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39420-R12 Oracle Inventory Managment Fundamentals Volume1 PDF
39420-R12 Oracle Inventory Managment Fundamentals Volume1 PDF
Management Fundamentals
Volume I- Student Guide
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Author
Jennifer Sherman, Susan Flierl, Ronald Delong, David Nelson, Jean-Francois Guerrini
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ATP, Pick, Item-Sourcing Parameters...........................................................................................................2-15
Interorganization Parameters .........................................................................................................................2-16
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Other Account Parameters.............................................................................................................................2-17
Warehouse Management Parameters.............................................................................................................2-18
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Guided Demonstration - Setting Up Organizations ...................................................................................2-19
What is a Subinventory?................................................................................................................................2-24
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What is a Subinventory (Cont) ......................................................................................................................2-25
Defining Subinventories ................................................................................................................................2-26
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Guided Demonstration - Defining Subinventories.....................................................................................2-27
Practice - Creating Subinventories ............................................................................................................2-28
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Solution - Creating Subinventories............................................................................................................2-29
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Locator Control .............................................................................................................................................2-35
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Dynamic and Static Locators.........................................................................................................................2-36
Subinventory-Locator Relationship...............................................................................................................2-37
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Locator Flexfield Structure............................................................................................................................2-38
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Guided Demonstration - Defining Locators ..............................................................................................2-39
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Practice - Defining Locators ......................................................................................................................2-40
Solution Setting Up Locator Control ......................................................................................................2-41
Interorganization Shipping Networks............................................................................................................2-43
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Shipping Method ...........................................................................................................................................2-45
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Additional Set Up Steps ................................................................................................................................2-46
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Additional Organizational Setups..................................................................................................................2-47
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Copying Inventory Organizations..................................................................................................................2-48
Organization Hierarchy .................................................................................................................................2-50
O Organization Reports.....................................................................................................................................2-52
Organization Reports (Cont)..........................................................................................................................2-53
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Steps to Setup, Define, and Maintain Items...................................................................................................4-6
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Defining Items ...............................................................................................................................................4-7
Guided Demonstration - Define Item ........................................................................................................4-9
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Item Master Organization ..............................................................................................................................4-10
Item Master....................................................................................................................................................4-12
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Item Attributes...............................................................................................................................................4-13
Item Attribute Groups....................................................................................................................................4-14
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Guided Demonstration - Viewing Item Attributes.....................................................................................4-15
Item Status .....................................................................................................................................................4-16
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Unit of Measure Attributes ............................................................................................................................4-17
Item Statuses and Attributes ..........................................................................................................................4-19
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Status Attributes and Functionality ...............................................................................................................4-20
Status Attribute Interdependencies ................................................................................................................4-23
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Item Attribute Relationships..........................................................................................................................4-26
Practice - Viewing Item Attributes ............................................................................................................4-27
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Solution Viewing Item Attributes...........................................................................................................4-28
Item Templates ..............................................................................................................................................4-36
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Creating Item Templates ...............................................................................................................................4-37
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Enabling Attributes in a Template .................................................................................................................4-38
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Guided Demonstration - Creating Item Templates ....................................................................................4-39
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Organization Assignment and Organization Items ........................................................................................4-40
Control Levels ...............................................................................................................................................4-41
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Revision Control............................................................................................................................................4-43
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Defining Items ...........................................................................................................................................4-45
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Solution - Defining Items ..........................................................................................................................4-46
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Restricting Items to Subinventories...............................................................................................................4-59
Guided Demonstration - Restricting Items to Subinventories ...................................................................4-60
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Disabled Lots.................................................................................................................................................5-17
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Guided Demonstration - Generating Lots..................................................................................................5-18
Guided Demonstration - Maintaining Grades............................................................................................5-21
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Guided Demonstration - Maintaining Lot Actions ....................................................................................5-23
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Practice - Using the Lot Master .................................................................................................................5-24
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Solution Using the Lot Master................................................................................................................5-25
Lot Number Purging......................................................................................................................................5-32
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Cycle Counts Under Lot Control...................................................................................................................5-33
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Physical Inventory Under Lot Control...........................................................................................................5-34
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Guided Demonstration - Revision, Lot, and Serial Controls .....................................................................5-35
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Serial Number Overview ...............................................................................................................................5-38
Generating Serial Numbers............................................................................................................................5-39
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Serial Uniqueness ..........................................................................................................................................5-40
Maintaining Serial Numbers..........................................................................................................................5-42
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Practice - Generating and Maintaining Serial Numbers ............................................................................5-43
Solution Generating and Maintaining Serial Numbers ............................................................................5-44
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Lot Genealogy ...............................................................................................................................................5-49
Guided Demonstration - Viewing Lot Genealogy .....................................................................................5-50
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Serial Genealogy ...........................................................................................................................................5-51
Lot and Serial Reports ...................................................................................................................................5-52
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Lot and Serial Reports (Cont)........................................................................................................................5-53
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Profile Options...............................................................................................................................................5-55
Profile Options (Cont) ...................................................................................................................................5-56
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Implementation Considerations .....................................................................................................................5-57
Implementation Considerations (Cont)..........................................................................................................5-58
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Summary........................................................................................................................................................5-59
Transaction Setup............................................................................................................................................6-1
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Inventory Transactions with Documents and Requisitions............................................................................7-8
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Control Options and Restrictions...................................................................................................................7-9
Miscellaneous Transactions...........................................................................................................................7-10
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Practice - Processing Miscellaneous Receipts ...........................................................................................7-12
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Solution Processing Miscellaneous Receipts..........................................................................................7-13
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Subinventory Transfer ...................................................................................................................................7-24
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Guided Demonstration - Performing Subinventory Transfers ...................................................................7-25
Practice - Processing Subinventory Transfers ...........................................................................................7-26
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Solution Processing Subinventory Transfers ..........................................................................................7-27
Inter-Organization Direct Shipment ..............................................................................................................7-31
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Inter-organization Intransit Shipment............................................................................................................7-32
Guided Demonstration - Performing Interorganization Transfers .............................................................7-34
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Practice - Performing Interorganization Transfers.....................................................................................7-35
Solution Performing Interorganization Transfers ...................................................................................7-36
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Managing Receipts ........................................................................................................................................7-41
Express Receipts and Receiving Transactions...............................................................................................7-43
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Direct Receipts ..............................................................................................................................................7-44
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Standard Receipt............................................................................................................................................7-45
Inspection Receipt .........................................................................................................................................7-46
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Guided Demonstration - Receiving Stock into Inventory..........................................................................7-47
Practice - Receiving Material into Inventory.............................................................................................7-49
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Move Orders Process Flow............................................................................................................................7-58
Move Order Requisition Approval Process ...................................................................................................7-59
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Practice - Using the Material Workbench..................................................................................................8-15
Solution Using the Material Workbench ................................................................................................8-16
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Available to Promise .....................................................................................................................................8-20
What are Supply and Demand? .....................................................................................................................8-21
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Uses of ATP in Oracle Inventory ..................................................................................................................8-22
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ATP Rules Setup Steps..................................................................................................................................8-23
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Defining Computation Options......................................................................................................................8-24
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Specifying Supply and Demand Time Fences ...............................................................................................8-26
Specifying Demand Sources..........................................................................................................................8-30
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Specifying Supply Sources ............................................................................................................................8-32
Setting Up Item and Bills for ATP Checking ................................................................................................8-33
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ATP Checking ...............................................................................................................................................8-34
Guided Demonstration - Creating an ATP Rule ........................................................................................8-35
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Reservation Types .........................................................................................................................................8-36
Supply Types .................................................................................................................................................8-37
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Demand Types...............................................................................................................................................8-38
Reserving Material ........................................................................................................................................8-39
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Reservation Management- Transfer Supply ..................................................................................................8-41
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Reservation Management- Transfer Demand ................................................................................................8-42
Guided Demonstration - Creating Reservations ........................................................................................8-43
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Practice - Creating Reservations................................................................................................................8-45
Solution Creating Reservations ..............................................................................................................8-46
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On-hand and Availability Reports .................................................................................................................8-48
Profile Options...............................................................................................................................................8-49
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Profile Options (Cont) ...................................................................................................................................8-50
Implementation Considerations .....................................................................................................................8-51
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Replenishment Process for Inter-Org Supply Sources...................................................................................10-10
Replenishment Process for Product Supply Sources .....................................................................................10-11
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Replenishment Methods ................................................................................................................................10-12
Overview of Inventory Forecasting ...............................................................................................................10-13
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Forecast Types...............................................................................................................................................10-15
Forecast Setup and Maintenance ...................................................................................................................10-16
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Guided Demonstration - Creating a Manual Forecast ...............................................................................10-17
Oracle Inventory Replenishment Methods ....................................................................................................10-19
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Replenishment Methods Levels.....................................................................................................................10-20
Safety Stock...................................................................................................................................................10-21
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Economic Order Quantity..............................................................................................................................10-22
Overview of Reorder-Point Planning ............................................................................................................10-23
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Uses of Reorder-Point Planning ....................................................................................................................10-24
Reorder-Point Planning Steps........................................................................................................................10-25
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Performing Reorder-Point Planning ..............................................................................................................10-26
Guided Demonstration - Setting up Reorder Point Planning .....................................................................10-28
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Overview of Min-Max Planning....................................................................................................................10-30
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Uses of Min-Max Planning............................................................................................................................10-31
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Min-Max Planning.........................................................................................................................................10-32
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Min-Max Planning: How Much to Order? ....................................................................................................10-33
Min-Max Planning Steps ...............................................................................................................................10-34
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Item Planning Attributes................................................................................................................................10-35
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Min-Max Planning Setup Procedure..............................................................................................................10-36
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Selecting a Planning Level ............................................................................................................................10-37
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Entering Planning Attributes .........................................................................................................................10-38
Submitting the Min-Max Planning Requests.................................................................................................10-39
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Planning and Replenishment Reports (Cont).................................................................................................10-102
Profile Options...............................................................................................................................................10-103
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Profile Options (Cont) ...................................................................................................................................10-104
Implementation Considerations .....................................................................................................................10-105
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Implementation Considerations (Cont)..........................................................................................................10-108
Summary........................................................................................................................................................10-109
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Inventory Accuracy .........................................................................................................................................11-1
R12 Inventory Accuracy Fundamentals ........................................................................................................11-3
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Objectives ......................................................................................................................................................11-4
Overview of Inventory Accuracy ..................................................................................................................11-5
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ABC Analysis Overview ...............................................................................................................................11-6
Defining an ABC Analysis ............................................................................................................................11-7
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Define and Run an ABC Compilation ...........................................................................................................11-8
ABC Compilation Criteria.............................................................................................................................11-9
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ABC Valuation Scope ...................................................................................................................................11-11
Defining ABC Groups ...................................................................................................................................11-12
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Defining ABC Classes...................................................................................................................................11-13
ABC Item Assignments .................................................................................................................................11-14
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Guided Demonstration - Compiling an ABC Analysis..............................................................................11-16
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Practice - Compiling an ABC Analysis .....................................................................................................11-18
Solution Compiling an ABC Analysis....................................................................................................11-20
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Cycle Counting Overview .............................................................................................................................11-26
Defining and Maintaining a Cycle Count ......................................................................................................11-27
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Cycle Count Approval Tolerance ..................................................................................................................11-28
Approval Tolerances......................................................................................................................................11-29
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Hit/Miss Tolerance ........................................................................................................................................11-31
Measurement Errors ......................................................................................................................................11-32
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Implementation Considerations (Cont)..........................................................................................................11-87
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Summary........................................................................................................................................................11-89
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Table Information............................................................................................................................................12-1
R12 Table Information ..................................................................................................................................12-3
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Objective........................................................................................................................................................12-4
Organization Tables.......................................................................................................................................12-5
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Subinventories and Locator Tables................................................................................................................12-7
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Item Master Tables ........................................................................................................................................12-9
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Item Status Tables .........................................................................................................................................12-11
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Item Categories Tables ..................................................................................................................................12-13
Item Reservation Tables ................................................................................................................................12-15
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Inventory Transaction Tables ........................................................................................................................12-17
Guided Demonstration - Accessing eTRM................................................................................................12-19
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Summary........................................................................................................................................................12-20
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Prerequisites
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Additional Publications
Read-me files
Oracle Magazine
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Italic
proper noun)
Emphasized words Do not save changes to the database.
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and phrases,
titles of books and
For further information, see Oracle7 Server SQL Language
Reference Manual.
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courses,
variables
Enter user_id@us.oracle.com, where user_id is the
name of the user.
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Quotation
marks
Interface elements
with long names A
Select Include a reusable module component and click Finish.
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that have only
initial caps;
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This subject is covered in Unit II, Lesson 3, Working with
Objects.
lesson and chapter
titles in cross-
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Uppercase
references
SQL column O ly Use the SELECT command to view information stored in the
names, commands,
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functions, schemas,& On LAST_NAME
column of the EMP table.
table names
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Arrow
Brackets
Commas
Menu paths
Key names
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Key sequences
U s Select File > Save.
Press [Enter].
