Oracle Inventory Management Implementing PAR Replenishment 18C

Oracle Inventory Management
Implementing PAR Replenishment 18C

An Oracle White Paper
ORAC L E WH IT E PA PER | AU GU ST 2018
Table of Contents
PAR Replenishment Overview 1
Define PAR Locations 3
Count PAR Locations 4
Replenish PAR Locations 6
Optimize PAR Replenishment 7
Account and Record 8
Locations Explained 11
Quantity Tracked Versus Non-Quantity Tracked PAR Locations Explained 13
Two Bin Replenishment Method Explained 14
PAR Replenishment Purchase Requisition Worked Example 16
PAR Replenishment Interorganiztion Internal Material Transfer Worked Example 25
PAR Replenishment Intraorganiztion Internal Material Transfer Worked Example 34
FAQs 42
PAR Replenishment Overview
1 | ORACLE INVENTORY MANAGEMENT PAR REPLENISHMENT

PAR is also sometimes known as Periodic Automatic Replenishment. PAR level is a term
used in the medical field and has also come to be used in general inventory management
to maintain an optimum level of stock for items in an inventory area and to define the level
at which replenishment is required. PAR Locations are used in organizations like
hospitals and clinics to manage supplies needed to support medical procedures and
patient care. A PAR location is a stock area from which consumable items are taken and
the optimum level of stock needed for the items in that area.
Typically, there are two types of PAR locations. PAR locations that contain important but
lower value or bulk supplies that are not quantity tracked but counted and replenished to
predetermined levels at various intervals. Examples might include gauze, syringes, test
kits, gloves, etc. The other type is for controlled or more valuable types of materials that
are quantity tracked and dispensed or issued in a controlled manner.
PAR Location Management is broken up into five categories:
• Define: The processes to set-up and maintain PAR locations within a facility and
define rules about how the materials in the location are counted and replenished
• Count or Issue: The procedures and processes around counting PAR locations
that are not quantity tracked (i.e. expensed) or capturing the issue/dispensing of
materials that are quantity tracked
• Replenish: The process to replenish materials in PAR locations from suppliers or
the stockroom or warehouse
• Optimize: The set of processes to help organizations optimize the replenishment
of materials in PAR locations
• Account and Record: The set of processes to account and record replenishment
transactions. Configuration of subledger accounting including setting up mapping
sets and account rules

Define PAR Locations
You can easily setup and maintain PAR location definitions in Inventory Management
Cloud. PAR locations can be an area, a closet, a shelf, or a cart, so you may have only a
few or you may have hundreds of locations to define and manage. You may have multiple
facilities (organizations) with hundreds of PAR locations.
In Inventory Management Cloud, a PAR location equates to a subinventory and is
designated as a PAR subinventory. A PAR subinventory will have a name and is
associated with an inventory organization. A PAR subinventory will typically have an
associated location. The location will have an address as well as floor, closet number, or
cart number details. The PAR subinventory location will be used to deliver material
replenishment request.
One of the main setup considerations for PAR Replenishment is whether you want to
configure the PAR location as quantity or non-quantity tracked. A quantity tracked PAR
location indicates each inventory transaction updates the quantity on hand for the
subinventory. If you uncheck the ‘Quantity tracked’ checkbox for the PAR location, it
indicates on-hand balances are not maintained. In order to uncheck the ‘Quantity tracked’
checkbox, the material Material Status associated with the subinventory must have the
Availabilty options Allow reservations, Include in ATP, and Nettable unchecked.
A PAR location can contain one or more items, and each item has detail is defined with
the following information:

• Item: The item number
• PAR Level: The PAR level or optimum quantity for this location
• PAR Maximum Quantity: The maximum quantity allowed to be replenished in this
location.
• PAR Level UOM: The PAR quantity unit of measure
• Count Tolerance Percentage: The percentage that the count can exceed the PAR
maximum quantity
Count PAR Locations
Counting and recording the quantity in PAR locations is a common way to replenish the
PAR location. The frequency of counting of a PAR location depends on the criticality and
turnover of items in the PAR locations. They can be counted multiple times per day (i.e. at
the end of every shift) or on a daily, weekly or as-needed basis.
Counts are recorded in Inventory Management Cloud via using the Replenishment
Request REST Service. You can use different ways to count and react to the
consumption of items in a PAR location. The count method defined on the PAR location
determines the counting method as one of the following:
• Two Bin: Simple visual indicator that the materials are running low. In this case,
just the location is scanned – similar to a KANBAN signal – to indicate that the
materials need to be replenished. A standard quantity or PAR quantity is
reordered. When one bin is used, a new bin replaces it (no counting). You would
use the “order PAR” replenishment count type to always replenish in whole bin.
• Request: The user requests an order for the item and enters the quantity to be
ordered. The “order quantity” replenishment count type is used.
• Count: You may count some items (i.e. 10 boxes of gloves), and if the count is
below the PAR quantity, a replenishment order is generated for the PAR quantity
to bring the location back to its proper stocking level. Any replenishment count
type can be used with this option
The counting activity is two-part:

