact and the transact move open will be closed only when the total qty are transacted or move order is cancelled. Misc. request qty. Moveorders can be pre-approved (iii) WIP transfer . Inter-Organization transfer form – On-line processing 5. 2. 3. the control will be with the destination organization. Set-up : 1. detailing should be done only when you actually move the material. Create a transaction source type. Pre approved. Source sub-inv.on-line processing 3. the transaction summary can be obtained based on the transaction type. completed qty. Update average cost form – on-line processing 10. (i) cost update (ii) Receipt into stores (iii) Issue from stores (iv) sub inventory transfer (v) Direct Org transfer (vi) In transit shipment 3. Transaction date validation – allow date in any open period 11. Destination sub-inv (transfer)/Location (issue). 2.11 Profile Options : 1. A manually generated request. Transact move order .Sales order pick confirm. Note: Source : not lot/serial/revision control. [Inventory (N)->Setup->Transactions->Source type->user(T)] 2. These requests can optionally go through a workflow based on approval process before they become move orders that are ready to be sourced and transacted.on-line processing 7. • • • • • • • Transfer between sub inventory or issue out of Inventory Transfer with document Source types : (i) Manual (ii) Replenishment . Line .9 Move Orders 1.

Org level. WIP accounting classes and Open accounting period (SOB level. It is done at Organization & Sub inventory level for a specific item. b) To perform Min-max at SI. Source : Inventory / Sub inventory / Supplier / none . then Item/SI details have be to set.order : Maximum_Qty . i) Set-up : 1.order : [(on_hand_qty – demand) + planned receipt ] < minimum qty How much -to. General planning (T) – (planning method – min-max . Planning Methods : 5. Order modifier) 2. control purchasing periods in purchase module) 5. Run Min max planning Process : 1. Create Master Item and ensure the following mandatory attributes 1. (iii) Material Transaction Manager The material transaction manager immediately executes a material transaction after you save your changes in a transaction window. c) d) It is used for non-critical items which has independent demand Can't perform Min-max if you are running MRP for the same item e) It does not consider the lead-time and forecasted demand f) g) When -to. Financial options. Values (iv) Move Transaction Manager you Transaction The move transaction manager processes move transactions in Oracle Work in Process and move transactions that import from devices such as portable barcode readers or your custom data entry forms using the Open Move Interface. Sourcing region tabs) 3.erpstuff. time cards. Minimum & Maximum Qty .com 11/20 . Run : Min-max planning report Inventory(N) -> Planning -> Min-Max Planning Planning level : Organization / Sub inventory Item selection : Items under minimum quantity Restock : Yes – for requisition or Discrete Jobs Demand cutoff date: Supply cutoff date: 2. Verify Purchasing options. Receiving options. If you want to run at Item sub-inventory then specify the details here only for “Buy” items (Planning. Output will be based on Source type & make or buy Buy & Source : Inventory – Internal requisition www. make/buy – based on purchase / WIP item. min order qty and max order qty. By starting the transaction manager you can determine how to execute transactions whether through immediate concurrent request submissions or through periodic concurrent request submissions. Profile option – INV: Min-max Reorder Approval – pre-approved (not incomplete / approval required) user level or above 4. Profile option: You can define this transaction mode for individual transaction windows in the Personal Profile Window.4. minimum order qty & Maximum order qty. WIP parameters. routing sheets and custom data entry forms using the Open Resource Transaction Interface. payroll systems. 5.[(on_hand_qty – demand) + planned receipt ] h) The output of Min-max will be influenced by fixed lot multipliers. Order modifier.12 Running Transaction Managers (i) Cost Manager The material cost transaction manager costs material transactions in Oracle Inventory and Oracle Work in Process in the background.1 MIN-MAX Definition : a) It is a method of inventory planning that determines how much to order based on the minimum & Maximum inventory levels. (ii) Lot Move Transaction Manager The resource cost transaction manager processes resource transactions in Oracle Work in Process and resource transactions that you import from barcode readers.

