Professional Documents
Culture Documents
makesurethattheactualinventorybalancesagreewiththecomputerrecords.Bysetting
upacyclecountingprogram,youcancountpracticallyallitemsintheinventoryovera
periodof12months.Thiseliminatestheneedforanannualphysicalinventory,though
somecompaniesdoboth.IntheOracleInventoryapplication,thecyclecountingprocess
startswithassigninganABCvaluetoeachitem.Thenyouselectthefrequencyofcounts
peryearforeachcategoryofitems.YouwanttocountAclassitemsmoreoftenthanC
classitems.
CountZeroQuantity: Checktogeneratecountrequestsforitemsreflectingazero
onhandquantityonthesystem.Note:Checkingthisby
itselfwillnotgeneratecountsforzeroonhanditems.
Youmustdefineitemsubinventoryrelationshipstoget
acountforzeroonhands.
CycleCountingExecution
Theexecutionofcyclecountingstartswiththeschedulingofthecyclecount.Thiscan
bedonewitheitheranautomaticschedulingprocessoramanualschedulingprocess.
Manualschedulescanbedoneinadditionto,orinsteadofautomaticscheduling.
Manuallyscheduledcountshavenoimpactonautomaticallyscheduledcounts;youcan
potentiallycountsomeitemsmorefrequentlythanwhatyouinitiallyplanned.
Thenextstepistogenerateacyclecountrequest,andthenprintthecountlisting.The
countlistingwillbeusedbytheinventorystockclerktorecordallcountstaken.
Aftertheitemsonthecountlistingreporthavebeencounted,thecountsshouldbe
entered.Youcanusethesamewindowtoentercountsofitemsrequestedviaautomatic
ormanualcyclecountscheduling.Ifunscheduledcountentriesareallowedforyour
cyclecounts,youcanenterthosealso.
locationcodeisanaddress.Eachinventoryorganizationmustbeassignedatleast
onelocation(address)code.
Defineunitsofmeasureclasses
Unitofmeasureclassesaregroupsofunitsofmeasurewithsimilarcharacteristics.This
isthefirststepinunitofmeasuremanagement. Eachunitofmeasuredefinedmust
belongtoaunitofmeasureclass.
Unitofmeasureclassesarenotorganizationspecific.
DefineUnitsofMeasure
Unitsofmeasureareusedbymanyfunctionsandtransactionstoexpressthequantityof
items.Definingunitsofmeasureisthesecondstepinunitofmeasuremanagement.The
primaryunitofmeasureisthestockingunitofmeasureforaniteminaparticular
organization,whichisanattributethatisspecifiedwhendefiningeachitem.
Unitsofmeasurearenotorganizationspecific.
InventoryDefinitions
CategorySet.Agroupingofitemcategories.Acategorysetisauserdefined
entityforgroupingitemsbycategorywithinthecategorysetentity.Oracle
inventoryrequiresatleastonecategorysetbeused.Productfamily,commodity,
usage,oranyothergroupingandreportingrequirementsausermayhave
generallydefinecategorysetsforgroupingitems.Categorysetsmaybedefined
atthemasterorganizationlevelortheinventoryitemorganizationlevel.
ItemCategory.Acodeusedforclassifyingorgroupingitems.Itemsare
assignedtoacategorywithinacategorysetforreportingandgrouping.Tosee
thegrouping,auserwouldspecifyacategorysetandoneormorecategoriesfrom
thatset.
InventoryItem.Apartnumberorproductcodeusedtotrackgoodsorservices.
Inventoryitemnumbersrepresentphysicalgoodsthatarepurchased,builtor
assembled.Inventoryitemnumbersmayalsobecreatedtorepresentservices
soldtocustomers.Thesenumbershaveattributesthatdescribeorcontrolhowthe
itemisused.
