Inventory Management Fundamentals D16356GC10

11i Inventory Management
Fundamentals
Student Guide
D16356GC10
Edition 1.0
January 2003
D37638 SG 1
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Author
Tyra Crockett
Technical Contributors and Reviewers
Jennifer Sherman, Paul Scott, Paul Roy, Jeff Hopp
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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...........................................................................................................................................................1-17
Issuing Inventory ...........................................................................................................................................1-18
Agenda...........................................................................................................................................................1-20
Oracle Inventory Application Integration.....................................................................................................1-21
Integration of Oracle Inventory to Financial Applications ...........................................................................1-22
Agenda...........................................................................................................................................................1-23
Summary........................................................................................................................................................1-24
11i Overview of Defining and Maintaining Items .........................................................................................2-1
11i Overview of Defining and Maintaining Items .........................................................................................2-2
Objective........................................................................................................................................................2-3
Agenda...........................................................................................................................................................2-4
Items ..............................................................................................................................................................2-5
Agenda...........................................................................................................................................................2-6
Oracle Organization.......................................................................................................................................2-7
Inventory Organizations ................................................................................................................................2-8
Defining Organizations..................................................................................................................................2-9
Agenda...........................................................................................................................................................2-10
Defining Items in Item Master.......................................................................................................................2-11
Defining Items ...............................................................................................................................................2-12
Agenda...........................................................................................................................................................2-13
Item Attributes...............................................................................................................................................2-14
Item Statuses and Attributes ..........................................................................................................................2-15
Item Attribute Groups....................................................................................................................................2-16
Agenda...........................................................................................................................................................2-17
Creating Item Templates ...............................................................................................................................2-18
Enabling Attributes in a Template .................................................................................................................2-19
Agenda...........................................................................................................................................................2-20
Organization Assignment and Organization Item..........................................................................................2-21
Agenda...........................................................................................................................................................2-22
Deletion Constraints and Deletion Groups ....................................................................................................2-23
Agenda...........................................................................................................................................................2-24
Summary........................................................................................................................................................2-25
11i Defining and Maintaining Items Fundamentals .....................................................................................3-1
11i Defining and Maintaining Items Fundamentals.......................................................................................3-2
Objectives ......................................................................................................................................................3-3
Agenda...........................................................................................................................................................3-4
Inventory Organizations ................................................................................................................................3-5
Inventory Organization Structure ..................................................................................................................3-6
Setting up Locations ......................................................................................................................................3-9
Organization Setup ........................................................................................................................................3-10
11i Inventory Management Fundamentals Table of Contents

i
Additional Set Up Steps ................................................................................................................................3-11
Additional Organizational Setups..................................................................................................................3-12
Guided Demonstration: Creating an Inventory Organization ........................................................................3-13
Guided Demonstration - Setting Up Locations..........................................................................................3-14
Guided Demonstration - Setting Up Organizations ...................................................................................3-15
Agenda...........................................................................................................................................................3-16
Unit of Measure .............................................................................................................................................3-17
Units of Measure ...........................................................................................................................................3-19
Use of Units of Measure ................................................................................................................................3-20
Defining UOM Classes..................................................................................................................................3-21
Units of Measure Conversions.......................................................................................................................3-22
Units of Measure Setup .................................................................................................................................3-23
Guided Demonstration Overview: Units of Measure ....................................................................................3-24
Guided Demonstration - Units of Measure................................................................................................3-25
Practice Overview: Units of Measure............................................................................................................3-27
Practice - Defining Units of Measure ........................................................................................................3-28
Solution – Defining Units of Measure .......................................................................................................3-30
Agenda...........................................................................................................................................................3-33
Item Statuses and Attributes ..........................................................................................................................3-34
Item Status .....................................................................................................................................................3-35
Status Attributes ............................................................................................................................................3-36
Item Attribute Relationships..........................................................................................................................3-37
Status Attribute Interdependencies ................................................................................................................3-38
Status Attributes and Functionality ...............................................................................................................3-41
Guided Demonstration Overview: Viewing Item Attributes .........................................................................3-43
Guided Demonstration - Viewing Item Attributes.....................................................................................3-44
Practice Overview: Viewing Item Attributes.................................................................................................3-45
Practice - Viewing Item Attributes ............................................................................................................3-46
Solution – Viewing Item Attributes...........................................................................................................3-48
Agenda...........................................................................................................................................................3-53
Defining items ...............................................................................................................................................3-54
Steps to Setup, Define and Maintain items....................................................................................................3-55
Item Templates ..............................................................................................................................................3-56
Organization Assignment and Organization Item..........................................................................................3-57
Item Control Level.........................................................................................................................................3-58
Guided Demonstration: Defining Items.........................................................................................................3-60
Guided Demonstration - Define Item ........................................................................................................3-61
Practice Overview: Defining Items................................................................................................................3-62
Defining Items ...........................................................................................................................................3-63
Solution - Defining Items ..........................................................................................................................3-65
Agenda...........................................................................................................................................................3-69
Deletion Constraints ......................................................................................................................................3-70
Agenda...........................................................................................................................................................3-72
Profile Values ................................................................................................................................................3-73
Item Profile Options ......................................................................................................................................3-75
Agenda...........................................................................................................................................................3-77
Implementation Considerations .....................................................................................................................3-78
Agenda...........................................................................................................................................................3-79
Summary........................................................................................................................................................3-80
11i Inventory Controls Concepts....................................................................................................................4-1
11i Inventory Controls Concepts ...................................................................................................................4-2
Objectives ......................................................................................................................................................4-3
Agenda...........................................................................................................................................................4-4
Inventory Control Overview..........................................................................................................................4-5
Agenda...........................................................................................................................................................4-6
Subinventories Overview ..............................................................................................................................4-7