Sub inventory level planning cannot generate jobs and does not consider WIP jobs as supply or WIP components demand.Sub inventory – Move order Supplier – Purchase requisition Make : unreleased job order. Expired lots will not be considered for Min-max. Safety stock (to protect the fluctuations in the supply and demand) 2. Used for Items under independent demand.2 RE-ORDER POINT : Definition : • • • • Is a type of planning which replenishes stock before the stock goes below safety stock. LE. Enter Item Planning attributes 2. Replenishment lead-time (the consumption time between the re-order point -to. Define safety stock 4. But disabled lots will be considered. Carrying cost When to order : (on hand qty – expected supply) < Re-order point Re-order point = (Safety stock) + [(Lead-time) * (average demand during lead-time)] Re-order Quantity= EOQ= SQRT{ [ 2* annual demand*ordering cost] / [ inv carrying cost* unit price]} Re-order qty can be constrained by Fixed lot multiplier. It is done ar Org level but org should be MRP planned. Re-order qty: The difference between the maximum qty and the safety stock. item which needs high control and critical It uses demand forecasts to decide when to order. Run Re-order point report Define forecast: 1.erpstuff. Planning level must only be at “Org” level. Order cost stock) 3. Minimum order qty and Maximum order qty Setup steps : 1. Forecast Item demand 3. 3. 5. Accounting information for the Organization is must (SOB. ROP. Item demand 4. Max qty (ROQ ROP Safety stock Time Lead-time : The interval between re-order point to safety stock. OU) 4. Item planning attributes {Organization Items (N) -> General planning (T)} Planning Method : Reorder point www. Note: as 1. 2. it won't consider the supply source. Required information: 1. The INV:Purchasing by Revision profile option determines whether a revision will be specified when a purchase requisition is created for revision-controlled 12/20 .

Maximum order qty must be null (If it is less than the reorder point. Service level % (it is must for this method) 4. Enter Safety stock 1. Create forecast set . end date (optional). Start date. Original qty (automatic. post processing. default 100% 3. Method: user defined percentage 2. Run : Reorder point planning Parameter: Item selection : All items in ROP / items under ROP Demand Cutoff date : enter date up to when demand has to be taken for calculation Supply cutoff date : enter date up to when demand has to be taken for calculation ( PO. Method: Mean absolute deviation (MAD) 2. Manual method: Enter the required qty for an item (Inventory -> Planning -> Safety stocks) 2. Create forecast entry 1. Forecast Item demand 2. min order qty. lead time lot size 2.a. Enter confidence % . fixed lot multipliers. current qty. in transit shipment) Restock : No / Yes – for ADS Forecast : enter the forecast name Default del loc : First sort : www. then order generates for that qty) Lead-time (T) Preprocessing. Safety stock % (it is must for this method) 3. Enter a forecast.collection of forecast. Mean absolute deviation (MAD) 1.Carrying cost % : % of std cost Order cost : cost of preparation of order Enter Fixed order qty. Enter the 13/20 . number of buckets (based on start & end date-for next bucket start date). Forecast name : 3. Level: Item/ customer/ ship to / bill to 2. Forecast name : 3. Bucket type. multiplied by bucket and original qty) 3. User defined % (N) planning – safety stock Run : Safety stock update 1. 2.b.erpstuff.

5 lead time demand = 4 * 137. APE is calculated for 5 formulas to previous bucket and best forecast model is selected (lowest error) b) Statistical forecasting.Enables to use detailed history and applies factors to exponentially smooth data. Reload safety stocks 2.erpstuff.uses exp smoothing factor ( alpha ) 2) Trend – Enhanced Forecast (TEF) – uses exp smoothing factor (alpha) and trend factor (beta) {0 – 1} 3) 14/20 . 1 – 50 2 – 150 3 – 150 4 – 200 5 – 250 6 . Reorder Point Report Example: Forecast .Enhanced Forecast (SEF).uses seasonality factor 4) Trend & Season Enhanced forecast (TSEF) – combination of 2 + 3 Forecast Rule: Rule defined to generate system generated forecast.5 = 550 Safety stock = max safety stock in demand period Forecasting Methods : 1. System generated.75 => 4 Lead time demand = 50+ 150+150+200 = 550 Avg = 550 / 4 = 137. 1) Exponential smoothing forecast (ESF) .150 Lead time = 3. Manual – based on experience manually u enter forecast 2.Oracle inventory uses historical values / transaction for generating forecast a) Focus forecasting.uses predefined formulas ( 5 methods) and selects the best by APE ( Absolute percentage error) 1) Demand for May 2006 = demand of may 2005 2) Demand for May 2006= demand of April 2006 3) Demand for May 2006= {(demand of April 2006 + demand of March 2006)}/ 2 4) Demand for May 2006= demand of April 2005 * (demand of April 2006 / demand of April 2005) 5) Demand for May 2006= demand of April 2006 * (demand of April 2006 / demand of March 2006) APE = | (actual demand – forecast demand) | / actual demand.Items from – to Planners Buyer : : : Requests : 1. www.

