D16356GC20 sg1

Oracle Internal & Oracle Academy Use Only
11i Inventory Management

Fundamentals
Volume 1 - Student Guide
D16356GC20
Edition 2.0
January 2005
D40249
Copyright © Oracle Corporation, 2005. All rights reserved.
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Author
Tyra Crockett, Yuvaraj Kandhaswamy
Technical Contributors and Reviewers
Jennifer Sherman, Alain Roth, Mary Hartman, Lata Sundar, Vanessa Graziano, April Nelson, Neeta Gera
This book was published using: oracletutor

Table of Contents
11i Receipt to Issue ..........................................................................................................................................1-1

11i Receipt to Issue........................................................................................................................................1-2
Objectives ......................................................................................................................................................1-3
Agenda...........................................................................................................................................................1-4
Overview .......................................................................................................................................................1-5
Agenda...........................................................................................................................................................1-7
Receipt to Issue Life Cycle............................................................................................................................1-8
Agenda...........................................................................................................................................................1-10
Receiving Inventory ......................................................................................................................................1-11
Agenda...........................................................................................................................................................1-14
Transferring Inventory...................................................................................................................................1-15
Agenda...........................................................................................................................................................1-16

Issuing Inventory ...........................................................................................................................................1-17
Agenda...........................................................................................................................................................1-19
Oracle Inventory Application Integration.....................................................................................................1-20
Integration of Oracle Inventory to Financial Applications ...........................................................................1-22
Agenda...........................................................................................................................................................1-23
Summary........................................................................................................................................................1-24
11i Defining Inventory Organizations............................................................................................................2-1
11i Defining Inventory Organizations ...........................................................................................................2-2
Objective........................................................................................................................................................2-3
Agenda...........................................................................................................................................................2-4
Multi-Org Structure .......................................................................................................................................2-5
Organization Model.......................................................................................................................................2-6
Sample Organization Structure......................................................................................................................2-8
Enterprise Structure Considerations ..............................................................................................................2-10
Inventory Organizations ................................................................................................................................2-12
Inventory Organization Structure ..................................................................................................................2-13
Sample Inventory Organization.....................................................................................................................2-14
Agenda...........................................................................................................................................................2-15
Setting up Locations ......................................................................................................................................2-16
Defining Organizations..................................................................................................................................2-17
Organization Setup ........................................................................................................................................2-18
Additional Set Up Steps ................................................................................................................................2-20
Additional Organizational Setups..................................................................................................................2-21
Guided Demonstration: Creating an Inventory Organization ........................................................................2-22
Guided Demonstration - Setting Up Locations..........................................................................................2-23
Guided Demonstration - Setting Up Organizations ...................................................................................2-24
Agenda...........................................................................................................................................................2-27
Summary........................................................................................................................................................2-28
11i Overview of Defining and Maintaining Items .........................................................................................3-1
11i Overview of Defining and Maintaining Items .........................................................................................3-2
Objective........................................................................................................................................................3-3
Agenda...........................................................................................................................................................3-4
Items ..............................................................................................................................................................3-5
Agenda...........................................................................................................................................................3-6
Oracle Organization.......................................................................................................................................3-7
Inventory Organizations ................................................................................................................................3-8
Defining Organizations..................................................................................................................................3-9
Agenda...........................................................................................................................................................3-10
Defining Items in Item Master.......................................................................................................................3-11
Copyright © Oracle, 2005. All rights reserved.
11i Inventory Management Fundamentals Table of Contents

i
Steps to Setup, Define, and Maintain Items..................................................................................................3-12
Defining Items ...............................................................................................................................................3-13
Agenda...........................................................................................................................................................3-14
Item Attributes...............................................................................................................................................3-15
Item Statuses and Attributes ..........................................................................................................................3-16
Item Attribute Groups....................................................................................................................................3-17
Agenda...........................................................................................................................................................3-18
Creating Item Templates ...............................................................................................................................3-19
Enabling Attributes in a Template .................................................................................................................3-20
Agenda...........................................................................................................................................................3-21
Organization Assignment and Organization Item..........................................................................................3-22
Agenda...........................................................................................................................................................3-23
Deletion Constraints and Deletion Groups ....................................................................................................3-24
Agenda...........................................................................................................................................................3-25
Summary........................................................................................................................................................3-26
11i Defining and Maintaining Items Fundamentals .....................................................................................4-1

11i Defining and Maintaining Items Fundamentals.......................................................................................4-2
Objectives ......................................................................................................................................................4-3
Agenda...........................................................................................................................................................4-4
Unit of Measure .............................................................................................................................................4-5
Units of Measure ...........................................................................................................................................4-7
Use of Units of Measure ................................................................................................................................4-8
Defining UOM Classes..................................................................................................................................4-9
Units of Measure Conversions.......................................................................................................................4-10
Units of Measure Setup .................................................................................................................................4-11
Guided Demonstration Overview: Units of Measure ....................................................................................4-12
Guided Demonstration - Units of Measure................................................................................................4-13
Practice Overview: Units of Measure............................................................................................................4-15
Practice - Defining Units of Measure ........................................................................................................4-16
Solution – Defining Units of Measure .......................................................................................................4-18
Agenda...........................................................................................................................................................4-21
Item Statuses and Attributes ..........................................................................................................................4-22
Item Status .....................................................................................................................................................4-23
Status Attributes ............................................................................................................................................4-24
Item Attribute Relationships..........................................................................................................................4-25
Status Attribute Interdependencies ................................................................................................................4-26
Status Attributes and Functionality ...............................................................................................................4-29
Guided Demonstration Overview: Viewing Item Attributes .........................................................................4-31
Guided Demonstration - Viewing Item Attributes.....................................................................................4-32
Practice Overview: Viewing Item Attributes.................................................................................................4-33
Practice - Viewing Item Attributes ............................................................................................................4-34
Solution – Viewing Item Attributes...........................................................................................................4-35
Agenda...........................................................................................................................................................4-41
Defining the Item Master Organization .........................................................................................................4-42
Agenda...........................................................................................................................................................4-44
Defining Items ...............................................................................................................................................4-45
Steps to Setup, Define, and Maintain Items..................................................................................................4-46
Defining Items ...............................................................................................................................................4-47
Item Templates ..............................................................................................................................................4-48
Organization Assignment and Organization Item..........................................................................................4-49
Item Control Level.........................................................................................................................................4-50
Guided Demonstration: Defining Items.........................................................................................................4-52
Guided Demonstration - Define Item ........................................................................................................4-53
Practice Overview: Defining Items................................................................................................................4-54
Defining Items ...........................................................................................................................................4-55
Solution - Defining Items ..........................................................................................................................4-57

ii
Agenda...........................................................................................................................................................4-61
Deletion Constraints ......................................................................................................................................4-62
Agenda...........................................................................................................................................................4-64
Profile Values ................................................................................................................................................4-65
Item Profile Options ......................................................................................................................................4-67
Agenda...........................................................................................................................................................4-69
Implementation Considerations .....................................................................................................................4-70
Agenda...........................................................................................................................................................4-71
Summary........................................................................................................................................................4-72
11i Inventory Controls Concepts....................................................................................................................5-1
11i Inventory Controls Concepts ...................................................................................................................5-2
Objectives ......................................................................................................................................................5-3
Agenda...........................................................................................................................................................5-4
Inventory Control Overview..........................................................................................................................5-5
Agenda...........................................................................................................................................................5-6
Subinventories Overview ..............................................................................................................................5-7

Agenda...........................................................................................................................................................5-8
Locator Control Overview.............................................................................................................................5-9
Agenda...........................................................................................................................................................5-10
Revision Control Overview ...........................................................................................................................5-11
Agenda...........................................................................................................................................................5-12
Lot Control Overview....................................................................................................................................5-13
Agenda...........................................................................................................................................................5-14
Serial Number Overview ...............................................................................................................................5-15
Agenda...........................................................................................................................................................5-16
Summary........................................................................................................................................................5-17
11i Inventory Controls Fundamentals ...........................................................................................................6-1
11i Inventory Controls Fundamentals............................................................................................................6-2
Objectives ......................................................................................................................................................6-3
Agenda...........................................................................................................................................................6-4
Inventory Control Overview..........................................................................................................................6-5
Agenda...........................................................................................................................................................6-6
Defining Subinventories ................................................................................................................................6-7
Subinventory-Locator Relationship...............................................................................................................6-8
Locator Structuring........................................................................................................................................6-10
Locator Control Reports ................................................................................................................................6-11
Guided Demonstration Overview: Defining Subinventories .........................................................................6-12
Guided Demonstration - Creating Subinventories .....................................................................................6-13
Practice Overview: Defining Subinventories.................................................................................................6-14
Practice - Creating Subinventories ............................................................................................................6-15
Solution - Creating Subinventories............................................................................................................6-16
Guided Demonstration Overview Setting Up Locator Control......................................................................6-20
Guided Demonstration - Locator Control ..................................................................................................6-21
Practice Overview Setting Up Locator Control .............................................................................................6-23
Practice - Setting Up Locator Control .......................................................................................................6-24
Solution – Setting Up Locator Control ......................................................................................................6-26
Agenda...........................................................................................................................................................6-33
Revision Control............................................................................................................................................6-34
Agenda...........................................................................................................................................................6-36
Lot Control ....................................................................................................................................................6-37
Lot Number Purging......................................................................................................................................6-38
Maintaining Lot Information .........................................................................................................................6-39
Cycle Counts Under Lot Control...................................................................................................................6-40
Physical Inventory Under Lot Control...........................................................................................................6-41
Disabled Lots.................................................................................................................................................6-42
Lot Control Reports .......................................................................................................................................6-43

iii
Agenda...........................................................................................................................................................6-44
Generating Serial Numbers............................................................................................................................6-45
Maintaining Serial Numbers..........................................................................................................................6-46
Serial Genealogy ...........................................................................................................................................6-47
Serial Number Control Reports .....................................................................................................................6-48
Guided Demonstration Overview: Revision, Lot, and Serial Controls..........................................................6-49
Guided Demonstration - Revision, Lot, and Serial Controls .....................................................................6-50
Practice Overview: Revision, Lot, and Serial Controls .................................................................................6-53
Practice - Revision, Lot, and Serial Controls.............................................................................................6-54
Solution – Revision, Lot and Serial Controls ............................................................................................6-56
Agenda...........................................................................................................................................................6-67
Locator Flexfield Structure............................................................................................................................6-68
Changing Locator Control .............................................................................................................................6-69
Transacting Controlled Items ........................................................................................................................6-70
Agenda...........................................................................................................................................................6-72
Summary........................................................................................................................................................6-73

11i Transacting Inventory Concepts ..............................................................................................................7-1
11i Transacting Inventory Concepts ..............................................................................................................7-2
Module Objectives.........................................................................................................................................7-3
Agenda...........................................................................................................................................................7-4
Inventory Structure ........................................................................................................................................7-5
Overview .......................................................................................................................................................7-6
Agenda...........................................................................................................................................................7-7
Inventory Transactions ..................................................................................................................................7-8
Agenda...........................................................................................................................................................7-9
Transaction Types..........................................................................................................................................7-10
Transaction Source Types..............................................................................................................................7-11
Transaction Action ........................................................................................................................................7-13
Transaction Reasons ......................................................................................................................................7-15
Transaction Managers....................................................................................................................................7-16
Agenda...........................................................................................................................................................7-17
Move Orders..................................................................................................................................................7-18
Agenda...........................................................................................................................................................7-19
Shortage Alerts and Notifications..................................................................................................................7-20
Agenda...........................................................................................................................................................7-21
Mobile Transactions ......................................................................................................................................7-22
Agenda...........................................................................................................................................................7-23
Summary........................................................................................................................................................7-24
11i Transaction Setup......................................................................................................................................8-1
11i Transaction Setup ....................................................................................................................................8-2
Objectives ......................................................................................................................................................8-3
Agenda...........................................................................................................................................................8-4
Running Transaction Managers.....................................................................................................................8-5
Predefined Transaction Types .......................................................................................................................8-7
Guided Demonstration Overview: Defining a Customized Transaction .......................................................8-8
Guided Demonstration - Customized Transactions ...................................................................................8-9
Practice Overview: Defining a Customized Transaction...............................................................................8-11
Practice - Defining a Customized Transaction ..........................................................................................8-12
Solution – Defining a Customized Transaction .........................................................................................8-13
Agenda...........................................................................................................................................................8-18
Inter–organization Shipping Network ...........................................................................................................8-19
Shipping Method ...........................................................................................................................................8-21
Agenda...........................................................................................................................................................8-22
Movement Statistics ......................................................................................................................................8-23
Movement Statistics Parameters....................................................................................................................8-25
Collecting and Reporting Movement Statistics .............................................................................................8-26

iv
Agenda...........................................................................................................................................................8-28
Account Aliases.............................................................................................................................................8-29
Agenda...........................................................................................................................................................8-30
Setting Up for Move Orders ..........................................................................................................................8-31
Setup Steps for Move Orders.........................................................................................................................8-33
Agenda...........................................................................................................................................................8-35
Material Shortage Alerts and Notifications ...................................................................................................8-36
Setting Up Shortage Alerts and Notifications................................................................................................8-38
Movement Statistics Reports .........................................................................................................................8-39
Transaction Reports and Inquiries .................................................................................................................8-41
Agenda...........................................................................................................................................................8-42
Transaction Profile Options...........................................................................................................................8-43
Agenda...........................................................................................................................................................8-49
Implementation Considerations .....................................................................................................................8-50
Implementation Considerations for Shortage Messages................................................................................8-51
Agenda...........................................................................................................................................................8-52
Summary........................................................................................................................................................8-53

11i Issue and Transfer Material .....................................................................................................................9-1
11i Issue and Transfer Material .....................................................................................................................9-2
Module Objectives.........................................................................................................................................9-3
Agenda...........................................................................................................................................................9-4
Transaction Flows..........................................................................................................................................9-5
Inventory Transactions ..................................................................................................................................9-6
Inventory Transactions Without Documents and Requisitions......................................................................9-7
Inventory Transactions With Documents and Requisitions...........................................................................9-8
Agenda...........................................................................................................................................................9-9
Control Options and Restrictions...................................................................................................................9-10
Agenda...........................................................................................................................................................9-11
Subinventory Transfer ...................................................................................................................................9-12
Guided Demonstration: Subinventory Transfer.............................................................................................9-13
Guided Demonstration - Subinventory Transfers ......................................................................................9-14
Miscellaneous Transaction (Account Receipt) ..............................................................................................9-15
Application of Miscellaneous Transactions...................................................................................................9-17
Inter-organization Direct Shipment ...............................................................................................................9-18
Interorganization Intransit Shipment .............................................................................................................9-20
Guided Demonstration Overview: Interorganization Transfer ......................................................................9-22
Guided Demonstration - Interorganization Transfer..................................................................................9-23
Practice Overview: Interorganization Transfer..............................................................................................9-24
Practice - InterOrganization Transfer ........................................................................................................9-25
Solution – InterOrganization Transfer .......................................................................................................9-26
Agenda...........................................................................................................................................................9-29
Managing Receipts ........................................................................................................................................9-30
Using Locations in Receiving........................................................................................................................9-31
Entering Receipt Lines ..................................................................................................................................9-32
Express Receipts and Receiving Transactions...............................................................................................9-34
Receiving Unordered Items ...........................................................................................................................9-35
Direct Receipts ..............................................................................................................................................9-37
Inspecting Received Items.............................................................................................................................9-39
Guided Demonstration Overview: Receiving Items into Inventory ..............................................................9-41
Guided Demonstration - Receiving Stock into Inventory..........................................................................9-42
Practice Overview: Receiving Items into Inventory ......................................................................................9-44
Practice - Receiving Material into Inventory.............................................................................................9-45
Solution – Receiving Material into Stock..................................................................................................9-46
Returns to Receiving .....................................................................................................................................9-51
Returns to Inventory ......................................................................................................................................9-52
Entering Returns ............................................................................................................................................9-53

v
Guided Demonstration Overview: Receiving Returns to Inventory ..............................................................9-55
Guided Demonstration - Receiving Returns ..............................................................................................9-56
Agenda...........................................................................................................................................................9-57
Receiving Reports..........................................................................................................................................9-58
Agenda...........................................................................................................................................................9-59
Move Orders Process Flow............................................................................................................................9-60
Move Order Requisition Approval Process ...................................................................................................9-61
Benefits of Managed Material Flow in a Facility ..........................................................................................9-63
Move Order Source Types.............................................................................................................................9-65
Move Order Components ..............................................................................................................................9-67
Move Order Allocating..................................................................................................................................9-69
Generate Move Orders...................................................................................................................................9-71
Item Allocation ..............................................................................................................................................9-73
Transact Move Orders ...................................................................................................................................9-74
Guided Demonstration Overview: Transacting Move orders ........................................................................9-75
Guided Demonstration - Transacting Move Orders...................................................................................9-76
Practice Overview: Transacting Move orders................................................................................................9-78