ii
Agenda...........................................................................................................................................................4-8
Locator Control Overview.............................................................................................................................4-9
Agenda...........................................................................................................................................................4-10
Revision Control Overview ...........................................................................................................................4-11
Agenda...........................................................................................................................................................4-12
Lot Control Overview....................................................................................................................................4-13
Agenda...........................................................................................................................................................4-14
Serial Number Overview ...............................................................................................................................4-15
Agenda...........................................................................................................................................................4-16
Summary........................................................................................................................................................4-17
11i Inventory Controls Fundamentals ...........................................................................................................5-1
11i Inventory Controls Fundamentals............................................................................................................5-2
Objectives ......................................................................................................................................................5-3
Agenda...........................................................................................................................................................5-4
Inventory Control Overview..........................................................................................................................5-5
Agenda...........................................................................................................................................................5-6
Defining Subinventories ................................................................................................................................5-7
Subinventory Locator Relationship ...............................................................................................................5-8
Locator Structuring........................................................................................................................................5-9
Locator Control Reports ................................................................................................................................5-10
Guided Demonstration Overview: Defining Subinventories .........................................................................5-11
Guided Demonstration - Creating Subinventories .....................................................................................5-12
Practice Overview: Defining Subinventories.................................................................................................5-13
Practice - Creating Subinventories ............................................................................................................5-14
Solution - Creating Subinventories............................................................................................................5-15
Guided Demonstration Overview Setting Up Locator Control......................................................................5-17
Guided Demonstration - Locator Control ..................................................................................................5-18
Practice Overview Setting Up Locator Control .............................................................................................5-20
Practice - Setting Up Locator Control .......................................................................................................5-21
Solution – Setting Up Locator Control ......................................................................................................5-23
Agenda...........................................................................................................................................................5-29
Revision Control............................................................................................................................................5-30
Agenda...........................................................................................................................................................5-32
Lot Control ....................................................................................................................................................5-33
Lot Number Purging......................................................................................................................................5-34
Maintaining Lot Information .........................................................................................................................5-35
Cycle Counts Under Lot Control...................................................................................................................5-36
Physical Inventory Under Lot Control...........................................................................................................5-37
Disabled Lots.................................................................................................................................................5-38
Lot Control Reports .......................................................................................................................................5-39
Agenda...........................................................................................................................................................5-40
Generating Serial Numbers............................................................................................................................5-41
Maintaining Serial Numbers..........................................................................................................................5-42
Serial Genealogy ...........................................................................................................................................5-43
Serial Number Control Reports .....................................................................................................................5-44
Guided Demonstration Overview: Revision, Lot and Serial Controls...........................................................5-45
Guided Demonstration - Revision, Lot, and Serial Numbers ....................................................................5-46
Practice Overview: Revision, Lot and Serial Controls ..................................................................................5-49
Practice - Revision, Lot and Serial Controls..............................................................................................5-50
Solution – Revision, Lot and Serial Controls ............................................................................................5-52
Agenda...........................................................................................................................................................5-61
Locator Flexfield Structure............................................................................................................................5-62
Changing Locator Control .............................................................................................................................5-63
Transacting Controlled Items ........................................................................................................................5-64
Agenda...........................................................................................................................................................5-66
Summary........................................................................................................................................................5-67