InventoryitemsarecreatedinanItemMasterOrganizationandthenassignedto
executioninventoryorganizations.Attributesforitemsmaybesetatthemaster
level,sothevalueisconsistentacrossallorganizations,orattheorganization
level,sothatthevaluemayvarybyorganization.Theattributecontrollevel
determinesifanattributeissetatthemasterororganizationlevel.Anexampleof
atypicalmasterlevelcontrolledattributeisItemDescription,whichyoumay
wanttobethesameacrossallorganizations.Plannercode,however,issetatthe
organizationlevel,aseachorganizationhasaplannerresponsibleformanaging
theitem.
InventoryOrganization.Anentityusedtorepresentamanufacturingor
distributionsite.Inventoryorganizationsarewhereausertracksonhand
balances,manufacturesgoods,andtransactsthedailyinsandoutsofmaterial
movement.Aninventoryorganizationisthelowestlevelentityforcostinggoods,
planningmaterialrequirements,andsecuringsystemaccess.Onlyasingle
addressmaybeassignedtoanInventoryOrganization.Aninventoryorganization
isassignedaSetofBookswhichdeterminesthechartofaccounts,fiscalcalendar,
andbasecurrencyforallfinancialandvalueaddedactivitiesthatoccurwithinthe
organization.InventoryOrganizationsarealsoassignedtoaLegalEntity
OrganizationandanOperatingUnitOrganization.
Avariationontheinventoryorganizationisthemasteritemorganization.
Generally,withOracleApplicationsasingleinventoryorganizationiscreatedand
designatedatthemasterorganization.Itemsaredefinedfirstinthemaster
organization,thenenabledinotherinventoryorganizationsasnecessary.Someof
theitemattributesaresetascontrolledatthemasterorganizationandtherefore
theattributevaluescannotbeupdatedwithinindividualinventoryorganizations.
Categorysetsmayalsobedesignatedasmasterorganizationlevel.Cross
referencesarealsomasterlevelonlyormasterleveloptionalaswell.
LegalEntityOrganization.Anentityusedtorepresentalegalcompany.Fiscal
andtaxreportingaredoneattheLegalEntitylevel.
Location.Alocationissimplyanameandaddress,andisassignedtoan
organizationorusedtoindicatedeliveryinformationonapurchaseorder.You
maydefineasmanylocationsasyoulike,butonlyonelocationmaybeassigned
toaninventoryorganization.
Multiorg.MultiorgoftenreferstoanOracleApplicationssetupusedtoenable
multiplebusinessunitsinasingleinstall.Withmultiorg,abusinessenterprise
maysetupmultiplebusinessunitswithdifferingsetsofbooks,operatingunits,
andlegalentitiesallwithinasingleinstance.Withmultiorg,goodsmybesold
outofoneoperatingunitorlegalentityandshippedoutofanother,andthe
systemwillprocessanintercompanysaletoproperlyaccountforit.
Multiorg,however,shouldnotbemistakenforinstallswithmultipleinventory
organizations.YoudonothavetouseOracleApplicationsmultiorgtosupport
multipleinventoryorganizationsifalltheinventoryorganizationssharethesame
setofbooks,operatingunit,andlegalentity.
OperatingUnitOrganization.Abusinessunitthatsharesacommon
Purchasing,AccountsPayable,OrderEntryandAccountsReceivablesetup.An
operatingunitmayconsistofmultipleinventoryorganizations,withmultiple
manufacturingsites,distributioncenters,andsalesoffices,buttheysharea
commonsalesorderandpurchaseordersystem.Forexample,asalesordermay
havelinesshippingfromdifferentinventoryorganizationsorapurchaseorder
mayhavelinesdestinedfordifferentinventoryorganizations.
SetofBooks(SOB).Thefinancialentitythatrepresentsthechartofaccounts,
fiscalcalendar,andbasecurrency.TheSOBissetupintheGeneralLedger
StockLocator.Aphysicalareawithinastockroom.Thestocklocatorisakey
flexfieldthatisoftendefinedasamultiplesegmentflexfieldwiththesegments
representingthephysicallayoutofastockroom.Forexample,astockroommay
belaidoutinrowsofshelveswithbinsontheshelves,eachnumberedsothata
row/shelf/bincombinationwoulddirectsomeonetoaparticularmaterialstorage
compartment.Suchanimplementationwoulddefinealocatorflexfieldasa3
segmentflexfieldwithsegmentsforrow,shelf,andbin.