Practice - Transacting Move Orders ..........................................................................................................9-79
Solution – Transacting Move Orders.........................................................................................................9-81
Agenda...........................................................................................................................................................9-91
Transactions Using a Mobile Device.............................................................................................................9-92
Guided Demonstration Overview: Mobile Transactions ...............................................................................9-94
Guided Demonstration - Mobile Application Inter-organization Transfer ................................................9-95
Practice Overview: Mobile Transactions.......................................................................................................9-96
Practice - Mobile Transactions ..................................................................................................................9-97
Solution – Mobile Transactions.................................................................................................................9-98
Agenda...........................................................................................................................................................9-103
Managing Shipments .....................................................................................................................................9-104
Agenda...........................................................................................................................................................9-105
Summary........................................................................................................................................................9-106
11i Replenishment Concepts...........................................................................................................................10-1
11i Replenishment Concepts .........................................................................................................................10-2
Objectives ......................................................................................................................................................10-3
Agenda...........................................................................................................................................................10-4
Overview .......................................................................................................................................................10-5
Overview of Inventory Planning ...................................................................................................................10-6
Order Planning...............................................................................................................................................10-7
How Much to Order.......................................................................................................................................10-8
Replenishment Process for Intra-Org Supply Sources...................................................................................10-9
Replenishment Process for Supplier Supply Sources ....................................................................................10-10
Replenishment Process for Inter-Org Supply Sources...................................................................................10-11
Replenishment Process for Product Supply Sources .....................................................................................10-12
Agenda...........................................................................................................................................................10-13
Overview of Oracle Inventory Forecasting....................................................................................................10-14
Forecast Types...............................................................................................................................................10-15
Agenda...........................................................................................................................................................10-16
Oracle Inventory Replenishment Methods ....................................................................................................10-17
Replenishment Methods Levels.....................................................................................................................10-18
Safety Stock...................................................................................................................................................10-19
Economic Order Quantity..............................................................................................................................10-20
Overview of Reorder-Point Planning ............................................................................................................10-21
Overview of Min-max Planning ....................................................................................................................10-22
Overview of Kanban Replenishment.............................................................................................................10-23
Overview of Replenishment Counting ..........................................................................................................10-25
Overview of PAR Counting...........................................................................................................................10-26
Agenda...........................................................................................................................................................10-27

vi
Mobile Replenishment Count Overview .......................................................................................................10-28
Agenda...........................................................................................................................................................10-29
Summary........................................................................................................................................................10-30
11i Replenishment Fundamentals ..................................................................................................................11-1
11i Replenishment Fundamentals.................................................................................................................11-2
Objectives ......................................................................................................................................................11-3
Agenda...........................................................................................................................................................11-4
Overview .......................................................................................................................................................11-5
Agenda...........................................................................................................................................................11-6
Focus Forecasting ..........................................................................................................................................11-7
Focus-Forecasting (continued) ......................................................................................................................11-8
Using Focus Forecasting ...............................................................................................................................11-10
Focus Forecasting Example...........................................................................................................................11-11
Statistical Forecasting....................................................................................................................................11-13
Exponential Smoothing Forecast (ESF) ........................................................................................................11-14
Trend-Enhanced Forecast (TEF) ...................................................................................................................11-16

Season-Enhanced Forecast (SEF)..................................................................................................................11-18
Trend- and Season-Enhanced Forecast (TSEF).............................................................................................11-20
Forecast Setup and Maintenance ...................................................................................................................11-22
Guided Demonstration Overview: Creating a Manual Forecast ....................................................................11-23
Guided Demonstration - Creating a Manual Forecast ...............................................................................11-24
Practice Overview: Creating a Manual Forecast ...........................................................................................11-26
Practice - Creating a Manual Forecast .......................................................................................................11-27
Solution – Creating a Manual Forecast......................................................................................................11-28
Agenda...........................................................................................................................................................11-31
Uses of Reorder-point Planning.....................................................................................................................11-32
Reorder-point Planning: Safety Stock ...........................................................................................................11-33
Reorder-Point Planning: Lead Time ..............................................................................................................11-34
Reorder-Point Planning: Reorder Quantity....................................................................................................11-35
Reorder-Point Planning Steps........................................................................................................................11-37
Entering Item Planning Attributes .................................................................................................................11-38
Entering General Planning Attributes for Reorder-point Planning................................................................11-39
Entering Lead Times .....................................................................................................................................11-41
Entering Safety Stocks...................................................................................................................................11-42
Performing Reorder-point Planning...............................................................................................................11-44
Guided Demonstration: Reorder Point Planning ...........................................................................................11-46
Guided Demonstration - Reorder Point Planning ......................................................................................11-47
Agenda...........................................................................................................................................................11-48
Uses of Min-max Planning ............................................................................................................................11-49
Min-max Planning .........................................................................................................................................11-50
Min-max Planning: When to Order? ............................................................................................................11-51
Min-max Planning: How Much to Order? ....................................................................................................11-52
Min-max Planning Steps ...............................................................................................................................11-53
Item Planning Attributes................................................................................................................................11-54
Min-max Planning Setup Procedure ..............................................................................................................11-55
Selecting a Planning Level ............................................................................................................................11-56
Entering Planning Attributes .........................................................................................................................11-57
Submitting the Min-max Planning Requests .................................................................................................11-58
Guided Demonstration Overview: Min-max Planning ..................................................................................11-60
Guided Demonstration - Min-max Planning..............................................................................................11-61
Practice Overview: Min-max Planning..........................................................................................................11-63
Practice - Performing Min-max Planning ..................................................................................................11-64
Solution – Performing Min-max Planning.................................................................................................11-65
Agenda...........................................................................................................................................................11-71
Uses of Replenishment Counting ..................................................................................................................11-72
Replenishment Planning Steps ......................................................................................................................11-73

vii
Subinventories Window ................................................................................................................................11-75
Item Subinventories Window ........................................................................................................................11-76
Item Subinventories: Order Modifier Tab ....................................................................................................11-77
Replenishment Count Headers ......................................................................................................................11-78
Replenishment Count Lines...........................................................................................................................11-79
Processing Replenishment Counts................................................................................................................11-81
Practice Overview: Performing a Replenishment Count Using Forms..........................................................11-83
Practice - Performing a Replenishment Count Using Forms .....................................................................11-84
Solution - Performing a Replenishment Count Using Forms ....................................................................11-86
Practice Overview: Performing a Replenishment Count Using the Mobile Application...............................11-91
Practice - Performing a Replenishment Count Using the Mobile Application ..........................................11-92
Solution - Performing a Replenishment Count Using the Mobile Application .........................................11-94
Processing PAR Counts.................................................................................................................................11-102
Reorder Quantity For PAR Count .................................................................................................................11-103
Agenda...........................................................................................................................................................11-105
Kanban Cards ................................................................................................................................................11-106
Kanban Planned Items ...................................................................................................................................11-107

Kanban Cards ................................................................................................................................................11-109
Kanban Supply Status....................................................................................................................................11-111
Kanban Replenishment Sources ....................................................................................................................11-112
Kanban Card Printing ....................................................................................................................................11-113
Guided Demonstration Overview: Generating Kanban Cards.......................................................................11-114
Guided Demonstration - Kanban ...............................................................................................................11-115
Practice Overview: Generating Kanban Cards ..............................................................................................11-116
Practice - Generating Kanban Cards..........................................................................................................11-117
Solution – Generating Kanban Cards ........................................................................................................11-118
Agenda...........................................................................................................................................................11-122
Available to Promise .....................................................................................................................................11-123
ATP Rules and ATP Checks..........................................................................................................................11-124
Uses of ATP in Oracle Inventory ..................................................................................................................11-125
Steps for Checking ATP ................................................................................................................................11-126
ATP Rules Setup Steps..................................................................................................................................11-127
Defining Computation Options......................................................................................................................11-128
Specifying Supply and Demand Time Fences ...............................................................................................11-130
Specifying Demand Sources..........................................................................................................................11-134
Specifying Supply Sources ............................................................................................................................11-136
Setting Up Item and Bills for ATP Checking ................................................................................................11-137
ATP Checking ...............................................................................................................................................11-138
Viewing ATP Criteria....................................................................................................................................11-141
Agenda...........................................................................................................................................................11-142
Planning and Forecasting Profile Options .....................................................................................................11-143
Setting Up the Min-Max System Profile Value.............................................................................................11-145
Subinventory Setup Windows .......................................................................................................................11-146
Agenda...........................................................................................................................................................11-147
Min-Max Order Type and Order Source .......................................................................................................11-148
Replenishment Method Selection ..................................................................................................................11-151
Agenda...........................................................................................................................................................11-152
Summary........................................................................................................................................................11-153
11i Inventory Accuracy Concepts ..................................................................................................................12-1
11i Inventory Accuracy Concepts..................................................................................................................12-2
Objectives ......................................................................................................................................................12-3
Agenda...........................................................................................................................................................12-4
Overview of Inventory Accuracy ..................................................................................................................12-5
Agenda...........................................................................................................................................................12-6
ABC Analysis Overview ...............................................................................................................................12-7
Agenda...........................................................................................................................................................12-8

viii
Cycle Counting Overview .............................................................................................................................12-9
Agenda...........................................................................................................................................................12-10
Physical Inventory Overview ........................................................................................................................12-11
Why Perform Physical Inventories? ..............................................................................................................12-12
Agenda...........................................................................................................................................................12-13
Mobile Inventory Accuracy Overview ..........................................................................................................12-14
Agenda...........................................................................................................................................................12-15
Summary........................................................................................................................................................12-16
11i Inventory Accuracy Fundamentals..........................................................................................................13-1
11i Inventory Accuracy Fundamentals ..........................................................................................................13-2
Objectives ......................................................................................................................................................13-3
Agenda...........................................................................................................................................................13-4
Defining an ABC Analysis ............................................................................................................................13-5
Define and Run an ABC Compilation ...........................................................................................................13-6
ABC Compilation Criteria.............................................................................................................................13-7
Agenda...........................................................................................................................................................13-9

ABC Valuation Scope ...................................................................................................................................13-10
Agenda...........................................................................................................................................................13-11
Defining ABC Groups ...................................................................................................................................13-12
Defining ABC Classes...................................................................................................................................13-13
ABC Item Assignments .................................................................................................................................13-14
Guided Demonstration Overview: Compiling an ABC Analysis ..................................................................13-16
Guided Demonstration - ABC Analysis ....................................................................................................13-17
Practice Overview: Compiling an ABC Analysis..........................................................................................13-19
Practice - Compiling an ABC Analysis .....................................................................................................13-20
Solution – Compiling an ABC Analysis....................................................................................................13-22
Agenda...........................................................................................................................................................13-28
Defining and Maintaining a Cycle Count ......................................................................................................13-29
Agenda...........................................................................................................................................................13-30
Cycle Count Approval Tolerance ..................................................................................................................13-31
Approval Tolerances......................................................................................................................................13-32
Hit/Miss Tolerance ........................................................................................................................................13-34
Measurement Errors ......................................................................................................................................13-35
Cycle Count Items .........................................................................................................................................13-36
Agenda...........................................................................................................................................................13-38
Automatic Scheduling ...................................................................................................................................13-39
Manual Scheduling ........................................................................................................................................13-40
Count Requests ..............................................................................................................................................13-41
Entering Cycle Counts...................................................................................................................................13-43
Cycle Count Open Interface ..........................................................................................................................13-44
Agenda...........................................................................................................................................................13-45
Count Adjustments and Approvals ................................................................................................................13-46
Automatic Recounts ......................................................................................................................................13-47
Approving Cycle Counts and Adjustments ...................................................................................................13-48
Guided Demonstration Overview: Performing Cycle Counts .......................................................................13-50
Guided Demonstration - Cycle Counting ..................................................................................................13-51
Practice Overview: Performing Cycle Counts...............................................................................................13-54
Practice - Performing a Cycle Count .........................................................................................................13-55
Solution – Performing a Cycle Count........................................................................................................13-57
Practice Overview: Mobile Counting ............................................................................................................13-66
Practice - Mobile Counting........................................................................................................................13-67
Solution – Mobile Counting ......................................................................................................................13-68
Agenda...........................................................................................................................................................13-73
Summary........................................................................................................................................................13-74

ix
Preface
Profile
Before You Begin This Course
Before you begin this course, you should have the following qualifications:
• Working experience with Oracle Applications.
Prerequisites
• There are no prerequisites for this course.