• Items in the PAR location are counted by a person and the quantity entered in the
system. Note that this could be a simple two-bin action to swap bins in the
location.
• The user indicates that the count is complete and sends the quantities back to the
system. The system generates the required replenishment requests based on the
PAR location definition count options and replenishment options you defined.

The table below depicts the replenishment count methods and count types supported.
REPLENISHMENT COUNT METHODS AND COUNT TYPES
Quantity Mandatory in
Replenishment Replenishment
Replenishment Replenishment Request
Count Method Count Type
Request
Two Bin Not Applicable No Count Quantity will not be sent in

(Replenish the the replenish request. Users can
complete PAR send details of only Organization
Location or and PAR Location. Generate
a specific PAR replenishment for all items in the
Location Item) PAR Location with re-order
quantity set to PAR Quantity.
Request Not Applicable Yes Count Quantity must be provided

(Users want to in the Replenish request.
create a specific Replenishment will be created
quantity for a for the given quantity for the PAR
PAR Location Location Item.
Item)
Count The Replenishment Yes Count Quantity has to be

Count Method ‘Count’ provided in the Replenish
(Users count and
supports three separate request. Replenishment will be
specify what the Replenishment Count
current quantity done depending on the
Types:
is. The Replenishment Count Type at
replenishment PAR Location Item level.
1) Order PAR – Create
request will be replenishment request
created based on for the PAR level.
PAR Location
Item setup) For example, if PAR
level is 5 and a
replenishment order is
requested, it will be for
order quantity of 5.
2) Order Quantity –
Create replenishment
request for the quantity
entered by the user.
For example, if the PAR

quantity is 20, and the
user enters an order
quantity of 30, the order

will be for a quantity of
30.
3) On-Hand Quantity --
Compare the given
Quantity with the PAR
quantity (along with
other conditions like
reasonableness) and
create replenishment
for the difference
For example, if the PAR
count quantity is 15 and
the PAR Level is 20,
the replenishment order
will be for quantity of 5.
Replenish PAR Locations
The replenishment process considers the PAR location definition and takes the count
options, the requested quantity, the current on-hand level, and any in-process requests
and creates an appropriate replenishment request in the form of purchase requisition or
warehouse or stockroom request. The supplier or the stockroom or warehouse fills the
request and delivers the material to the PAR location.
When the counts for a PAR location are submitted, a replenishment process performs the
following:
• Evaluates each item in the count to determine the amount to replenish and the
type of replenishment
• Considers the PAR location replenishment count type to determine the order
quantity
• If the count unit of measure is not provided, the system uses the PAR location unit
of measure
• Evaluates existing demand and supply for the item in that particular PAR location
to determine how much should be ordered. This is similar to min-max
replenishment.
• Check for the reasonableness of the request to avoid miss-keys of an order
quantity that could create requests for large orders.
The replenishment source is defined using using sourcing details. The sourcing details
can be defined at various levels of granularity starting with the Item Subinventory level.

• Item Subinventory Level
• Subinventory Level
• Inventory Item Level
• Inventory Organization Level
The table below depicts the replenishment source types supported.
REPLENISHMENT SOURCE TYPES
Sourcing
Sourcing Type Sourcing Organization Sourcing Subinventory
Document
Purchase Supplier Not Applicable Not Applicable

Requisition /
Purchase Order
Interorganization Organization Enter the source inventory Optionally, enter the source
Internal Material organization where the subinventory where the material
Transfer material will be replenished will be replenished from.
from.
Intraorganization Organization Enter the same inventory Enter the source subinventory
Internal Material organization that you are that the material will be
Transfer logged in with. replenished from.
Movement Subinventory Organization will Enter the source subinventory

Request automatically default. that the material will be
replenished from.
Optimize PAR Replenishment
You can continue to leverage Oracle partner solutions for PAR location management,
counting, and replenishment activities, and you can continue to leverage partner
optimization analysis. However, with this release, you have the option to use the
Inventory Management Cloud solution or a combination of native Oracle functionality and
a partner solution.
You have the option to pass the counts from the partner solution to Inventory
Management Cloud. Inventory Management Cloud will evaluate the count and create
replenishment requests.
You can:

• Receive PAR Counts via web-services
• Evaluate each item in the count to determine the amount to replenish and type of
replenishment based on the replenishment count type
• To avoid costly mistakes, a reasonableness check is available to catch when
someone miss-keys an order quantity or thinks they are ordering in small unit of
measure (each) but actually ordering in a larger unit of measure (case).
Other tools for you to use to optimize your PAR locations include:
Simplified accounting for PAR replenishment with the PAR Location subinventory flag is
now available as an attribute to define your accounting rules. This means less setup and
easier maintenance of your accounting rules.
Account and Record
The final step in the PAR replenishment process is to account and record the transaction.
Cost Management Subledger Accounting provides rules that you can configure and then
automatically transform subledger transactions into detailed subledger journal entries.
Flexible rules are available to define accounting policies and generate accounting for
legal and corporate reporting. Reconciling accounting to transaction data enables drill
down from general ledger to the underlying subledgers and standard reports.
The first step in implementing subledger accounting for a PAR location is to create a
mapping set. Mapping sets provide an efficient way to define a segment or account
combination value for one or more transaction or reference attribute values. Using such
input and output mappings is simpler than using complex conditions on account rules.
Based on the value of the source input, a single segment or a full account is derived.
Examples of source input value types include transaction attributes and reference
attributes.
Using the example below we can depict how the input source ‘PAR Location’ can be
used to derive the output type account combination.

Navigation: Setup and Maintenance > Manage Mapping Sets
Once the Input Source has been established, select the chart of accounts. In this
example, the chart of accounts selected is ‘102_Operations Accounting Flex’. Next, map
the input source ‘PAR Location’ to the output source ‘102_Operations Accounting Flex’.
Select value ‘Yes’ for input source PAR Location and select a specific account code
combination for the output type.
The next step in the process is to create account rule. Mapping sets can be used to
associate a specific output value for an account or segment. You can use mapping sets
in the account rules to build the account. Account rules are used to determine the
accounts for subledger journal entry lines. In addition, you can specify the conditions

under which these rules apply. Using these capabilities, you can develop complex rules
for defining accounts under different circumstances to meet your specific requirements.
You can define account rules for an account, segment, or value set.
Navigation: Setup and Maintenance > Manage Account Rules
In the Rules region the Value Type is ‘Mapping set’. This indicates that the account
combination will be derived by referencing the mapping set. The account combination
from the chart of accounts is specified using the mapping set.
In the account rules you may specify conditions for each rule detail line. Priorities determine
the order in which account rule conditions are examined. When the condition is met, the
rule associated with that priority is used. Depending on which of the defined conditions is
met, a different account rule detail is employed to create the account.
The Create Accounting process evaluates conditions based on the priority of the rule detail.
When the condition is met, the rule detail is applied.

Locations Explained
When establishing your Subinventories or PAR Locations it is important to understand the

role the location plays in the PAR replenishment process. The location is defined in the
Manage Locations page as shown below. The page is accessible through the work area
Setup and and Maintenance in Functional Setup Manger.
The location is defined at a granular level in order to direct hospital personnel to replenish
a specific PAR location. The location defined will ultimately represent the Deliver-to
Location on the final put away or deliver transaction. Without this information, hospital
personnel will not have the necessary details to replenish the proper PAR location.
Using the example depicted below, a location has been defined to represent a PAR
location at Children’s Hospital in Seattle. This location is intended to be used to store
material for usage by the pediatric cardiology department. The location has specific
details such as the floor and room number. This location will ultimately be used to direct
the material to appropriate location requiring replenishment.

In addition to defining the location information and main address, you must also define
the Shipping Details. Select the value ‘Yes’ for Ship-to Site.
Once the location has been successfully created, the next step in the process is to
associate the ship-to location to the Subinventory or PAR Location. This association is
defined in the Manage Subinventories and Locators page. The page is accessible
through the work area Setup and and Maintenance in Functional Setup Manger.
In the Create Subinventory page we have selected Location ‘PAR Location 2 – Children’s
Hospital. This association will be used to deliver replenishment requests for Subivnentory
‘PAR2’ to Location ‘PAR Location 2 – Children’s Hospital’.