Subinventory.Physicalorlogicallocationsforstoringinventory.
Subinventoriesaregenerallydefinedtorepresentthemainstoresareaaswellas
stockingpointsontheproductionfloor.Additionalsubinventoriesmaybeusedto
specifysupplyclosetsorcabinetsandthecageareafordiscrepantmaterial.
Subinventoriesareflaggedastoavailabilityforplanning(nettable),reservations,
andavailabletopromisechecks,therebydeterminingtheavailabilityofthe
materialstoredinthesubinventory.Subinventoriesareassignedmaterialasset
accountnumbers.Asgoodsmoveinandoutofasubinventoryatransactionposts
totheassetaccount.
WorkdayCalendar.Theworkdaycalendarindicatesthemanufacturing
workdaysforaninventoryorganization.Thecalendarindicatesholidaysaswell
asworkshifts.Multiplecalendarsmaybedefinedforanorganizationtorepresent
differencesinworkdaysbydepartmentorgroup.
Definignewitems
Overview
Newitemdefinitionisacriticalfunction.ItemscarryattributesthatcontrolhowOracle
Applicationsmanagestheitem.Itemsmustbeassignedtocategorysetswithacategory
value.Newitemsoftenneedbillsandroutingssetup,ormayneedsuppliersidentified,
orneedpricelistscreated,andlikelyneedtobecosted.Muchofthedaytodayactivity
withinacompanyororganizationpurchasingmaterial,buildinggoods,sellingproducts,
andservicingwhatwassold,evolvesarounditems.Accurate,timely,andcomprehensive
itemdefinitionsmoothesthedailybusinessflowandminimizesfutureproblems.
Itemsarealwaysdefinedinthemasterorganizationfirst,thanenabledintheusing
inventoryorganizations.
temStatusCodesmaybeusedtosetorupdatethedefaultvaluesforcertainitem
attributes.Theycanbeusedtocontrolthefunctionalityofanitem.Whenyouupdatethe
valuesforastatus,allitemsthatusethatstatuswillbeupdatedalso.
TheItemStatusCodecontrolscertainitemattributesdesignatedasstatusattributes.
Theyare:
BOMAllowed
BuildinWIP
CustomerOrdersEnabled
InternalOrdersEnabled
InvoiceEnabled
Transactable
Purchasable
Stockable
Statusattributesenableanddisablethefunctionalityofanitemovertime.Eachstatus
attributeallowsyoutoenabletheitemforaparticularuse.Forexample,ifyousetthe
statusattributePurchasabletoYes,youcanputtheitemonapurchaseorder.
OverviewItemTemplate
Itemtemplatesaredefinedsetsofattributesthatcanbeusedoverandovertocreatemany
similaritems.Templatesmakeinitialitemdefinitioneasier.Whenyouapplyatemplate
toanitem,youoverlayordefaultinthesetofattributevaluestotheitemdefinition.
Youcanapplythesameordifferenttemplatestoanitemmultipletimes.Themore
recentattributevaluesfromthelasttemplateappliedoverridepreviousvaluesunlessthe
previousvalueisnotupdateable.
Note:BeforedefininganItemTemplate,makesureyouareintheGLOBAL
organization.
ItemTypest
ItemTypesareauserdefinedcodeassignedtoitemsasausergroupingforitems.Itis
strictlyauserdefinedentitywithnofunctionalitybuiltaroundit.
R2idefinesItemTypestomatchItemTemplates.Thisisacommonpracticeamongthe
OracleInventorycommunityandservestwopurposes.