How This Course Is Organized
11i Inventory Management Fundamentals is an instructor-led course featuring lecture and hands-
on exercises. Online demonstrations and written practice sessions reinforce the concepts and
skills introduced.

xi
Related Publications
Oracle Publications
Title Part Number
Oracle Inventory User’s Guide A83507–08
Additional Publications
• None

xii
Typographic Conventions
Typographic Conventions in Text
Convention Element Example
Bold italic Glossary term (if The algorithm inserts the new key.
there is a glossary)
Caps and Buttons, Click the Executable button.
lowercase check boxes, Select the Can’t Delete Card check box.
triggers, Assign a When-Validate-Item trigger to the ORD block.
windows Open the Master Schedule window.
Courier new, Code output, Code output: debug.set (‘I”, 300);
case sensitive directory names, Directory: bin (DOS), $FMHOME (UNIX)

(default is filenames, Filename: Locate the init.ora file.
lowercase) passwords, Password: User tiger as your password.
pathnames, Pathname: Open c:\my_docs\projects
URLs, URL: Go to http://www.oracle.com
user input,
User input: Enter 300
usernames
Username: Log on as scott
Initial cap Graphics labels Customer address (but Oracle Payables)
(unless the term is a
proper noun)
Italic Emphasized words Do not save changes to the database.
and phrases, For further information, see Oracle7 Server SQL Language
titles of books and Reference Manual.
courses, Enter user_id@us.oracle.com, where user_id is the
variables name of the user.
Quotation Interface elements Select “Include a reusable module component” and click Finish.
marks with long names
that have only This subject is covered in Unit II, Lesson 3, “Working with
initial caps; Objects.”
lesson and chapter
titles in cross-
references
Uppercase SQL column Use the SELECT command to view information stored in the
names, commands, LAST_NAME
functions, schemas, column of the EMP table.
table names
Arrow Menu paths Select File > Save.
Brackets Key names Press [Enter].
Commas Key sequences Press and release keys one at a time:
[Alternate], [F], [D]
Plus signs Key combinations Press and hold these keys simultaneously: [Ctrl]+[Alt]+[Del]

xiii
Typographic Conventions in Code
Convention Element Example
Caps and Oracle Forms When-Validate-Item
lowercase triggers
Lowercase Column names, SELECT last_name
table names FROM s_emp;
Passwords DROP USER scott

IDENTIFIED BY tiger;
PL/SQL objects OG_ACTIVATE_LAYER
(OG_GET_LAYER (‘prod_pie_layer’))
Lowercase Syntax variables CREATE ROLE role

italic
Uppercase SQL commands and SELECT userid
functions FROM emp;
Typographic Conventions in Oracle Application Navigation Paths

This course uses simplified navigation paths, such as the following example, to direct you
through Oracle Applications.
(N) Invoice > Entry > Invoice Batches Summary (M) Query > Find (B) Approve
This simplified path translates to the following:
1. (N) From the Navigator window, select Invoice then Entry then Invoice Batches
Summary.
2. (M) From the menu, select Query then Find.
3. (B) Click the Approve button.
Notations:
(N) = Navigator
(M) = Menu
(T) = Tab
(B) = Button
(I) = Icon
(H) = Hyperlink
(ST) = Sub Tab

xiv
Typographical Conventions in Oracle Application Help System Paths
This course uses a “navigation path” convention to represent actions you perform to find
pertinent information in the Oracle Applications Help System.
The following help navigation path, for example—
(Help) General Ledger > Journals > Enter Journals
—represents the following sequence of actions:
1. In the navigation frame of the help system window, expand the General Ledger entry.
2. Under the General Ledger entry, expand Journals.

3. Under Journals, select Enter Journals.
4. Review the Enter Journals topic that appears in the document frame of the help system
window.

xv

xvi
11i Receipt to Issue
Chapter 1

Chapter 1 - Page 1

Chapter 1 - Page 2
Objectives

Chapter 1 - Page 3
Agenda

Chapter 1 - Page 4
Overview

Chapter 1 - Page 5
Overview

Chapter 1 - Page 6
Agenda

Chapter 1 - Page 7
Receipt to Issue Life Cycle

Receipt To Issue
Oracle Inventory uses the receipt to issue process to manage your inventory. The three main
pieces of the process are as follows:
Receiving
When you take delivery of inventory into your warehouse you receive it. You can receive
inventory using the following applications:
• Oracle Purchasing
• Oracle Work in Process
• Oracle Inventory
Transferring
You can transfer inventory within an organization and from one organization to another
organization using the following applications:
• Oracle Shipping
• Oracle Order Management

Chapter 1 - Page 8
• Issuing
Issuing
When you send materials out of inventory you issue it. You use the following applications to
issue inventory:
• Oracle Order Management
• Oracle Purchasing

Chapter 1 - Page 9
Agenda

Chapter 1 - Page 10
Receiving Inventory

Receiving Inventory
There are different ways you can receive inventory into stock.
Purchasing
You can receive inventory from outside of your organization using Oracle Purchasing. The
ways you use Oracle Purchasing in relation to receiving stock are:
• Purchase Order Receipt
• Internal Requisition
• In-transit Receipt
• Return Material Authorization
• Unexpected Receipt
Work in Process
You can receive inventory from the manufacturing floor using Oracle Work in Process
• Component Return
• Negative Component Issue
• Assembly Return

Chapter 1 - Page 11
Inventory
You may receive inventory into stock using Oracle Inventory in the following ways:
• Miscellaneous Account
• Receipt from Project
• User Defined
• Inter-organization receipt

Chapter 1 - Page 12
Receiving Inventory

Chapter 1 - Page 13
Agenda

Chapter 1 - Page 14
Transferring Inventory

Transferring Inventory
Different applications can generate requests to transfer inventory.
Shipping
Oracle Shipping can generate a transfer to move stock from a finished goods area to a staging
to for shipping.
Order Management
Oracle Order Management can generate a transfer to move stock from a finished goods area to
a staging area for shipping.
Work in Process
Oracle Work in Process can generate a transfer to acquire components for a project.
Inventory
Oracle Inventory transfers materials using the following methods:
• Transfer between Organizations
• Replenish materials
• Request transfers

Chapter 1 - Page 15
Agenda

Chapter 1 - Page 16
Issuing Inventory

Issuing Inventory
You can issue stock out of inventory using the following applications:
Order Management
Oracle Order Management can generate an inventory issue through:
• Sales Orders
• Internal Orders
Purchasing
Oracle Purchasing can generate an inventory issue for:
• Return to Vendor materials
Work in Process
Oracle Work in Process can generate an inventory issue through:
• Component Issue
• Assembly Return
Inventory
You can issue stock using Oracle Inventory in the following ways:

Chapter 1 - Page 17
• User Defined
• Inter-organization Transfer
• Cycle Count Negative
• Request Issue

Chapter 1 - Page 18
Agenda

Chapter 1 - Page 19
Oracle Inventory Application Integration

Integration of Oracle Inventory to Manufacturing Applications
Oracle Inventory interacts with the other applications by sharing information:
• Oracle Cost Management receives cost information and transaction rates from Oracle
Inventory.
• Oracle Work in Process provides WIP activity and ATP supply information to Oracle
Inventory and receives information regarding UOM, items, and on-hand quantity from
Oracle Inventory.
• 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.
• Oracle Bill of Materials receives UOM and item information from Oracle Inventory.
• Oracle Engineering provides engineering item information and receives UOM and item
information from Oracle Inventory.
• Oracle Order Management provides shipping, reservations, and demand information and
receives UOM, items, and ATP/on-hand quantity information from Oracle Inventory.

Chapter 1 - Page 20
• Oracle Purchasing provides receipts/deliveries, ATP supply, and planning supply
information and receives UOM, items, requisition, and inter-org shipment information
from Oracle Inventory.

Chapter 1 - Page 21
Integration of Oracle Inventory to Financial Applications

Integration of Oracle Inventory to Financial Applications
• Oracle General Ledger provides set of books and currency exchange rates and receives
transaction accounting summary and/or detail from Oracle Inventory.
• Oracle Payables receives UOM and Item information from Oracle Inventory.
• Oracle Receivables provides intercompany invoice information and receives UOM and
item information from Oracle Inventory.
• Oracle Assets receives UOM and item information from Oracle Inventory.

Chapter 1 - Page 22
Agenda

Chapter 1 - Page 23
Summary

Chapter 1 - Page 24
11i Defining Inventory
Organizations
Chapter 2
11i Defining Inventory Organizations

Chapter 2 - Page 1

Chapter 2 - Page 2
Objective

Chapter 2 - Page 3
Agenda

Chapter 2 - Page 4
Multi-Org Structure

Multi-Org
Multi-Org is an enhancement to Oracle applications that enables you to model multiple
business units in an enterprise using a single installation of Oracle applications. In a multi-org
architecture you can keep data secure and separate from each business unit.
The following are the benefits of multi-org:
• You can use a single installation of any Oracle Applications product to support any number
of business units, even if those business units use different set of books. Set of books is
explained in the following slide.
• Secure access to data so that users can access only information that is relevant to them.
• You can define a organizational model that best suits your business requirements.

Chapter 2 - Page 5
Organization Model

Organization Model
The multi-org model provides a hierarchy that dictates how transactions flow through different
business units and how those business units interact. You define the organizations and the
relationships between them.
Business Group
This is an Organization that represents the consolidated enterprise, a major division, or an
operation company and has no accounting impact. The Business Group partitions Human
Resources information and the Purchasing Approval Hierarchy. If you request a list of
employees (in any module) you will see only those employees in the Business Group of which
your Operating Unit is a part. Multiple Legal Entities can relate to a single Business Group.
You must have at least one Business Group. For a new installation, Oracle Applications
provides a default business group called Setup Business Group. You can define additional
business groups as required for your enterprise.
Set of Books
A set of books (SOB) is a financial reporting entity that shares the three Cs: a particular chart
of accounts (accounting flexfield structure), functional currency, and financial accounting

Chapter 2 - Page 6
calendar. You create sets of books using the Set of Books window in Oracle General Ledger.
You define all other types of organizations using the Organizations window.
Legal Entity
A legal entity represents a legal company for which you prepare fiscal or tax reports. You
assign tax identifiers and other legal entity information to these types of organizations.
Operating Unit
An operating unit represents an organization that uses any Oracle subledger application, for
example, Order Management, Payables. It may be a sales office, a division, or a department.
An operating unit is associated with a legal entity. Information is secured by operating unit for
these applications. Each user sees information only for their operating unit. Responsibilities are
linked to a specific operating unit by the MO: Operating Unit profile option.
Inventory organizations are explained in detail in the following slides.

Chapter 2 - Page 7
Sample Organization Structure

Organization Structure
Using Oracle Applications accounting, distribution, and materials management functions, you
define the relationships between inventory organizations, operating units, legal entities, and set
of books to create a multilevel company structure. Oracle Applications enables you to set up a
simple to complex organization structure. Analyze your current and future business
requirements when making this decision.
The following points describe how the multi-org model relates organizations:
• A Business Group is the highest level of the structure and has no accounting impact. The
Business Group determines which employees will be available to Sets of Books and
Operating Units related to that Business Group.
• Set of Books is the highest level which impacts the accounting side of business.
• Set of Books is associated with a single Business Group, multiple Sets of Books may be
associated with a single Business Group.
• Each Set of Books may have a different chart of accounts structure, calendar, or functional
currency.
• Each Legal Entity is associated with a single Set of Books, multiple Legal Entities may be
associated with a single Set of Books.

Chapter 2 - Page 8
• Each Operating Unit is associated with a single Legal Entity, multiple Operating Units may
be associated with a single Legal Entity.
• An Inventory Organization may be associated with any Operating Unit within the same Set
of Books.

Chapter 2 - Page 9
Enterprise Structure Considerations

Enterprise Structure Considerations
An inventory organization is an inventory location, which can have its own set of books,
costing method, workday calendar, and list of items.
Sets of Books
You can tie one Oracle General Ledger set of books to each inventory organization.
Costing Methods
You choose your costing method, which can be standard or average, at the organizational level.
The item attribute control level determines the costing organization.
Item Costs
Oracle Inventory keeps one standard cost per item per inventory organization.
Movement Between Inventory Organizations
You can use intransit inventory for interorganization transfers.
Planning Method
You can perform reorder point planning at the organizational level, and you can perform min-
max planning at both the organization and subinventory level. Subinventories are explained in
the next slide.

Chapter 2 - Page 10
In Multi-Org
You can tie one government reporting entity/legal entity to each inventory organization. You
can also tie one operating unit to each inventory organization.
Forecasting
Oracle Inventory forecasts item usage at the organization level only.
Accuracy Analysis
You can perform a physical inventory, ABC classifications, and cycle counting at both the
organization and subinventory levels.

Chapter 2 - Page 11
Inventory Organizations

An inventory organization is a facility in your enterprise where you store and transact your
inventory items. The items in an inventory organization can be in the form of raw materials,
semi-finished goods, or finished goods for varying periods of time.
Before you use Oracle Inventory, you need to define one or more inventory organizations.
Inventory organizations represent distinct entities in your enterprise and can be one of the
following:
• A physical entity such as a manufacturing facility, warehouse, distribution center, or a
branch office.
• A logical entity such as an item master organization, which you can use just to define items
but no transactions. The item master organization is discussed in detail in the lesson titled
“Defining and Maintaining Items Fundamentals.”
An inventory organization may have the following attributes:
• An inventory organization can have its own location with a set of books, a costing method,
a workday calendar, and a list of items.
• An inventory organization can share one or more of these characteristics with other
organizations.

Chapter 2 - Page 12
Inventory Organization Structure

Inventory Organization Structure
An inventory organization, where you store and transact items can have one or more
subinventories. Subinventories are unique physical or logical separations of material inventory,
such as raw material inventory, finished goods inventory, or defective goods inventory. In
Oracle Inventory, all material within an organization is held in a subinventory. Therefore, you
must define at least one subinventory.
Item quantities can be tracked by subinventory. Items can also be restricted to specific
subinventories.
The subinventories in an inventory organization may be made up of one or more locators such
as row, rack, bin. You use locators to identify physical areas where you store inventory items.
Item quantities can be tracked by locator. Items can also be restricted to specific locators.

Chapter 2 - Page 13
Sample Inventory Organization

Chapter 2 - Page 14
Agenda

Chapter 2 - Page 15
Setting up Locations

Setting up Locations
• Define information describing the physical locations of Employees and Organizations.
• Locations are shared between Inventory, Purchasing, and Human Resource Management.
Locations flagged as global locations are available to all Business Groups. Each
organization can be associated with only one location. One or more organizations can be
associated with the same location.

Chapter 2 - Page 16
Defining Organizations

Classify the Organization
• Choose an organization classification to describe the general purpose of your organization.
• Examples of organization classifications are inventory organization, legal company, and
HR organization.
• Choose inventory organization as your organization classification to use your organization
for inventory management.
Set of Books
• Tie each inventory organization to an operating unit. Each operating unit is associated to a
legal entity and a general ledger set of books.

Chapter 2 - Page 17
Organization Setup

Organization Setup
Use the Organization Parameters window to complete your organization definition for
inventory purposes.
• You must specify the item master organization. The system defaults this field to the
organization for which parameters are being entered. It must be changed for any
organization that is not an item master organization.
• The item master organization should be the first inventory organization for which
parameters are defined.
• You must define the control options and account defaults for your organization before you
can define items or perform any transactions.
• Define receiving parameters if you receive items on purchase orders, internal orders, and
in-transit interorganization shipments.
• You must assign a unique short code to your organization and use this code to identify the
organization with which you want to work.
• You must specify shipping parameters to specify whether the move order line allocation is
automatic or manual in Oracle Shipping Execution.

Chapter 2 - Page 18
• Define the WIP parameters if you are using Oracle Work in Process.
• You must define project parameters if the organization is classified as a project
manufacturing organization.
• Define and update default inventory and costing parameters for your organization.

Chapter 2 - Page 19
Additional Set Up Steps

Setting Up Employees and Planners
Entering Employees
Employees who perform cycle and physical inventory counts.
Defining Planners
Identify persons responsible for planning items or groups of items.
Defining Freight Carriers
Allows assignment of a general ledger account to one or more carriers to collect costs
associated with their use.
A carrier can be assigned to each inter-organization transfer.

Chapter 2 - Page 20
Additional Organizational Setups

Material Shortage Parameters
Define the parameters for the system to determine when unsatisfied demand exceeds available
quantity of incoming supply. This condition can be used by the system to trigger shortage
alerts and notifications.
Organization Access
This controls access to organizations based on the user responsibility assigned to a user by the
system administrator.
When implemented for one user responsibility, it is then required for all other user
responsibilities accessing the same organization.

Chapter 2 - Page 21
Guided Demonstration: Creating an Inventory Organization

Chapter 2 - Page 22
Guided Demonstration - Setting Up Locations
Responsibility = Inventory, Vision Operations USA
1. (N) > Setup > Organizations > Locations.
2. Define a Location using the following information:

− Name: M12 Orlando MFG
3. Select the Address field.
4. Enter the following address information:

− Address Line 1: 100 Buena Vista Drive

− City: Orlando
− State: FL
− Zip Code: 32803
− County: Orange
− Country: United States
− Telephone: (407) 828-5000
5. (B) OK.
6. Save and Close form.