When the replenishment request is created for Subivnentory ‘PAR2’ the Location
assignment will be referenced throughout the process flow. When the replenishment
request is received into the facility, the location will be clearly denoted to allow hospital
personnel to replenish the appropriate PAR location.
Quantity Tracked Versus Non-Quantity Tracked PAR Locations Explained
When creating a Subinventory or PAR Location you must determine whether or not the
Subinventory is Quantity Tracked or Non-Quantity Tracked. Typically, subinventories are
classified as non-quantity tracked for PAR replenishment. However, PAR subinventories
can also be configured as quantity tracked.
When a subinventory is quantity tracked, this indicates that each transaction for the
subivnentory will update the quantity on hand for the subinventory. When creating a
subinventory, the ‘Quantity Tracked’ checkbox will be checked by default. In order to
deselect the ‘Quantity Tracked’ checkbox, you must first change the Material Status
associated with the subinventory. The ‘Quantity Tracked’ checkbox will only be enabled
when the associated material status is ‘Active: Not Available for Netting, ATP and
Reservations’.

Navigation: Setup and Maintenance > Manage Subinventories and Locators
Two Bin Replenishment Method Explained
Two-bin inventory control is an inventory control system that can be used in a hospital
environment to determine when items should be replenished. The two-bin inventory
control method is primarily used for small or low-value items.
For example, when items in the first bin (working stock) have been depleted, an order is
placed to refill or replace these items. The second bin is supposed to have enough items
to last until the placed order arrives. The first bin has a minimum of working stock and
the second bin keeps reserve stock or remaining material.
Once the first bin in front is depleted, the empty bin will be placed on the top shelf. The
empty bin serves as a visual indicator to the replenishment clerk to indicate additional
material is needed to replenish the empty bin. Since the Count Method is Two Bin, the
user will no have to enter an actual count. The Two Bin method will automatically
replenish the item to the PAR Level.
Once the replenishment request has been processed and the material is received, the
new bin will be placed behind the existing bin. This will ensure that the material is utilized
in a first-in first-out approach.

PAR Replenishment Purchase Requisition Worked Example
Purchase requisitions can be generated automatically from PAR replenishment requests.

To generated a purchase requisition in Procurement, the necessary setups must be
completed at the Subinventory and Item Subinventory levels. Additionally, a location can
be created and associated with the PAR subinventory.
The first step is to define the location that will serve as your final deliver-to location when
performing the deliver or put away transaction. An address naming convention should be
used that will allow receiving personnel to route the material to the appropriate
replenishment location. The location is setup in the Manage Locations page which is
navigable from the Setup and Maintenance work area.
The next step in the process is to configure the Subinventory that will serve as the PAR
location you intend to replenish. The checkbox ‘PAR location’ must be enabled for the
Subinventory. Additionally, you must specify the Replenishment Count Method and
Default Replenishment Count Type. You can also associate a location to the
Subinventory.
Optionally, you can create a Subinventory Group. A Subinventory Group is a grouping of
subinventories that can be used to process PAR replenishment requests. For example,
you can define a Subinventory Group consisting of five individual subinventories. You can
then create a replenishment request for all five subinventores rather than having to create
individual replenishment requests for each subinventory.
The location definition is shown below for Children’s Hospital in Seattle. The address
details include information to help identify the PAR replenishment location.

Navigation: Setup and Maintenance > Manage Locations
When creating the subinventory it is import to review the fields shown in the red boxes
below. In this worked example, the subinventory has been setup as non-quantity tracked
subinventory. In order to configure a subinventory as non-quantity tracked, you need to
set the Material Status field to ‘Active: Not Available for Netting, ATP, and Reservations.
Once the material status is set, the checkbox Quantity Tracked can be deselected.
In order to configure the Subinventory as a PAR location, the checkbox ‘PAR location’
must be checked. Configuring the Subinventory as a PAR location will allow selection of
the Replenishment Count Method and Default Replenishment Count Type.
Lastly, assign a location to the Subinventory. Ultimately, this will represent the final
Deliver-to Location when the material receipt into inventory is performed.
Navigation: Setup and Maintenance > Manage Subinventories and Locators >
Create Subinventory
Once you have successfully created the Subinventory, you must associate your item to
the Subinventory. The sourcing region on the Add Item to Subinventory page allows you
to specify the sourcing type. Review the section Replenishment Source Types in this
document to understand the various source types available for PAR replenishment. In
this worked example, the source type ‘Supplier’ will be selected. The source type Supplier
indicates that the replenishment request will create a corresponding Purchase Requisition
and Purchase Order to replenish the material to the PAR Level for the Item Subinventory.
In the PAR Settings region, the Replenishment Count Type is automatically defaulted
from the subinventory. In this example, the PAR Level has been set to 5 units for the item

subinventory association. This means that the replenishment request will be created for 5
units. The PAR Level UOM is automatically defaulted from the item.
Manage Item Subinventories
A REST Resource is provided to manage replenishment requests. The Replenishment

Request REST Resource provides methods GET, POST, and PATCH.
Shown below is the replenishment request sent using Postman.