iii
11i Transacting Inventory Concepts ..............................................................................................................6-1
11i Transacting Inventory Concepts ..............................................................................................................6-2
Module Objectives.........................................................................................................................................6-3
Agenda...........................................................................................................................................................6-4
Inventory Structure ........................................................................................................................................6-5
Overview .......................................................................................................................................................6-6
Agenda...........................................................................................................................................................6-7
Inventory Transactions ..................................................................................................................................6-8
Agenda...........................................................................................................................................................6-9
Transaction Types..........................................................................................................................................6-10
Transaction Source Types..............................................................................................................................6-11
Transaction Action ........................................................................................................................................6-13
Transaction Reasons ......................................................................................................................................6-15
Transaction Managers....................................................................................................................................6-16
Agenda...........................................................................................................................................................6-17
Move Orders..................................................................................................................................................6-18
Agenda...........................................................................................................................................................6-19
Shortage Alerts and Notifications..................................................................................................................6-20
Agenda...........................................................................................................................................................6-22
Mobile Transactions ......................................................................................................................................6-23
Agenda...........................................................................................................................................................6-24
Summary........................................................................................................................................................6-25
11i Transaction Setup......................................................................................................................................7-1
11i Transaction Setup ....................................................................................................................................7-2
Objectives ......................................................................................................................................................7-3
Agenda...........................................................................................................................................................7-5
Running Transaction Managers.....................................................................................................................7-6
Predefined Transaction Types .......................................................................................................................7-7
Guided Demonstration Overview: Defining a Customized Transaction .......................................................7-8
Guided Demonstration - Custom Transactions..........................................................................................7-9
Practice Overview: Defining a Customized Transaction...............................................................................7-11
Practice - Defining a Customized Transaction ..........................................................................................7-12
Solution – Defining a Customized Transaction .........................................................................................7-13
Agenda...........................................................................................................................................................7-17
Inter–Organization Shipping Network...........................................................................................................7-18
Shipping Method ...........................................................................................................................................7-20
Agenda...........................................................................................................................................................7-21
Movement Statistics ......................................................................................................................................7-22
Movement Statistics Parameters....................................................................................................................7-24
Collecting and Reporting Movement Statistics .............................................................................................7-25
Agenda...........................................................................................................................................................7-27
Account Aliases.............................................................................................................................................7-28
Agenda...........................................................................................................................................................7-29
Setting Up for Move Orders ..........................................................................................................................7-30
Setup Steps for Move Orders.........................................................................................................................7-32
Agenda...........................................................................................................................................................7-34
Material Shortage Alerts and Notifications ...................................................................................................7-35
Setting Up Shortage Alerts and Notifications................................................................................................7-37
Movement Statistics Reports .........................................................................................................................7-38
Transaction Reports and Inquiries .................................................................................................................7-40
Agenda...........................................................................................................................................................7-41
Transaction Profile Options...........................................................................................................................7-42
Agenda...........................................................................................................................................................7-48
Implementation Considerations .....................................................................................................................7-49
Implementation Considerations for Shortage Messages................................................................................7-50
Agenda...........................................................................................................................................................7-51

iv
Summary........................................................................................................................................................7-52
11i Issue and Transfer Material .....................................................................................................................8-1
11i Issue and Transfer Material .....................................................................................................................8-2
Module Objectives.........................................................................................................................................8-3
Agenda...........................................................................................................................................................8-4
Transaction Flows..........................................................................................................................................8-5
Inventory Transactions ..................................................................................................................................8-6
Inventory Transactions Without Documents and Requisitions......................................................................8-7
Inventory Transactions With Documents and Requisitions...........................................................................8-8
Agenda...........................................................................................................................................................8-9
Control Options and Restrictions...................................................................................................................8-10
Agenda...........................................................................................................................................................8-11
Subinventory Transfer ...................................................................................................................................8-12
Guided Demonstration: Subinventory Transfer.............................................................................................8-13
Guided Demonstration - Subinventory Transfers ......................................................................................8-14
Miscellaneous Transaction (Account Receipt) ..............................................................................................8-15
Application of Miscellaneous Transactions...................................................................................................8-17
Interorganization Direct Shipment.................................................................................................................8-18
Interorganization Intransit Shipment .............................................................................................................8-20
Guided Demonstration Overview: Interorganization Transfer ......................................................................8-22
Guided Demonstration - Interorganization Transfers ................................................................................8-23
Practice Overview: Interorganization Transfer..............................................................................................8-24
Practice - InterOrganization Transfers.......................................................................................................8-25
Solution – InterOrganization Transfers .....................................................................................................8-26
Agenda...........................................................................................................................................................8-29
Managing Receipts ........................................................................................................................................8-30
Using Locations in Receiving........................................................................................................................8-31
Entering Receipt Lines ..................................................................................................................................8-32
Express Receipts and Receiving Transactions...............................................................................................8-34
Receiving Unordered Items ...........................................................................................................................8-35
Direct Receipts ..............................................................................................................................................8-37
Inspecting Received Items.............................................................................................................................8-39
Guided Demonstration Overview: Receiving Items into Inventory ..............................................................8-41
Guided Demonstration - Receiving Stock in to Inventory.........................................................................8-42
Practice Overview: Receiving Items into Inventory ......................................................................................8-44
Practice - Receiving Material in to Inventory............................................................................................8-45
Solution – Receiving Material in to Stock.................................................................................................8-46
Returns to Receiving .....................................................................................................................................8-50
Returns to Inventory ......................................................................................................................................8-51
Entering Returns ............................................................................................................................................8-52
Guided Demonstration Overview: Receiving Items into Inventory ..............................................................8-54
Guided Demonstration - Receiving Returns ..............................................................................................8-55
Agenda...........................................................................................................................................................8-56
Receiving Reports..........................................................................................................................................8-57
Agenda...........................................................................................................................................................8-58
Move Orders Process Flow............................................................................................................................8-59
Move Order Requisition Approval Process ...................................................................................................8-61
Benefits of Managed Material Flow in a Facility ..........................................................................................8-63
Move Order Source Types.............................................................................................................................8-65
Move Order Components ..............................................................................................................................8-67
Move Order Allocating..................................................................................................................................8-69
Generate Move Orders...................................................................................................................................8-71
Item Allocation ..............................................................................................................................................8-73
Transact Move Orders ...................................................................................................................................8-74
Guided Demonstration Overview: Transacting Move orders ........................................................................8-75
Guided Demonstration - Transact Move Orders........................................................................................8-76