Chapter 2 - Page 23
Guided Demonstration - Setting Up Organizations
Responsibility: Inventory, Vision Operations USA
1. (N) > Setup > Organizations >Organizations.
2. Set up a new organization using the following information:

− Name: M12 Orlando MFG
− Type: Plant
− Location: M12 Orlando MFG
3. (M) File > Save.

4. Under Organisation Classifications, choose 'Inventory Organization' in the Name field and
select the Enabled checkbox.
5. (M) File > Save.
6. (B) Others > Accounting Information.
7. Enter the following accounting information:

− Set of Books: Vision Operations
− Legal Entity: Vision Operations
− Operating Unit: Vision Operations
8. (M) File > Save.
9. (B) Others > Inventory Information > (T) Inventory Parameters
10. Enter the following inventory parameters:

− Organization Code: M12
− Item Master Organization: Vision Operations
− Calendar: Vision01
− Locator Control: Determined at Subinventory Level
11. (T) Costing Information
12. Click the flexfield button in the Material field. The Operations Accounting Flex window
opens.
13. Click the OK button in the Operations Accounting Flex window.
14. Enter the following details in the Operations Accounting Flex window:
− Department: No Department
− Account: Inventory Material Value
15. (T) Other Accounts

Chapter 2 - Page 24
16. Click the flexfield button in the Purchase Price Variance field. The Operations Accounting
Flex window opens.
− Department: M1, Seattle Manufacturing Plant
− Account: Purchase Price Variance
19. Click the flexfield button in the Invoice Price Variance field. The Operations Accounting
Flex window opens.

− Account: Invoice Price Variance
22. Click the flexfield button in the Inventory AP Accrual field. The Operations Accounting
Flex window opens.
− Account: Accounts Payable Clearing
25. Click the flexfield button in the Sales field. The Operations Accounting Flex window opens.
− Account: Hardware
28. Click the flexfield button in the Cost of Goods Sold field. The Operations Accounting Flex
window opens.
− Account: Cost of Sales
31. (M) File > Save.
32. (M) File > Close Form.
33. (B) Others > Receiving Information

Chapter 2 - Page 25
34. Enter the following receiving options:
− Receipt Date, Days Early: 5
− Receipt Date, Days Late: 5
− Over Receipt Control, Tolerance: 5%
35. Click the flexfield button in the Receiving Inventory Account field. The Receiving Accrual
Account window opens.
36. Click the OK button in the Receiving Accrual Account window.
37. Enter the following details in the Receiving Accrual Account window:

38. Click the flexfield button in the Clearing Account field. The Clearing Account window
opens.
39. Click the OK button in the Clearing Account window.
40. Enter the following details in the Clearing Account window:


Chapter 2 - Page 26
Agenda

Chapter 2 - Page 27
Summary

Chapter 2 - Page 28
11i Overview of Defining and
Maintaining Items
Chapter 3
11i Overview of Defining and Maintaining Items

Chapter 3 - Page 1

Chapter 3 - Page 2
Objective

Chapter 3 - Page 3
Agenda

Chapter 3 - Page 4
Items

What is an Item?
An item is a part or service you:
• Purchase
• Sell
• Plan
• Manufacture
• Stock
• Distribute
• Prototype

Chapter 3 - Page 5
Agenda

Chapter 3 - Page 6
Oracle Organization

Chapter 3 - Page 7

An inventory organization is an inventory location with its own set of books, costing method,
workday calendar, and list of items. An organization can be a company, subsidiary, or a
warehouse.
Consider the following when you plan your enterprise structure:
• Sets of Books: You can tie one Oracle General Ledger set of books to each inventory
organization.
• Costing Methods: You set your costing method (Standard or Average) at the organizational
level. The item attribute control level determines the costing organization.
• Item Costs: Oracle Inventory keeps one cost per item per inventory organization.
• Movement Between Inventory Sites: You can use intransit inventory for interorganization
transfers.
• Planning Method: You can choose how to plan your items.
• Forecasting: You can forecast your items.
• Accuracy Analysis: You can perform a cycle count or a physical inventory.

Chapter 3 - Page 8

Classify the Organization
• Choose an organization classification to describe the general purpose of your organization.
• Examples of organization classifications are inventory organization, legal company, and
HR organization.
• Choose inventory organization as your organization classification to use your organization
for inventory management.
Set of Books
• Tie each inventory organization to an operating unit. Each operating unit is associated to a
legal entity and a general ledger set of books.
Inventory Parameters
• Use the Organization Parameters window to complete your organization definition for
inventory purposes.
• Define receiving parameters if you receive items on purchase orders, internal orders, and
intransit interorganization shipments.

Chapter 3 - Page 9
Agenda

Chapter 3 - Page 10
Defining Items in Item Master

Item Master
Always define items in the master organization. When you define an item, Oracle
automatically changes your current organization to the master organization. You may enable
your new items in as many child organizations as needed.

Chapter 3 - Page 11
Steps to Setup, Define, and Maintain Items

Steps to Define and Maintain Items
Following are the steps for creating and maintaining items:
1. Create the item templates.
2. Use the templates and existing items to define items.
3. Enter values for additional item attributes.
4. Assign a status to the item.
5. Assign categories to the item.
6. Enable the item in other organizations.
7. Update the organizational-level attributes values.
8. Define the item relationships.
9. Search for items.
10. Delete items.

Chapter 3 - Page 12
Defining Items

Chapter 3 - Page 13
Agenda

Chapter 3 - Page 14
Item Attributes

Item Attributes
Item attributes are the collection of information about an item.

Chapter 3 - Page 15
Item Statuses and Attributes

You define an item status by selecting the value check boxes for the status attribute. You can
control status attributes and item status at the item level or organization level.

Chapter 3 - Page 16
Item Attribute Groups

Chapter 3 - Page 17
Agenda

Chapter 3 - Page 18
Creating Item Templates

Chapter 3 - Page 19
Enabling Attributes in a Template

Chapter 3 - Page 20
Agenda

Chapter 3 - Page 21
Organization Assignment and Organization Item

You can enable your item in all child organizations under your master organization or you can
choose to enable your item in specific child organizations. You can use the master item
window, in each organization, to enter or change organization-level attribute values for items
that are enabled in the organization. For example you can select Reorder Point planning for an
item in one child organization and select Min-Max planning for the same item in another child
organization.

Chapter 3 - Page 22
Agenda

Chapter 3 - Page 23
Deletion Constraints and Deletion Groups

Deletions Constraints and Deletion Groups
You cannot delete an item if you have on-hand quantity or have performed any type of action
on the item.

Chapter 3 - Page 24
Agenda

Chapter 3 - Page 25
Summary

Chapter 3 - Page 26
11i Defining and Maintaining
Items Fundamentals
Chapter 4
11i Defining and Maintaining Items Fundamentals

Chapter 4 - Page 1

Chapter 4 - Page 2
Objectives

Chapter 4 - Page 3
Agenda

Chapter 4 - Page 4
Unit of Measure

Unit of Measure
A unit of measure (UOM) is a value that specifies the quantity of an item. For example, “each”
is a unit of measure that you would use to specify the number of units of an item.
Unit of Measure Class
A unit of measure class is a group of units of measure with similar characteristics. For
example, “weight” can be a unit of measure class with UOMs such as kilogram, gram, pound,
and ounce.

Chapter 4 - Page 5
Unit of Measure

Chapter 4 - Page 6
Units of Measure

Explaining Units of Measure
Each item you define in Oracle Inventory must have a primary unit of measure, and each item-
transaction you perform in Oracle Applications must have a unit of measure associated with
the transaction quantity and a conversion defined back to the primary unit of measure.

Chapter 4 - Page 7
Use of Units of Measure

Some Uses of Units of Measure
Planning Products
• Forecasting and consumption
• Master scheduling
• Material requirements planning
Work in Process
• Shop floor moves
• Resource transaction
• Completion and return transactions
• Inquiries and reports
Bills of Material and Engineering
• Defining bills of material
• Defining engineering items

Chapter 4 - Page 8
Defining UOM Classes

You need to define unit of measure classes and the base unit of measure for each class. Unit of
measure classes represent groups of units of measure with similar characteristics such as
volume or length. Oracle Inventory uses the base unit of measure to perform conversions
between units of measure in each class and between two different unit of measure classes.

Chapter 4 - Page 9
Units of Measure Conversions

Units of Measure Conversions
A unit of measure conversion is a mathematical relationship between two different units of
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,
you must define conversions between the base units of measure in different UOM classes.

Chapter 4 - Page 10
Units of Measure Setup

Chapter 4 - Page 11
Guided Demonstration Overview: Units of Measure

Chapter 4 - Page 12
Guided Demonstration - Units of Measure
Units of Measure Classes
1. (N) > Setup > Units of Measure > Classes.
2. (M) File > New.
3. Enter the following unit of measure information:

− Name: 00-Metric
− Description: 00-Metric Class

− Base Unit 00-Meter
− UOM: 00M
4. (M) File > Save.
5. Choose Units of Measure.
6. (M) File > New.
7. Create two units of measure using the following information

− Name: 00-Centimeter
− UOM: 00C
− Description: 00-Centimeter
− Name: 00-Kilometer
− UOM: 00K
− Description: 00-Kilometer.
8. (M) File > Save.
Unit of Measure Conversions
10. (N) Setup > Units of Measure > Conversions
11. (M) File > New.
12. Select 00-Centimeter from the list of values.
13. Enter 0.01 in the conversion field.
14. (M) File > New.
15. Select 00-Kilometer from the list of values.

Chapter 4 - Page 13
16. Enter 1000 in the conversion field.

Chapter 4 - Page 14
Practice Overview: Units of Measure

Chapter 4 - Page 15
Practice - Defining Units of Measure
Overview
In this lab you will be doing the following:
• Defining Units of Measure Classes
• Defining Units of Measure
• Setting Up Units of Measure Conversions
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
Define a unit of measure class using your team number (##) to uniquely identify your class from
the other team’s in the classroom. The UOM class information to enter is as follows:
• Description: ##-Quantity Class
• Base Unit: ##-Each
• UOM abbreviation ##E
Defining UOMs
Define the following UOM’s for your class. Be sure to use your team number to uniquely
identify your class from the other team’s in the classroom.
• Dozen
• Gross
• Case
UOM Conversions
Set up Standard conversion for your UOMs. Be sure to use your team number to uniquely
identify your class from the other team’s in the classroom.

Chapter 4 - Page 16
Note: A Gross = 144 each, and a case = 24 each.

Chapter 4 - Page 17
Solution – Defining Units of Measure
1. Navigate to the UOM Classes window.
• (N) Setup > Units of Measure > Classes
2. The application prompts you to select an organization if it is a first-time access to the

database. Select M1 Seattle Manufacturing from the list of values.

3. (M) File > New.
− Name ##-QTY
− Description ##-Quantity Class
− Base Unit ##-Each
− UOM (abbreviation) ##E
4. (M) File > Save.
5. (M) File >Close Form.
Defining UOMs
6. Define multiple units of measure for you UOM class.
• (N) Setup > Units of Measure > Units of Measure
7. (M) File > New.

Chapter 4 - Page 18
− Name: ##-Dozen
− Abbreviation: ##D
− Description: Team ## Dozen U of M
− Class: The U of M class you created in Step 1
8. Repeat step 6 to create units of measure for ##-Gross and ##-Case using the same
conventions.
9. (M) File > Save.
10. (M) File > Close form.

UOM Conversions
11. Set up Standard conversions for your units of measure.
• (N) Setup > Units of Measure > Conversions
12. (M) File > New (make sure your conversion type is “Standard” conversion).
− UOM: ##-Dozen
− Class: ##-Quantity
− Conversion: 12
− Base Unit: ##-Each
13. Create Standard Conversions for Case and Gross UOMs.

− ##-Gross = 144 ##-Each
− ##-Case = 24 ##-Each

Chapter 4 - Page 19
15. (M) File >Close Form.

Chapter 4 - Page 20
Agenda

Chapter 4 - Page 21

You define an item status by selecting the value check boxes for the status attribute. You can
control status attributes and item status at the item level or organization level.

Chapter 4 - Page 22
Item Status

Explaining Item Status
The Item Status attribute has a defined set of yes/no values for the status attributes. You apply
the values to the status attributes when you choose an item status code when you define an
item. For example, in the beginning of a product development cycle 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 attribute to Active to
enable all item functions.
You can assign one or more pending statuses for an item, to be implemented on future dates.
These statuses become effective on their assigned effective dates. You can view the status
history of an item if needed.
More detailed information see the online help:
(Help) Oracle Inventory > Setting Up > Item Set Up and Control > Status Attributes and Item
Status

Chapter 4 - Page 23
Status Attributes

Status Attributes Help
For more information on status attributes, refer to the online help:
Status Control

Chapter 4 - Page 24
Item Attribute Relationships

Explaining Item Attribute Relationships
Required Attributes
You must enter a value for the attribute based on the settings for other related attributes.
Interdependent Attributes
You can only enter certain values depending on other attribute values.
Updateable Attributes
You can update values under certain conditions.
Control Level Dependencies
You can update the control level of some attributes only under special conditions and with
certain consequences.

Chapter 4 - Page 25
Status Attribute Interdependencies

Chapter 4 - Page 26

Chapter 4 - Page 27

Chapter 4 - Page 28
Status Attributes and Functionality

Status Attributes and Functionality Help
For more information on this table, refer to the online help:
Status Control
(Help) Oracle Inventory > Setting Up > Item Set Up and Control > Relationships between
Attributes

Chapter 4 - Page 29
Status Attributes and Functionality

Chapter 4 - Page 30
Guided Demonstration Overview: Viewing Item Attributes

Chapter 4 - Page 31
Guided Demonstration - Viewing Item Attributes
Responsibility: Oracle Inventory, Vision Operations USA
1. (N) Items > Master Items.
2. (M) View > Query by Example > Enter.
3. Enter item %AS18947.
4. (M) View > Query by Example > Run.
5. (T) Inventory.

6. Choose the Master radio button from the Display Attributes zone.
7. Choose the Org radio button from the Display Attributes zone.

Chapter 4 - Page 32
Practice Overview: Viewing Item Attributes

Chapter 4 - Page 33
Practice - Viewing Item Attributes
Overview
In this lab you will learn how to view item attributes.
Assumptions
• You are skilled at Oracle navigation.
• Responsibility: Inventory, Vision Operations USA.

Tasks
Viewing Item Attributes
1. Find item # AS18947 and answer the following questions
• What is the BOM Item Type for the part? _______What is the control level? ______
• Is this item under Revision Control? _____ What is the control level? ____
2. Find item # AS54888 and answer the following questions about the item's attributes.
• What is the Item Status? _______________ What is the control level? ______
• Is a Bill of Material allowed for this item? ______ What is the control level? ______
• Can I build this item in WIP? ________________ What is the control level? _____
• Are customer orders enabled for this item? _________What is the control level? _____
• Is Invoicing Enabled for this item? ______________ What is the control level? _____
• Are Internal Orders enabled for this item? _______ What is the control level? ______
• Is this item transactable in Inventory? ____________ What is the control level? ______
• Is this item purchasable from a Vendor? ___________ What is the control level? _____
• Is this item stockable in Inventory? _______________ What is the control level? _____
• In how many Organizations can this part be used?