1.ItemTemplatestendtobedefinedbygroups,orclasses,ofitems.Thisisa
naturalgrouping,asmanyitemattributesaresetbasedonthisuserdefined
grouping.Forexample,allpurchasedcomponentsmaybegroupedtogether
withanItemType,oritmaybebrokendownfurthersuchaspurchased
commoditycomponentsandpurchasedcustomcomponents.Separate
templatesmaybedefinedforeachgroup,asselectitemattributesmayvary,
andseparateitemtypesdefinedforeachtosupportcustomreporting.
2.Byassigningtheusertypetoitscorrespondingtemplate,theusertypeattribute
isassignedthetemplatenamelastusedtodefineorupdatetheitem.Iflatera
problemisfoundwithanattributesetting,theusertypewillindicatethe
templateusedtoupdatetheitemtherebyassistingwithproblemresolution.
R2iincludesitemtypestomatchtheR 2itemplates.Ifyouaddnewitemtemplates,add
acorrespondingitemtype.
MINMAXPLANING
Overview
YoumustdecidewhetheryouwilluseMinMaxplanningattheOrganizationor
Subinventorylevel. IfyouplanattheOrganization level, youwill setupthe
planningattributesforyouritemsintheitemmastersetup.Ifyouplanatthe
subinventorylevel,youwillsetupitem/subinventoryplanningparameters.
InventoryProfileOptionINV:MinmaxReorderApproval
SourceOrganization/Subinventory
IfyouselectedSourceType
Inventory,youmustdesignatean
Organizationfromwhichto
requisitionreplenishments.Ifyou
selectSubinventory,youmustenter
anonnettablesubinventory.
Restock
SelectYesorNo.
YescausesOracletocreatepurchase
requisitionsorrequisitionsfor
InternalOrders,dependingonthe
SourceTypeselectedinsettingup
theItem.
MISCELLANEOUSTRANSACTIONS
Overview
No causes no requisitions to be
generated.Forreviewpur
toanotheraccount.
OverviewMOVEORDERS
AMoveOrderisarequestforsubinventorytransferoraccountissue(alsocalled
anaccounttransfer).Whenusinganaccounttransfer,theactualmovementisan
issuenotatransferfromsubinventorytosubinventory.
Thesetransactionsareonetimeoccurrenceswithnowaytoplantheseintra
organizationmaterialmovements.MoveOrdersallowplannersandfacility
managerstorequestthemovementofmaterialwithinthefourwallsofa
warehouseorfacilityforreplenishment,materialstoragerelocations,quality
handlingorotherpurposes.
IndividualuserscanrequestmoveordersandOracleInventorywillautomatically
createmoveorderswhenwarrantedforinventoryreplenishmentandorder
picking.
Thisdocumentwillcoverthemoveorderscreatedthroughminmaxplanning.
NOTE:Ifyouwanttobypassthemoveorderapprovalprocessandautomatically
approvemoveorderrequisitions,enter0daysintheMoveOrderTimeoutPeriodfield
andselectApproveautomaticallyintheMoveOrderTimeoutActionfield.
TotalAvailable=
Nettable:
specified.
OnOrder
NettableQuantityOnhand+OnOrderOpenDemand,where
QuantityOnhandisnettablequantityinthesubinventory
isthesumofopenpurchaseorders,requisitions,andinternal
ordersandshipmentsscheduledforreceiptpriortooronthe
SupplyCutoffDate.Ordersreferencingothersubinventories,or
withnosubinventoryspecified,arenotincludedifthereportisrun
forasubinventory.
OpenDemand
isthesumofopensalesordersscheduledtoshippriortooron
the
DemandCutoffDate:Salesorderdemandreferencingothersubinventories,orwithouta
specified
subinventory, are not included if the report is run for a
subinventory.
IfTotalAvailable<MinimumQuantity,suggestaneworder,
where
Minimum Quantity is the value for the MinMax Minimum
Quantityitemattribute.
Overview
AMoveOrderisarequestforsubinventorytransferoraccountissue(alsocalled
anaccounttransfer).Whenusinganaccounttransfer,theactualmovementisan
issuenotatransferfromsubinventorytosubinventory.