v
Practice Overview: Transacting Move orders................................................................................................8-78
Practice - Transacting Move Orders ..........................................................................................................8-79
Solution – Transacting Move Orders.........................................................................................................8-81
Agenda...........................................................................................................................................................8-92
Transactions Using a Mobile Device.............................................................................................................8-93
Guided Demonstration Overview: Mobile Transactions ...............................................................................8-95
Guided Demonstration - Mobile Application Inter-organization Transfer ................................................8-96
Practice Overview: Mobile Transactions.......................................................................................................8-97
Practice - Mobile Transactions ..................................................................................................................8-98
Solution – Mobile Transactions.................................................................................................................8-99
Agenda...........................................................................................................................................................8-102
Managing Shipments .....................................................................................................................................8-103
Agenda...........................................................................................................................................................8-104
Summary........................................................................................................................................................8-105
11i Replenishment Concepts...........................................................................................................................9-1
11i Replenishment Concepts .........................................................................................................................9-2
Objectives ......................................................................................................................................................9-3
Agenda...........................................................................................................................................................9-4
Overview .......................................................................................................................................................9-5
Overview of Inventory Planning ...................................................................................................................9-6
Order Planning...............................................................................................................................................9-7
How Much to Order.......................................................................................................................................9-8
Replenishment Process for Intra-Org Supply Sources...................................................................................9-9
Replenishment Process for Supplier Supply Sources ....................................................................................9-10
Replenishment Process for Inter-Org Supply Sources...................................................................................9-11
Replenishment Process for Product Supply Sources .....................................................................................9-12
Agenda...........................................................................................................................................................9-13
Overview of Oracle Inventory Forecasting....................................................................................................9-14
Forecast Types...............................................................................................................................................9-15
Agenda...........................................................................................................................................................9-16
Oracle Inventory Replenishment Methods ....................................................................................................9-17
Replenishment Methods Levels.....................................................................................................................9-18
Safety Stock...................................................................................................................................................9-19
Economic Order Quantity..............................................................................................................................9-20
Overview of Reorder-Point Planning ............................................................................................................9-21
Overview of Min-Max Planning....................................................................................................................9-23
Overview of Kanban Replenishment.............................................................................................................9-24
Overview of Replenishment Counting ..........................................................................................................9-26
Agenda...........................................................................................................................................................9-27
Summary........................................................................................................................................................9-28
11i Replenishment Fundamentals ..................................................................................................................10-1
11i Replenishment Fundamentals.................................................................................................................10-2
Objectives ......................................................................................................................................................10-3
Agenda...........................................................................................................................................................10-4
Overview .......................................................................................................................................................10-5
Agenda...........................................................................................................................................................10-6
Focus Forecasting ..........................................................................................................................................10-7
Focus-Forecasting (continued) ......................................................................................................................10-8
Using Focus Forecasting ...............................................................................................................................10-10
Focus Forecasting Example...........................................................................................................................10-11
Statistical Forecasting....................................................................................................................................10-13
Exponential Smoothing Forecast (ESF) ........................................................................................................10-14
Trend-Enhanced Forecast (TEF) ...................................................................................................................10-16
Season-Enhanced Forecast (SEF)..................................................................................................................10-18
Trend- and Season-Enhanced Forecast (TSEF).............................................................................................10-20
Forecast Setup and Maintenance ...................................................................................................................10-22