When the REST request processes successfully, the return message text will indicate the
following:
M1 Supply Request Batch Number: PAR8001. The process has successfully
completed.
When the replenishment request is for a requisition, a supply request batch number will
be created. The supply request batch number will always be prefixed with ‘PAR” for PAR
generated replenishment requests. The supply request batch number can be used when
submitting the Process Supply Chain Orchestration Interface process.
The Process Supply Chain Orchestration Interface scheduled process will create supply
orders based on the Supply Chain Orchestration interface records. To process these
records, you must submit the scheduled process below.
Once you have entered the scheduled process parameters, you can submit the request.
• Supply Request System: Oracle Fusion Inventory Management
• Organization: Inventory organization that generated the PAR replenishment
request
• From Supply Request Batch Number: The batch number will always start with
‘PAR’. For example, PAR8001

• To Supply Request Batch Number: Enter the ending batch number for a range
or supply request batch numbers
• From Supply Request Date: Starting supply request date
• To Supply Request Date: Ending supply request date
Navigation: Supply Orchestration > Scheduled Processes > Process Supply Chain
Orchestration Interface
When the Process Supply Chain Orchestration Interface completes successfully, you can
review the Supply Order Details by navigating to the task Manage Supply Lines. Search
by the Supply Request Reference Number to review the Supply Lines. The Supply
Request Reference Number will be prefixed by ‘PAR’ such as the example ‘PAR8001’.
When reviewing the Supply Order Details, you can review the supply lines associated
with the supply order. When you click on the supply line as shown below, you can review
the line details. Navigate to the Execution Documents tab to view the purchase requisition
number created for the replenishment request.

Navigation: Supply Chain Orchestration > Manage Supply Lines > Line Details >
Execution Documents
The requisition document number displayed in the supply order details can be used to
search for the requisition in Procurement. You can navigate to the View Requisition Lines
task in Procurement to view the requisition details.
Navigation: Procurement > Purchase Orders > View Requisition Lines

Procurement provides the ability to automatically generate a purchase order from a
purchase requisition. In the example below, a purchase order has been generated from
the purchase requisition. The purchase order provides the supplier information indicating
which supplier will replenish the material. The Ship-to Location is identified based on the
Location associated with the subinventory.
Navigation: Procurement > Purchase Orders > Manage Orders
Once the Purchase Order is in status Open it is available for receiving. Navigate to the
Receive Expected Shipments page to perform the receipt transaction. You can search by
criteria such as purchase order number, supplier, and item.
The field Receipt Routing on the purchase order schedule determines how the material
will be received. The default value is derived from the following:
• The item definition for the ship-to organization
• The supplier site
• The receiving option for the ship-to organization
Oracle Fusion Receiving supports the following receipt routing methods:
• Direct Delivery: Shipment are received into a receiving location and put away in
the same transaction. Put away happens automatically upon receipt creation
• Standard Receipt: Shipments are received into a receiving location and then put
away in a separate transaction. Standard receipts can be inspected or transferred
before put away
• Inspection Required: Shipments are received into a receiving location and then
inspected and put away in separate transactions. You can accept or reject

material during the inspection, and put away to separate locations, based on the
inspection result
Navigation: Inventory Management > Receipts > Receive Expected Shipments
Depending on the receiving process configured, a put away transaction maybe required
to deliver the material to the final inventory destination. In this case, the user must
perform a two step receipt and complete the put away or delivery transaction to the PAR
subinventory.
The final put away or delivery transaction will reference Subinventory PAR2 and Deliver-
to Location ‘PAR Location 2 – Children’s Hospital’.
Once you submit the transaction, a confirmation message will be displayed indicating that
the put away transaction has been created.