Thesetransactionsareonetimeoccurrenceswithnowaytoplantheseintra
organizationmaterialmovements.MoveOrdersallowplannersandfacility
managerstorequestthemovementofmaterialwithinthefourwallsofa
warehouseorfacilityforreplenishment,materialstoragerelocations,quality
handlingorotherpurposes.
IndividualuserscanrequestmoveordersandOracleInventorywillautomatically
create move orders when warranted for inventory replenishment and order
picking.
.
Thisdocumentwillcovercreationofamanualrequisitionandapprovingit.
DefineaplannerfortheitemundertheGeneralPlanningtaboftheItemswindow.Ifyou
donot
assignaplannertotheitem,themoveorderwillbeautomaticallyapproved.
Therearefivetypesofmoveorders;
a.MoveOrderRequisition
b.MoveOrderReplenishment(Minmaxorreorderpointplanning)
c.PickWaveMoveOrder(OrderManagement)
d.ReceiptMoveOrder(Futurerelease)
e.WIPIssueMoveOrder(Futurerelease)
REORDERPOINTPreprocessing
order
Enterthenumberofdaysrequiredtoplacean
Overview
Reorderpointplanning canbeusedasanalternative toMRP orMin/Maxplanning.
Reorderpointplanningusesdemandforecaststodecidewhentoorderanewquantityto
replenishinventory.Reorderpointplanningsuggestsaneworderforanitemwhenthe
availablequantity(onhandquantityplusplannedreceipts)dropsbelowtheitem'ssafety
stocklevelplusforecastdemandfortheitemduringitsreplenishmentleadtime. The
suggestedorderquantityisaneconomicorderquantitythatminimizesthetotalcostof
Enterthenumberofdaysrequiredto
placeanorder
Processing
Enterthenumberofdaysrequiredto
acquireormanufacturetheitem
Postprocessing
Enterthenumberofdaysrequiredto
receivetheitemintoinventoryafter
initialreceiptfromthesupplier
Subinventories
Overview
Subinventoriesaresubdivisionsofanorganizationandmayrepresentphysicallocations
suchaswarehousesorstoreroomswithinwarehouses.Inventorytransactionsfromandto
subinventoriesposttoaccountsassignedtothesubinventoryintheDefineSubinventories
form.Asubinventorycanbeassociatedwithanassetaccountoranexpenseaccount.
InventoryAccuracyOverview
Inventory Accuracy
Oneofthemajorcomponentsofacompanysassetsisitsinventory.Accuratesystem
onhandquantitiesareessentialformanagingsupplyanddemand,maintaininghigh
servicelevels,andplanningproduction.Thecontrolofandaccountingforinventoryisa
crucialpartofdailyoperations.TwoprocessesareprovidedinOracleInventoryto
validateonhandquantitiesandvalues.TheyareCycleCountingandPhysicalInventory.
CycleCounting
Cyclecountingistheperiodiccountingofindividualitemsthroughoutthecourseofthe
yeartoensuretheaccuracyofinventoryquantitiesandvalues.Cyclecountingcanbe
usedinlieuoftakingacompletephysicalinventory,orbothtechniquescanbeusedside
byside.
TheOracleCycleCountfunctionalitysupportsthecountingofallmaterialresidingin
quantitytrackedsubinventories.Theprocessselectsandranksitemsforcyclecounts.
Daily,weekly,ormonthlycyclecountlistingsarethenprintedtouseinperformingthe
cyclecount.Aftertheitemsarecounted,thecountquantitiesareenteredintothesystem
andreconciliationreportsarerun.Oncethevariancesarereviewedtheitemshouldbe
recountedorifthevarianceisacceptable,thecyclecountisapproved.Uponapproval
thesystemwillcreateanadjustmenttransactionadjustingtheonhandquantities.
PhysicalInventory
APhysicalInventoryusuallyentailsawalltowallcountofallstoresinventory.Ifthe
countistosupportfiscalyearendfinancialreporting,tightcontrolsarenecessaryto
ensurethatallinventoriedgoods,subassembliesandcomponentsareaccountedfor.
