Oracle Process Manufacturing

R12 Inventory Transactions 101

Robert Smith
ABeam Consulting, USA
Who am I?

Robert Smith is a CPA who is currently a

Senior Manager with ABeam Consulting, USA
Spent the last 15 years in the process
manufacturing industry as a user and
consultant.
Speaks frequently on the capabilities of OPM
and its integration with Oracle Applications
Presentation Agenda

Rules of the Game

Common Inventory Overview
System Setup Considerations
Inventory Transaction Process
Month End Closing Process
Reporting
Transaction Accounting
Q&A
Rules of the Game

There is no such thing as a dumb question

Ask questions when you think of them, but
they may not be answered until the end
Be respectful
Have fun!
Common Inventory Overview
Its finally here
Central Item Master OPM
Attributes
Central Item Master OPM
Attributes
Central Item Master OPM
Attributes
Setup Considerations

Oracle Inventory setup steps are all valid and

should be reviewed
Item Setup
Organization Setup
Transaction Setup
System Profile Options
 Item Setup Item Attribute
Control
Different orgs
can have
different values
 Item Setup Item Categories
Similar to OPM
Classes
Used for better
reporting
 Item Setup Item Categories
Assign General
Ledger Class
Good time to
review current
setup
 Item Setup Process
Manufacturing Tab
Used to identify
which Costing
and Quality
being used
Defines
production
defaults
Organization Setup
 Organization Setup
Define Org as
Process
Enabled
Once defined
cant change
Organization Setup Considerations
11i R12.1
Costing and Planning: Costing and Planning is done at
OPM is at Warehouse level
Inventory Org level
Discrete is at Inventory Org level

OPM Resource Costs are

Resource Costs are defined
defined
at the OPM Organization level
at the Inventory Org level

All documents are defined All OPM document are defined

at OPM Org (Plant) level at Inventory Org level

Inventory Balances at a Inventory Balances at a

Warehouse Inventory Org
Level or SubInventory Level
Organization R12 Mapping
 Transaction Setup
Transaction Types/Reasons
Used to identify
purpose of
transaction
Used for
transaction
accounting
Transaction
Reason can also
be defined
(These are like
OPM reason
codes)
 System Profile Options

GMI: Allow Negative Inventory Replaced with

flag on inventory organization parameters
GMI: Retain Shipped Lot Status Replaced with
flag on inventory organization parameters
GMI: RMA Lot Restriction Replaced in
Receiving Options setup in Purchasing
Inventory Transaction Process
OPM Inventory Oracle Inventory

Inventory Adjustments/
Miscellaneous Transaction
Create Immediate

Transact Process Move Move Order

Move Orders, Interorg Transfers

Move or Transfer
or Internal Orders

Inquiries and Summary Views Material Workbench

 Inventory Super User Menu

Transactions
Perform
transactions
Transaction
Queries
Transaction details
 Inventory Super User Menu

On-hand
Quantity
Material
Workbench
View item
quantities and
details
Miscellaneous Transaction
Old inventory
adjustment and
create immediate
InterOrg Transfers
Transfer between
organizations
Subinventory Transfer
Transfer within
organization
Similar to move
immediate
Inventory Queries Material
Workbench
Query based on
tree structure
User keeps
drilling down
Transaction Queries
Transaction
Summaries
Transaction Queries
Transaction
Summaries
Pending
transactions
accessed from
Pending
Transaction
Form
Month End Closing Process

Complete transactions
Preliminary Inventory Close
 Month End Closing Process
Transfer to GL
OPM Accounting
Pre-Processor
This gets
transactions
ready to post
 Month End Closing Process
Transfer to GL
Create
Accounting in
Draft Mode (Old
Test Subledger)
Create
Accounting in
Final Mode (Old
Final Subledger
 Reports
Inventory Valuation Report
 Transaction Accounting
SLA replaces
MAC
SLA
presentations
Based on
MAC style
logic
Conclusion
R12 major release, even bigger than GEMMS to
11i
R12.1.1 is stable and worth looking into
Additional benefits require re-learning in many
areas. Oracle User Guides are valuable reading
SLA concept what we know (MAC), dont be afraid
Very important to do assessment for existing OPM
users to review and also consider upgrade vs re-
implementation
End user training should not be overlooked or
under estimated
 Thank You!

Robert Smith
rsmith@abeam.com
(859) 421-2202