Press and release keys one at a time:
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Press and hold these keys simultaneously: [Ctrl]+[Alt]+[Del]
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(N) Invoice > Entry > Invoice Batches Summary (M) Query > Find (B) Approve
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This simplified path translates to the following:
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1. (N) From the Navigator window, select Invoice then Entry then Invoice Batches
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Summary.
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2.
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(M) From the menu, select Query then Find.
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3. (B) Click the Approve button.
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Notations:
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(N) = Navigator
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(M) = Menu
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(T) = Tab
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(B) = Button
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(I) = Icon
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1. In the navigation frame of the help system window, expand the General Ledger entry.
4. Review the Enter Journals topic that appears in the document frame of the help system
window.
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Overview
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Oracle Inventory treats many different types of things as inventory. Inventory can be:
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Finished goods that you sell to customers
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Services that you sell to customers
Spare parts for maintenance
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Raw materials for manufacturing processes
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Inventory you purchase from a supplier on consignment
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Receipt to Issue
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Oracle Inventory uses the receipt to issue process to manage your inventory. When inventory
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arrives in your warehouse you receive it. After you receive inventory, you can transfer it
within your organization or to another organization. Finally, you can issue material out of
Oracle Inventory.
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Receiving Inventory
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There are different ways you can receive material into your organization.
Purchasing
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O ly
You can use Oracle Purchasing to receive material from outside of your organization. You can
receive:
Purchase order receipts
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Internal requisitions
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In-transit receipts
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Return material authorizations
U s
Work in Process
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Unexpected receipts
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You can use Oracle Work in Process to receive material from the manufacturing floor. You can
receive:
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Component returns
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Transferring Inventory
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Different applications can generate requests to transfer inventory.
Shipping
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O ly
You can use Oracle Shipping Execution to generate a transfer to move material from a storage
area to a staging to for shipping.
Order Management
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You can use Oracle Order Management to generate a transfer to move material from a storage
area to a staging area for shipping.
Work in Process
t e r U s
Inventory
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You can use Oracle Work in Process to generate a transfer to acquire components for a project.
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You can use Oracle Inventory to:
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Transfer material between organizations
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Transfer material within an organization
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Issuing Inventory
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You can use the following applications to issue material:
Order Management
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Oracle Order Management can generate an inventory issue through:
Sales orders
Internal orders
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Purchasing
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Return to vendor materials
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Oracle Purchasing can generate an inventory issue for:
Work in Process
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Oracle Work in Process can generate an inventory issue through:
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Component issues
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Inventory
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Integration of Oracle Inventory to Manufacturing Applications
Oracle Inventory interacts with the following applications:
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Oracle Cost Management receives cost information and transaction rates from Oracle
O ly
Inventory. Oracle Inventory integrates to Oracle General ledger via Oracle Cost
Management
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Oracle Work in Process provides work in process (WIP) activity and available to promise
(ATP) supply information to Oracle Inventory and receives item and on-hand quantity
n a e
information from Oracle Inventory.
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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.
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Oracle Bill of Materials receives item information from Oracle Inventory.
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Oracle Engineering provides engineering item information and receives item information
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from Oracle Inventory.
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O receives item, ATP, and on-hand quantity information from Oracle Inventory.
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Integration of Oracle Inventory to Financial Applications
Oracle General Ledger provides ledger and currency exchange rates and receives
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transaction accounting summary detail via Oracle Cost Management.
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Oracle Payables receives Item information from Oracle Inventory.
Oracle Receivables provides intercompany invoice information and receives item
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information from Oracle Inventory.
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Oracle Assets receives item information from Oracle Inventory.
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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 1
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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 2
R12 Defining Inventory Organizations
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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 3
Objective
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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 4
Inventory Organizations
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Inventory Organizations
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An inventory organization is a facility where you store and transact items. Before you can use
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Oracle Inventory, you must define one or more inventory organizations. Inventory
organizations represent distinct entities in your enterprise and can be one of the following:
O ly
A physical entity such as a manufacturing facility, warehouse, or distribution center.
& On
A logical entity such as an item master organization, which you use to define items.
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An inventory organization may have the following attributes:
An inventory organization can have its own location, ledger, costing method, workday
calendar, and items.
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An inventory organization can share one or more of these characteristics with other
organizations.
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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 5
Inventory Organization Structure
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Inventory Organization Structure
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An inventory organization, where you store and transact items can have one or more
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subinventories. Subinventories are unique physical or logical separations of material inventory,
such as raw material inventory, finished goods inventory, or defective goods inventory. In
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Oracle Inventory, all material within an organization is held in a subinventory. You must
l & On
define at least one subinventory for every organization. You can track item quantities by
subinventory as well as restrict items to specific subinventories.
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The subinventories in an inventory organization may be made up of one or more locators. You
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use locators to identify physical areas where you store inventory items. You can track items by
locator and restrict items to a specific locator. Locator control is optional in Oracle Inventory.
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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 6
Sample Inventory Organization
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Inventory Structure
Chapter 2 - Page 7
Multi-Organization Structure
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Multi-Organization Structure
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Multi-Organization structure enables you to model multiple business units in an enterprise
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using a single installation of Oracle applications. In a multi-organization architecture you can
keep data secure and separate from each business unit.
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The following are the benefits of multi-organization structure:
l & On
You can use a single installation of any Oracle Applications product to support any
number of business units, even if those business units use a different ledger.
n a e
Secure access to data so users can access only relevant information.
e r s
You can define a organizational model that best suits your business requirements.
t U
In Inventory, you can fulfill any Sales Order or Purchase Order regardless of them being
I n
booked from any Inventory organization. You can also determine if any inter-company
invoicing needs to occur based on if the Sales Order or Purchase Order was booked in a
l e
different Operating Unit other than the one to which the Inventory organization is
c
assigned.
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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 8
Setting Up Locations
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Setting Up Locations
c l
Define information describing the physical locations of employees and organizations.
r a
Locations are shared between Oracle Inventory, Oracle Purchasing, and Oracle Human
O ly
Resource Management Systems. Locations flagged as global locations are available to all
business groups. You can associate each organization with only one location; however,
& On
you can associate more than one organization with the same location.
l
n a e
t e r U s
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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 9
Guided Demonstration - Setting up Locations
Responsibility = Inventory, Vision Operations USA
c
7.
a
Verify the following boxes are checked
Ship-To Site
r
Receiving Site
O ly
Office Site
Bill-To Site
l & On
Internal Site
n a e
8. Save and Close form.
t e r U s
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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 10
Defining Organizations
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Defining Organizations
Classify the Organization
c l
r a
Choose an organization classification to describe the general purpose of your organization.
O ly
Examples of organization classifications are inventory organization, legal company, and
HR organization.
l & On
Choose inventory organization as your organization classification to use your organization
for inventory management.
Ledger
n a e
e r s
Tie each inventory organization to an operating unit. Each operating unit is associated to a
t U
legal entity and a primary ledger.
I n
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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 11
Inventory Parameters
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Inventory Parameters
Organization Features
c l
r a
You must enter organization information such as the organization code, and the item master
O ly
organization. The system defaults this field to the current organization. You must change this
for any organization that is not an item master organization. The item master organization
l & On
should be the first inventory organization you create.
Note- The Manufacturing Partner Organization functionality is only available in Japan, Taiwan
and Korea.
n a e
Products and Features
t e r U s
I n
You can enable specific products on the Inventory Parameters tab. These include Oracle
Warehouse Management, Oracle Process Execution, and Oracle Enterprise Asset Management.
l e
If you have Oracle Warehouse Management installed, then you can enable the Warehouse
c
Control System.
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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 12
Costing Parameters
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ca
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are
c l
LIFO costing-Costing method where it is assumed that items that were received most recently
transacted first.
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O ly
FIFO Costing-Costing method where it is assumed that items that were received earliest are
transacted first.
l & On
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t e r U s
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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 13
Revision, Lot, Serial, and License Plate Number (LPN)
Parameters
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Revision, Lot, Serial, and LPN Parameters
c l
r a
You determine the starting revision for all items in the organization when you define your
O ly
inventory organization. You can also choose to set lot control and serial control parameters at
the organization level. Revision control is discussed in the Defining and Maintaining Items
& On
module. Lot control and serial control is discussed in the Lot and Serial Control module.
l
LPN Generation Options
n a e
If you have Oracle Warehouse Management installed, and you are working with a Warehouse
t e r U s
Management enabled organization, you can define License Plate Number (LPN) Generating
Options. LPNs must be unique across organizations. Setting the parameters on the Revision,
I n
Lot, Serial, And LPN tab enables the system to generate LPNs on demand, or through a
concurrent request. As long as the number is unique, Oracle Warehouse Management also
l e
enables you to generate your own LPNs.
c
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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 14
ATP, Pick, Item-Sourcing Parameters
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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 15
Interorganization Parameters
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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 16
Other Account Parameters
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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 17
Warehouse Management Parameters
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Warehouse Management Parameters
c l
For more information about Oracle Warehouse Management Organization Parameters see the
r a
Oracle Warehouse Management Implementation Guide.
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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 18
Guided Demonstration - Setting Up Organizations
Responsibility: Inventory, Vision Operations USA
m y
Define Accounting Information
d e
7. (B) Others > Accounting Information.
c a
8. Enter the following accounting information:
Primary Ledger:
e
Vision Operations A
Legal Entity:
Operating Unit:
c l Vision Operations
Vision Operations
l & On
a e
10. (B) Others > Inventory Information > (T) Inventory Parameters
n
t
Organization Code: r U s
11. Enter the following inventory parameters:
e M12
Calendar: n
Item Master Organization:
I Vision Operations
Vision01
c l e
Demand Class:
Move Order Timeout Period:
Blank
60 Days
Inventory Structure
Chapter 2 - Page 19
Auto Delete Allocations at Move Order Cancel: Selected
d e
Overhead
Resource
01-000-1430-0000-000
01-000-1440-0000-000
c a
Expense
e
01-520-7530-0000-000 A
c l
15. (T) Other Accounts
r a
O ly
16. Enter the following other account information:
Account Type
l & On Account
Purchase Price Variance
n a e 01-520-5210-0000-000
r
Invoice Price Variance 01-520-5220-0000-000
Inventory AP Accrual
t e U s 01-000-2220-0000-000
Sales
I n 01-520-4110-0000-000
e
Cost of Goods Sold Account 01-450-5110-0000-000
c l
Deferred COGS Account 01-450-5110-0000-000
r a
O17. (T) Revision, Lot, Serial And LPN
Inventory Structure
Chapter 2 - Page 20
18. Enter A in the Starting Revision field.
Receivable:
t e r
Purchase Price Variance:
U s 01-520-5210-0000-000
01-000-1810-0000-000
Payable:
I n
Intransit Inventory
01-000-2370-0000-000
01-000-1460-0000-000
c l e
25. (M) File > Close Form
r a
Define Receiving Information
Inventory Structure
Chapter 2 - Page 21
27. Enter the following Receiving Information:
Enforce Ship-To: None
ASN Control Action: None
Receipt Days Early and Late: 5
Receipt Days Exceed-Action Warning
Over Receipt Tolerance (%) 5%
Over Receipt Action Warning
RMA Receipt Routing: Standard
Receipt Routing: Standard
Allow Substitute Receipts: Selected
Allow Unordered Receipts: Selected
Allow Express Transactions: Selected
Allow Cascade Transactions: Selected
Validate Serial Numbers on RMA Receipts: Selected
Receipt Number Generation: Automatic
Receipt Number Type: Alphanumeric
Next Receipt Number: 1
Validate Lots on RMA Receipts: Restricted
Receiving Inventory Account: 01-000-1410-0000-000
Clearing Account: 01-000-1410-0000-000
e A
l
Link the Location to the Inventory Organization
c
32. Navigate to the Location window.
r a
O ly
(N) Setup > Organizations > Location
t e r
34. Enter %M12% in the Name field.
U s
I n
(M) > View > Query By Example > Run
c l e
35. (T) Other Details
r a
36. Enter the following information:
Inventory Structure
Chapter 2 - Page 22
37. Save your work and close the window.
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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 23
What is a Subinventory?
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What Is a Subinventory?
c l
A subinventory is a physical or logical grouping of inventory such as raw material, finished
r a
goods, defective material, or a freezer compartment. A subinventory can be the primary place
where items are physically stocked. You must specify a subinventory for every inventory
transaction.
O ly
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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 24
What is a Subinventory (Cont)
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What is a Subinventory (Cont)
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For more information about subinventories, Defining Subinventories, Oracle Inventory Users
Guide.
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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 25
Defining Subinventories
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Defining Subinventories
c l
You define subinventories by organization. Each subinventory must contain the following
information:
r a
Unique alphanumeric name
Status O ly
l & On
Cost Group (if you have Oracle Warehouse Management installed)
Parameters
n a e
Lead times
Sourcing information
t e r U s
Account information
I n
For more information about subinventories see Defining Subinventories, Oracle Inventory
l
Users Guide
c e
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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 26
Guided Demonstration - Defining Subinventories
Responsibility: Inventory, Vision Operations USA
4. (B) Open.
e A
c
11. (N) Setup > Organizations > Subinventoriesl
12. (M) View > Find.
r a
13. Enter Raw in the Find Field. O ly
14. Click OK.
l & On
n a e
16. (M) File > Close Form.
t e r
15. Note that subinventory Raw is not available in M2.
U s
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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 27
Practice - Creating Subinventories
Overview
In this practice you will learn how to create two subinventories.