This method is at sub inventory level.move order generates for order qty and won't consider the max qty Order Maximum . optionally enter multipliers. If u uncheck Min-max then. Define non-tracked sub inventory for which we need to perform replenishment count 3. It is used to replenish the non-tracked so inventory items. Eq: oil barrel in shop floor 2. forecast 2. Process and report 6. enter min qty and max qty. View entries. Setup steps : 1. Enter replenishment counts 5. Profile option – INV: Replenishment count requisition approval = pre-approved INV: Replenishment count line failure = continue processing / Halt processing INV: Replenishment move order grouping: org / default sub inv 2.erpstuff. Min-max should be checked. Transact move order. Process : 1. Create a sub-inventory.move order generates for the max qty and qty field is grayed out d) Enter count entries. Process replenishment counts & Item replenishment count report 6. select sub inventory ( status: hold) b) Click default items – items assigned to that SI will be displayed c) Select Count type : On-hand quantity – move order generates for (Max qty – on hand) Order quantity .5 PAR COUNT: Definition : www. select default RC type order quantity/ order maximum/ on-hand qty 3. Before entering line if u commit . Replenishment information Counting (T) -> Replenishment counts -> Counts a)Enter name. Count can be used only once. status will be error. Specify requisition approval status 2. Define forecast rule 3. Save and exit 5. Define Item/ sub inventory replenishment information ( min-max) 4. only “Order quantity and Order maximum” will be there. Process & Report (B) It generates 2 requests. Define Forecast set. define sourcing type: suppler/subinv/ inv 4. Transact move-order Note: If RC is run on Tracked sub inv then.Steps for generating forecast: 1. Define Item-sub inventory relationship attach item. Uncheck quantity 15/20 .3 REPLENISHMENT COUNT: Definition : 1. Generate forecast – concurrent Parameters: Forecast name : Forecast rule : Selection : All items / specific items Overwrite :y/n Start date Cutoff date : 4. 5. 5. only option available will be “ Order qty”.

full. medium. Generate cards 4. Set item attributes ( MRP/MPS. Enter count ( default items) Replenishment count: On hand qty/ Order qty/ Order PAR 6. Wait.> status=full 6.enter item. then u can choose only “ Order qty” If it is done at tracked sub inv. Sub inventory. Enter the PAR level. Define pull sequence 16/20 . low based on On-hand qty/ Value/ www. It is applied to items which has relatively constant demand and medium & high production volume. sub inventory or an internal organization. Cards can be created for Item. 4. user defined 5. when quantity goes below PAR level. Kan-ban itself is a self regulating pull leads to shorter lead time and reduced inventory. In transit.> Move order--> transact-.(a) calculate : kan-ban size / No of cards / do no calculate (b) size ( c) number of cards 2. supplier site. Cannot perform Min-max for that Sub-inv ( since min max should be unchecked) Setup : 1.It is Periodic Automated Replenishment at locator level. Process and report Note: If u does not enter PAR qty. source type. Empty. Kanban can be replenished from the supplier.1 ABC Analysis : Definition : An analysis used to categories items in the inventory into High. production. Wait. Replenish 5.4 KANBAN: Definition : 1. Generate cards (B) It automatically runs “Print Kan-ban Cards” request 3. Kan-ban status: Card status – Active . 4.release time fence = Kan-ban do not release) 2. Cancel Supply status – New.erpstuff. In-process Sets: 1. locator 7. The replenishment activity runs based on the minimum order qty a) manually change form New -> full -> empty---> In process-. Replenish kan-ban cards Kan-ban(N) -> Kan-ban cards Select the cards and replenish. Inventory Accuracy Methods : 6. sub inventory. 6. Supply status – New. Creation of pull sequences {Kan-ban(N) -> pull sequences -> New(B)} Source (T) . Multi-stage replenishment process 3. Define locators for the sub inventory 3. Full. Hold. Kan-ban (T). In-transit. 2. Exception a) Empty -triggers replenishment b) wait – for replenishment Set up: 1. check for requisitions/ replenishment. Empty. Enter Replenishment count 5. flow schedules. 5. Can perform each item stored. Example. Locator control can be used even it locator is turned off at the organization and item levels. model a hospital storeroom as subinventory and the shelves and trolleys are locators. Enable PAR level planning for the sub inventories 2. then RC type= Order qty / Order PAR. In process.