Navigation: Inventory Management > Receipts > Put Away Receipt
Process Complete

PAR Replenishment Interorganiztion Internal Material Transfer Worked
Example
An interorganization internal material transfer represents a transfer of material from a

source inventory organization to a destination inventory organization. This type of
transfer would be done to replenish material from one inventory organization to another.
For example, the source inventory organization may represent a main storage facility
used to replenish the various PAR locations. When the PAR location needs material, the
material will be replenished from the main storage facility.
Configuration of the subinventory is very similar to how the subivnentory is configured in

the PAR Replenishment Purchase Requisition Worked Example. The Location
associated with the Subinventory is ‘PAR Location 2- Children’s Hospital’. The
Subinventory is also denoted as a PAR Location and the Quantity Tracked checkbox
has been disabled. In order to disable the Quantity Tracked checkbox, the Material
Status must be set to ‘Active: Not Available for Netting, ATP and Reservations’.
Create Subinventory
In this worked example, the Source Type is ‘Organization’, indicating that the item
subinventory is being replenished from another inventory organization. The field
Organization is mandatory when the Source Type is Organization. In this field, the
Source Organization is specified as Boston Manufacturing. Additionally, you can also
specify a Sourcing Subinventory if required.

Create Item Subinventory
Interorganization parameters must be established prior to performing an

interorganization internal material transfer. Interoganization parameters define the
relationship between the source inventory organization and the destination inventory
organization. The parameters specify the transfer type and receipt routing.

Navigation: Setup and Maintenance > Manage Interorganization Parameters
A REST Resource is provided to manage replenishment requests. The Replenishment

Request REST Resource provides methods GET, POST, and PATCH.
Shown below is the replenishment request sent using Postman. In the replenishment
request both the OrganizationCode and Subinventory are specified.
When the REST request processes successfully completes, the return message text will
indicate the following:
completed.
The supply request batch number will always be prefixed with ‘PAR” for PAR generated
replenishment requests. The supply request batch number can be used when submitting
the Process Supply Chain Orchestration Interface process.

records, you can enter the scheduled process parameters listed below and submit the
request.
request

the line details. Navigate to the Execution Documents tab to view the transfer order

Execution Documents
You can view the transfer order by navigating to task Manage Transfer Orders. The
source inventory organization is M2 – Boston Manufacturing. The Transaction Origin
Type will be ‘PAR replenishment’. The Destination Location is ‘PAR Location 2 –
Children’s Hospital’. The Destination Location is sourced from the Location associated
with Destination Subinventory ‘PARIMT’.
Navigation: Inventory Management > Manage Transfer Orders

The transfer order number displayed in the supply order details can be used to search for
the shipment in Inventory Management. You can navigate to the Manage Shipment Lines
task to view the shipment line details. In order to view the shipment lines, you must login
as a user with data access to the source inventory organization.
Navigation: Inventory Management > Shipments > Manage Shipment Lines
Proceed with the ship confirm process.

Navigation: Inventory Management >Shipments > Manage Shipment Lines
The next step in the process is to receive the material at the destination inventory
organization.
subinventory.
Navigation: Inventory Management > Receipts > Put Away Receipts
Put Away confirmation message received.

Navigation: Inventory Management > Receipts > Put Away Receipt
Process Complete

PAR Replenishment Intraorganiztion Internal Material Transfer Worked
Example
An intraorganization internal material transfer represents a transfer of material from a

source subinventory to a destination subinventory within the same inventory
organization. For example, the source inventory organization may represent a main
storage subinventory used to replenish the various PAR locations. When the PAR
location needs material, the material will be replenished from the main storage
subinventory within the same inventory organization.
Configuration of the subinventory is very similar to how the subivnentory is configured in

the PAR Replenishment Interorganization Worked Example. The Location associated
with the Subinventory is ‘PAR Location 2- Children’s Hospital’. The Subinventory is also
denoted as a PAR Location and the Quantity Tracked checkbox has been disabled. In
order to disable the Quantity Tracked checkbox, the Material Status must be set to
‘Active: Not Available for Netting, ATP and Reservations’.
The Replenishment Count Method defined for the Subinventory is ‘Request’. This count
method indicates that the order quantity will be manually entered in the replenishment
request. The Default Replenishment Count Type of ‘Order quantity’ will be defaulted.
Create Subinventory
In this worked example, the Source Type is ‘Organization’. The field Organization is
mandatory when the Source Type is Organization. Source Organization specified is
Seattle Manufacturing. Since this is an intraorganization (transfer from one subinventory
to another subinventory), the Source Organization selected will be the same
organization that you are logged in as. For example, if you are logged in as inventory
organization ‘Seattle Manufacturing’, the organization selected will also be ‘Seattle
Manufacturing’. Optionally, you can specify a Sourcing Subinventory if required.