Assumptions
You are skilled in Oracle navigation.
You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.
Tasks
If necessary, change your Organization to Seattle (M1).
Create four subinventories for your team. Create one subinventory for your finished goods (FGI)
stock, a Main Stores (MAIN) subinventory, a Raw Materials (RM) subinventory, and Low Value
m y
(LV) items subinventory. Your Low Value subinventory must be a non-tracked subinventory.
Use the following naming convention to differentiate your team from other teams (##FGI) where
d e
the pound sign represents your team number.
ca
After completing the lab, answer the following questions.
e A
1.
l
In which organization are your new subinventories?
c
2.
r a
Determine if ##FGI exists in M2- Boston Manufacturing and why.
O ly
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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 28
Solution - Creating Subinventories
Responsibility = Inventory, Vision Operations USA
Select OK
3. (B) New
Name: ##FGI
Description: Finished Goods Inventory
Status: Active
Type: Storage
Locator Control: Item Level
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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 29
m y
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ca
4. (M) File > Save
e A
5. (M) File > New.
c l
Name:
Description:
r a
##Main
Main Stores
Type:
Status: O ly
Storage
Locator Control:
l & OnActive
Dynamic Entry
n a e
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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 30
m y
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6. (M) File > Save
e A
7. (M) File > New
Name: c l
Description:
r a
##RM
Raw Materials
Status:
Type: O ly
Active
Storage
Locator Control:
l & OnNone
n a e
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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 31
m y
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ca
8. (M) File > Save
e A
9. (M) File > New
c l
Name:
Description:
##LV
r a
Low Value Inventory
Status:
Type: O ly
Unserviceable: Not Available for Netting, ATP and Reservations
Storage
Locator Control: None
l & On
a e
Quantity Tracked: Deselected
n
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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 32
m y
d e
ca
10. Save and Close window.
e A
(M) File > Save
c l
(M) File > Close Form
r a
O ly
11. In which organization are your new subinventories? M1 Seattle Manufacturing
Verifying Subinventories
l & On
n a e
t e r s
12. Does a subinventory called ##FGI exist in M2 Boston Manufacturing? No, you created your
subinventories in M1 Seattle Manufacturing.
U
I n
13. (N) Change Organization.
l e
Select M2 Boston Manufacturing.
c
r a
14. (N) Setup > Organizations > Subinventories.
Inventory Structure
Chapter 2 - Page 33
16. (M) File > Close Form.
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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 34
Locator Control
m y
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Locator Control
c l
Locators are structures within subinventories. Locators are the third level in the enterprise
r a
structuring scheme of Oracle Inventory. Locators may represent rows, aisles, or bins in
warehouses. You can transact items into and out of locators. You can restrict the life of
O ly
locators as well as define locator dimensions.
l & On
n a e
t e r U s
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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 35
Dynamic and Static Locators
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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 36
Subinventory-Locator Relationship
m y
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Subinventory-Locator Relationship
c l
You can structure Oracle Inventory in such a way that some of the subinventories and items
r a
have locator control while others do not. If locator control is turned on at the item level, you
must specify a locator when transacting the item into or out of a subinventory. If locator
O ly
control is turned on at the subinventory level, you must specify a locator when transacting any
l & On
item into or out of that subinventory. Each stock locator you define must belong to a
subinventory, and each subinventory can have multiple stock locators. The possible locator
control types are:
n a e
None
Prespecified
t e r U s
Dynamic entry
Item Level I n
l e
You cannot use the same locator names within any two subinventories within the same
c
organization.
r a
For more information about setting up locator control see Defining Stock Locators, Oracle
Inventory Structure
Chapter 2 - Page 37
Locator Flexfield Structure
m y
d e
ca
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Locator Flexfield Structure
c l
Locator flexfield structure is common across all organizations. For Example if you set up Row
r a
1A Rack 1A and Bin 1A in M1 Seattle, you cannot use Aisle 1A Rack 1A and Bay1A structure
in M2 Boston.
O ly
For more information see the Oracle Applications Flexfields Guide.
l & On
n a e
t e r U s
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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 38
Guided Demonstration - Defining Locators
Responsibility: Inventory, Vision Operations USA
2. Click New.
4. Enter a Description.
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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 39
Practice - Defining Locators
Overview
In this lab you will learn how to set up locator control for subinventories and items.
Assumptions
You are skilled in Oracle Navigation
You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.
Tasks
Defining Stock Locators
1. Define some storage locators for your ##FGI subinventory and your ##Main subinventory.
For this exercise use the following convention:
Row: (your team #) ## ##
Rack:
Bin:
Subinventory:
01
01
##FGI
01
02
m y
d e
Row:
Rack:
##
02
##
02
ca
Bin:
Subinventory:
01
##Main
02
e A
c l
r a
O ly
l & On
n a e
t e r U s
I n
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r a
O
Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 40
Solution Setting Up Locator Control
Defining Stock Locators
(B) New
Row: ##
m y
Rack:
Bin:
1
02
d e
Description:
Type:
Anything you want
Storage Locator
ca
Subinventory:
Locator Status:
##FGI
e A
Active : Not Available for Netting, ATP and Reservations
c l
Row:
Rack:
r a ##
2
Bin:
O ly 01
& On
Description: Anything you want
Subinventory
Locator Status: l
a e
##Main
Active
r n s
Row:
Rack:
n t e U
##
2
e
Bin:
I
Description:
02
Anything you want
c
l Subinventory
Locator Status:
##Main
Active : Available for ATP and Reservations
r a
O
Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 41
3. Select (M) File > Save
Inventory Structure
Chapter 2 - Page 42
Interorganization Shipping Networks
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Interorganization Shipping Networks
c l
An interorganization shipping network describes the relationships and accounting information
r a
between a shipping organization and a destination organization. You must define a shipping
network between two organizations before you can transfer material between organizations.
O ly
When you setup a shipping network you must select a transfer type. The choices are intransit
l & On
or direct. If you choose intransit, Oracle Inventory moves material to an intermediary state
before it reaches the destination organization, and a receipt transaction is required in the
a e
destination organization once the material arrives in order to retrieve it. If you choose direct,
n
e r
Oracle Inventory moves the material directly to the destination organization. However, for
s
both, you can determine default receipt routing and whether internal orders are required to
transfer material.
t U
I n
If you choose intransit as the transfer type you can determine:
c l e
Shipping methods
GL accounts to use in transit
O
Planning lead-times
Transfer charges
Inventory Structure
Chapter 2 - Page 43
For more information see Interorganization Shipping Network, Oracle Inventory Users Guide.
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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 44
Shipping Method
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Shipping Method
c l
Shipping methods are the way you ship material. When you create a shipping method, you
r a
must enable it before you can use it in a shipping network. If you disable a shipping method
you cannot use it in a shipping network.
O ly
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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 45
Additional Set Up Steps
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Additional Set Up Steps
Entering Employees
c l
r a
Employees who perform cycle and physical inventory counts.
Defining Planners
O ly
Identify persons responsible for planning items or groups of items.
Defining Freight Carriers
l & On
a e
Enables assignment of a general ledger account to one or more carriers to collect costs
n
t e r
associated with their use. You can assign a carrier to each interorganization transfer.
U s
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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 46
Additional Organizational Setups
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Material Shortage Parameters
c l
Define the parameters for the system to determine when unsatisfied demand exceeds available
r a
quantity of incoming supply. This condition can be used by the system to trigger shortage
alerts and notifications.
Organization Access O ly
system administrator.
l & On
This controls access to organizations based on the user responsibility assigned to a user by the
n a e
When implemented for one user responsibility, it is then required for all other user
t e r U s
responsibilities accessing the same organization.
I n
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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 47
Copying Inventory Organizations
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Copying Inventory Organizations
c l
You can create new inventory organizations or copy an existing organization. You must
r a
establish a model organization to use as a baseline for new organizations. This model
organization must be a transactional organization and not an item master organization. You can
O ly
copy only organizations within the same operating unit. The system creates the new
l & On
organizations under the same business group to which the model organization belongs, and
assigns the new organizations to the same operating unit, legal entity, and ledger as the model
organization.
n a e
t e r s
When you copy organizations you specify which information to copy from the model
organization. You can choose to copy the following information from the model organization:
U
Shipping networks
I n
Organization definition
l e
Hierarchy assignments
c
Bills of material and bills of material parameters
r a
Departments, resources, and routings
O Item information
Inventory Structure
Chapter 2 - Page 48
When you copy a model organization the system automatically copies the following
information:
Subinventories
Locators
Work in Process parameters
Work in Process accounting classes
Planning parameters
Shipping parameters
Note: The system does not copy organization-specific data including: cost type, cost sub-
element, Process Manufacturing Enabled, Oracle Warehouse Management enabled, and cost-
sharing entities.
For more information about copying inventory organizations see Copy Inventory Organization
Implementation Guide.
m y
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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 49
Organization Hierarchy
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Organization Hierarchy
c l
Organization hierarchies enable you to group together organizations and perform operations
r a
across all organizations within a hierarchy. You can perform the following operations across
all organizations within an organization hierarchy:
O ly
Assign items to organizations: You can assign an item to any organization that belongs to
l & On
the same master organization within the same hierarchy. You can also assign a range of
items or item categories to a single organization, as well as a range of items or categories
to multiple organizations.
n a e
t e r U s
Copy item attributes: You can manage item attributes for many organizations in one place.
You can verify that an item or group of items were set up correctly, copy organization-
I n
level item attributes from one item to other organizations that use the item, and copy item
attributes from one item to another within an organization.
l e
View item information: You can view on-hand quantity information as well as item where
c
used information for organizations.
r a
Open and close accounting periods: You can open and close accounting periods.
O
Purge transactions: You can purge transactions.
Inventory Structure
Chapter 2 - Page 50
Process transactions with the Inventory Transaction Open Interface: You can use the
Inventory Transaction Open Interface to review, submit, or cancel transactions.
Manage bills of materials: You can create common bills of material for organizations as
well as delete items, bills, components, routings, and operations.
Manage engineering change orders You can automatically implement as well as make
changes to engineering change orders.
m y
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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 51
Organization Reports
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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 52
Organization Reports (Cont)
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Inventory Structure
Chapter 2 - Page 53
Profile Options
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Inventory Structure
Chapter 2 - Page 54
Implementation Considerations
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Implementation Considerations
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When you set up your organizations you need to determine the organization type. For
r a
example, you need to determine if the organization is a process or a discrete organization and if
you are using Oracle Warehouse Management. You can use Oracle Warehouse Management
O ly
and Oracle Process Management in the same organization. You should not however, use
l & On
Oracle Asset Management with Oracle Warehouse Management or Oracle Process Execution.
If you plan on using Oracle Warehouse Management you need to determine if you are going to
a e
use the Warehouse Control system. If this organization transacts business with Japan, Taiwan,
n
t e r
or Korea you can enable Chargeable Subcontracting for the organization. You must consider
s
all of this information before you create items or process transactions.
U
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Inventory Structure
Chapter 2 - Page 55
Implementation Considerations (Cont)
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Inventory Structure
Chapter 2 - Page 56
Implementation Considerations (Cont)
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Inventory Structure
Chapter 2 - Page 57
Implementation Considerations (Cont)
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Inventory Structure
Chapter 2 - Page 58
Implementation Considerations (Cont)
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Inventory Structure
Chapter 2 - Page 59
Implementation Considerations (Cont)
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Inventory Structure
Chapter 2 - Page 60
Summary
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Chapter 2 - Page 61
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Inventory Structure
Chapter 2 - Page 62
Units of Measure
y
Chapter 3
em
a d
A c
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r a
O ly
l & On
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Units of Measure
Chapter 3 - Page 1
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Copyright Oracle Corporation, 2007. All rights reserved.
Units of Measure
Chapter 3 - Page 2
R12 Units of Measure
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Units of Measure
Chapter 3 - Page 3
Objectives
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Units of Measure
Chapter 3 - Page 4
Units of Measure
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Unit of Measure
c l
You define units of measure for tracking, moving, storing, and counting items.
Primary Unit of Measure
r a
O ly
When you define an item you establish a primary unit of measure. The system tracks on-hand
quantity and calculates transactions based on the primary unit of measure.
Secondary Unit of Measure
l & On
n a e
You can optionally establish a secondary unit of measure (dual unit of measure control) for an
item. Secondary unit of measure can be used for cases where you need to track in two units of
e r s
measure and there is no constant conversion between the two unit of measures (UOMs). For
t U
example, chickens can be tracked in pounds and eaches.
I n
If an item is under dual unit of measure control the system tracks on-hand quantity based on
both the primary and secondary units of measure. For example, you can track an item in both
l e
eaches and liters.
c
r a
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Copyright Oracle Corporation, 2007. All rights reserved.