Chapter 4 - Page 34
Solution – Viewing Item Attributes
Viewing Item Attributes
1. Navigate to the Master Items Window.
• (N) Items > Master Items

2. Query Item # AS18947.
• (M) View > Query by Example > Enter

− Enter AS18947% in the Item field.
• (M) View > Query by Example > Run

Chapter 4 - Page 35
3. BOM Item Type for AS18947 is Standard, and Master controlled.

Chapter 4 - Page 36
4. Item AS18947 is not under revision control or lot control. These attributes are organization
controlled.

5. Find Item AS54888.
• (M) View > Find

Chapter 4 - Page 37
• Select Find.
6. Item AS5488 Item Status is active, and master controlled.

7. A Bill of Material is allowed for this item, and the attribute is master controlled.
8. Customer orders are enabled for this item, and the attribute is master controlled.

Chapter 4 - Page 38
9. Invoicing is enabled for this item, and the attribute is master controlled.
10. This item is transactable, and the attribute is master controlled.

Chapter 4 - Page 39
11. The item is stockable, and the attribute is master controlled.
12. In how many Organizations can this part be used?
13. Close Forms.

Chapter 4 - Page 40
Agenda

Chapter 4 - Page 41
Defining the Item Master Organization

Item Master Organization
An item master organization is a logical entity that you can use just to define items. The other
organizations (child organizations), where inventory is stored and transacted, refer to the item
master organization for item definition. After you define an item in the item master, you can
assign it to any number of other organizations.
There is no functional or technical difference between the item master organization and other
organizations. However, for simplicity it is recommended that you limit the item master to just
an item definition organization.
It is also recommended that you do not define multiple item masters. This can make item
definition and maintenance confusing. You can even use the same item master for child
organizations across different set of books. In addition, multiple item masters are distinct
entities with no relationship to each other. You cannot associate items in one item master
organization with another item master organization. You cannot copy items across item master
organizations.
Defining the Item Master Organization
Creating the item master organization is similar to creating the inventory organizations:

Chapter 4 - Page 42
• Use the Organization window to create the organization you want to use as the Item
Master.
• Use the Organization Parameters window to specify the organization as the Item Master.
You can also assign child organizations to an item master in this window. Note that the
item master uses itself as its item master.

Chapter 4 - Page 43
Agenda

Chapter 4 - Page 44
Defining Items

Defining Items
Define only the information you need to maintain the item. You cannot define an item at the
organization level. Oracle Inventory automatically switches to the Master Item window when
you define a new item.

Chapter 4 - Page 45
Steps to Setup, Define, and Maintain Items

Steps to Define and Maintain Items
Following are the steps for creating and maintaining items:
1. Create the item templates.
2. Use the templates and existing items to define items.
3. Enter values for additional item attributes.
4. Assign a status to the item.
5. Assign categories to the item.
6. Enable the item in other organizations.
7. Update the organizational-level attributes values.
8. Define the item relationships.
9. Search for items.
10. Delete items.

Chapter 4 - Page 46
Defining Items

Chapter 4 - Page 47
Item Templates

Templates
Oracle Inventory has several predefined templates that you can use to define and update items
or you can create your own templates.
If you regularly define many items that share the same values for a number of attributes, you
may want to define item templates to avoid duplicating effort. You can only use “Copy” once
when adding an item. You can predefine templates with relatively few attributes enabled
because you can apply more than one template to define one item.
Attributes in Templates
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
the template. The order in which templates are applied is extremely important.
Further Item Templates Help
For more information on item templates, refer to the online help:
(Help) Oracle Manufacturing Applications > Oracle Inventory > Setting Up > Item Setup and
Control > Item Templates

Chapter 4 - Page 48

You can enable your item in all child organizations under your master organization or choose
child organizations where you use the item. Oracle Inventory propagates your item to all
organizations in which you want to define it. You can enter or change organizational attributes
for item attributes which are enabled in that organization. For example, go to an organization
to choose reorder point planning for an item, and then go to another organization and choose
Min-Max planning for the same item.

Chapter 4 - Page 49
Item Control Level

Master-Level Control
An attribute you maintain at the master level has identical values across all organizations that
use the item.
Organization-Level Control
An attribute you maintain at the organization level may have different values for each
organization that uses it.
Attribute Control
Some attributes can be maintained at only the Master level or the Organizational Level.
Unit of Measure must be entered at the Master level.
If using multiple organizations, the Min-Max attribute should be maintained at the organization
level.
Technical Note
Master-Level Control
For example, suppose you want to ensure that items defined in two organizations are
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.

Chapter 4 - Page 50
Organization-Level Control
Suppose only one of the two organizations in your Oracle Inventory implementation performs
manufacturing operations, while the other organization is strictly a distribution warehouse.
For a finished good item used in both organizations, you would want the flexibility to select the
Build in WIP status attribute check box in the manufacturing organization, and clear the Build
in WIP status attribute check box in the distribution organization.

Chapter 4 - Page 51
Guided Demonstration: Defining Items

Chapter 4 - Page 52
Guided Demonstration - Define Item
1. (N) > Items > Master Items.
2. Define an item using the following information.

− Item: AS18456
− Description: Lap Top Assembly
3. (M) Tools > Copy From.
4. Select Finished Good template from LOV.

5. Select Apply.
6. Select Done.
7. (M) File > Save.
8. (M) Tools > Organization Assignment.
9. Enable the Item in M1 Seattle.

Chapter 4 - Page 53
Practice Overview: Defining Items

Chapter 4 - Page 54
Defining Items
Overview
In this practice you will learn how to define items, assign item attributes, and enabled items in
organizations.
Assumptions
• You are skilled in Oracle navigation.
• Responsibility: Inventory, Vision Operations USA.

Tasks
1. Create an item template and enable the following item attributes
• BOM Item Type: Standard
• Build in WIP
• Costing Enabled
• Customer Ordered
• Inventory Asset Value
• Inventory Item
• Invoiceable Item
• Stockable
• Transactable
• Cycle count enabled
• Shippable
• User Item Type: Finished Good

Chapter 4 - Page 55
Create Items
Create an item using the template you created in the previous task. Create 5 items using the
Finished goods template with the following descriptions:
• No Inventory Controls
• Locator Control ON
• Revision Control ON
• Lot Control ON
• Serial Number Control ON

Note: Use the following naming convention for your items, ##Item, and be sure to enable
your items in M1 Seattle and M2 Boston.

Chapter 4 - Page 56
Solution - Defining Items
1. Navigate to the Item Template Window.
• (N) Setup > Items > Templates
2. (B) New.
− Template = ##-Template
− Description = Team ## Finished Goods Template

− Organization = Leave Blank
3. Select the appropriate attribute groups from the Show dropdown list. Enable the following
item attributes:
• BOM Item Type: Standard
• Build in WIP
• Costing Enabled
• Customer Ordered

Chapter 4 - Page 57
• Inventory Asset Value
• Inventory Item
• Invoiceable Item
• Stockable
• Transactable
• Cycle count enabled
• Shippable

• User Item Type: Finished Good
4. Save and Close the form.
• (M) File > Save
• (M) File > Close Form
Creating Items
5. Create an item using the template you created in the previous task.
• (N) Items > Master Items

− Item: ##-Item01
− Description: Team ## - Item created from template

Chapter 4 - Page 58
6. (M) Tools > Copy from
• Select the LOV
• Select the template you created in the previous task (##-Template)
• Select the Apply Button
• Select the Done Button.
7. (M) Save.
8. (M) Tools > Organization Assignment
• Select the Assigned box next to M1 Seattle.
• Select the Assigned box next to M2 Boston.

Chapter 4 - Page 59
9. (M) File > Save.
10. (M) File > New.
11. Repeat Steps 5-10 using the following item numbers and descriptions.
− Item: ##-Item02
− Description: ##-No Inventory Controls
− Item: ##-Item03
− Description: ##-Locator Control ON
− Item: ##-Item04
− Description: ##-Revision Control ON
− Item: ##-Item05
− Description: ##- Lot Control ON
− Item: ##-Item06
− Description: ##-Serial Number Control ON
12. Save and Close window.
• (M) File > Save.
• (M) File > Close Form.

Chapter 4 - Page 60
Agenda

Chapter 4 - Page 61
Deletion Constraints

Chapter 4 - Page 62
Deletion Constraints

Deletion Constraints Help
For more information on deleting items, or to review a list of entities that Oracle Inventory
checks before deleting an item, refer to the online help:
(Help) Oracle Manufacturing Applications > Oracle Inventory > Items > Item Deletion

Chapter 4 - Page 63
Agenda

Chapter 4 - Page 64
Profile Values

Profile Values
Profile values are one of the methods used to specify how Oracle Inventory processes and
controls access to data. In general, profile values can be set at one or more of the following
levels:
• User
• Organization
• Server
• Responsibility
• Application
• Site
Setting Profile Values
System administrators use the System Profile Values window to set profile options for their
users. System administrators can set values for user profile options at each profile level.
Site: Option settings pertain to all users at an installation site.
Application: Option settings pertain to all users of any responsibility associated with the
application.

Chapter 4 - Page 65
Responsibility: Option settings pertain to all users currently signed on under the responsibility.
Server: Option settings pertain to an individual server.
Organization: Option settings pertain to a particular organization.
User: Option settings pertain to an individual user, identified by their application username.
When a profile option may be set at more than one level, site has the lowest priority,
superseded by application, then responsibility, with user having the highest priority. For
example, a value entered at the site level may be overridden by values entered at any other
level. A value entered at the user level has the highest priority, and overrides values entered at
any other level.
System Administrators can use the hierarchy type enhancement to group and set profile options
according to the business needs. There are three types of hierarchy - security, server, and
organization. Profiles that use the Security hierarchy type follow the hierarchy: Site >
Application > Responsibility > User. Profiles using the Server type use the hierarchy: Site >

Server >User. Profiles using the Organization type use the hierarchy: Site > Organization >
User. System administrators can further control security by assigning a set of books to a
responsibility, application, or site.
As application users, you can use the Personal Profile Values window to set your own personal
profile options at the user level. Not all profile options are visible in the Personal Profile
Values window, and some profile options though visible might not be updatable. Required
profiles have no default; they require input from you or the system administrator. Optional
profiles have defaults that may be accepted or manually overridden.

Chapter 4 - Page 66
Item Profile Options

Profile Option
INV: Default Item Status: Indicates the default item status for new items you define.
INV: Default Primary Unit of Measure: Indicates the default primary unit of measure for new
items you define.
INV: Item Master Flexfield: Indicates which flexfield is used to define items in
MTL_SYSTEM_ITEMS.

Chapter 4 - Page 67
Item Profile Options

Profile Option
INV: Updateable Customer Item: Indicates if you can change the customer item number.
INV: Updateable Item Name: Indicates whether you can update the item flexfield.

Chapter 4 - Page 68
Agenda

Chapter 4 - Page 69
Implementation Considerations

You should set all costing attributes at the organizational level because costing is most
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.
Costing Method
Costing method is chosen and set at the inventory organization level. Within a set of books,
an enterprise can have multiple cost methods specified at each organization level. For
example, a company may have one average cost org and one standard cost org. Available
costing methods are as follows:
• Standard
• Weighted
• Average
• FIFO
• LIFO

Chapter 4 - Page 70
Agenda

Chapter 4 - Page 71
Summary

Chapter 4 - Page 72
11i Inventory Controls
Concepts
Chapter 5
11i Inventory Controls Concepts

Chapter 5 - Page 1

Chapter 5 - Page 2
Objectives

Chapter 5 - Page 3
Agenda

Chapter 5 - Page 4
Inventory Control Overview

Item Control Overview
Within Oracle Inventory you can implement locator, revision, lot, and serial number control for
your items. Inventory controls are optional for all items. You can implement any combination
of the four controls for each item.

Chapter 5 - Page 5
Agenda

Chapter 5 - Page 6
Subinventories Overview

What is a Subinventory?
You define one or more subinventories for each inventory organization. A subinventory is a
physical or logical grouping of inventory such as raw material, finished goods, defective
material, or a freezer compartment. A subinventory can be the primary place where items are
physically stocked. You must specify the subinventory for every inventory transaction.

Chapter 5 - Page 7
Agenda

Chapter 5 - Page 8
Locator Control Overview

Locator Control Overview
Stock locators are structures within subinventories and are the third level in the enterprise
structuring scheme of Oracle Inventory. Locators may represent rows, aisles, or bins in
warehouses. You can transact items into and out of stock locators.

Chapter 5 - Page 9
Agenda

Chapter 5 - Page 10
Revision Control Overview

Revision Control Overview
A revision is a particular version of an item, bill of material, or routing. You use a revision
when you change the form, fit, or function of an item. Use a number or letter to signify the
number of times you change an item.

Chapter 5 - Page 11
Agenda

Chapter 5 - Page 12
Lot Control Overview

Lot Control Overview
A lot identifies a specific batch of an item you receive and store in your organization. Lot
control is a technique for enforcing the use of lot numbers during material transactions, thus
enabling the tracking of batches of items throughout their movement in and out of inventory. If
lot control is turned on for an item, you must indicate the lot number to perform a transaction.
Oracle Inventory provides complete lot number support for inventory transactions.

Chapter 5 - Page 13
Agenda

Chapter 5 - Page 14
Serial Number Overview

Serial Numbers Overview
A serial number is an alphanumeric piece of information you assign to an individual unit of an
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
serial numbers to track items over which you want to maintain very tight control. One serial
number is assigned to per unit of an item.
For more information on setting up serial number control, refer to the online help:
(Help) Oracle Manufacturing Applications > Oracle Inventory > Items > Lot and Serial
Number Control > Setting Up Serial Number Control

Chapter 5 - Page 15
Agenda

Chapter 5 - Page 16
Summary

Chapter 5 - Page 17

Chapter 5 - Page 18
11i Inventory Controls
Fundamentals
Chapter 6
11i Inventory Controls Fundamentals

Chapter 6 - Page 1

Chapter 6 - Page 2
Objectives

Chapter 6 - Page 3
Agenda

Chapter 6 - Page 4
Inventory Control Overview

Item Control Overview
You can implement locator, revision, lot, and serial number control for your items. Inventory
controls are optional for all items. You can implement any combination of the four controls for
each item.

Chapter 6 - Page 5
Agenda

Chapter 6 - Page 6
Defining Subinventories

Defining Subinventories
You define subinventories by organization. Each subinventory must contain the following
information:
• Unique alphanumeric name
• Status
• Cost Group (feature enabled if you have WMS installed)
• Parameters
• Lead times
• Sourcing information
• Account information
For more information on defining subinventories see:
(Help) Oracle Manufacturing Applications > Oracle Inventory > Setting Up > Inventory
Structure > Defining Subinventories

Chapter 6 - Page 7
Subinventory-Locator Relationship

Explaining Locator Structuring
You can structure Oracle Inventory in such a way that some of the subinventories and items
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
control is turned on at the subinventory level, you must specify a locator when transacting any
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:
• None
• Prespecified
• Dynamic entry
• Item Level
For more information on setting up Locator Control, refer to the online help:
Structure > Defining Subinventories

Chapter 6 - Page 8
Structure > Defining Stock Locators

Chapter 6 - Page 9
Locator Structuring

Locator Structuring
You can restrict specific item numbers to a specific Stock Locator. For example you may stock
an item that is too large to fit into a standard locator. You can specify this item to be stocked in
an oversized locator only.