vi
Guided Demonstration Overview: Creating a Manual Forecast ....................................................................10-23
Guided Demonstration - Creating a Manual Forecast ...............................................................................10-24
Practice Overview: Creating a Manual Forecast ...........................................................................................10-26
Practice - Creating a Manual Forecast .......................................................................................................10-27
Solution – Creating a Manual Forecast......................................................................................................10-28
Agenda...........................................................................................................................................................10-31
Uses of Reorder-Point Planning ....................................................................................................................10-32
Reorder-Point Planning: Safety Stock ...........................................................................................................10-33
Reorder-Point Planning: Lead Time ..............................................................................................................10-34
Reorder-Point Planning: Reorder Quantity....................................................................................................10-35
Reorder-Point Planning Steps........................................................................................................................10-37
Entering Item Planning Attributes .................................................................................................................10-38
Entering General Planning Attributes for Reorder-Point Planning................................................................10-39
Entering Lead Times .....................................................................................................................................10-40
Entering Safety Stocks...................................................................................................................................10-41
Performing Reorder-Point Planning ..............................................................................................................10-43
Guided Demonstration: Reorder Point Planning ...........................................................................................10-45
Guided Demonstration - Reorder Point Planning ......................................................................................10-46
Agenda...........................................................................................................................................................10-47
Uses of Min-Max Planning............................................................................................................................10-48
Min-Max Planning.........................................................................................................................................10-49
Min-Max Planning: When to Order? ............................................................................................................10-50
Min-Max Planning: How Much to Order? ...................................................................................................10-51
Min-Max Planning Steps ...............................................................................................................................10-52
Item Planning Attributes................................................................................................................................10-53
Min-Max Planning Setup Procedure..............................................................................................................10-54
Selecting a Planning Level ............................................................................................................................10-55
Entering Planning Attributes .........................................................................................................................10-56
Submitting the Min-Max Planning Requests.................................................................................................10-57
Guided Demonstration Overview: Min-Max Planning..................................................................................10-59
Guided Demonstration - Min-Max Planning .............................................................................................10-60
Practice Overview: Min-Max Planning .........................................................................................................10-62
Practice - Performing Min-Max Planning..................................................................................................10-63
Solution – Performing Min-Max Planning ................................................................................................10-64
Agenda...........................................................................................................................................................10-70
Uses of Replenishment Counting ..................................................................................................................10-71
Replenishment Planning Steps ......................................................................................................................10-72
Subinventories Window ................................................................................................................................10-73
Item Subinventories Window ........................................................................................................................10-74
Item Subinventories: Order Modifier Tab ....................................................................................................10-75
Replenishment Count Headers ......................................................................................................................10-76
Replenishment Count Lines...........................................................................................................................10-77
Processing Replenishment Counts................................................................................................................10-79
Agenda...........................................................................................................................................................10-81
Kanban Cards ................................................................................................................................................10-82
Kanban Planned Items ...................................................................................................................................10-83
Kanban Cards ................................................................................................................................................10-85
Kanban Supply Status....................................................................................................................................10-87
Kanban Replenishment Sources ....................................................................................................................10-88
Kanban Card Printing ....................................................................................................................................10-89
Guided Demonstration Overview: Generating Kanban Cards.......................................................................10-90
Guided Demonstration - Kanban ...............................................................................................................10-91
Practice Overview: Generating Kanban Cards ..............................................................................................10-92
Practice - Generating Kanban Cards..........................................................................................................10-93
Solution – Generating Kanban Cards ........................................................................................................10-94
Agenda...........................................................................................................................................................10-98
Available to Promise .....................................................................................................................................10-99

vii
ATP Rules and ATP Checks..........................................................................................................................10-100
Uses of ATP in Oracle Inventory ..................................................................................................................10-101
Steps for Checking ATP ................................................................................................................................10-102
ATP Rules Setup Steps..................................................................................................................................10-103
Defining Computation Options......................................................................................................................10-104
Specifying Supply and Demand Time Fences ...............................................................................................10-106
Specifying Demand Sources..........................................................................................................................10-110
Specifying Supply Sources ............................................................................................................................10-112
Setting Up Item and Bills for ATP Checking ................................................................................................10-113
ATP Checking ...............................................................................................................................................10-114
Viewing ATP Criteria....................................................................................................................................10-117
Agenda...........................................................................................................................................................10-118
Planning and Forecasting Profile Options .....................................................................................................10-119
Setting Up the Min-Max System Profile Value.............................................................................................10-121
Subinventory Setup Windows .......................................................................................................................10-122
Agenda...........................................................................................................................................................10-123
Min-Max Order Type and Order Source .......................................................................................................10-124
Replenishment Method Selection ..................................................................................................................10-127
Agenda...........................................................................................................................................................10-128
Summary........................................................................................................................................................10-129
11i Inventory Accuracy Concepts ..................................................................................................................11-1
11i Inventory Accuracy Concepts..................................................................................................................11-2
Objectives ......................................................................................................................................................11-3
Agenda...........................................................................................................................................................11-4
Overview .......................................................................................................................................................11-5
Agenda...........................................................................................................................................................11-6
ABC Analysis Overview ...............................................................................................................................11-7
Agenda...........................................................................................................................................................11-8
Cycle Counting Overview .............................................................................................................................11-9
Agenda...........................................................................................................................................................11-10
Physical Inventory Overview ........................................................................................................................11-11
Why Perform Physical Inventories? ..............................................................................................................11-12
Agenda...........................................................................................................................................................11-13
Mobile Inventory Accuracy Overview ..........................................................................................................11-14
Agenda...........................................................................................................................................................11-15
Summary........................................................................................................................................................11-16
11i Inventory Accuracy Fundamentals..........................................................................................................12-1
11i Inventory Accuracy Fundamentals ..........................................................................................................12-2
Objectives ......................................................................................................................................................12-3
Agenda...........................................................................................................................................................12-4
Defining an ABC Analysis ............................................................................................................................12-5
Define and Run an ABC Compilation ...........................................................................................................12-6
ABC Compilation Criteria.............................................................................................................................12-7
Agenda...........................................................................................................................................................12-10
ABC Valuation Scope ...................................................................................................................................12-11
Agenda...........................................................................................................................................................12-12
Defining ABC Groups ...................................................................................................................................12-13
Defining ABC Classes...................................................................................................................................12-14
ABC Item Assignments .................................................................................................................................12-15
Guided Demonstration Overview: Compiling an ABC Analysis ..................................................................12-17
Guided Demonstration - ABC Analysis ....................................................................................................12-18
Practice Overview: Compiling an ABC Analysis..........................................................................................12-20
Practice - Compiling an ABC Analysis .....................................................................................................12-21
Solution – Compiling an ABC Analysis....................................................................................................12-23
Agenda...........................................................................................................................................................12-28
Defining and Maintaining a Cycle Count ......................................................................................................12-29