Since the Replenishment Count Type is ‘Order quantity’, the PAR Level is not required.
The expectation is that the order quantity will be manually entered in the replenishment
request.
Manage Item Subinventories
When performing an interorganization transfer, the Manager Intersubinventory

Parameters must be defined. This task defines the relationship between the Source
Subinventory and the Destination Subinventory. Additionally, the Receipt Routing is
defined between the two subinventories.
Navigation: Setup and Maintenance > Manage Intersubinventory Parameters

When submitting the replenishment request, you must supply the quantity since the
replenishment count type associated with the subinventory is order quantity. In this
example, 25 units is entered for the order quantity.
When the REST request processes successfully completes, the return message text will
indicate the following:
completed.
The supply request batch number will always be prefixed with ‘PAR” for PAR generated
replenishment requests. The supply request batch number can be used when submitting
the Process Supply Chain Orchestration Interface process.
records, you can enter the scheduled process parameters listed below and submit the
request.

request

the line details. Navigate to the Execution Documents tab to view the transfer order
Execution Documents
You can view the transfer order by navigating to task Manage Transfer Orders. The
source inventory organization is M1 – Seattle Manufacturing. The Transaction Origin
Type will be ‘PAR replenishment’. The Destination Location is ‘PAR Location 2 –
Children’s Hospital’. The Destination Location is sourced from the Location associated
with Destination Subinventory ‘PARLOC2’.

Navigation: Inventory Management > Manage Transfer Orders
The transfer order number displayed in the supply order details can be used to search for
the shipment in Inventory Management. You can navigate to the Manage Shipment Lines
task to view the shipment line details. In order to view the shipment lines, you must login
as a user with data access to the source inventory organization.
Navigation: Inventory Management > Shipments > Manage Shipment Lines

Navigation: Inventory Management > Shipments > Ship Confirm
subinventory.

Navigation: Inventory Management > Receipts > Put Away Receipts
Process Complete

FAQs
What is the difference between an Interorganization and intraorganization transfer?

An interorganization transfer is a transfer of material between two separate inventory
organizations. An intraorganization transfer is a transfer of material between two
subinventories within an inventory organization.
How do I define the ship-to location associated with the PAR location?
The ship-to location is defined using the task ‘Manage Locations’. This task is can
accessed by navigation to the Setup and Maintenance Work Area. Once the ship-to
location has been defined it can then be associated with the PAR location. Navigate to
the task Manage Subinentories and Locators to associate the ship-to location to the PAR
location.
What are the replenishment source types supported for PAR replenishment?
There are four source types spported for PAR replenishment:
1. Movement Request Transfer: Transfer material from a source subinventory
to a destination subinventory
2. Purchase Requisition: Replenish material from a supplier using a purchase
requisition/purchase order
3. Interorganization Internal Material Transfer: Transfer material from a
source inventory organization to a destination inventory organization using a
transfer order
4. Intraorganization Internal Material Transfer: Transfer material from a
source subinventory to a destination subinventory within an inventory
organization using a transfer order
How do I review errors received when submitting the replenishment request?
There is task ‘Review Replenishment Requests in Spreadsheet’ that is accessible form
the Inventory Management landing page. This is an Application Development Framework
Desktop Integration User Interface (ADFdi UI) that enables you view any errors received
when processing replenishment requests.

Oracle Corporation, World Headquarters Worldwide Inquiries
500 Oracle Parkway Phone: +1.650.506.7000
Redwood Shores, CA 94065, USA Fax: +1.650.506.7200
CONN ECT WITH U S
blogs.oracle.com/oracle
Copyright © 2016, Oracle and/or its affiliates. All rights reserved. This document is provided for information purposes only, and the
contents hereof are subject to change without notice. This document is not warranted to be error-free, nor subject to any other
facebook.com/oracle warranties or conditions, whether expressed orally or implied in law, including implied warranties and conditions of merchantability or
fitness for a particular purpose. We specifically disclaim any liability with respect to this document, and no contractual obligations are
formed either directly or indirectly by this document. This document may not be reproduced or transmitted in any form or by any means,
twitter.com/oracle electronic or mechanical, for any purpose, without our prior written permission.
oracle.com Oracle and Java are registered trademarks of Oracle and/or its affiliates. Other names may be trademarks of their respective owners.
Intel and Intel Xeon are trademarks or registered trademarks of Intel Corporation. All SPARC trademarks are used under license and
are trademarks or registered trademarks of SPARC International, Inc. AMD, Opteron, the AMD logo, and the AMD Opteron logo are
trademarks or registered trademarks of Advanced Micro Devices. UNIX is a registered trademark of The Open Group. 0116
Oracle Inventory Management Internal Material Transfer Process Flow