Chapter 6 - Page 10
Locator Control Reports

Locator Control Reports
Locator Quantities Report
You use the Locator Quantities Report to identify items and their quantities stored in the
specified stock locators. If the stock locator has a zero on-hand quantity, then the locator is not
included in the report.
Locator Listing Report
You use the Locator Listing Report to list stock locators you defined. You also use this report
to review volume and weight allowed in a location before transacting items.

Chapter 6 - Page 11
Guided Demonstration Overview: Defining Subinventories

Chapter 6 - Page 12
Guided Demonstration - Creating Subinventories
1. (N) Setup > Organizations > Subinventories
2. (M) File > New
3. Enter the following subinventory information:

− Name: Raw
− Description: Raw Materials
4. (M) File > Save.

Verifying Subinventories
6. (N) Change Organization.
7. Select M2 Boston Manufacturing.
8. (N) Setup > Organizations > Subinventories
9. (M) View > Find.
10. Note that subinventory Raw is not available in M2.

Chapter 6 - Page 13
Practice Overview: Defining Subinventories

Chapter 6 - Page 14
Practice - Creating Subinventories
Overview
In this practice you will learn how to create two subinventories.
Assumptions
• You are skilled in Oracle navigation.
• Responsibility > Inventory, Vision Operations USA

Tasks
If you are not already in Seattle, change Organization to Seattle (M1).
Create four subinventories for your team. Create one subinventory for your finished goods (FGI)
stock, a subinventory as your Main inventory, a subinventory for Raw Materials, and a
subinventory for Low Value items. Your Low Value subinventory must be a non-tracked
subinventory. Use the following naming convention to differentiate your team from other teams
i.e. ##FGI where the pound sign represents your team number.
After completing the lab, answer the following questions.
1. In which organization are your new subinventories?
2. Change to the Boston (M2) organization and ascertain if there is an FGI subinventory in that
organization.

Chapter 6 - Page 15
Solution - Creating Subinventories
1. Change Organization to M1 Seattle.
• (N) Change Organization
• Choose Seattle Manufacturing
• Select OK
2. Navigate to the Sub-inventories window

• (N) Setup > Organizations > Subinventories
3. (M) File > New.

− Name: ##FGI
− Description: ## Finished Goods Inventory
− Organization: M1

Chapter 6 - Page 16
4. (M) File > Save
5. (M) File > New.

− Name = ##Main
− Description = ## Main Stores
6. (M) File > Save.
7. (M) File > New.

− Name = ##RM
− Description = ## Raw Materials
8. (M) File > Save.
9. (M) File > New

− Name = ##LV
− Description = ##Low Value Inventory

Chapter 6 - Page 17
10. Clear the Quantity Tracked check box to make this a non-tracked
inventory.

• (M File > Close Form.
12. In which organization are your new subinventories? M1 Seattle Manufacturing
Verifying Subinventories
13. Does a subivnentory called FGI exist in M2 Boston Manufacturing? Yes.
14. (N) Change Organization.
• Select M2 Boston Manufacturing.

Chapter 6 - Page 18
15. (N) Setup > Organizations > Subinventories.
16. (M) View > Find.

Chapter 6 - Page 19
Guided Demonstration Overview Setting Up Locator Control

Chapter 6 - Page 20
Guided Demonstration - Locator Control
Setting Up Subinventories for Locator Control
1. (N) Setup > Organizations > Subinventories.
2. (M) View > Find.
3. Select a Subinventory.
4. (B) Open.

5. Choose Item Level as the locator control level.
6. (M) File > Save.
7. (M) File > Close Form
Setting Up Locator Control for Items
8. (N) Items > Organization Items.
9. Find an Item.
10. (T) Inventory
11. Choose Dynamic entry as the locator control level.
Note: You cannot change the locator control for items for which on-hand quantity exists.
Setting Up Stock Locators
14. (N) Setup > Organizations > Stock Locators.
15. Choose New.
16. Enter a new Row Rack and Bin.
Note: Locators must be unique across an organization.
17. Enter a Description.
18. Enter the Subinventory.

Chapter 6 - Page 21
Transacting Locator Controlled Items
21. (N) Transactions > Miscellaneous Transaction
22. Select Miscellaneous receipt as the transaction type.
23. Select Miscellaneous as the Account type from the LOV.
24. Choose Transaction Lines.
25. Enter the following transaction information:

− Item: The item for which you enabled locator control
− Subinventory: The subinventory for which you enabled locator control
− Locators: Select the locator that you created from the list of values
− Quantity: 5

Chapter 6 - Page 22
Practice Overview Setting Up Locator Control

Chapter 6 - Page 23
Practice - Setting Up Locator Control
Overview
In this lab you will learn how to set up locator control for subinventories and items.
Assumptions
• You are skilled in Oracle Navigation

Tasks
Setting up Subinventories for Locator Control.
1. Change the locator control in your ##FGI subinventory to Item Level.
2. Change the locator control in your ##Main subinventory to Dynamic Entry.
Setting up Items for Locator Control
3. Change the locator control of ##-Item03 to Dynamic Entry.
Defining Stock Locators
4. Define some stock locators for your ##FGI subinventory and your ##Main subinventory.
For this exercise use the following convention:
− Row: (your team #) ## ##
− Rack: 01 01
− Bin: 01 02
− Subinventory: ##FGI
− Row: ## ##
− Rack: 02 02
− Bin: 01 02
− Subinventory: ##Main
Receiving Locator Controlled Items
5. Receive the following items into ##FGI subinventory using a miscellaneous receipt.
− ##-Item02 Quantity 100
− ##-Item 03 Quantity 25
6. Receive the following item into ##Main subinventory using a miscellaneous receipt.
− ##Item02 Quantity 25

Chapter 6 - Page 24
7. Your Main subinventory is set up to require locator control for all items that are transacted
in it. Your FGI subinventory is not set up to require locator control for all items that are
transacted in it. Why, then were you prompted for a locator when you received ##-Item03
into the FGI subinventory?

Chapter 6 - Page 25
Solution – Setting Up Locator Control
Setting up Subinventories for Locator Control.
1. Navigate to the Subinventories window
• (N) Setup > Organizations > Subinventories
2. Find your ##FGI subinventory
• (M) View > Find

3. Open your ##FGI subinventory and make the following change:
− Locator Control: Item Level
4. (M) File > Save.

Chapter 6 - Page 26
5. Find your ##Main subinventory
• (M) View > Find
6. Make the following change to the ##Main subinventory

− Locator Control: Dynamic Entry

7. Save your work.
• (M) File > Save
Setting up Items for Locator control
8. Find Item ##-Item03 Locator control on.
• (N) Items > Organization Items.
• Enter the item number and select Find.

Chapter 6 - Page 27
9. Change the Locator control for ##-Item03.
• (T) Inventory
− Locator Control: Dynamic Entry

Chapter 6 - Page 28
11. (M) File > Close Form
Defining Stock Locators
12. Navigate to the Stock Locators window.
• (N) Setup > Organizations > Stock Locators.
• Select New.
13. Enter the following new locators using the following information:
− Row: (your team #) ##
− Rack: 01
− Bin: 01
− Description: Anything you want
− Locator Status: Active
− Row: ##
− Rack: 01
− Bin: 02

Chapter 6 - Page 29
− Row: ##
− Rack: 02
− Bin: 01
− Subinventory ##Main
− Row: ##
− Rack: 02
− Bin: 02

− Subinventory ##Main
14. Select (M) File > Save.
15. Select (M) File > Close.
Receiving Locator Controlled Items
16. Navigate to the Miscellaneous Transactions window.
• (N) Transactions > Miscellaneous Transaction.

− Date: Today’s Date

Chapter 6 - Page 30
− Type Miscellaneous Receipt
− Account: Select Miscellaneous from the LOV.

• Select Transaction Lines
17. Enter the following information in the subsequent fields:

− Item: ##-Item02
− Quantity: 100
− Item: ##-Item02
− Subinventory: ##Main
− Locator: ##.2.1 (Row ##, Rack 2, Bin 1)
− Quantity: 25
− Item: ##-Item03
− Locator: ##.1.2
− Quantity: 25

Chapter 6 - Page 31
18. Your Main subinventory is set up to require locator control for all items that are transacted
in it. Your FGI subinventory is not set up to require locator control for all items that are
transacted in it. Why, then were you prompted for a locator when you received Item03?
19. You set your FGI subinventory to item level locator control, and you changed Item03
locator control to dynamic entry.
20. Save and Close form.
• (M) File > Save

Chapter 6 - Page 32
Agenda

Chapter 6 - Page 33
Revision Control

Revision Control
A revision is a particular version of an item, bill of material, or routing. Use the revision
quantity control option to track item quantities by item revision and specify a revision for each
material transaction.
Enable revision quantity control for items you must track version changes or changes that are
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
revision control is controlled at the Master Item level, the check for on-hand quantity is against
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.
Use letters, numbers, and characters such as A, A1, 2B, and so on to define revision numbers.
Letters are always in upper case and numbers may include decimals. To ensure revisions sort
properly, decimals should always be followed by a number. Revisions are sorted according to
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.
For more information on setting up Revision Control, refer to the online help:

Chapter 6 - Page 34
(Help) Oracle Manufacturing Applications > Oracle Inventory > Items > Defining Item
Revisions

Chapter 6 - Page 35
Agenda

Chapter 6 - Page 36
Lot Control

Lot Control
Turn on lot control at the item level. For items under lot control, assign lot numbers to each
receipt into inventory and reference the same lots for each material transactions. This enables
you to have tight control over batches of items in your inventory.
You can split an inventory receipt into several lots as necessary. You can add quantities to
existing lot number, and Oracle Inventory uses the default lot generation method to generate
default lot numbers.
For more information on setting up Lot Control, refer to the online help:
Number Control > Setting Up Lot Control

Chapter 6 - Page 37
Lot Number Purging

Chapter 6 - Page 38
Maintaining Lot Information

Lot Expiration
You can use the Item Lots window to update the expiration date of lots for items under lot
expiration (shelf-life) control. If you attempt to transact an item, to or from an expired lot,
Oracle Inventory displays a warning but does not prevent you from transacting the lot.
You can determine whether a lot has an expiration date by assigning a number of lot control
shelf life days or by entering a lot expiration date at the item level. The expiration date controls
the availability of the lot for transacting and planning purposes.
An expired lot is not considered as on-hand supply when performing min-max, reorder point,
or MRP planning calculations. It cannot be reserved for a date beyond the expiration date,
however, it can be transacted and is included in on-hand quantities. An expired lot is included
in all inquires and reports, cycle count, count entry, physical inventory, tag entry, and
adjustments in both cycle counting and physical inventory are allowed.

Chapter 6 - Page 39
Cycle Counts Under Lot Control

Chapter 6 - Page 40
Physical Inventory Under Lot Control

Chapter 6 - Page 41
Disabled Lots

Disabled Lots
• Are included in available to transact, available to promise, and available to reserve
calculations.
• Are included as on-hand supply when performing min-max, reorder point, or MRP
planning calculations.
• Are included as on-hand in all inquiries and reports, including inventory valuation
reports.
• Can be transacted with Inventory functions and the Transaction Open Interface.
• Can be reserved.

Chapter 6 - Page 42
Lot Control Reports

Lot Control Reports
Lot Transactions Register
You can use the Lot Transactions Register to report comprehensive lot number material
transaction detail within a specific date range. You can run the report for a range of lots, items,
transactions types, transaction reasons, and subinventories. You can also specify a specific
category set and display transaction quantities in their primary or transacted unit of measure.
Supplier Lot Trace Report
You can use the Supplier Lot Trace Report to trace a specific lot to its supplier lots. You can
run the report for a range of lot numbers and items and a specific supplier lot number. The
report shows you the lot material transactions related to the selected items as lot numbers,
transaction dates, and transaction quantities.
Expired Lots Report
You can use the Expired Lots Report to show lots in your organization that expire on or before
the date you specify. You can run the report for a range of items or for a specific item only.

Chapter 6 - Page 43
Agenda

Chapter 6 - Page 44
Generating Serial Numbers

Serial Number Generation
How you set up serial number control at the master item level determines serial number
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,
then you must predefine serial numbers for that item. If you select At inventory receipt or At
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
specify in the Item window to load the number of predefined serial numbers you request. You
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
does not assign numbers to units in inventory, it simply reserves specific serial numbers for an
item for later use.
For more information on setting up serial number control, refer to the online help:
Number Control > Setting Up Serial Number Control

Chapter 6 - Page 45
Maintaining Serial Numbers

Chapter 6 - Page 46
Serial Genealogy

Chapter 6 - Page 47
Serial Number Control Reports

Serial Number Control Reports
Serial Number Transactions Register
You can use the Serial Number Transactions Register to report comprehensive serial number
material transaction detail within a specific date range. You can run the report for a range of
serial numbers, items, transaction types, transaction reasons, and subinventories. You can also
specify a specific category set and display transaction quantities in their primary or transacted
unit of measure.
Serial Number Detail Report
You can use the Serial Number Detail Report to report on information about current serialized
units in your organization for a specific source type or serialized unit status. Oracle Inventory
enables you to run the report for a range of serial numbers, items, suppliers, and supplier serial
numbers.

Chapter 6 - Page 48
Guided Demonstration Overview: Revision, Lot, and Serial
Controls

Chapter 6 - Page 49
Guided Demonstration - Revision, Lot, and Serial Controls
Creating New Revisions
1. If you are not in M1 organization, change your organization to M1.
• (N) Change Organization.
• Select M1 Seattle Manufacturing from the organization list.

4. (T) Inventory.
5. Select the Revision Control check box.
6. (M) Tools > Revisions.
7. (M) File > New.
8. Enter the following revision information:

− Revision: B
− Revision Label: B
− Description: Lap Top Assembly Revision
− Effective Date: Today's Date.
9. (M) File > Save.
Enabling Lot Control
12. Find item AS18456.
13. (T) Inventory.
14. Select Full Control in the Lot alternative region.
15. Enter the starting lot prefix.
16. Enter the lot starting number.

Chapter 6 - Page 50
Enabling Serial Control
21. (T) Inventory.
22. Select Predefined from the Serial alternative region:

− Starting Prefix: AS
− Starting Number: 000001

Generating Serial Numbers
25. (N) On-hand, Availability > Generate Serial Numbers.
26. Enter the following information to generate serial numbers:

− Item: AS42001
− Quantity: 1000
27. Choose Submit.
Transacting Locator Controlled Items.
28. (N) Transactions > Miscellaneous Transactions.
29. Enter the following transaction information:

− Type: Miscellaneous receipt
− Account: Miscellaneous
30. Choose Transaction Lines.
31. Enter the following receipt information:

− Item: AS18456
− Revision: B
− Subinventory: FGI
− Quantity: 10
32. Choose Lot /Serial.
33. Choose Generate.

Chapter 6 - Page 51
− Lot Quantity: 10
34. Choose Done.
35. (M) File > New.
36. Enter the following receipt information:

− Item: AS42001
− Subinventory: FGI
− Quantity: 15
37. 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.
39. Choose Done.

Chapter 6 - Page 52
Practice Overview: Revision, Lot, and Serial Controls

Chapter 6 - Page 53
Practice - Revision, Lot, and Serial Controls
Overview
In this lab you will learn how to update your revision, lot, and serial control for your items. You
will also learn how to receive items into stock that have revision, lot, and serial control. You will
use the items you created in the defining items lab.
Assumptions
• You are skilled in Oracle Navigation.
• You have completed the Define Items Lab.