Units of Measure
Chapter 3 - Page 5
Uses of Units of Measure
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Uses of Units of Measure
Planning Products
c l
- Forecasting and consumption
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- Master scheduling
O ly
- Material requirements planning
Work in Process
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- Shop floor moves
n a e
t e r
- Resource transaction
U s
- Completion and return transactions
I n
- Inquiries and reports
Bills of Material and Engineering
l e
- Defining bills of material
c
r a - Defining engineering items
O
Copyright Oracle Corporation, 2007. All rights reserved.
Units of Measure
Chapter 3 - Page 6
Unit of Measure Class
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Unit of Measure Class
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Unit of measure classes represent groups of units of measure with similar characteristics. A
r a
unit of measure class contains a base unit of measure. You use the base unit of measure to
perform conversions between units of measure in the class. For this reason, the base unit of
O ly
measure should represent the other units of measure in the class, and be one of the smaller
l & On
units. For example, quantity is a unit of measure class and each, dozen, and gross are examples
of units of measure within the class. The unit of measure each is the base unit of measure for
this class.
n a e
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Copyright Oracle Corporation, 2007. All rights reserved.
Units of Measure
Chapter 3 - Page 7
Guided Demonstration - Creating Units of Measure
Responsibility: Inventory, Vision Operations USA
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Units of Measure
Chapter 3 - Page 8
Guided Demonstration - Creating Unit of Measure Classes
Responsibility: Inventory, Vision Operations USA
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Units of Measure
Chapter 3 - Page 9
Unit of Measure Conversions
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Units of Measure Conversions
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A unit of measure conversion is a mathematical relationship between two different units of
r a
measure. For example, 16 ounces = 1 pound, or 2.2 pounds = 1 kilogram. If you want to
transact items in units of measure belonging to classes other than their primary UOM class,
O ly
you must define conversions between the base units of measure in different UOM classes.
l & On
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Copyright Oracle Corporation, 2007. All rights reserved.
Units of Measure
Chapter 3 - Page 10
Guided Demonstration - Defining Unit of Measure Conversions
Responsibility: Inventory, Vision Operations USA
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Units of Measure
Chapter 3 - Page 11
Lot-Level Unit of Measure Conversions
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Lot-Level Unit of Measure Conversions
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Lot specific conversions enable you to perform a specific inter-class conversion for a given lot.
r a
This enables you to establish more granular control over the transactional quantities of a lot.
For example, the standard inter-class conversion for a lot controlled item is one gallon equals
O ly
15 pounds; however, when you receive a particular lot of the item, 1 gallon equals 16 pounds.
l & On
You can create a lot specific unit of measure for this instance.
You can create lot-specific unit of measure conversions for on-hand lots or lots with a zero
a e
balance. If you create a lot-specific conversion for a lot with on-hand quantities, you can
n
quantity.
t e r U s
automatically update the quantities in the system to more accurately reflect the on-hand
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Units of Measure
Chapter 3 - Page 12
Units of Measure Setup
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Units of Measure
Chapter 3 - Page 13
Practice - Defining Units of Measure
Overview
In this lab you will be doing the following:
Assumptions
You are skilled in Oracle Navigation
You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.
Tasks
m y
Defining Unit of Measure Classes
d e
Define the unit of measure class, Quantity Class with the base unit of measure Each. Use your
team number (##) to uniquely identify your unit of measure class.
ca
Defining Units of Measure
e A
c l
Define the following units of measure for your class. Use your team number (##) to uniquely
identify your units of measure.
Dozen r a
Gross O ly
Case
l & On
Setting up UOM Conversions
n a e
e r s
Set up Standard conversion for your units of measure. Use your team number to uniquely
t U
identify your class from the other teams in the classroom.
I n
Note: A Gross = 144 each, and a case = 24 each.
c l e
Setting up Lot-Level Unit of Measure Conversions
r a
Create a lot-level unit of measure conversion for item CM20001. Use your new base unit of
Units of Measure
Chapter 3 - Page 14
What types of updates can you perform on the Update Quantities window?
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Copyright Oracle Corporation, 2007. All rights reserved.
Units of Measure
Chapter 3 - Page 15
Solution Defining Units of Measure
Responsibility = Inventory, Vision Operations USA
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Defining Units of Measure
5.
c l e
Navigate to the Units of Measure window.
Units of Measure
Chapter 3 - Page 16
7. Enter the units of measure information according to the following table:
Name UOM Description
##-Dozen ##D ## Dozen UOM
## Gross ##G ## Gross UOM
## Case ##C ## Case UOM
Note: Select (M) File > New between each new unit of measure.
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8. (M) File > Save.
O ly
9. (M) File > Close form
l & On
a e
Setting up Unit of Measure Conversions
n
t e r U s
10. Navigate to the Unit of Measure Conversions window.
I n
(B) Setup > Units of Measure > Conversions
l e
11. (M) File > New
c
a
12. Enter the unit of measure conversion information according to the following table:
r
Unit Class Conversion Base Unit
Units of Measure
Chapter 3 - Page 17
##-Gross ##-Qty 144 ##-Each
##-Case ##-Qty 24 ##-Each
Note: Select (M) File > New between each new unit of measure conversion.
Note: Verify that you are creating a standard unit of measure conversion.
m y
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13. (M) File > Save.
r a
14. (M) File >Close Form.
O ly
& On
Setting up Lot-Level Unit of Measure Conversions
l
a e
Navigate to the Lot Inter-Class Unit of Measure Conversions window.
n
e r s
(N) Setup > Units of Measure > Lot Specific Conversions
t U
I n
15. Enter the following information:
Item:
l
Lot:
c e
Base Unit
CM20001
BC2500
r a Conversion:
00-Each
1
Units of Measure
Chapter 3 - Page 18
17. Enter a value in the New Primary quantity field (for example, 480).
20. What types of updates can you perform on the Update Quantities window?
m y
__________________________________________________________________________
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__________________________________________________________________________
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Copyright Oracle Corporation, 2007. All rights reserved.
Units of Measure
Chapter 3 - Page 19
Unit of Measure Reports
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Copyright Oracle Corporation, 2007. All rights reserved.
Units of Measure
Chapter 3 - Page 20
Profile Options
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Copyright Oracle Corporation, 2007. All rights reserved.
Units of Measure
Chapter 3 - Page 21
Organization Parameter Setup
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Organization Parameter Setup
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If you set the Auto Create Lot UOM Conversion parameter to Yes or User confirmation, then
r a
the system automatically creates lot-specific unit of measure conversions for items under dual
unit of measure control across the organization. The system bases the conversion on lot
O ly
quantities that you receive in the transactional unit of measure, and creates a conversion
& On
between the transactional unit of measure and the secondary unit of measure.
l
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Copyright Oracle Corporation, 2007. All rights reserved.
Units of Measure
Chapter 3 - Page 22
Implementation Considerations
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Implementation Considerations
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You can use a maximum of five decimal places for an individual unit of measure within
Oracle Inventory.
r a
O ly
Note- Inventory transactions and on hand balance supports decimal precision to 5 digits
after the decimal point. Oracle Work in Process supports decimal precision to 6
l & On
digits. Other Oracle Applications support different decimal precision. As a result of
the decimal precision mismatch, transactions another Oracle Application passes may
a e
be rounded when processed by Inventory. If the transaction quantity is rounded to
n
r s
zero, Inventory does not process the transaction. It is therefore suggested that the base
e
unit of measure for an item is set up such that transaction quantities in the base unit of
t U
measure not require greater than 5 digits of decimal precision. For example, in some
I n
industries such as the gold jewellery industry, you may need a more granular level of
l e
control than 5 decimal places. You need to carefully determine the base unit of
measure for each unit of measure class.
c
r a
Primary units of measure cannot be changed on items after they are saved.
O
Copyright Oracle Corporation, 2007. All rights reserved.
Units of Measure
Chapter 3 - Page 23
Summary
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Copyright Oracle Corporation, 2007. All rights reserved.
Units of Measure
Chapter 3 - Page 24
Defining and Maintaining
Items
Chapter 4
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Copyright Oracle Corporation, 2007. All rights reserved.
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What Is an Item?
An item is a part or service you:
c l
Purchase
r a
Sell
Plan O ly
Manufacture
l & On
Stock
n a e
Distribute
Prototype
t e r U s
I n
Items can also be containers for items as well as components you build into other items.
c l e
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Copyright Oracle Corporation, 2007. All rights reserved.
m y
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Steps to Define and Maintain Items
c l
The following are the steps for creating and maintaining items:
Define Inventory organization.
r a
Create the item templates.
O ly
Use the templates or existing items to define items.
l & On
Enter values for additional item attributes.
Assign a status to the item.
n a e
t e r U s
Enable the item in organizations.
Update the organizational-level attributes values.
I n
Assign categories to the item (optional)
Assign items to catalog groups (optional)
l e
Define item relationships (optional)
c
r a
Delete items (optional)
O
Copyright Oracle Corporation, 2007. All rights reserved.
m y
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Defining Items
c l
Define only the information you need to maintain the item. You cannot define an item at the
r a
organization level. Oracle Inventory automatically switches to the Master Item window when
you define a new item.
O ly
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Copyright Oracle Corporation, 2007. All rights reserved.
5. Select Apply.
6. Select Done.
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Item Master Organization
c l
An item master organization is a logical entity that you use to define items. You use the other
r a
organizations to store and transact inventory. After you define an item in the item master, you
can assign it to any number of other organizations.
O ly
There is no functional or technical difference between the item master organization and other
organization.
l & On
organizations; however, it is recommended that you limit the item master to an item definition
n a e
You should also define one item master organization per implementation. You can use the
t e r U s
same item master for child organizations across different ledgers. Item masters are distinct
entities with no relationship to each other. You cannot associate items in one item master
organizations.
I n
organization with another item master organization. You cannot copy items across item master
l e
Defining the Item Master Organization
c
You create the item master organization in the same way that you create other inventory
r a
organizations.
O
You use the Organization window to create the item master organization
Use the Organization Parameters window to specify the organization as the Item Master.
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m y
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Item Master
c l
Always define items in the master organization. When you define an item, Oracle
r a
automatically changes your current organization to the master organization. You may enable
your new items in as many child organizations as needed.
O ly
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Item Attributes
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Item attributes are the collection of information about an item.
r a
O ly
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Copyright Oracle Corporation, 2007. All rights reserved.
5. (T) Inventory.
6. Select the Master radio button from the Display Attributes zone.
7. Select the Org radio button from the Display Attributes zone.
8. (T) Purchasing
9. (T) Receiving
m y
11. (M) File > Close Form.
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Copyright Oracle Corporation, 2007. All rights reserved.
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Item Status
c l
You can use statuses to provide default values for certain item attributes to control the
r a
functionality of an item. The Item Status attribute has a defined set of yes or no values for the
status attributes. You apply the values to the status attributes when you choose an item status
O ly
code when you define an item. For example, in the beginning of a product development cycle
l & On
you set the Item Status attribute to Prototype with all of the status attributes defaulted to yes
except for Customer Orders Enabled. When the item is ready, you change the Item Status
a e
attribute to Active to enable all item functions.
n
r s
You can assign one or more pending statuses for an item, to be implemented on future dates.
e
These statuses become effective on their assigned effective dates. You can view the status
t
history of an item if needed.
U
I n
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Copyright Oracle Corporation, 2007. All rights reserved.
m y
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Unit of Measure Attributes
c l
You use the units of measure attributes to track your items in the warehouse. The following are
r a
the unit of measure attributes and their definitions:
O ly
Primary Unit of Measure: This is the stocking and selling unit of measure. Any
necessary conversions are based on this unit of measure. The primary unit of measure is
l & On
the default for invoices and credit memos entered in Oracle Receivables.
Tracking: The system can track the item in either the primary only or the primary and
n a e
secondary unit of measure. If the system tracks the item by the primary and secondary unit
t e r U s
of measure this is called dual unit of measure control.
Pricing: This attribute controls if pricing is based on the primary or secondary unit of
measure
I n
Defaulting: This attribute controls the behavior of dual unit of measure controlled items.
l e
- Fixed: The system stores inventory in both the primary and secondary units of
c measure. You can enter an item quantity in one unit of measure, and the system
r a converts the quantity to the secondary unit of measure and displays both quantities
O - Default: The system stores inventory in both the primary and secondary units of
measure. You can enter an item quantity in one unit of measure, and the system
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Copyright Oracle Corporation, 2007. All rights reserved.
m y
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Item Statuses and Attributes
c l
You define an item status by selecting the value check boxes for the status attribute. You can
r a
control status attributes and item status at the item level or organization level.
O ly
l & On
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t e r U s
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Copyright Oracle Corporation, 2007. All rights reserved.
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Copyright Oracle Corporation, 2007. All rights reserved.
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Copyright Oracle Corporation, 2007. All rights reserved.
m y
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Copyright Oracle Corporation, 2007. All rights reserved.
m y
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Item Attribute Relationships
Required Attributes
c l
r a
You must enter a value for the attribute based on the settings for other related attributes.
Interdependent Attributes
O ly
You can only enter certain values depending on other attribute values.
Updateable Attributes
l & On
a e
You can update values under certain conditions.
n
t e r
Control Level Dependencies
U s
You can update the control level of some attributes only under special conditions and with
n
certain consequences.
I
c l e
r a
O
Copyright Oracle Corporation, 2007. All rights reserved.