Generally,themovementofgoodsinandoutofstockroomsiscutoffduringthecount,
withexceptionsallowedforemergencyshipmentsonly.
TheOraclePhysicalInventoryfunctionalitysupportsthecountingofallmaterialresiding
inquantitytrackedsubinventories.Toassistincontrollingthecount,tagnumbersare
assignedforeachsuggestedcount.Counttagsmaybeprintedandusedtorecordcounts.
Oncetagsareentered,reconciliationreportsmayberuntoensureacompletecount.
Oncethevariancesarereconciled,thephysicalinventoryisapproved.Uponapprovalthe
systemwillcreateanadjustmenttransactionadjustingtheonhandquantities.
RequisitionImporttableswithallitemsthatmeettherequirements.Thisisthe
recommendedR2iapproach.
ReorderPointplanningmethodisusedtodeterminewhenandhowmuchbasedupon
CustomerServicelevel,safetystock,carryingcost,ordersetupcost,leadtime,and
averagedemand.
Forexpenseditems,ReplenishmentCountingcanbeusedtogeneraterequisitions.This
isrequiredonitemsthatyoudonottrackonhandbalances(expenseitems).
ReplenishmentCountingisnotincludedinbaseR2i.
MRPPlannersWorkbenchistheprocessforplannersworkbench.EitherMRPorMPS
mustberuntousethisplanningmethod.FormoreinformationonMRPPlanners
Workbench,seetheR2iMRPPlanningdocumentation.
OracleInventoryOrganizations
OracleApplicationsusesmultipletypesoforganizationstobuildthebusiness
executionstructure.Atthetopofthestructureistheaccountingsetofbooks
(SOB),definedintheGeneralLedger.Next,differenttypesoforganizations
areusedtofurtherdefinetheorganizationstructureandrelationships.In
additiontoasetofbooksR2iincludesaLegalEntityorganization,anOperating
Unitorganization,andaninventoryorganization.Allorganizationsaredefined
andupdatedwiththeDefineOrganizationform.
SetofBooks.AGeneralLedgerSOB,linkedtotheinventoryorganization,
controlsthefinancialaccountingofinventorytransactions.ASOBismadeup
ofachartofaccounts,afinancialcalendar,andacurrency.Thegeneralledger
securestransactions(journalentries,balances)bySOB.R2iincludesaSOB
calledR2iUSClient.Thisnameshouldbeupdatedwiththeclientscompany
name.SeetheR2iGeneralLedgerdocumentationformoreinformation.
LegalEntity.Alegalentityorganizationdefinesthetaxandfiscalreporting
level.Thelegalentityrepresentsthelegalcompany.R2iincludesaLegal
EntityorganizationnamedR2iLE.Thisnameshouldbeupdatedwiththe
clientscompanyname.
OperatingUnit.AnoperatingunitorganizationdefinesthePurchasing,Order
Entry,AccountsPayableandAccountsReceivablelevelofoperation.An
operatingunitmayspanmultiplemanufacturingfacilities,distributionpoints
andsalesoffices,oritmaybelimitedtoasinglesite.Anoperatingunithasa
singleSOBandasingleLegalEntityrelationship.R2iincludesanOperating
UnitnamedR2iOU.Thisnameshouldbeupdatedwiththeclientscompany
name.
InventoryOrganization.Twoflavorsofinventoryorganizationsarefoundin
OracleApplications.Theyaredefinedthesame,andbothareassignedasetof
books,alegalentityorganization,anoperatingunitorganization,andalocation.