viii
Agenda...........................................................................................................................................................12-30
Cycle Count Approval Tolerance ..................................................................................................................12-31
Approval Tolerances......................................................................................................................................12-32
Hit/Miss Tolerance ........................................................................................................................................12-34
Measurement Errors ......................................................................................................................................12-35
Cycle Count Items .........................................................................................................................................12-36
Agenda...........................................................................................................................................................12-38
Automatic Scheduling ...................................................................................................................................12-39
Manual Scheduling ........................................................................................................................................12-40
Count Requests ..............................................................................................................................................12-41
Entering Cycle Counts...................................................................................................................................12-43
Cycle Count Open Interface ..........................................................................................................................12-44
Agenda...........................................................................................................................................................12-45
Count Adjustments and Approvals ................................................................................................................12-46
Automatic Recounts ......................................................................................................................................12-47
Approving Cycle Counts and Adjustments ...................................................................................................12-48
Guided Demonstration Overview: Performing Cycle Counts .......................................................................12-50
Guided Demonstration - Cycle Counting ..................................................................................................12-51
Practice Overview: Performing Cycle Counts...............................................................................................12-54
Practice - Performing a Cycle Count .........................................................................................................12-55
Solution – Performing a Cycle Count........................................................................................................12-57
Practice Overview: Mobile Counting ............................................................................................................12-66
Practice - Mobile Counting........................................................................................................................12-67
Solution – Mobile Counting ......................................................................................................................12-69
Agenda...........................................................................................................................................................12-72
Summary........................................................................................................................................................12-74

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 A83057-05
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
Objectives
After completing this module, you should be able to

do the following:
• Describe the overall Inventory Process from Receipt
to Issue
• Discuss the key integration points between
inventory and other Oracle Applications

Chapter 1 - Page 3
Agenda
Agenda
• Overview
• Receipt to Issue Life Cycle
• Receiving Inventory
• Transferring inventory
• Issuing Inventory
• Application Integration
• Summary

Chapter 1 - Page 4
Overview
Overview
What is inventory?
• On-hand stock
• On-hand materials

Chapter 1 - Page 5
Overview
Overview
Oracle Inventory enables you to:

• Defining part numbers
• Modeling organization structures
• Tracking perpetual inventory
• Maintaining accurate on-hand balances
• Planning material replenishments
• Forecasting anticipated demand

Chapter 1 - Page 6
Agenda
Agenda
• Overview
• Summary

Chapter 1 - Page 7
Receipt to Issue Life Cycle
Receipt to Issue Life Cycle
Transfer Inventory
Receive Inventory Issue Inventory
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 in to 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
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
Agenda
• Overview
• Summary

Chapter 1 - Page 10
Receiving Inventory
Receiving Inventory
Purchasing Work in Process
Receiving
Inventory
Receiving Inventory
There are different ways you can receive inventory in to stock.
Purchasing
You can receive inventory from outside of your organization using purchasing. The ways you
use purchasing in relation to receiving 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 in to stock using the inventory application in the following ways:
•Miscellaneous Account
•Receipt from Project
•User Defined
•Inter-organization receipt

Chapter 1 - Page 12
Receiving Inventory
Receiving Inventory
Types of Inventory Receipts

• Receipt and Deliver
• Receipt then Deliver
• Inspection
– Receipt
– Deliver
– Inspect

Chapter 1 - Page 13
Agenda
Agenda
• Overview
• Transferring Inventory
• Summary

Chapter 1 - Page 14
Transferring Inventory
Inventory Shipping
Transfer
Work in Process Order Management
Different applications can generate requests to transfer inventory.
Shipping
Shipping can generate a transfer to move stock from a finished goods area to a staging to for
shipping.
Order Management
Order management can generate a transfer to move stock from a finished goods area to a
staging area for shipping.
Work in Process
Work in Process can generate a transfer to acquire components for a project.
Inventory
Inventory transfers materials using the following methods:
• Transfer between Organizations
• Replenish materials
•Request transfers

Chapter 1 - Page 15

Chapter 1 - Page 16
Agenda
Agenda
• Overview
• Summary

Chapter 1 - Page 17
Issuing Inventory
Issuing Inventory
Purchasing Inventory
Issuing
Work in Process Order Management
Issuing Inventory
You can issue stock out of inventory using the following applications:
Order Management
Order Management can generate an inventory issue through:
• Sales Orders
• Internal Orders
Purchasing
Purchasing can generate an inventory issue for:
• Return to Vendor materials
Work in Process
Work in process can generate an inventory issue through:
• Component Issue
• Assembly Return
Inventory
You can issue stock using the inventory application in the following ways:

Chapter 1 - Page 18
• User Defined
• Inter Organization Transfer
• Cycle Count Negative
• Request Issue