Assumptions
You are skilled at Oracle navigation.
You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.
Tasks
Viewing Item Attributes
What is the BOM Item Type for the part? _______What is the control level? ______
m y
Is this item Recipe Enabled? _____ What is the control level? ____
d e
2. Find item # AS54888 and answer the following questions about the item's attributes.
ca
What is the Item Status? _______________ What is the control level? ______
e A
l
Is a Bill of Material allowed for this item? ______ What is the control level? ______
c
r a
Can I build this item in WIP? ________________ What is the control level? _____
O ly
Are customer orders enabled for this item? _________What is the control level? _____
l & On
Is Invoicing Enabled for this item? ______________ What is the control level? _____
n a e
r
Are Internal Orders enabled for this item? _______ What is the control level? ______
t e U s
Is this item transactable in Inventory? ____________ What is the control level? ______
I n
Is this item purchasable from a Vendor? ___________ What is the control level? _____
c l e
Is this item stockable in Inventory? _______________ What is the control level? _____
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Copyright Oracle Corporation, 2007. All rights reserved.
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c l
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l & On
n a e
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I n
3.
l e
(T) Bills of Material
c
r a A BOM is allowed for item for AS20000. This attribute is controlled at the master level.
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Copyright Oracle Corporation, 2007. All rights reserved.
e A
c l
Item AS5488 Item Status is active, and master controlled.
r a
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Copyright Oracle Corporation, 2007. All rights reserved.
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Customer orders are enabled for this item, and the attribute is master controlled.
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Copyright Oracle Corporation, 2007. All rights reserved.
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Item Templates
c l
Oracle Inventory has several predefined templates that you can use to define and update items
or you can create your own templates.
r a
O ly
If you regularly define many items that share the same values for a number of attributes, you
may want to define item templates. You can only use copy once when you define an item. You
Attributes in Templates
n a e
t e r U s
You can enable attributes and assign them values in each template that you create. When you
apply a template to an item, Oracle Inventory updates only the attributes that are enabled for
I n
the template. The order in which templates are applied is extremely important.
Further Item Templates Help
l e
For more information about item templates see Item Templates, Oracle Inventory Users
Guide.
c
r a
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Copyright Oracle Corporation, 2007. All rights reserved.
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Copyright Oracle Corporation, 2007. All rights reserved.
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Copyright Oracle Corporation, 2007. All rights reserved.
2. (B) New
m y
Attribute Name Value
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a
Prepocessing Lead Time 5
Processing lead Time
Post Processing Lead Time
44
1
A c
7. Save your work.
c l e
(M) File > Save
r a
8. Close the window. O ly
(M) File > Close Form
l & On
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I n
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Copyright Oracle Corporation, 2007. All rights reserved.
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Organization Assignment and Organization Items
c l
You can enable an item in all child organizations under your master organization or choose
r a
child organizations where you use the item. Oracle Inventory propagates the item to all
organizations in which you want to enable it. You can enter or change organization-controlled
O ly
item attributes. For example, you can choose reorder point planning in one organization and
& On
min-max planning in another organization for the same item.
l
n a e
t e r U s
I n
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Copyright Oracle Corporation, 2007. All rights reserved.
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Master-Level Control
c l
An attribute you maintain at the master level has identical values across all organizations that
use the item.
r a
Organization-Level Control
O ly
An attribute you maintain at the organization level may have different values for each
organization that uses it.
l & On
Attribute Control
n a e
Some attributes can be maintained at only the master level or the organizational Level. Units of
e r s
measure are controlled at the master level. If you are using multiple organizations, then you
t U
should maintain min-max planning at the organization level.
Technical Note
I n
c l e
Master-Level Control
For example, suppose you want to ensure that items defined in two organizations are
r a
transactable at the same time in both organizations. If you make the item not transactable in
one organization, you want the same item to become not transactable in the other organization.
O Organization-Level Control
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Copyright Oracle Corporation, 2007. All rights reserved.
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Revision Control
c l
A revision is a particular version of an item, bill of material, or routing. Use the revision
r a
control to track item quantities by item revision and specify a revision for each material
transaction.
O ly
Enable revision control for items you must track version changes or changes that are
l & On
significant enough to track but do not affect the function and feature of the item.
You cannot change the revision control item attribute when an item has quantity on hand. If
n a e
revision control is controlled at the Master Item level, the check for on-hand quantity is against
t e r U s
the sum of on-hand quantity in all child organizations. If revision control is controlled at the
organizational level, the check for on-hand quantity is against the sum of on-hand quantity in
that organization.
I n
Use letters, numbers, and characters such as A, A1, 2B, and so on to define revision numbers.
l e
Letters are always in upper case and numbers may include decimals. To ensure revisions sort
c
properly, decimals should always be followed by a number. Revisions are sorted according to
r a
ASCII rules, therefore each revision must be greater than the previous revision. For example,
you cannot use revision 10 after revision 9 because, according to ASCII sorting, 10 precedes 9.
O
Copyright Oracle Corporation, 2007. All rights reserved.
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Copyright Oracle Corporation, 2007. All rights reserved.
Assumptions
You are skilled in Oracle navigation.
You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.
Tasks
Create Items
Create an item using the template you created in the previous task. Create eight items using the
Finished Goods template with the following descriptions:
m y
No Inventory Controls
d e
Locator Control ON
ca
Revision Control ON
e A
Lot Control ON
c l
Parent and Child Lot Control ON
r a
Grade Control ON O ly
Serial Number Control ON
l & On
n a e
t e r
Dual Unit of Measure Control and Lot Expiration Control ON
U s
What item attribute do you have to disable if an item if you create an item under dual unit of
I n
measure control? _________________________________________________
l e
Note: Use the following naming convention for your items, ##-Item##, and be sure to
c
enable your items in M1 Seattle and M2 Boston.
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Copyright Oracle Corporation, 2007. All rights reserved.
Create Items
5. (B) Apply.
6. (B) Done
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Copyright Oracle Corporation, 2007. All rights reserved.
e A
Org:
Org:
c l
M1 Seattle Manufacturing
M2 Boston Manufacturing
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Copyright Oracle Corporation, 2007. All rights reserved.
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13. (T) Inventory
c l
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14. Create your locator-controlled item. Enter the item name and description. Repeat steps 2-6
O ly
to copy the finished good template. Enable the following additional item attributes for your
locator-controlled item:
Name:
Description l & On
##-Item02
Locator Control:
n a e Team ## Locator Controlled Item
Prespecified
t e r U s
I n
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Copyright Oracle Corporation, 2007. All rights reserved.
e A
17. Click the Attribute Groups tab.
c l
18. (M) File > New
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19. (T) Inventory
O ly
& On
20. Create your revision-controlled item. Enter the item name and description. Repeat steps 2-6
l
a e
to copy the finished good template. Enable the following additional item attributes for your
revision-controlled item:
Name:
r n s
##-Item03
Description
n t
Revision Control:e U Team ## Revision Controlled Item
Selected
e I
c l
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Copyright Oracle Corporation, 2007. All rights reserved.
ca
22. Repeat steps 8-10 to enable the item both M1 Seattle Manufacturing, and M2 Boston
Manufacturing.
e A
23. Click the Attribute Groups tab.
c l
24. (M) File > New
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25. (T) Inventory O ly
l & On
26. Create your lot-controlled item. Enter the item name and description. Repeat steps 2-6 to
n a e
copy the finished good template. Enable the following additional item attributes for your lot-
controlled item:
Name:
t e r U s
##-Item04
Description
Lot Control:
I n Team ## Lot Controlled Item
Full Control
c e
Starting Prefix:
l
Starting Number:
A
001
r a Maturity Days:
Hold Days:
10
5
O
Copyright Oracle Corporation, 2007. All rights reserved.
e A
29. Click the Attribute Groups tab.
c l
30. (M) File > New
r a
31. (T) Inventory
O ly
& On
32. Create your parent and child lot-controlled item. Enter the item name and description.
l
a e
Repeat steps 2-6 to copy the finished good template. Enable the following additional item
Name: n
attributes for your parent and child-lot-controlled item:
r s##-Item05
Description
Lot Control:
n t e U Team ## Child and Parent Lot Item
Full Control
e I
Maturity Days: 10
c l
Hold Days:
Child Lot Enabled:
5
Selected
r a Child Generation:
Prefix:
Parent+Child
A
O Starting Number: 001
e A
35. Click the Attribute Groups tab.
c l
36. (M) File > New
r a
37. (T) Inventory
O ly
l & On
38. Create your grade-controlled item. Enter the item name and description. Repeat steps 2-6 to
copy the finished good template. Enable the following additional item attributes for your
grade-controlled item:
n a e
Name:
Description
t e r U s
##-Item06
Team ## Grade controlled item
Lot Control:
I n
Starting Prefix:
Full Control
A
c l e
Starting Number:
Maturity Days:
001
10
r a Hold Days:
Grade Controlled:
5
Selected
O Default Grade: A
e A
41. Click the Attribute Groups tab.
c l
42. (M) File > New
r a
43. (T) Inventory
O ly
l & On
44. Create your serial-controlled item. Enter the item name and description. Repeat steps 2-6 to
copy the finished good template. Enable the following additional item attributes for your
serial-controlled item:
n a e
Name:
Description
t e r U s##-Item07
Team ## Serial Controlled Item
Generation:
I n
Starting Prefix:
Predefined
A
l e
Starting Number:
c
0000001
r a
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Copyright Oracle Corporation, 2007. All rights reserved.
e A
47. Click the Attribute Groups tab.
c l
48. (M) File > New
r a
49. (T) Main
O ly
& On
50. Create your dual unit of measure and lot expiration-controlled item. Enter the item name and
l
n a e
description. Repeat steps 2-6 to copy the finished good template. Enable the following
additional item attributes to enable dual unit of measure control:
Primary:
Tracking:
t e r U s00-Each
Primary and Secondary
Pricing:
Secondary:
I n Primary
00-Meter
c l e
Defaulting:
Deviation +
No Default
0
r a Deviation - 0
O
Copyright Oracle Corporation, 2007. All rights reserved.
Expiration Action: O ly 5
Dispose
Lot Control:
Starting Prefix:
l & On Full Control
a e
A
Starting Number:
Maturity Days:
r n s
001
10
Hold Days:
n t e U 5
e I
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Copyright Oracle Corporation, 2007. All rights reserved.
e A
55. (M) File > Save
c l
56. (M) File > Close Form
r a
O ly
Create a Unit of Measure Conversion for your Dual UOM controlled item
& On
57. Navigate to the Unit of Measure Conversions window
l
a e
58. (N) Setup > Units of Measure > Conversions
n
59. (T) Inter-Class
t e r U s
I n
60. Enter the following information
Item:
e
##-Item-08
c l
Destination:
Conversion:
##-Meter
a
.05
O r
Copyright Oracle Corporation, 2007. All rights reserved.
d e
62. (M) File > Close Form.
ca
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Copyright Oracle Corporation, 2007. All rights reserved.
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Restricting Items to Subinventories
c l
You can assign items to a given subinventory. Assigning items to a subinventory does not
r a
restrict the subinventory to that list of items. Rather, the items are restricted to that
subinventory. Thus, you can always issue and receive unrestricted items to any subinventory,
O ly
but you can only issue and receive restricted items to those particular subinventories. You
l & On
activate the list of subinventories for a restricted item when you set the Restrict Subinventories
attribute. You also use the item-subinventory relationship to specify valid subinventories for
a e
zero quantity cycle counts for an item, and to specify items for an ABC analysis performed at
n
t e r
the subinventory level. In these cases you do not have to set the Restrict Subinventories
s
attribute, only establish the relationship between the item and subinventory.
U
I n
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Copyright Oracle Corporation, 2007. All rights reserved.
3. (B) Find
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Copyright Oracle Corporation, 2007. All rights reserved.
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Item Relationships
c l
You can define relationships between items. This allows you to search for items through these
r a
relationships. Except in Oracle Purchasing, these relationships are for inquiry and reporting
purposes only. For example, you can create an item relationship for substitute items or items
for which you can up-sell.
O ly
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Copyright Oracle Corporation, 2007. All rights reserved.
3. (B) New.
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Copyright Oracle Corporation, 2007. All rights reserved.
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Categories and Category Sets
c l
A category is a logical classification of items that have similar characteristics. A category set
r a
is a distinct grouping scheme and consists of categories. You can define an unlimited number
of categories and group subsets of your categories into category sets. A category can belong to
O ly
multiple category sets. You can assign a category to a category set either at the time you
n a e
When you install Oracle Inventory, you must assign a default category set to each of the
t e r U s
following functional areas functional areas: Inventory, Purchasing, Order Management,
Costing, Engineering, and Planning. Product Line Accounting is seeded with the Inventory
I n
category set. Oracle Inventory makes the default category set mandatory for all items defined
for use by a functional area. If your item is enabled for a particular functional area you cannot
c l e
delete the item's corresponding default category set assignment. Default category sets are
required so that each functional area has at least one category set that contains all items in that
a
functional area.
r
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Copyright Oracle Corporation, 2007. All rights reserved.