Tasks
Revision Control
1. Find item ##-Item04, and enable revision control for this item.
2. Create two revisions for this item with the following information
− Revision: B
− Effective Date: Today
− Revision: C
− Effective Date: 1st of next month
3. Notice that a revision record already exists for this item (Revision A). Why is there already a
revision for this item? ______________________________________
Lot Control
4. Update ##-Item05 to enable lot control using the following information.

− Lot Expiration (Shelf Life) Control: User defined
− Lot Control: Full control
− Starting Prefix: ## (team number)
Serial Number Control
5. Update ##-Item06 to enable serial control using the following information.

− Serial Number Generation: Predefined
− Starting Serial Prefix: T##

Chapter 6 - Page 54
− Starting Serial Numbers: 0001
6. Predefine a range of serial numbers using the following information:

− Item: ##-Item06
− Quantity to define: 1000
Note: Please note your request ID.
Receiving Revision, Lot, and Serial Controlled Items
7. Use a miscellaneous receipt transaction to receive item ##-Item04 into stock as follows:
− Item: ##-Item04 ##-Item04 ##-Item04
− Revision: A B C
− Subinventory: ##FGI ##FGI ##FGI

− Quantity 200 10 5
− Item: ##-Item05
− Quantity 50
− Expiration Date: Two Months from today
− Quantity 50
− Item: ##-Item06
− Quantity 40
− Entry Type: Ranges
10. Verify that the transactions have taken place.

Chapter 6 - Page 55
Solution – Revision, Lot and Serial Controls
Revision Control
1. Find Item ##-Item04.
• Enter your item number.
• Select Find.

2. Enable the Revision Control attribute.
• (T) Inventory
• Select the Revision Control Attribute.
3. Create two revisions for ##-Item04.
• (M) Tools > Revisions.

Chapter 6 - Page 56
− Revision: B
− Revision Label: B
− Effective Date: Today
− Revision: C
− Revision Label: C
− Effective Date: 1st of next month

4. Save and Close Item.
• (M) File >Save.
5. Notice that a revision record already exists for this item (Revision A). Why is there already a
revision for this item?
The starting revision for organization M1 is set as A. Therefore, the first revision record
(Revision A) is created by default for revision-controlled items in M1. You can define and
update default values for revision, lot, and serial parameters at the organization level using
the Organization Parameters window.
(N) Setup > Organizations > Parameters.

Chapter 6 - Page 57
Lot Control
6. Find ##-Item05.
• (N) Organization Items
• Enter ##-Item05
• Select Find
7. Update ##-Item05 to enable lot control.
• (T) Inventory
− Lot Expiration (Shelf Life) Control: User Defined

− Lot Control: Full Control
− Starting Prefix: ## (team number)
• (M) File >Save.

Chapter 6 - Page 58
9. Find Item ##-Item06.
• Enter your item number.
• Select Find.
10. Enable serial number control for ##-Item06.
• (T) Inventory
− Serial Number Generation: Predefined

− Starting Serial Prefix T##
− Starting Serial Numbers: 0001
• (M) File >Save.
12. Predefine a range of serial number.
• (N) On-hand, Availability > Generate Serial Numbers.

Chapter 6 - Page 59
• Enter ##-Item06.
• Select OK.

• Enter 1000 as the quantity to define.
• Select OK.

Chapter 6 - Page 60
• Select Submit.
Receiving Revision, Lot, and Serial Controlled Items
13. Navigate to the Miscellaneous Transaction window.

− Transaction Type: Miscellaneous Receipt
− Account: Miscellaneous
• Select Transaction Lines.
14. Receive ##-Item04 into stock as follows:

− Item: ##-Item04 ##-Item04 ##-Item04
− Revision: A B C
− Subinventory: ##FGI ##FGI ##FGI
− Quantity 200 10 5

− Item: ##-Item05
− Quantity 50

Chapter 6 - Page 61
• Select the Lot/Serial Button.
• Enter the following Lot information. (The Lot number is displayed automatically when
you click in the Expiration Date field).
− Expiration Date: Two Months from today
− Quantity 50

• Select Done.

− Item: ##-Item06
− Quantity: 40
• Select the Lot/Serial button.

− Entry Type: Ranges
− Select the Starting Serial Number from the LOV. The End Serial Number
populates automatically.

Chapter 6 - Page 62
• Select Done.

Chapter 6 - Page 63
17. Save and Close the Miscellaneous Receipt window to receive your items.
• (M) File >Save.
18. Verify that the transactions have taken place.
• (N) Transactions > Material Transactions
• Enter your ##FGI subinventory in the subinventory field.
• Ensure that the date of your transaction falls within the dates shown in the Transaction
Dates field.

Chapter 6 - Page 64
• Select Find.

Chapter 6 - Page 65
Note: You can also verify that the items have been received into stock using the
Materials Workbench.
• (N) On-hand, Availability > On-hand Quantity.

Chapter 6 - Page 66
Agenda

Chapter 6 - Page 67
Locator Flexfield Structure

Locator Flexfield Structure
Locator flexfield structure is common across all organizations. For Example if you set up Row
1A Rack 1A and Bin 1A in M1 Seattle, the same structure appears in M2 Boston. For more
information see the Oracle Applications Flexfields Guide.

Chapter 6 - Page 68
Changing Locator Control

Changing Locator Control
You may change the locator control for an item even if you have on-hand balances for the
item. However, this is not encouraged unless the items are expired, damaged, or unusable.

Chapter 6 - Page 69
Transacting Controlled Items

Transacting Controlled Items
If an item is controlled in one subinventory and you move it to another subinventory, the
destination subinventory must have item control.
Locator Control
During a material transaction, Oracle Inventory checks the locator control options you
specified. If locator control is enabled, you must enter a valid locator into which to receive or
from which to issue the item you are transacting.
Lot Control
You can optionally assign expiration dates to items. If you enable lot control for an item, you
must assign lot numbers when you receive the item into inventory. Thereafter, when you
transact the item, you must provide a lot number.
If you enable serial number control for an item, you must provide a serial number when you
transact it.
Revision Quantity Control

Chapter 6 - Page 70
You can define and enforce revision quantity control for any item to track quantities by
revision. If you enable revision quantity control for an item, you must provide a revision
number when you transact it.

Chapter 6 - Page 71
Agenda

Chapter 6 - Page 72
Summary

Chapter 6 - Page 73

Chapter 6 - Page 74
11i Transacting Inventory
Concepts
Chapter 7
11i Transacting Inventory Concepts

Chapter 7 - Page 1

Chapter 7 - Page 2
Module Objectives

Chapter 7 - Page 3
Agenda

Chapter 7 - Page 4
Inventory Structure

Inventory Structure
Oracle Inventory is one of Oracle’s enterprise applications products. Oracle Inventory enables
companies to satisfy business needs such as these:
• Defining part numbers
• Modeling organization structures
• Tracking perpetual inventory
• Maintaining accurate on-hand balances
• Planning material replenishments
• Forecasting anticipated demand

Chapter 7 - Page 5
Overview

Transactions
A transaction is an item movement into, within, or out of inventory. A transaction changes the
quantity, location, planning responsibility, and/or cost of an item.
Oracle Inventory supports a number of predefined and user-defined transaction types. Every
material movement has a corresponding set of accounting transactions that Oracle Inventory
automatically generates.
All transactions validate the various controls (revision, locator, lot number, and serial number)
you enable for your items.
You can choose your own transaction processing methods to use available computing
resources most effectively.
(Help) Oracle Manufacturing Applications > Oracle Inventory >Transactions > Overview

Chapter 7 - Page 6
Agenda

Chapter 7 - Page 7
Inventory Transactions

Inventory Transactions
• Receive items into your organization using a general ledger account number.
• Issue items from your organization using general ledger account number.
• Transfer items from a subinventory in your organization to another subinventory in the
same organization.
• Transfer items directly between organizations.
• Transfer items between organizations by way of intransit.
• Reserve items for a specific account or temporarily prevent the release of items onto the
shop floor.
(Help) Oracle Manufacturing Applications > Oracle Inventory >Transactions > Overview

Chapter 7 - Page 8
Agenda

Chapter 7 - Page 9
Transaction Types

Transaction Types
• A transaction type is the combination of a transaction source type and a transaction action.
• It is 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 calculations for ABC analysis or forecasting.
• A number of transaction types are predefined in Oracle Inventory. The user can also define
additional types by setting up new combinations of source types and actions.
(Help) Oracle Manufacturing Applications > Oracle Inventory > Setting Up > Transaction
Setup > Defining and Updating Transaction Types

Chapter 7 - Page 10
Transaction Source Types

Transaction Source Type
Oracle Inventory uses a transaction source type with a transaction action to uniquely identify
the type of transaction performed. Oracle Inventory provides the following predefined
transaction source types. You can define additional source types. Predefined transaction types
are as follows:
• Purchase Order
• Account Alias
• Account
• Move Order
• Internal Order
• Standard Cost Update
• Internal Requisition
• Sales Order
• Cycle Count
• Periodic Cost Update
• Physical Inventory

Chapter 7 - Page 11
• RMA (Return Material Authorization)
• Inventory
• Job or Schedule
Setup > Defining and Updating Transaction Source Types

Chapter 7 - Page 12
Transaction Action

Transaction Action
You use transaction actions with a source type. A transaction action identifies a transaction
type. Oracle Inventory provides the following transaction actions:
• Assembly completion
• Issue from stores
• Subinventory transfer
• Direct organization transfer
• Cycle count adjustment
• Physical inventory adjustment
• Intransit receipt
• Intransit shipment
• WIP assembly scrap
• Cost update
• Receipt into stores
• Negative component issue

Chapter 7 - Page 13
• Delivery adjustments
• Negative component return
• Assembly return
• Staging Transfer

Chapter 7 - Page 14
Transaction Reasons

Setup > Defining Transaction Reasons

Chapter 7 - Page 15
Transaction Managers

Setup > Transaction Managers

Chapter 7 - Page 16
Agenda

Chapter 7 - Page 17
Move Orders

Move Orders
Move orders are requests for the movement of material within a single organization. They
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 are generated manually or automatically depending on the source type used.
Move orders are restricted to transactions within an organization. Transfers between
organizations require an internal requisition.
Move Order Requisitions
A manually generated request, available for subinventory and account transfers.
These requests can optionally go through a workflow based approval process before they
become move orders that are ready to be sourced and transacted.

Chapter 7 - Page 18
Agenda

Chapter 7 - Page 19
Shortage Alerts and Notifications

Shortage Alerts and Notifications
A material shortage occurs whenever outstanding demand exceeds the available quantity for
incoming supply of material. Oracle Inventory can check, during a receipt transaction, to see if
the material received is needed elsewhere in the organization. If a shortage exists, the system
can notify you either by a real–time material shortage alert or a workflow–based notification.
Shortage messages configure real time alerts/notifications. During a material transaction,
Oracle Inventory checks to see if the material is needed elsewhere in the organization. Again, if
a shortage exists, the system notifies you either by a real-time material shortage alert or by a
workflow-based notification. You can use this technology to increase the product flow through
your warehouse, streamline order fulfillment, and reduce unnecessary material handling.
Alerts are real-time messages sent to a window before a transaction is committed, allowing you
to immediately redirect delivery. Notification messages are workflow-based notifications that
may be created by business events or periodic processes and require that you initiate action to
address the identified shortages.
(Help) Oracle Manufacturing Applications > Oracle Inventory >
Transactions > Shortage Alerts and Shortage Notifications

Chapter 7 - Page 20
Agenda

Chapter 7 - Page 21
Mobile Transactions

Mobile Transactions
Oracle Mobile Materials Management provides the ability to do inventory receiving and
shipping transactions using mobile devices. You can record inspections, deliveries, and
material movements when entering receiving transactions. The Mobile Server enables you to
perform Oracle Application transactions using the Telnet Protocol Server. Information is sent
from mobile industrial devices to the Telnet Listener. The information is processed and
updated in the application database. Mobile devices enable you to enter inventory transactions
at the point of use. Recording transactions in this way avoids duplicate data entry and mobile
device scanning can improve data entry accuracy.
See: Mobile Materials Management: Oracle Mobile Supply Chain Applications User’s Guide.

Chapter 7 - Page 22
Agenda

Chapter 7 - Page 23
Summary

Chapter 7 - Page 24
11i Transaction Setup
Chapter 8

Chapter 8 - Page 1

Chapter 8 - Page 2
Objectives

Chapter 8 - Page 3
Agenda

Chapter 8 - Page 4
Running Transaction Managers

Running Transaction Managers
Cost Manager
The material cost transaction manager costs material transactions in Oracle Inventory and
Oracle Work in Process in the background.
Lot Move Transaction Manager
The resource cost transaction manager processes resource transactions in Oracle Work in
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.
Material Transaction Manager
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
how to execute transactions: immediately through immediate concurrent request submissions,
or through periodic concurrent request submissions. You define this transaction mode for
individual transaction windows in the Personal Profile Values window.
Move Transaction Manager

Chapter 8 - Page 5
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.

Chapter 8 - Page 6
Predefined Transaction Types

Predefined Transaction Types
Oracle predefines transaction types in the system. The table in the slide contains a few
examples of predefined transaction types. For more information on Predefined Transaction
types see:
Setup > Transaction Types

Chapter 8 - Page 7
Guided Demonstration Overview: Defining a Customized
Transaction

Chapter 8 - Page 8
Guided Demonstration - Customized Transactions
Setting Up Source Types
1. (N) Setup > Transactions > Source Types
2. Select the User tab.
3. (M) File > New.
4. Use the following information to define a source type.

− Name: Charitable Donation
− Description: Charitable Donation
5. (M) File > Save.
Setting Up Transaction Types
7. (N) Setup > Transactions > Types.
8. Select the User tab.
9. (M) File > New.
10. Use the following information to define a transaction type.

− Name: Goodwill Donation
− Description: Goodwill Donation
− Source Type: Charitable Donation
− Action: Issue from Stores
Setting Up Transaction Reasons
13. (N) Setup > Transactions > Reasons
14. (M) File > New.
15. Use the following information to define a transaction reason.

− Name: Goodwill
− Description: Charitable donation to Goodwill

Chapter 8 - Page 9

Chapter 8 - Page 10
Practice Overview: Defining a Customized Transaction

Chapter 8 - Page 11
Practice - Defining a Customized Transaction
Overview
In this lab you will learn how to define a customized transaction.
Assumptions
Tasks

Define a Transaction Source
Define a Transaction Source using the following information:

− Name: ##-Donations
− Description: Donation source type for team ##
− Validation Type: None
Define a Transaction Type
Define a Transaction type and associate it with your newly created Source type using the
following information:
− Name: ##-Donation
− Description: ##-Goodwill Transaction
− Transaction Source Type: ##-Donations
− Transaction File: Issue from Stores
Define a Transaction Reason
Define a Transaction Reason using the following information:

− Name: ##-Reason
Processing a Customized Transaction
Process a miscellaneous transaction using your customized transaction.

Chapter 8 - Page 12
Solution – Defining a Customized Transaction
Define a Transaction Source
1. Navigate to the Transaction Source Type window.
• (N) Setup > Transactions > Source Types.
• (T) User
2. Create a New Transaction Source type.

• (M) File > New
− Name: ##-Donations
− Description: Donation source type for team ##
− Validation Type: None
3. Save and close the window.