Setup : 1. Inventory records are kept accurate by correcting errors between the system on-hand and actual quantities.S V. Define ABC classes : like High value. select compile name b) Group classes c) Assign items for selected classes Sequence/ Inv value/ Items/ Value It runs a request: Define ABC assignments Click Update items (B) to see the items under each class. 80% of the inventory values are held by 20% of the items and vice-versa ) Mainly used for inventory analysis and for maintain accuracy.Assign items to the classes.600 3-900 4.e) a) Enter group name.2 CYCLE COUNT : Definition: Periodic counting of inventory items for accuracy purpose. Define class 3. ABC assignment groups : Link complied and selected classes (i.erpstuff. Similar to pareto analysis ( i.300 2.e. Define ABC compile {ABC codes(N) -> ABC compiles} C. Process: 1. Medium value. Steps: 1.. Define & Compile – ABC compile 2. It is performed without affecting the production / Sales and mostly performed for the high value items. Low value 3. ABC Assignment group .-1200 3000 1-100 3-300 4-400 800 1-300 2-600 4-1200 2100 NOT POSSIBLE Item 1 2 3 4 Value 100 200 300 400 Auto Requests: Compile ABC analysis & ABC descending value report 2.S Org Org SI (3) SI SI(4) Org Org SI SI and items SI(1) †“1 2 3 SI(2) †“2 3 4 SI(3).Consumption/ historical transaction 17/20 . Cycle count entry {Counting(N) -> Cycle counting -> Cycle counts} www. Report: ABC assignments report 6. Only costed items are considered for completion.3 4 1 SI(4) †“4 1 2 Qty Valuation 1.

Serial and schedule (T) Serial control options : whether run cycle count for serial controlled items a) Count: none/ one per request /Multiple per request b) Detail: Qty & S. value) 4. date) .No / Qty only c) Adjustments: review all adj / Adj if possible d) Discrepancy: Allowed / not allowed Auto schedule: for repetitive schedule Adjustments and ABC (T) Approval: none/ if and out of tolerance / always Qty variance tolerance = (system on-hand) – (actual count) Adjusted value tolerance = Qty variance tolerance * current item cost Hit / Miss tolerance = % of Qty variance tolerance ABC Initialization Classes (B) like classes in ABC and approval variance if required 2. adjustments( count-qty. Accurate on-hand quantities are required for Tax and audit purposes Setup / Process: 1. Perform cycle count {Tools(M) -> Perform full cycle count} Request set: Generate automatic schedule requests Generate cycle count requests Cycle count listing 3. Approve. Enter cycle count entries {Counting (N) -> Cycle counting -> Cycle count entries} query count. count reference( Counted by. Reject or Recount cycle count {Counting (N) -> Cycle counting -> Approve counts} 5. 18/20 . It is performed once every six months or a year depending upon the orgs requirements.3 PHYSICAL INVENTORY: Definition : Reconciliation of system on-hand balances with physical counts in inventory. It can be done for the entire organization or a Inventory. Commit – Concurrent “ ABC Adjustments” 6. enter count( Item SI) . Define Physical inventory {Inventory(N) -> Counting -> Physical inventory -> Physical inventories} www.