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Assigning Items to Categories
c l
When you enable an item in a functional area, the item is assigned to the default (mandatory)
r a
category set and default category of the functional area. You can override the category set's
default category. In addition, you can manually assign your item to an unlimited number of
O ly
category sets. You may optionally assign an item to more than one category within a category
& On
set based on the category set definition.
l
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Copyright Oracle Corporation, 2007. All rights reserved.
Assumptions
Replace ## with your terminal number.
You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.
Tasks
Create Item Categories
m y
Assign Categories to Your Items
d e
3. Assign the following items your categories:
Item
c
Category a
AS18947
e
##No Controls
A
AS54888
c l ##No Controls
##Item01
##Item02
r a ##No Controls
##Controls
##Item03 O ly ##Controls
##Item04
l & On ##Controls
##Item05
n a e ##Controls
##Item06
##Item07
t e r U s ##Controls
##Controls
##Item08
I n ##Controls
c l e
r a
O
Copyright Oracle Corporation, 2007. All rights reserved.
2. (B) New
m y
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c l
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O ly
l & On
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4. (M) File > Save
I n
5.
l e
(M) File > Close Form
c
a
Create a Category Set
r
O6. Navigate to the Category Sets window.
m y
d e
ca
e A
c l
r a
O ly
l & On
n a e
8. (M) File > Save
t e r U s
9.
n
(M) File > Close Form
I
c l e
Assign Categories to Your Items
r a
O (N) Items > Master Items
m y
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Item Catalogs
c l
To define your catalog, you set up as many distinct item catalog groups as you need to partition
r a
your Item Master. Each group has unique characteristics (called a descriptive element) that
completely describe items belonging to the group. When you assign an item to an item catalog
O ly
group, you define values for the descriptive elements that apply to your item. For example, an
l & On
item catalog group called mug could have a descriptive element called material. Possible
values for material might be glass or ceramic.
Descriptive Elements
n a e
t e r U s
You can define any number of descriptive elements for an item catalog group. You can also
describe whether the descriptive element is required at item definition, and whether the
I n
descriptive element value is included by default in the item catalog description. Descriptive
element values can be concatenated and used to create an item's description. You turn this
c l e
feature off or on for each descriptive element in a catalog group. Turn Description Default on
for any element you want included in a concatenated description. You create a concatenated
r a
description when assign an item to an item catalog group.
O
Copyright Oracle Corporation, 2007. All rights reserved.
5. (B) Details
e
Style of mug Selected
A Selected
3
4
Capacity
Material
c l Number of ounces
What is it made
Selected
Selected
Selected
Deselected
r a of?
c
r a (N) Items > Master Items
Update the above items with item catalog descriptive elements. If you used the save and proceed
option when you created your mugs you will not have to re-query them for the following steps.
Enter ## Mug 1 in to the item field
m y
(B) Find
d e
15. (M) Tools > Catalog
e A
Country:
Capacity:
US
12 oz
c l
Style
Material: r a
Covered
Pewter
O ly
17. (B) Update Description
l & On
18. (M) File > Save
n a e
t e r U s
19. Repeat Steps 14-17 for the rest of your items according to the following table:
Item
I n Country Capacity Style Material
## Mug 2
c l e US 12 oz Uncovered Copper
r a
## Mug 3
## Mug 4
US
US
16 oz
16 oz
Covered
Uncovered
Plastic
Glass
O
Copyright Oracle Corporation, 2007. All rights reserved.
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Copyright Oracle Corporation, 2007. All rights reserved.
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Deletions Constraints and Deletion Groups
c l
You cannot delete an item if you have on-hand quantity or have performed any type of action
on the item.
r a
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Copyright Oracle Corporation, 2007. All rights reserved.
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Copyright Oracle Corporation, 2007. All rights reserved.
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Copyright Oracle Corporation, 2007. All rights reserved.
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Copyright Oracle Corporation, 2007. All rights reserved.
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Copyright Oracle Corporation, 2007. All rights reserved.
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Copyright Oracle Corporation, 2007. All rights reserved.
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Copyright Oracle Corporation, 2007. All rights reserved.
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Copyright Oracle Corporation, 2007. All rights reserved.
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Implementation Considerations
c l
You should set all costing attributes at the organizational level because costing is most
r a
commonly done at organizational level. WIP requires costing at org level to set up WIP
accounting classes. Costing of individual items is specific to individual organizations because
of location and other considerations.
O ly
Costing Method
l & On
Costing method is chosen and set at the inventory organization level. Within a set of books, an
n a e
enterprise can have multiple cost methods specified at each organization level. For example, a
are as follows:
t e r U s
company may have one average cost org and one standard cost org. Available costing methods
Standard
Weighted I n
l
Average
c e
r a FIFO
LIFO
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Copyright Oracle Corporation, 2007. All rights reserved.
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Copyright Oracle Corporation, 2007. All rights reserved.
y
Chapter 5
em
a d
A c
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Copyright Oracle Corporation, 2007. All rights reserved.
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Lot Control Overview
c l
A lot can represent a quantity of an item that shares the same specifications, one or more
r a
receipts from the same vendor, or whatever you choose. You can divide each lot into child lots
that can reflect whatever characteristics you choose for items within the lot. For example, you
O ly
may divide a lot of items from a supplier into child lots to reflect differences in quality
l & On
specifications. When you allocate stock for production, you can allocate specific lots to a
production batch based on the potency, age, or other item characteristics. Oracle Inventory
a e
provides complete lot number support for inventory transactions. You can enable lot control
n
e r
for specific items in your inventory. For items under lot control, you assign lot numbers to each
s
receipt, and thereafter reference the same lots each time you perform material transactions.
t U
This enables you to have tight control over lot controlled items in your inventory.
I n
All of the material produced in a manufacturing batch may be assigned a lot number. For
e
example, you can create a manufacturing batch of penicillin and assign it parent lot number
l
A100. You can then use parent lot A100 to create child lot A100_01 to make pills, child lot
c
A100_02 to create emulsion, and child lot A100_03 to create capsules. Each child lot has the
r a
same ingredients as the original parent lot A100, but they are in a different format.
O
Copyright Oracle Corporation, 2007. All rights reserved.
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Child Lots
c l
A child lot is a subdivision of a lot that you can use if you produce a lot over a period of time,
r a
but still want to group the material as a single lot. Using a child lot maintains the integrity of
the lot, but enables you to consume it in manageable pieces. When you process transactions for
O ly
material under child lot control, you enter the child lot as the lot number. The system also
& On
maintains a genealogy relationship between the parent lot and the child lot.
l
n a e
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Setting up Lot Control
Organization Parameters
c l
r a
You use the Organization Parameters window to specify whether lot numbers should be
O ly
unique for an item. If you do not establish lot number uniqueness, you can assign the same lot
number to multiple items in the same organization and across organizations. If you control lot
l & On
number uniqueness at the item level, you can assign a specific lot number only to one item in
the same organization and across organizations. When you perform transactions, Oracle
a e
Inventory checks the lot number uniqueness control to generate lot number defaults.
n
t e r U s
You use the Organization Parameters window to specify how to generate lot number defaults.
You can generate sequential lot numbers based on an alphanumeric prefix that you specify
I n
when you define an item. Oracle Inventory can also generate lot number defaults for the entire
organization. In this case, you must define a lot number prefix at the Organization level in the
c l e
Organization Parameters window.
If you do not want Oracle Inventory to automatically generate lot number defaults for you, you
r a
can enter your own lot numbers when you receive items. You can always override lot number
defaults. For more information See Defining Organization Parameters, Oracle Inventory User's
O Guide.
m y
Define Accounting Information
d e
7. (B) Others > Accounting Information.
c a
8. Enter the following accounting information:
Primary Ledger:
e
Vision Operations A
Legal Entity:
Operating Unit:
c l Vision Operations
Vision Operations
l & On
a e
10. (B) Others > Inventory Information > (T) Inventory Parameters
n
Organization Code:
t r U s
11. Enter the following inventory parameters:
e M12
Calendar: n
Item Master Organization:
I Vision Operations
Vision01
c l e
Demand Class:
Move Order Timeout Period:
Blank
60 Days
d e
Overhead
Resource
01-000-1430-0000-000
01-000-1440-0000-000
c a
Expense
e
01-520-7530-0000-000 A
15. Other Accounts
c l
r a
16. Enter the following other account information:
O ly
Account Type
l & On Account
Purchase Price Variance
n a e 01-520-5210-0000-000
Invoice Price Variance
Inventory AP Accrual
t e r U s
01-520-5220-0000-000
01-000-2220-0000-000
Sales
I n 01-520-4110-0000-000
c l e
Cost of Goods Sold Account 01-450-5110-0000-000
r a
17. (T) Revision, Lot, Serial And LPN
e
Blank
A
23. (T) Inter-org Information
c l
24. Enter the following information:
r a
Predefined Percent: O ly
Inter-organization Transfer Charge: Predefined percent
10%
Transfer Credit:
l & On 01-520-5290-0000-000
Purchase Price Variance:
Receivable:
n a e 01-520-5210-0000-000
01-000-1810-0000-000
Payable:
Intransit Inventory
t e r U s 01-000-2370-0000-000
01-000-1460-0000-000
r a
26. (B) Others > Receiving Information
l & On
a e
(M) > View > Query By Example > Enter
n
t e r
34. Enter %M12% in the Name field.
U s
I n
(M) > View > Query By Example > Run
l e
35. (T) Other Details
c
r a
36. Enter the following information:
Inventory Organization: M12 Orlando MFG
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Lot Number Uniqueness
c l
You use the Organization Parameters window to specify whether lot numbers should be unique
r a
for an item. If you do not establish lot number uniqueness, you can assign the same lot number
to multiple items in the same organization and across organizations. If you set lot number
O ly
uniqueness to Across Items, you can assign a specific lot number only to a single item. When
n a e
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I n
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Copyright Oracle Corporation, 2007. All rights reserved.
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Setting up Lot Control
Item Attributes
c l
r a
You can establish lot control for an item when you define it. You can select either No control
O ly
or Full control. If you choose Full Control, then you must assign lot numbers when you
receive the item into inventory. Thereafter, when you transact the item, you must provide a lot
l & On
number that you specified when you received the item.
You can update lot control options for an item if it has zero on hand quantity. In addition, you
n a e
cannot change lot control when open internal orders or inter-org intransit shipments exist. A
t e r U s
lot number is a combination of an alphanumeric prefix and a numeric suffix. When you define
an item, you can specify the starting lot prefix and the starting lot number. Oracle Inventory
l e
Shelf life is the amount of time that an item can reside in inventory before it expires. When
c
defining items under lot control, you can choose no control, a certain number of item shelf life
r a
days from the date that you receive the item, or a user-defined expiration date for each lot. The
system does not consider the expired lot as on-hand supply when it performs min-max, reorder
O
Copyright Oracle Corporation, 2007. All rights reserved.
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O ly
l & On
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I n
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Copyright Oracle Corporation, 2007. All rights reserved.
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Assigning Lot Numbers
c l
You must assign lot numbers when you receive items under lot control. You can also add
r a
quantities to existing lot numbers and split an inventory receipt into several lots, if necessary.
Oracle Inventory uses the default lot number generation method that you entered in the
O ly
Organization Parameters window to determine lot numbers. You also enter the lot prefix and
l & On
starting lot number in the Item Master window when you create an item. If the item is under
user-defined expiration date Lot Expiration (shelf life) Control, you must specify the expiration
date for the lot.
n a e
r s
You can either use the lot master to generate new lot numbers or assign lot numbers when you
e
perform transactions. When you create the lot, the system determines the lot origination type.
t U
If you create the lot on the lot master, the origination type is lot master. If you generate the lot
I n
while performing a transaction, the origination type is Inventory. See Item Lots and Assigning
c l e
Lots Within Transactions, Oracle Inventory Users Guide for more information.
Maintaining Lot Information
r a
You can update the expiration date of lots for items under lot expiration (shelflife) control.
You can view all lots that you created in your current organization and the supplier lot
m y
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Expired Lots
c l
You can assign lot control shelf life days, or enter a lot expiration date to determine when a lot
r a
expires. The expiration date controls the availability of the lot for transacting and planning
purposes. An expired lot:
O ly
Is not considered as on-hand supply when you are performing min-max, reorder point, or
MRP planning calculations.
l & On
Cannot be reserved for a date beyond the expiration date.
n a e
Can be transacted and is included in on-hand quantities.
e r s
Is included in all inquiries and reports, including inventory valuation reports
t U
Is included in a cycle count and count entry and adjustments are allowed
I n
Is included in a physical inventory and tag entry and adjustments are allowed
l e
Lot Expiration Action
c
A lot expiration action is the action that you perform on a lot when it expires. You can assign a
r a
default lot expiration to an item on the Item Master or when you generate a lot. To associate a
lot expiration action with a lot, you must define shelf life days for the item.
O
Copyright Oracle Corporation, 2007. All rights reserved.