Chapter 8 - Page 13
Define a Transaction Type
4. Navigate to the Transaction Type Window.
• (N) Setup > Transactions > Types
• (T) User
5. Define a Transaction Type and associate it with the new Source Type.
• (M) File > New

− Name: ##-Donation
− Description: ##-Goodwill Transaction
− Transaction Source Type: ##-Donations

− Transaction File: Issue from Stores
6. Save and Close the window.
Define a Transaction Reason
7. Navigate to the Transaction Reason window.
• (N) Setup > Transactions > Reasons.

Chapter 8 - Page 14
8. Define new transaction reason.
• (M) File > New

− Name: ##-Reason

Processing a Customized Transaction
10. Navigate to the miscellaneous transactions window.
11. Enter a customized transaction.

− Type: ##-Donation
− Account: Select one from LOV

Chapter 8 - Page 15
12. Select Transaction Lines.
13. Enter the transaction information:

− Item: ##-Item02
− Quantity: 5
− Reason: ##-Reason

Chapter 8 - Page 16

Chapter 8 - Page 17
Agenda

Chapter 8 - Page 18
Inter–organization Shipping Network

Inter-organization Shipping Network
An inter-organization shipping network describes the relationships and accounting information
between a shipping organization and a destination organization. You must define a shipping
network between organizations before you can conduct inter-organization transfers. For each
organization relationship, you must indicate what type of shipment is used. If you choose to
use intransit inventory, Oracle Inventory moves material to intransit inventory before it reaches
the destination organization when you perform an interorganization transfer. If you do not
choose intransit inventory, Oracle Inventory moves your material directly to the destination
organization when you perform an inter-organization transfer.
You can specify if transfers will go through intransit. If so, you can also determine:
• Shipping methods
• GL accounts to use in transit
• Material ownership during transfers
• Planning lead-times
• Transfer charges
• Default receipt routing

Chapter 8 - Page 19
• Whether internal orders are required
For more information see: (Help) Oracle Manufacturing Applications > Oracle Inventory >
Setting Up > Transaction Setup > Inter-organization Shipping Network

Chapter 8 - Page 20
Shipping Method

Shipping Method
A Quick Code used to define specific shipping methods. For example: Ground, Express, or
Air.

Chapter 8 - Page 21
Agenda

Chapter 8 - Page 22
Movement Statistics

Movement Statistics
You can collect statistics to satisfy the European Union’s reporting requirements for
INTRASTAT, the declarations for imports and exports between countries belonging to the
European Union, and EXTRASTAT, the declaration for imports and exports between a country
belonging to the European Union and a country external to the European Union.
Navigation to the Movement Statistics Window
You can navigate to the Movement Statistics window from the Inter-organization Transfer
window. Use the Tools menu to navigate to the Movement Statistics window from the Inter-
organization transfer window. You can also navigate to the Movement Statistics window from
the navigator.
(N) Transactions > Movement Statistics
Country-Specific List of Values
• Oracle Inventory supports a country-specific list of values.
• Certain lists of values are seeded with a country prefix.
• The prefix used is the two-character upper case ISO code of the country.
Confirm Shipment (Oracle Order Management)

Chapter 8 - Page 23
(N) Shipping > Confirm Shipments-Departures (B) Delivery
Movement statistics entered through the Oracle Order Management Confirm Shipment window
are linked automatically to the corresponding accounts receivable invoice.
You can use the Invoices window to link movement statistics entered in the Receipts window
to the accounts payable invoices.
(Help) Oracle Manufacturing Applications > Oracle Inventory > Transactions > Overview of
Movement Statistics
../ Entering and Maintaining Movement Statistics
../ Automatically Generating Movement Statistics

Chapter 8 - Page 24
Movement Statistics Parameters

Movement Statistics Parameters
(N) Setup > Transactions > Movement Statistics > Parameters
You use a specific rate type to convert foreign currency transactions to the currency of the
legal entity. You can record the appropriate rate type for this conversion. You define currency
conversion rate types in the Oracle General Ledger.
For more information see:
Movement Statistics > Setting Up Movement Statistics
and
Setup > Defining Movement Statistics Parameters

Chapter 8 - Page 25
Collecting and Reporting Movement Statistics

Collecting and Reporting Movement Statistics
Define Movement Statistics Parameters
Use the Movement Statistics Parameters window to define the parameters for gathering
movement statistics. Oracle Inventory uses this information to validate the entry of statistical
movement transactions and to properly report the information. You define parameters to
automate the movement statistics functionality in the Movement Statistics Parameters and
Economic Zones windows.
Enter Movement Statistics Information
You can manually enter movement information associated with material transactions such as
fixed assets that Oracle Inventory and Purchasing do not capture.
Link Movement Statistics to Financial Documents
Movement statistics records link automatically to various financial documents based on
transaction types. For example purchase order receipts link to payables invoices and sales order
shipments link to receivables invoices.
Report and Review Movement Statistics

Chapter 8 - Page 26
You can generate both summary and detail reports for movement statistics, including hard
copies for government agencies and your own files.
Freeze Movement Statistics
The Movement Statistics Reports run time parameter allows you to freeze movement
information for official INTRASTAT and EXTRASTAT reporting.
Movement Statistics

Chapter 8 - Page 27
Agenda

Chapter 8 - Page 28
Account Aliases

Aliases
An account alias is an easily recognized name or label representing a general ledger account
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.
You must create an inventory account alias for each GL account if you wish to use an alias for
that GL account in inventory transactions. Oracle Inventory does not honor GL account aliases.

Chapter 8 - Page 29
Agenda

Chapter 8 - Page 30
Setting Up for Move Orders

Setting Up Move Orders
Subinventory Source Type
For Oracle Inventory to automatically create move orders when using min–max planning or
replenishment counting, you must define the subinventory source type at one of the following
levels:
• Subinventory
• Item
To automatically create move orders when using the kanban system, you must define the
subinventory source type at the pull sequence level.
Approval Process Parameters
Approval is required only for requisition move orders. Other move orders created by shipping
or replenishment processes are approved automatically. To require planner approval, you
define two parameters at the organization level:
• Move Order Timeout Period
• Move Order Timeout Action

Chapter 8 - Page 31
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.

Chapter 8 - Page 32
Setup Steps for Move Orders

Setup Steps for Move Orders
Set Up Planner
Define a planner for the item in the General Planning tabbed region of the Items window.
Designate a Planner
You designate a planner in the Master Item window when you define an item. If you do not
designate a planner, the move order is automatically approved.
Notification List
When you approve or reject the move order, the system sends a courtesy e-mail to the
Engineering Change Order (ECO) approval list (which is used here as a notification list). It is
attached to the move order source and destination subinventory. You do not need to have
Oracle Engineering to use this feature.
Define Picking Rules
Move orders use the standard picking rules of Oracle Inventory to source material. In a WMS
organization, move orders use wms picking rules.
Locator Defaults

Chapter 8 - Page 33
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:
Move Orders > Setting Up Move Orders

Chapter 8 - Page 34
Agenda

Chapter 8 - Page 35
Material Shortage Alerts and Notifications

Material Shortage Alerts and Notifications
A material shortage occurs whenever outstanding demand exceeds the available quantity for
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
either by a real–time material shortage alert or a workflow–based notification. Set up shortage
parameters to enable the system to send material shortage alerts and notifications. For more
information see:
Structure > Defining Shortage Parameters
The following receipt transaction forms can generate shortage alerts and notifications.
• Receipts
• Receiving Transactions
• Miscellaneous Transactions
• WIP Material Transactions
• WIP Completions

Chapter 8 - Page 36
• Work–Orderless Completions - This occurs only if you have used workflow notification
for the transaction.
Shortage Alerts
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 pre–specified 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

Chapter 8 - Page 37
Setting Up Shortage Alerts and Notifications

Setting Up Shortage Alerts and Notifications
• Define the shortage parameters the system will use to detect material shortages.
• Define the transaction types that will trigger shortage alerts and notifications.
• Define which items in the system will trigger a shortage alert or notification when they
are in demand.
• Define the individuals to be notified.

Chapter 8 - Page 38
Movement Statistics Reports

All Reports
Oracle Inventory provides both summary and detail reports for movement statistics. Use these
reports to validate information and identify missing or incomplete entries. You may make
corrections before freezing the information.
The Movement Statistics Report provides a run-time parameter that allows you to freeze
movement information for official INTRASTAT reporting. This Official/Summary option,
updates the database with any information calculated at report run time to provide a complete
history of information reported. This option also allows you to assign a reference number for
the information processed by the particular run of the report.
If you identify a mistake after the information has been frozen, you can either reverse the
freeze (nullifying the official report) or enter a movement adjustment entry to record the
appropriate change.
(N) Reports > Movement Statistics
(Help) Oracle Manufacturing Applications > Oracle Inventory >
Reports and Processes
../ Movement Statistics Exception Report

Chapter 8 - Page 39
../ Movement Statistics Processor
../ Movement Statistics Report
../ Movement Statistics Reset Status Report

Chapter 8 - Page 40
Transaction Reports and Inquiries

Reports and Inquiries
(N) Reports > Transactions
(Help) Oracle Manufacturing Applications > Oracle Inventory > Transactions > Transaction
Reports

Chapter 8 - Page 41
Agenda

Chapter 8 - Page 42
Transaction Profile Options

Cycle Count Approvals Form
Indicates the processing control of cycle count approvals in the Cycle Count Approvals
window. Available values are:
• Background Processing- Upon commit returns control immediately to you, and allows
you to continue working. The cycle count transaction execute on a periodic basis.
• On-line processing- Processes your cycle count transactions while you wait, and returns
control to you once transaction processing is complete.
Cycle Count Entries Form
Indicates the processing control of cycle count entries in the Cycle Count Entries window.
Available values are:
• Background Processing- Upon commit returns control immediately to you, and allows
you to continue working. The cycle count transaction execute on a periodic basis.
• On-line processing- Processes your cycle count transactions while you wait, and returns
control to you once transaction processing is complete.
Enter Replenishment Count Form

Chapter 8 - Page 43
Indicates processing control in the Enter Replenishment Count window. Available values are:
• Background processing- Upon commit, control returns to you immediately and allows
you to continue working. The replenishment count transaction executes on a periodic
basis.
• Concurrent processing- Upon commit, Oracle Inventory spawns the concurrent process
and returns control to you immediately, and allows you to continue working. It displays
the concurrent request number that represents the concurrent process that executes the
replenishment count transactions.

Chapter 8 - Page 44

Transaction Processing Mode
Indicates the processing control for transacting items. Available values are as follows:
• On-line processing- Processes transactions while you wait, and returns control to you
once transaction processing completes.
you to continue working. The transactions execute on a periodic basis.
• Immediate concurrent processing- Upon commit, Oracle Inventory spawns the concurrent
process and returns control to you immediately and allows you to continue working. It
displays the concurrent request number of the concurrent process executing the
transaction.
• Form level processing- Processes transactions using the processing control option you
choose for the particular transaction. You must also set the Inventory profile options for
Inter-Organization Transfer, Miscellaneous Issue and Receipt, Receive Customer Return,
Return to Customer, and Transfer Between Subinventories. If you use Oracle Work-in
Process, you must set the following WIP profile options: Completion Material

Chapter 8 - Page 45
Processing, Completion Transaction From, Material Transaction Form, Move
Transaction, Operation Backflush Setup, and Shop Floor Processing.
The value you choose for this profiles overrides values you set for individual transactions
unless you choose Form level processing.
Miscellaneous Issue and Receipt
Indicates the processing control of miscellaneous issues and returns on the Miscellaneous Issue
window. Available values are:
you to continue working. The miscellaneous issue and receipt transactions execute on a
periodic basis.
and returns control to you immediately and allows you to continue working. It displays

miscellaneous issue and receipt transactions.
• On-line processing- Processes the miscellaneous issue and receipt transactions while you
wait and returns control once transaction processing completes.
Server Side On-line Processing
Indicates if Oracle Inventory and Work-In-Process transactions that use on-line processing are
processed on the server or client side.
Transfer Between Subinventories Form
Indicates the processing control of transferring items between subinventories in the
Subinventory Transfer window. Available values are:
you to continue working. The transfer between subinventories execute on a periodic
basis.
and returns control to you immediately and allows you to continue working. It displays
transfer between subinventories.
• On-line processing- Processes subinventory transfers while you wait and returns control
once transaction processing completes.

Chapter 8 - Page 46

Update Average Cost Form
Indicates the processing control for updating average costs. Available values are:
• Background Processing- Upon commit, control returns immediately to you, allowing you
to continue working. The update average costs transactions execute on a periodic basis.
• Concurrent Processing- Upon commit, Oracle Inventory spawns the concurrent process
and returns control immediately to you, allowing you to continue working. It displays the
concurrent request number representing the concurrent process executing the update
average costs transactions.
• On-line processing- Processes your update average costs transactions while you wait, and
returns control once transaction processing completes.
Transaction Date Validation
Controls the date you can enter for transactions. Available values are:
• Allow date in any open period- Allows entry of a past date if it is in an open period.
• Do not allow past date- Does no allow entry of a date before the current date.
• Do not allow date in past period- Allows entry of dates in the current period only.

Chapter 8 - Page 47
• Provide warning when date in past period- Allows entry of dates in prior periods after a
warning.
Move Order Transact Form
Indicates the move order transaction mode. Available values are:
• Background Processing- Upon commit, control returns immediately to you, allowing you
to continue working. The move order transactions execute on a periodic basis.
• Concurrent Processing- Upon commit, Oracle Inventory spawns the concurrent process
and returns control immediately to you, allowing you to continue working. It displays the
concurrent request number representing the concurrent process executing the move order
transactions.
• On-line processing- Processes your move order transactions while you wait, and returns
control once transaction processing completes.

Chapter 8 - Page 48
Agenda

Chapter 8 - Page 49

Item Restrictions
On the master item you can indicate if the item has subinventory and locator restrictions. If you
choose to implement subinventory and locator restrictions, you must indicate which
subinventories and locators can store the item. Transactions honor these restrictions and you
cannot transact to other locations.
Receipt Transaction Default
The subinventory and locator default from the transaction defaults. More importantly, if you
create an internal requisition to ship material between two organizations where the shipping
network is direct, you cannot indicate on the requisition the locator of the destination. If the
destination is locator controlled, the receipt transaction attempts to use the time transaction
default for receiving. If one does not exist, your shipment will fail.

Chapter 8 - Page 50
Implementation Considerations for Shortage Messages

Answer the following questions to determine which of the following demand sources should be
considered potential shortages.
• Which inventory organizations should be checked for shortages?
• Which type and statuses of WIP jobs/schedules should be checked for shortages?
Answer the following questions to determine the individuals and the method for delivering
shortage messages.
• Should workflow alerts and notifications be generated when actual shortages exist?
• Who should be notified?
• How frequently should notifications be sent?

Chapter 8 - Page 51
Agenda

Chapter 8 - Page 52
Summary

Chapter 8 - Page 53

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11i Inventory Management

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Tyra Crockett, Yuvaraj Kandhaswamy

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• Working experience with Oracle Applications.

• There are no prerequisites for this course.

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Passwords DROP USER scott

Lowercase Syntax variables CREATE ROLE role

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Typographic Conventions in Oracle Application Navigation Paths

This simplified path translates to the following:

2. (M) From the menu, select Query then Find.

3. (B) Click the Approve button.

(ST) = Sub Tab

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The following help navigation path, for example—

(Help) General Ledger > Journals > Enter Journals

—represents the following sequence of actions:

2. Under the General Ledger entry, expand Journals.

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