The Detail tab shows the item at a Lot and Serial control our count name and click find.No Cycle count Physical inventory 1 Periodic counting of invnetory item Done once/ twice a year 2 Seheduling is possible Scheduling is not possible 3 Snapshot not possible Snapshot possible 4 No need to freeze inventory transations Need to freeze inventory transaction 5 Can be performed for specific items Can perform only for all items in Inv/ SI 6 System qty can be viewed System qty cannot be viewed 7 Recount possible ( count history also) Recount not possible 8 Items can be selected by ABC analysis Not possible 9 Approval can be none Approval should be Accept / reject 10 Adjustments processed on approval Seperately have to launch adjustment concurrent 11 Multiple per request for serial numbers is possible Oly one per request ( 0 ot 1) 12 Interface not possibel Interface form external source is possible 13 Can skip counting without entering Have to void to avoid counting 7. 7.erpstuff. 6. Oracle Advanced Supply Chain Planning and Oracle Global Order Promising provide ATP supply information and receive on-hand quantity and forecast information from Oracle Inventory. u can void and unvoid to select items to be counted . Difference between Cycle count and Physical Inventory: S. digits increment Tag generation – Click Generate – this will run“ Generate physical inventory tags” request Tag count . 1. 2. 5. .select our count name and click find. if any item is selected none then Launch adj will be error.Approval should be either approved or reject. Oracle Work in Process provides WIP activity and ATP supply information to Oracle Inventory and receives information regarding UOM.Snapshots (B) – This will run “Freeze physical inventory” requests. items and on-hand quantity from Oracle Inventory. Integration of Oracle Inventory to Manufacturing Applications.The Main tab shows the item at a sub inventory & locator level. .com 19/20 .No only 0 or 1 is possible) . www. 3. Click Tags (B) – to set the Tags starting. 3. Launch Adjustment ( Tools-->) is concurrent for adjustment You can't perform the adjustment for reserved / allocated qty’s 2.enter quantity ( note: for S. Approval Adjustment . The output shows the system on-hand qty. 4. Oracle Cost Management receives cost information and transaction rates from Oracle Inventory.

• Information is sent from mobile industrial devices to the Telnet 20/20 . ATP supply and planning supply information and receives UOM. allowing you to immediately redirect delivery. stream order fulfillment and reduce unnecessary material handling.4. 5. • You can record inspections.Oracle Purchasing provides receipts/deliveries. * If a shortage exists the system can notify you either by a real-time material shortage alert or a workflow-based notification. Setup: Material Shortage Parameters 9. Oracle Engineering provides engineering item information and receives UOM and item information from Oracle Inventory. reservations and demand information and receives UOM. 4. 6. • This avoids duplicate data entry and helps to enter the transactions at the spot with accuracy. Oracle Payables receives UOM and item information from Oracle Inventory. Oracle General Ledger provides set of books and currency exchange rates and receives transaction accounting summary and/or detail from Oracle Inventory. 3. Oracle Receivables provides intercompany invoice information and receives UOM and item information from Oracle Inventory. * We can use this technology to increase the product flow through warehouse. Oracle Bill of Material receives UOM and item information from Oracle Inventory. The information is processed and updated in the application database. Shortage Alerts and Notifications * Alerting or notifying individuals that material needed elsewhere in the organization is newly available * A material shortage occurs whenever outstanding demand exceeds the available quantity for incoming supply of material. Mobile Transaction • Oracle Mobile Materials Management provides the ability to do inventory receiving and shipping transactions using mobile devices.erpstuff. deliveries and material movements when entering receiving transactions. Integration of Oracle Inventory to Financial Applications. 1. 8. 7. www. requisition and inter-org shipment information from Oracle Inventory. Oracle Assets receives UOM and item information from Oracle Inventory. Oracle Order Management provides shipping. 8. * Alerts are real-time messages sent to a window before a transaction is committed. items and ATP/onhand quantity information from Oracle Inventory. * Oracle Inventory can check during a receipt transaction to see if the material received is needed elsewhere in the organization. 2.