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Disabled Lots
c l
Disabling a lot only prevents it from appearing in a list of values when you are performing
r a
receipt transactions. If you type in the lot number, it is valid and accepted even though it was
not in the list of values. Disabling is used only for tailoring this specific instance of the list of
values for lot numbers. A disabled lot:
O ly
calculations
l & On
Is included in available to transact, available to promise, and available to reserve
n a e
Is included as on-hand supply when you are performing min-max, reorder point or MRP
planning calculations
t e r U s
Is included as on-hand in all inquiries and reports, including inventory valuation report
I n
Can be transacted with Inventory functions and the Transaction Open Interface
Can be reserved
c l e
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Copyright Oracle Corporation, 2007. All rights reserved.
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Copyright Oracle Corporation, 2007. All rights reserved.
4. (B) Apply
5. (B) Done
6. (T) Inventory
O ly
& On
8. (M) File > Save
n e
M1 Seattle Manufacturing
t
M2 Boston Manufacturing U
e
11. (M) File > Save I
c l
a
12. (M) File > Close Form
r
O13. Navigate to the Lots window.
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l & On
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Copyright Oracle Corporation, 2007. All rights reserved.
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Copyright Oracle Corporation, 2007. All rights reserved.
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l & On
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Copyright Oracle Corporation, 2007. All rights reserved.
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l & On
n a e
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Copyright Oracle Corporation, 2007. All rights reserved.
Assumptions
You created lot control, parent and child lot control, grade control, and lot expiration
controlled items in the previous practice.
You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.
Tasks
Generating Lots
m y
Generate a lot for the following items:
d e
## - Item04
ca
##- Item05
e A
c l
a
## - Item06
## - Item 08 r
O ly
1.
& On
What is the origination type? _____________________________
l
2. What field
n a e
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I n
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Copyright Oracle Corporation, 2007. All rights reserved.
2. (B) New
3. Enter Item ##-Item04 in the Item field where ## represents your team number.
4. Press Enter.
m y
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ca
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c l
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O ly
l & On
n a e
t e r U s
5. (B) Generate Lot
I n
6.
l e
(M) File > Save
c
r a
O
Copyright Oracle Corporation, 2007. All rights reserved.
d e
8. Enter item ##-Item05 in the Item field where ## represents your team number.
ca
9. Press Enter.
e A
c l
r a
O ly
l & On
n a e
t e r U s
I n
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Copyright Oracle Corporation, 2007. All rights reserved.
d e
14. Enter item ##-Item06 in the Item field where ## represents your team number.
ca
e A
c l
r a
O ly
l & On
n a e
t e r U s
I n
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Copyright Oracle Corporation, 2007. All rights reserved.
d e
16. Where does the Grade field default from? ______________
ca
17. (M) File > Save
e A
18. (M) File > New
c l
r a
19. Enter item ##-Item08 in the Item field where ## represents your team number.
O ly
l & On
n a e
t e r U s
I n
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Copyright Oracle Corporation, 2007. All rights reserved.
d e
21. Enter the current date in the Origination Date field.
ca
e A
c l
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O ly
l & On
n a e
t e r U s
I n
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Copyright Oracle Corporation, 2007. All rights reserved.
e A
c l
Note: The dates do not appear in these fields
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l & On
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Copyright Oracle Corporation, 2007. All rights reserved.
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l & On
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Copyright Oracle Corporation, 2007. All rights reserved.
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l & On
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Copyright Oracle Corporation, 2007. All rights reserved.
4. (T) Inventory.
m y
8. Enter the following revision information:
Revision: B
d e
Revision Label:
Description:
B
ca
Effective Date:
Lap Top Assembly Revision
Today's Date.
e A
9. (M) File > Save.
c l
10. (M) File > Close Form.
r a
Enabling Lot Control O ly
11. (N) Items > Organization Items.
l & On
n a e
12. Find item AS18456.
c l e
15. Enter the starting lot prefix.
r a
16. Enter the lot starting number.
O
Copyright Oracle Corporation, 2007. All rights reserved.
r a
29. Enter the following transaction information:
Type:
O ly
Miscellaneous receipt
Account:
& On
Miscellaneous
l
30. Choose Transaction Lines.
n a e
Item:
t e r
AS18456
U s
31. Enter the following receipt information:
Revision:
I
Subinventory: FGIn B
l e
Quantity:
c
10
r a
32. Choose Lot /Serial.
38. Select the first available serial number from the list of values.
Note: The End Serial Number field populates automatically according to the transaction
quantity.
m y
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Copyright Oracle Corporation, 2007. All rights reserved.
m y
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Serial Numbers Overview
c l
A serial number is an alphanumeric piece of information you assign to an individual unit of an
r a
item. You use serial numbers to track individual item units. Serial number control is a system
technique for enforcing the use of serial numbers during a material transaction. You can use
O ly
serial numbers to track items over which you want to maintain very tight control. One serial
l & On
number is assigned to per unit of an item.
For more information on setting up serial number control, refer to the online help:
n a e
(Help) Oracle Manufacturing Applications > Oracle Inventory > Items > Lot and Serial
t e r U s
Number Control > Setting Up Serial Number Control
I n
c l e
r a
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Copyright Oracle Corporation, 2007. All rights reserved.
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Serial Number Generation
c l
How you set up serial number control at the master item level determines serial number
r a
generation. If you specify No Control as the serial number control type, then the system does
not enforce serial number control. If you specify Predefined as the serial number control type,
O ly
then you must predefine serial numbers for that item. If you select At inventory receipt or At
l & On
sales order issue, then you can optionally predefine serial numbers for the item.
Oracle Inventory uses the starting serial number prefix and the starting serial number you
a e
specify in the Item window to load the number of predefined serial numbers you request. You
n
t e r U s
can load as many serial numbers as you want for any item under serial number control.
The process of generating serial numbers is done through a concurrent report. This process
l e
For more information on setting up serial number control, refer to the online help:
c
(Help) Oracle Manufacturing Applications > Oracle Inventory > Items > Lot and Serial
r a
Number Control > Setting Up Serial Number Control
O
Copyright Oracle Corporation, 2007. All rights reserved.
m y
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Serial Uniqueness
c l
You use the Organization Parameters window to choose a type of serial number uniqueness for
r a
your organization. You can choose to enforce uniqueness Within inventory items, Within an
organization, or Across organizations. The three levels for serial uniqueness are cumulative,
and the definitions are as follows:
O ly
l & On
Within Inventory Items: Once you assign a serial number to a particular item you cannot
assign the same serial number to the same item regardless of the organization. For
a e
example if you assign serial number SN100 to item A, you cannot assign serial number
n
r s
SN100 to any other instance of item A in any organization. This also includes CTO items
e
derived from base model A. However you could receive item B with serial number
t
SN100 in any organization.
U
I n
Within an Organization: In addition to the Within Inventory Items restrictions, the same
c l e
serial number cannot exist twice within the same organization. For example, if you assign
SN100 to item A, you cannot receive item B with the serial number SN100 in the same
r a organization. You can, however, receive item B with the serial number SN100 in any
other organization.
O
Copyright Oracle Corporation, 2007. All rights reserved.
m y
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l & On
n a e
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I n
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Copyright Oracle Corporation, 2007. All rights reserved.
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l & On
n a e
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I n
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Copyright Oracle Corporation, 2007. All rights reserved.
Assumptions
You are skilled in Oracle Navigation.
You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.
Tasks
Generate Serial Numbers
e A
2.
c l
Find the serial numbers you generated. What state are the serial numbers in?
r a
_______________________________________________________
O ly
l & On
n a e
t e r U s
I n
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Copyright Oracle Corporation, 2007. All rights reserved.
m y
3. (B) OK.
d e
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l & On
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I n
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Copyright Oracle Corporation, 2007. All rights reserved.
5.
(B) Submit
(B) Yes ca
e A
c l
r a
O ly
l & On
n a e
6. (M) File > Save
t e r U s
7. I
(M) File > Close Form n
c l e
Find Serial Numbers
r
8. a Navigate to the Serial Numbers window.
O
Copyright Oracle Corporation, 2007. All rights reserved.
If you place your cursor in the item field then you can enter information in that field.
m y
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l & On
n a e
10. (B) Find
t e r U s
I n
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Copyright Oracle Corporation, 2007. All rights reserved.
ca
12. (M) File > Close Form
e A
c l
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O ly
l & On
n a e
t e r U s
I n
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Copyright Oracle Corporation, 2007. All rights reserved.
m y
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Lot Genealogy
c l
Lot genealogy tracks the relationship between lots and provides lot traceability that results
r a
from inventory transactions. This includes all lot splits, merges, and translations. Lot
genealogy also enables you to view where a particular lot is used. For example, one of your
O ly
suppliers informs you that they supplied you with contaminated sugar, which needs to be
l & On
recalled, and you used this sugar as an ingredient in the production of orange juice. You can
use lot genealogy to find each lot of orange juice that contain the contaminated lots of sugar.
a e
You can use lot genealogy to view the work order details for a WIP job, material and pending
n
t e r
transactions, and quality results for both WIP jobs and process batches. Oracle Process
s
Manufacturing does not support serial numbers or serial genealogy.
U
I n
c l e
r a
O
Copyright Oracle Corporation, 2007. All rights reserved.
2. Select an item
3. (B)View Genealogy
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l & On
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I n
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Copyright Oracle Corporation, 2007. All rights reserved.
m y
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Serial Genealogy
c l
Serial genealogy tracks the transaction and multilevel composition history of any serial-
r a
controlled item from receipt to customer sale. The composition genealogy is captured through
material transactions in Oracle Work in Process and Oracle Process Manufacturing. The serial
O ly
genealogy appears in a graphical display, and you can trace an assembly down through all of
l & On
its components or from the component to an assembly. This genealogy tracing enables you to
expedite problem isolation and improve customer response times. Serial genealogy also helps
a e
you to track and regulate supplier performance and quality.
n
r s
You can view the transaction history of the serial across all organizations within an operating
e
unit and view the current organization where the serial resides. When issuing serialized
t U
components to serial controlled assemblies, you must associate the component serial number
I n
with the assembly serial number. If the component has a supply type of Push, the association
e
occurs at WIP Issue. If the component has a supply type of Operation Pull, the association
l
occurs at WIP Move. If the component has a supply type of Assembly Pull, the association
c
occurs at WIP Completion. If the item is under lot control, then you can also view the lot
r a
genealogy for the same item. When you view the genealogy of the item, the system lists the
O item number, followed by the lot number, and finally the serial number.
m y
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y
Chapter 6
em
a d
A c
c l e
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O ly
l & On
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Copyright Oracle Corporation, 2007. All rights reserved.
Transaction Setup
Chapter 6 - Page 1
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Copyright Oracle Corporation, 2007. All rights reserved.
Transaction Setup
Chapter 6 - Page 2
R12 Transaction Setup
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Transaction Setup
Chapter 6 - Page 3
Objectives
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Transaction Setup
Chapter 6 - Page 4
Overview
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Transactions
c l
A transaction is an item movement into, within, or out of inventory. A transaction changes the
r a
quantity, location, planning responsibility, or cost of an item. Oracle Inventory supports a
number of predefined and user-defined transaction types. Every material movement has a
O ly
corresponding set of accounting transactions that Oracle Inventory automatically generates. All
l
number) you enable for your items.& On
transactions validate the various controls (revision, locator, lot, dual unit of measure, and serial
a e
For more information about transaction see Overview of Inventory Transactions, Oracle
n
Inventory Users Guide.
t e r U s
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Copyright Oracle Corporation, 2007. All rights reserved.
Transaction Setup
Chapter 6 - Page 5
Inventory Transactions
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Inventory Transactions
Inventory transactions enable you to:
c l
r a
Receive items into your organization.
O ly
Issue items out of your organization.
Transfer items from one subinventory in your organization to another subinventory in the
same organization
l & On
a e
Transfer items between organizations
n
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Copyright Oracle Corporation, 2007. All rights reserved.
Transaction Setup
Chapter 6 - Page 6
Move Orders
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Move Orders
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Move orders are requests for the movement of material within a single organization. They
r a
formalize the process to request the movement of material within a warehouse or facility for
purposes like replenishment, material storage relocations, and quality handling. Move orders
O ly
are generated manually or automatically depending on the source type. To request a material
n a e
A move order requisition is a manually generated request for a move order. It is available for
t e r U s
subinventory transfers and account transfers. Once a requisition has been approved, it becomes
a move order. These requests can optionally go through a workflow-based approval process
I n
before becoming move orders. For more information about move order requisitions see
Generating Move Order Requisitions, Oracle Inventory Users Guide.
c l e
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Transaction Setup
Chapter 6 - Page 7
Transaction Source Types
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Transaction Source Type
c l
Oracle Inventory uses a transaction source type with a transaction action to uniquely identify
r a
the type of transaction performed. You can define additional source types. Predefined
transaction types are as follows:
Purchase Order O ly
Account Alias
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Account
Move Order
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Internal Order
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Standard Cost Update
Internal Requisition
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Sales Order
c
Cycle Count
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Periodic Cost Update
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Transaction Setup
Chapter 6 - Page 8
RMA (Return Material Authorization)
Inventory
Job or Schedule
External Requisition
Layer Cost Update
Project Contract
When you perform a transaction, you specify a transaction type and a source. For example, for
a PO receipt transaction, the transaction source type is Purchase Order and the actual PO
number is the source.