Chapter 1 - Page 19
Agenda
Agenda
• Overview
• Summary

Chapter 1 - Page 20
Oracle Inventory Application Integration
Oracle Inventory Application Integration
Oracle
WIP
Oracle Cost Oracle
Management Flow
Manufacturing
Oracle Oracle
Purchasing Project
Manufacturing
Oracle
Inventory
Oracle Order
Management Oracle Master
Oracle Oracle Bills
Scheduling/MRP
Engineering Oracle of Material
Shipping
Integration of Oracle Inventory to Manufacturing Applications

Oracle Inventory interacts with the other applications by sharing information:
• Oracle Cost Management: From cost Information to transaction rates
• Oracle Work in Progress: From WIP activity and ATP supply information to UOM, items,
and on-hand quantity.
• Oracle Master Scheduling/MRP: From ATP supply information to on-hand quantity and
forecasts
• Oracle Bill of Materials to UOM and items
• Oracle Engineering: From engineering item information to UOM and items
• Oracle Order Management: From Shipping, reservations, and demand to UOM, items, and
ATP/on-hand quantity
• Oracle Purchasing: From receipts/deliveries, ATP supply, and planning supply to UOM,
items, requisition, and inter-org shipments

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

Financial Applications
External
Systems
Oracle Oracle
Payables General
Ledger
Oracle
Inventory
Oracle Oracle
Receivables Assets
Integration of Oracle Inventory to Financial Applications

Oracle General Ledger
• From: Set of Books and Currency Exchange Rates
• To: Transaction Accounting Summary or Detail
Oracle Payables
• To: UOM and Items
Oracle Receivables
• To: UOM and items
• From: Intercompany Invoice
Oracle Assets
• To: UOM and Items

Chapter 1 - Page 22
Agenda
Agenda
• Overview
• Summary

Chapter 1 - Page 23
Summary
Summary
You should now be able to do the following:

• Explain inventory, and it fits in to your business
• Explain the Receipt to Issue process
• Discuss how Inventory Integrates with other Oracle
Applications

Chapter 1 - Page 24
11i Overview of Defining and
Maintaining Items
Chapter 2
11i Overview of Defining and Maintaining Items

Chapter 2 - Page 1
11i Overview of Defining and Maintaining

Items

Chapter 2 - Page 2
Objective
Objective
In this module you will learn the following:

• Explain items
• Explain the Oracle Inventory organization
structure
• Explain how to define items.
• Explain item statuses and attributes
• Explain item templates
• Explain the purpose of organization assignments
• Explain Deletion constraints

Chapter 2 - Page 3
Agenda
Agenda
• Overview of Items
• Overview of Organizations and Organization
Structure
• Overview of Defining Items Process
• Overview of Item Attributes and Statuses
• Overview of Item Templates
• Overview of Organization Assignment
• Overview of Deletion Constraints
• Summary

Chapter 2 - Page 4
Items
Items
What is an Item?
Component Service
Assembly
What is an Item?
An item is a part or service you:
• Purchase
• Sell
• Plan
• Manufacture
• Stock
• Distribute
• Prototype

Chapter 2 - Page 5
Agenda
Agenda
Structure
• Summary

Chapter 2 - Page 6
Oracle Organization
Oracle Organization
Set
Legal Entity Vision Ops of
Books
Operating Unit Vision Ops
V1
Master Organization
Inventory D2 M1 M2
Organizations

Chapter 2 - Page 7
Inventory Organizations
Subsidiary
Company Warehouse
An inventory organization is an inventory location with its own set of books, costing method,
workday calendar an list of items. An organization can be a company, subsidiary, or
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 2 - Page 8
Defining Organizations
Operating Unit
Inventory Set of Books Inventory

Organization A Organization B
Subinventory Subinventory Subinventory Subinventory
Locator Locator Locator Locator Locator
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 2 - Page 9
Agenda
Agenda
Structure
• Summary

Chapter 2 - Page 10
Defining Items in Item Master
Defining Items in Item Master
Master Organization
V1
Child Organization Child Organization Child Organization

M1 M2 D1
Item Master
Always define items in the master organization. Oracle automatically changes your current
organization to the master organization. You may enable your new items in as many child
organizations as needed.

Chapter 2 - Page 11
Defining Items
Defining Items
Copy templates
Copy items
Enter attribute values
Enable in child organizations
Update organization level attributes
Define item costs

Chapter 2 - Page 12
Agenda
Agenda
Structure
• Summary

Chapter 2 - Page 13
Item Attributes
Item Attributes
Item
Attributes
Serviceable Weight
Plan Buy Make
Item Attributes
Item attributes are the collection of information about an item.

Chapter 2 - Page 14
Item Statuses and Attributes

Status Attributes are item attributes that enable key
functionality of an item.
Status Attributes
Invoice Enabled =
BOM Allowed = Yes
Item Status Yes
Build in WIP = Yes Transactable = Yes

Active
Customer Orders
Purchasable = Yes
Enabled = Yes
Internal Orders
Stockable = Yes
Enabled = Yes

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 2 - Page 15
Item Attribute Groups
Item Attribute Groups
General Planning Main

MPS/MRP Planning Inventory
Purchasing Receiving
Invoicing Physical Attributes
Order Management Asset Management

Lead Times Service
Bills of Materials Web Options
Work In Process Costing

Chapter 2 - Page 16
Agenda
Agenda
Structure
• Summary

Chapter 2 - Page 17
Creating Item Templates
• If you regularly define items that share the same

values for a number of attributes, you may want to
define item templates to avoid duplicating effort.
• An item template contains values for any number
of item attributes. Oracle Inventory has several
predefined templates that you can use to define
and update items. You may also define your own
item attributes.