Anitemmasterorganizationisusedforitemnumbermaintenanceand
validation.Thismasterorganizationservesasadatarepositorystoringitems
anditemattributes,masterlevelcategoriesandcategorysets,masterlevelcross
references,andnumerousdatadefaults.Onhandbalances,inventory
movements,andotherongoinginventoryactivitiesarenotperformedinan
itemmasterorganization.Generally,themasterorganizationisusedasthe
validationorganizationforPurchasingandOrderEntry.Itisrecommendedthat
asingleitemmasterorganizationbedefined,eveninmultipleorganization,
multiplesetsofbooksenvironments.R2iincludesanitemmasterorganization
calledGLOBAL.Generally,thisnameisusedbytheclientandnotchangedas
partoftheR2isetup.
Inadditiontotheitemmasterorganizationthereareoneormorenonmaster
inventoryorganizations.Liketheitemmasterinventoryorganization,thenon
masterorganizationsareassignedasetofbooks,alegalentityorganizationand
anoperatingunitorganization.Thenonmasterinventoryorganizationpointsto
amasterorganizationandlookstothemasterorganizationformasterlevelitem
attributes,masterlevelcategories,andothermasterlevelcontrolleddata.Note
thateachorganizationhasitsownsetofbooks/legalentity/operatingunit
relationship,soinventoryorganizationswithdifferingSOBsoroperatingunits
maysharethesamemasterorganization.
Thesenonmasterinventoryorganizationsaretheexecutionlevelorganizations.
Theyholdonhandbalancesandtransactionhistory.Hereiswhereinventory
usersexecutetheirdailyactivities,suchasreceivingandissuingmaterial,
performingcyclecounts,andviewingmaterialavailabilityandtransaction
history.Asingleorganizationthereforegenerallyrepresentsasingle
manufacturingsiteordistributioncenter.R2iincludesasinglenonmasteritem
inventoryorganizationcalledCompany.Thisnameshouldbeupdatedwiththe
clientscompanyname.
Locations.Alocationcodeisanaddress.Eachinventoryorganizationmustbe
assignedatleastonelocationcode.R2iincludesasinglelocationcodeof
HDQTRS.Thiscodeshouldbeupdatedtotheclientscompanynameandthe
addressshouldbeadded.
Subinventories.Asubinventoryisusedasaholdingpointforonhand
inventoryandgenerallyrepresentsastockroom,stockingareaorcageusedfor
storingmaterial.Subinventoriesaredefinedwithininventoryorganizations.
Aninventoryorganizationmayhaveanynumberofsubinventories,andanasset
accountisassignedtoeachsubinventory.Sincethesubinventoryentityis
logical,asthereisnotanaddressorphysicallocationdescriptionassociated
withit,clientsmaydefinesubinventoriesforanyphysicalorlogicalgroupingof
inventory.
TheR2iinventoryorganization,Company,includes4predefinedsubinventories:
3.Stores.Usedfortheprimarystockroomforstoringrawmaterialsandsub
assemblies
4.FG.UsedforFinishedGoodsinventoryiffinishedgoodsarestocked
5.WIP.Usedforrawmaterialandsubassembliesstoredinproductionareas
andissuedatoperationorjobcompletion(backflush).
6.MRB.UsedforMaterialReviewBoardgoods.Thisisgenerallymaterialthat
requiresengineeringreviewbeforedispositionasscrap,rework,returnto
supplieroruseasis.
StockLocators.Stocklocatorsareanoptionalentitythatmaybeusedto
representphysicallocationswithinasubinventory.Youmaychoosetouse
stocklocatorsforselectedsubinventoriesorselecteditemswithinselected
subinventories.Iflocatorsareused,subinventoryandlocatortrackonhand
balances.Therefore,iflocatorsaredefinedtorepresentashelfwithina
stockroom,onhandbalancesonthesystemwouldshowtheitemandquantity
downtothephysicallocationwithinthefacility.
OracleInventoryusesakeyflexfieldforstocklocators.Thispresentsafew
limitationsforitsuse.Onlyonelocatorflexfielddefinitionisallowedper
install.Therefore,ifthestockroom(subinventory)wantstotrackmaterialby
row,binandshelf,itwilllikelydefineathreesegmentflexfieldwithsegments
forrow,bin,andshelf.Iflocatorsaredesiredforanothersubinventory,evenin
anotherorganization,thestructurewillagainbe3segmentsforrow,binand
shelf.Inadditiontothislimitation,locatorsmustbeuniquewithinan
organization;youcannotusethesamelocatorindifferentsubinventorieswithin
anorganization,butyoucanusethesamelocatorinsubinventoriesina
differentorganization.