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Chapter 6 - Page 9
Transaction Action
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Transaction Action
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You use transaction actions with a source type. A transaction action identifies a transaction
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type. Oracle Inventory provides the following transaction actions:
Issue from stores
Subinventory transfer O ly
Direct organization transfer
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Cycle count adjustment
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Intransit receipt
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Physical inventory adjustment
U s
Cost update
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Intransit shipment
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Receipt into stores
c
Delivery adjustments
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WIP scrap
O Assembly completion
Transaction Setup
Chapter 6 - Page 10
Assembly return
Negative component issue
Negative component return
Staging Transfer
Ownership Transfer
Logical Issue
Logical Delivery Adjustment
Retroactive Price Adjustment
Logical Receipt
Delivery Adjustment
Lot Split
Lot Merge
Lot Translate
Lot Update Quantity
Logical Expense Requisition Receipt
Planning Transfer
Ownership Transfer
Logical Intercompany Sales
Logical Intercompany Receipt
Logical Intercompany Receipt Return
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Logical Intercompany Sales Return
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Container Pack
Container Unpack
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Container Split
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Cost Group Transfer
Logical Intransit Receipt
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Logical Intransit Shipment
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Retroactive Price Update
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Container Transaction
COGS Recognition
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Residual Quantity Issue
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Residual Quantity Return
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Transaction Setup
Chapter 6 - Page 11
Transaction Reasons
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Transaction Setup
Chapter 6 - Page 12
Transaction Types
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Transaction Types
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A transaction type is the combination of a transaction source type and a transaction action. It is
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used to classify a particular transaction for reporting and querying purposes. Oracle Inventory
also uses transaction types to identify certain transactions to include in historical usage
O ly
calculations for ABC analysis or forecasting. A number of transaction types are predefined in
l & On
Oracle Inventory. You can also create custom transaction types.
You use the Transaction Types window to define additional transaction types to customize
a e
transaction entry. A user-defined transaction type is a combination of a user-defined
n
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transaction source type and a predefined transaction action. For example, if you frequently
e
donate items to charity, you might want to define a transaction source type called charity and a
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transaction type called Issue to Charity. In this case, the transaction action would be Issue
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from Stores. You would then use the Miscellaneous Transactions window to actually issue an
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item to charity, using the Issue to Charity transaction type. You would also specify the actual
l
charity to which you are issuing, such as Goodwill, and the expense account that specifies the
c
source Goodwill. For more information about transaction types see Transaction Types, Oracle
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Inventory Users Guide.
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Transaction Setup
Chapter 6 - Page 13
Guided Demonstration - Creating Customized Transactions
Responsibility: Inventory, Vision Operations USA
O ly
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11. (M) File > Save.
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14. (M) File > New. I
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15. Use the following information to define a transaction reason.
r a Name:
Description:
Goodwill
Transaction Setup
Chapter 6 - Page 14
16. (M) File > Save.
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Transaction Setup
Chapter 6 - Page 15
Predefined Transaction Types
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Predefined Transaction Types
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Oracle predefines transaction types in the system. The table in the slide contains a few
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examples of predefined transaction types. For more information on Predefined Transaction
types see Transaction Types, Oracle Inventory Users Guide.
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Transaction Setup
Chapter 6 - Page 16
Transaction Managers
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Transaction Setup
Chapter 6 - Page 17
Running Transaction Managers
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Running Transaction Managers
Cost Transaction Manager
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The material cost transaction manager costs material transactions in Oracle Inventory and
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Oracle Work in Process in the background.
Lot Move Transaction Manager
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The resource cost transaction manager processes resource transactions in Oracle Work in
n a e
Process and resource transactions you import from barcode readers, payroll systems, time
cards, routing sheets, and custom data entry forms using the Open Resource Transaction
Interface.
t e r
Material Transaction Manager
U s
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The material transaction manager immediately executes a material transaction after you save
your changes in a transaction window. By starting the transaction manager, you can determine
l e
how to execute transactions: immediately through immediate concurrent request submissions,
c
or through periodic concurrent request submissions. You define this transaction mode for
r a
individual transaction windows in the Personal Profile Values window.
Transaction Setup
Chapter 6 - Page 18
The move transaction manager processes move transactions in Oracle Work in Process and
move transactions you import from devices such as portable bar code readers or your custom
data entry forms using the Open Move Transaction Interface.
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Copyright Oracle Corporation, 2007. All rights reserved.
Transaction Setup
Chapter 6 - Page 19
Creating Picking Rules
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Creating Picking Rules
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You can create picking rules that enable you determine which material to pick and the order in
r a
which material is picked for sales orders, process manufacturing batches, or work in process
jobs. Oracle Inventory reviews the picking criteria order and the options for each criterion.
O ly
You can create rules based on the following restrictions:
Lot shelf life days
l & On
Single lot - controls whether the system can allocate multiple lots for a particular demand
n a e
Partial lot controls whether the system can allocate quantities of a lot less than the total
lot quantity available
t e r U s
Customer specification matching to require quality specification matching
I n
You can also create sort criteria which determines which material is picked first:
Lot
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Revisione
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Subinventory
Locator
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Transaction Setup
Chapter 6 - Page 20
After you create a rule you assign it in the rules workbench. The rule that you created on the
Inventory Picking Rules page appears on the Rules Workbench. The system automatically
assigns a sequence number and return type to the rule. You can modify the sequence number,
but you cannot modify the return type. The return type is a strategy, rule, or value.
You can assign your rule to any combination of criteria the Rules Workbench displays. For
example, if you create a picking rule that allocates material by lot number in ascending order
followed by locator in ascending order, you can assign it to an item in the Rules Workbench.
This means for picking, the system allocates the lowest lot number of the item in the lowest
locator number where the item resides.
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Transaction Setup
Chapter 6 - Page 21
Guided Demonstration - Creating Picking Rules
Responsibility: Inventory, Vision Operations USA
6. (B) Assignment
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7. Assign the rule to the following item:
Item: AS18947
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8. (M) File > Save
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9. (M) File > Close Form
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10. (M) File > Close Form
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Transaction Setup
Chapter 6 - Page 22
Account Aliases
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Aliases
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An account alias is an easily recognized name or label representing a general ledger account
r a
number. You can view, report, and reserve against an account alias. During a transaction, you
can use the account alias instead of an account number to refer to the account.
O ly
You must create an inventory account alias for each GL account if you wish to use an alias for
& On
that GL account in inventory transactions. Oracle Inventory does not honor GL account aliases.
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Transaction Setup
Chapter 6 - Page 23
Accounting Periods
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Accounting Periods
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Oracle Inventory uses accounting periods to group material and work in process transactions
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for accounting purposes. An accounting period must be open for you to complete a transaction;
that is, the transaction date you enter must fall within the beginning and ending dates you
define for the period.
O ly
Closing Accounting Periods
l & On
You can close the earliest accounting period with a status of Open or Error. An automatic
n a e
general ledger transfer is processed when you close an accounting period.
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Transaction Setup
Chapter 6 - Page 24
Guided Demonstration - Opening Accounting Periods
Responsibility: Inventory, Vision Operations USA
4. (B) OK
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Transaction Setup
Chapter 6 - Page 25
Material Shortage Alerts and Notifications
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Material Shortage Alerts and Notifications
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A material shortage occurs whenever outstanding demand exceeds the available quantity for
r a
incoming supply. During a receipt transaction, Oracle Inventory checks to see if the material
received is needed elsewhere in the organization. If a shortage exists, the system notifies you
O ly
either by a realtime material shortage alert or a workflowbased notification. Set up shortage
l & On
parameters to enable the system to send material shortage alerts and notifications. For more
information see Defining Shortage Parameters, Oracle Inventory Users Guide.
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The following receipt transaction windows can generate shortage alerts and notifications.
n
Receipts
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Receiving Transactions r U s
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Miscellaneous Transactions
WIP Material Transactions
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WIP Completions
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WorkOrderless Completions - This occurs only if you have used workflow notification
for the transaction.
O Shortage Alerts
Transaction Setup
Chapter 6 - Page 26
The shortage alert appears in the window during the transaction with the option to go to the
View Potential Shortages form, showing where the shortage exists. Alerts are automatic once
they are set up. Notifications are optional and can be sent to a prespecified list of individuals.
Sources of Demand
When generating shortage alerts and notifications, the system considers one or more of the
following to be sources of demand:
WIP jobs
WIP schedules
Sales order lines that have been pick released and detailed but for which adequate quantity
was not sourced
Supply Types
The system considers the transaction types you select as supply for the unsatisfied demand.
Shortage alerts and notifications are triggered for system or user defined transaction types with
transaction actions of:
Receipt into stores
Intransit receipt
Direct organization transfer
Assembly completion
Negative component issue
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Transaction Setup
Chapter 6 - Page 27
Setting Up Shortage Alerts and Notifications
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Setting Up Shortage Alerts and Notifications
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Define the shortage parameters the system will use to detect material shortages.
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Define the transaction types that will trigger shortage alerts and notifications.
O ly
Define which items in the system will trigger a shortage alert or notification when they are
in demand.
l & On
Define the individuals to be notified.
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Copyright Oracle Corporation, 2007. All rights reserved.
Transaction Setup
Chapter 6 - Page 28
Setting Up for Move Orders
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Setting Up Move Orders
Subinventory Source Type
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For Oracle Inventory to automatically create move orders when using minmax planning or
O ly
replenishment counting, you must define the subinventory source type at one of the following
levels:
Subinventory
l & On
Item
n a e
To automatically create move orders when using the kanban system, you must define the
e r s
subinventory source type at the pull sequence level.
t
Approval Process Parameters
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Approval is required only for requisition move orders. Other move orders created by shipping
c l e
or replenishment processes are approved automatically. To require planner approval, you
define two parameters at the organization level:
r a
Move Order Timeout Period
Move Order Timeout Action
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Transaction Setup
Chapter 6 - Page 29
You can also specify individuals to be notified if a shortage occurs. To bypass the approval
process and automatically approve move order requisitions, enter 0 days for the Move Order
Timeout Period and select Automatically Approve for the Move Order Timeout Action. The
approval process is also not enabled for organization items without an assigned planner.
Item Transaction Defaults
You can define the item transaction defaults to automatically populate the destination locator
on the move order line from an organization item.
Move Order Time-Out
Use move order time-out if you want to require approvals for the move orders in your
organization.
Time-out Period
The length of time, in days, you will let your move orders sit in a pending-approval queuing
status.
The following rules apply when you set up time-outs:
After one time-out period, a reminder is sent to the approver.
After two time-out periods, the move order time-out action is performed.
The time-out action is either approved or rejected.
If the time-out period is 0, all move orders are automatically approved.
If the time-out period is left blank, the setting defaults to 0.
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Transaction Setup
Chapter 6 - Page 30
Setup Steps for Move Orders
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Setup Steps for Move Orders
Set Up Planner
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Define a planner for the item in the General Planning tabbed region of the Items window.
Designate a Planner
O ly
You designate a planner in the Master Item window when you define an item. If you do not
l & On
designate a planner, the move order is automatically approved.
Notification List
n a e
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When you approve or reject the move order, the system sends a courtesy e-mail to the
s
Engineering Change Order (ECO) approval list (which is used here as a notification list). It is
t U
attached to the move order source and destination subinventory. You do not need to have
I n
Oracle Engineering to use this feature.
c l e
Define Picking Rules
Move orders use the standard picking rules of Oracle Inventory to source material. In a WMS
r a
organization, move orders use Oracle Warehouse Management picking rules.
Locator Defaults
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Copyright Oracle Corporation, 2007. All rights reserved.
Transaction Setup
Chapter 6 - Page 31
If a subinventory or item is locator controlled, when you create the move order receipts,
specify a destination locator. If you do not specify a destination locator, the allocating process
uses the item transaction default.
For more information see:
(Help) Oracle Manufacturing Applications > Oracle Inventory > Transactions > Overview of
Move Orders > Setting Up Move Orders
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Transaction Setup
Chapter 6 - Page 32
Profile Options
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Transaction Setup
Chapter 6 - Page 33
Profile Options (Cont)
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Transaction Setup
Chapter 6 - Page 34
Profile Options (Cont)
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Transaction Setup
Chapter 6 - Page 35
Profile Options (Cont)
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Transaction Setup
Chapter 6 - Page 36
Profile Options (Cont)
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Transaction Setup
Chapter 6 - Page 37
Profile Options (Cont)
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Transaction Setup
Chapter 6 - Page 38
Implementation Considerations for Shortage Checks
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Implementation Considerations
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Answer the following questions to determine which of the following demand sources should be
considered potential shortages.
r a
O ly
Which inventory organizations should be checked for shortages?
Which type and statuses of WIP jobs/schedules should be checked for shortages?
l & On
Answer the following questions to determine the individuals and the method for delivering
shortage messages.
n a e
Should workflow alerts and notifications be generated when actual shortages exist?
e r
Who should be notified?
t U s
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How frequently should notifications be sent?
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Copyright Oracle Corporation, 2007. All rights reserved.
Transaction Setup
Chapter 6 - Page 39
Implementation Considerations for Move Orders
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Transaction Setup
Chapter 6 - Page 40
Summary
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Transaction Setup
Chapter 6 - Page 41
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