Updated February 2018
Authors: Melina Van Winkle and Matthew Jones
CONN ECT WITH U S
blogs.oracle.com/oracle
facebook.com/oracle
twitter.com/oracle
oracle.com

Oracle Inventory Management Implementing PAR Replenishment 18C

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Oracle Inventory Management Implementing PAR Replenishment 18C

Uploaded by

Copyright:

Available Formats

Oracle Inventory Management

Implementing PAR Replenishment 18C

PAR Replenishment Overview 1

Define PAR Locations 3

Count PAR Locations 4

Replenish PAR Locations 6

Optimize PAR Replenishment 7

Account and Record 8

Quantity Tracked Versus Non-Quantity Tracked PAR Locations Explained 13

Two Bin Replenishment Method Explained 14

PAR Replenishment Purchase Requisition Worked Example 16

PAR Replenishment Interorganiztion Internal Material Transfer Worked Example 25

PAR Replenishment Intraorganiztion Internal Material Transfer Worked Example 34

PAR Replenishment Overview

1 | ORACLE INVENTORY MANAGEMENT PAR REPLENISHMENT

2 | ORACLE INVENTORY MANAGEMENT PAR REPLENISHMENT

3 | ORACLE INVENTORY MANAGEMENT PAR REPLENISHMENT

Count PAR Locations

The counting activity is two-part:

4 | ORACLE INVENTORY MANAGEMENT PAR REPLENISHMENT

REPLENISHMENT COUNT METHODS AND COUNT TYPES

Two Bin Not Applicable No Count Quantity will not be sent in

Request Not Applicable Yes Count Quantity must be provided

Count The Replenishment Yes Count Quantity has to be

For example, if the PAR

5 | ORACLE INVENTORY MANAGEMENT PAR REPLENISHMENT

Replenish PAR Locations

6 | ORACLE INVENTORY MANAGEMENT PAR REPLENISHMENT

The table below depicts the replenishment source types supported.

REPLENISHMENT SOURCE TYPES

Purchase Supplier Not Applicable Not Applicable

Movement Subinventory Organization will Enter the source subinventory

Optimize PAR Replenishment

7 | ORACLE INVENTORY MANAGEMENT PAR REPLENISHMENT

Account and Record

8 | ORACLE INVENTORY MANAGEMENT PAR REPLENISHMENT

9 | ORACLE INVENTORY MANAGEMENT PAR REPLENISHMENT

Navigation: Setup and Maintenance > Manage Account Rules

10 | ORACLE INVENTORY MANAGEMENT PAR REPLENISHMENT

When establishing your Subinventories or PAR Locations it is important to understand the

11 | ORACLE INVENTORY MANAGEMENT PAR REPLENISHMENT

12 | ORACLE INVENTORY MANAGEMENT PAR REPLENISHMENT

Quantity Tracked Versus Non-Quantity Tracked PAR Locations Explained

13 | ORACLE INVENTORY MANAGEMENT PAR REPLENISHMENT

Two Bin Replenishment Method Explained

14 | ORACLE INVENTORY MANAGEMENT PAR REPLENISHMENT

Purchase requisitions can be generated automatically from PAR replenishment requests.

16 | ORACLE INVENTORY MANAGEMENT PAR REPLENISHMENT

17 | ORACLE INVENTORY MANAGEMENT PAR REPLENISHMENT

A REST Resource is provided to manage replenishment requests. The Replenishment

18 | ORACLE INVENTORY MANAGEMENT PAR REPLENISHMENT

19 | ORACLE INVENTORY MANAGEMENT PAR REPLENISHMENT

20 | ORACLE INVENTORY MANAGEMENT PAR REPLENISHMENT

Navigation: Procurement > Purchase Orders > View Requisition Lines

21 | ORACLE INVENTORY MANAGEMENT PAR REPLENISHMENT

Navigation: Procurement > Purchase Orders > Manage Orders

22 | ORACLE INVENTORY MANAGEMENT PAR REPLENISHMENT

Navigation: Inventory Management > Receipts > Receive Expected Shipments

23 | ORACLE INVENTORY MANAGEMENT PAR REPLENISHMENT

24 | ORACLE INVENTORY MANAGEMENT PAR REPLENISHMENT

An interorganization internal material transfer represents a transfer of material from a

Configuration of the subinventory is very similar to how the subivnentory is configured in

25 | ORACLE INVENTORY MANAGEMENT PAR REPLENISHMENT