MiscellaneousTransactionProcess
Withmiscellaneoustransactions,materialcanbeissuedandreceivedfrom
generalledgeraccounts.Thisallowsmaterialtobeissued/receivedfromnon
inventoryareassuchasengineering,facilities,oranyotherrequesting
department.Manualadjustmentscanalsobemadeforaccountingpurposesby
receivingmaterialfromoneaccounttoinventory,andthenissuingthatmaterial
frominventorytoanotheraccount.
Step1.0FillOutMaterialTransferForm
FillouttheappropriateMaterialTransfer(MT)formtorequestmaterialfroma
subinventory.Gatheralloftherequiredapprovals.
Step2.0 DeliverMaterialTransferFormtoStores
DelivertheMTformtothecorrectdestination.
Step3.0 VerifythatMaterialisOnHand
UsingtheViewOnHandQuantitiesform,checktomakesurethatmaterialisin
stock.Iflocatorcontrolisturnedonforthesubinventory,theformwillalso
showatwhatlocationthematerialislocated.
Step4.0 ReturnMaterialTransferFormtoRequestor
Ifthereisnoneoftherequestedmaterialinstock,returntheMTbacktothe
requestor.Pleasenoteonthereturnedformifanothersubinventoryhasthe
materialinstock.
Step5.0 StockClerkPhysicallyRetrievesMaterial
Ifthesystemshowsthattherequestedmaterialisinstock,pullthematerial
fromthesubinventory.Ifthematerialcannotbelocated,returntherequestform
backtotherequester.
Step6.0ProcessMiscellaneousTransaction
Choosethetypeoftransactionthatneedstobeprocessedaswellastheother
requiredinformationontheinitialform.ForAccountAliasIssues/Receipts,
enterthealiasnameintheSourcefield.ForAccountIssues/Receipts,enterthe
accountnumberintheSourceField;itwilltransfertotheAccountfield.For
MiscellaneousIssues/Receipts,theaccountnumbercanbeenteredinthe
AccountfieldorontheTransactionLinesscreen.
ClickontheTransactionLinesbuttonintheMiscellaneousTransaction
window.TheTransactionLinesDetailfolderwindowappears.Enterthe
inventoryitemtoissueorreceive.Therevisionmustbeenterediftheitemis
underrevisioncontrol.Enterthesubinventoryfromwhichthematerialisbeing
transacted.Foranissuetransaction,youcannotenterasubinventorythatdoes
nothaveQuantityTrackingturnedon.Enteralocatorifthesubinventoryis
underlocatorcontrol.Optionally,enteralotnumberfortheitem.Ifyouwant
toentermultiplelotnumbers,completetheremainingstepsthenchoosethe
Lot/SerialbuttontodisplaytheLotEntrywindow.Enterthequantityofthe
inventoryitemtoissueorreceive.Ifthesystemisusingaveragecosting,enter
theunitcostoftheitemtoreceiveorissue,orleavethisfieldblanktousethe
systemaveragecostatthetimeofthetransaction.Optionally,enterareason
codeforthetransaction.Forexample,reasoncodesallowyoutomark
exceptionalchargestosupportqualitydatacollection.Optionally,enterupto
240charactersoffreetextthatdescribethetransaction,usuallytheMTnumber.
Enterthegeneralledgeaccounttobeusedinthetransactionifyouareusinga
MiscellaneousIssue/ReceiptorUserDefinedtransactiontype.
Step7.0DeliverMaterialtotheRequester
Delivertherequestedmaterialtotherequester.
Step8.0 FilePaperCopyoftheMaterialTransferForm
FilethepapercopyoftheMaterialTransferformintothefilecabinet.