Chapter 2 - Page 18
Enabling Attributes in a Template
Enabling Attributes in a Template
• 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.
• You can define templates with relatively few
attributes enabled because you can apply more
than one template to define one item.

Chapter 2 - Page 19
Agenda
Agenda
Structure
• Summary

Chapter 2 - Page 20
Organization Assignment and Organization Item
Organization Assignment and

Organization Item
Master Organization
Item # AC2967
Assign Item Assign Item Assign Item
Child Org 1 Child Org 2 Child Org 3
Explaining 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 2 - Page 21
Agenda
Agenda
Structure
• Summary

Chapter 2 - Page 22
Deletion Constraints and Deletion Groups
Deletion Constraints and Deletion Groups
• If you want to enforce specific business rules and

add custom checks before you can delete an item,
you must define item deletion constraints to
supplement the standard predefined item deletion
conditions.
• You can delete items that have incorrect attribute
information. For example, if you make a mistake in
entering an item number, use the Deletion Groups
window to delete the item.
• If you decide to purge the item immediately after
incorrectly defining it and before using it
anywhere in the system, you will be able to delete
it.
Deletions Constraints and Deletion Groups

You cannot can not delete an item if you have on-hand quantity or have performed any type of
action on the item.

Chapter 2 - Page 23
Agenda
Agenda
Structure
• Summary

Chapter 2 - Page 24
Summary
Summary
You should now be able to:

• Explain items
• Explain the Oracle Inventory organization
structure
• Explain how to define items.
• Explain item statuses and attributes
• Explain item templates
• Explain the purpose of organization assignments
• Explain Deletion constraints

Chapter 2 - Page 25

Chapter 2 - Page 26
11i Defining and Maintaining
Items Fundamentals
Chapter 3
11i Defining and Maintaining Items Fundamentals

Chapter 3 - Page 1
11i Defining and Maintaining Items

Fundamentals

Chapter 3 - Page 2
Objectives
Objectives
After completing this module, you should be able to do

the following:
• Describe organization structure
• Define Units of Measure
• Identify the product functionality governed by item
attributes and status codes
• Define items and templates using your own part-
numbering scheme
• Define item deletion constraints
• Identify the setup options and implementation
considerations

Chapter 3 - Page 3
Agenda
Agenda
• Defining the Organization Structure

• Defining Units of Measure
• Explaining Item Attributes and Statuses
• Defining Items
• Defining Deletion Constraints
• Setting Up
• Implementation Considerations
• Summary

Chapter 3 - Page 4
Master Organization
Manufacturing Assembly Distribution

Dallas Chicago Seattle
Explaining Organizations
Before you use Oracle Inventory, you need to define one or more organizations. Organizations
represent distinct entities in your company and can include separate manufacturing facilities,
warehouses, distribution centers, and branch offices.
An Inventory organization may be one of the following:
•A physical entity like a warehouse where inventory is stored and transacted.
•A logical entity like an item master organization which only holds items with no transactions
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 3 - Page 5
Inventory Organization Structure
Consider the following issues when you plan your

inventory organization
Set of Books Costing
Planning Material Movement Accuracy Analysis
Explaining Enterprise Structure Considerations

Sets of Books
You can tie one Oracle General Ledger set of books to each inventory organization.
Costing Methods
You choose your costing method 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.
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.

Chapter 3 - Page 6
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 3 - Page 7
Organization
Subinventory
Locator
Inventory Structure
Inventory Organizations may be made up of one or more subinventories which may be made
up of one or
more locators such as row, rack, bin.

Chapter 3 - Page 8
Setting up Locations
Physical Location
Employees Organizations
•Define information describing the physical locations of Employees and Organizations

•Locations are shared between Inventory Management, 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 3 - Page 9
Organization Setup
Organization Setup
Organization Parameters
Receiving Parameters Unique Short Code
Master Organization Control Options
Organization Setup
– 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 in transit interorganization shipments.
– The item master organization should be the first inventory organization for which
parameters are defined.
– You must also 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 a master organization.
– You must define the control options and account defaults for your organization before you
can define items or perform any transactions.
– You must assign a unique short code to your organization and use this code to identify the
organization with which you want to work.

Chapter 3 - Page 10
Additional Set Up Steps
Additional Set Up Steps
Freight Carriers
Employees Planners
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 3 - Page 11
Additional Organizational Setups
Additional Organizational Setups
Organization Access Material Shortages
Material Shortage Parameters

Defines 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 3 - Page 12
Guided Demonstration: Creating an Inventory Organization
Guided Demonstration:
Creating an Inventory Organization
In this guided demonstration, the instructor will set up

a new location, and a new inventory organization.

Chapter 3 - Page 13
Guided Demonstration - Setting Up Locations
Responsibility = Oracle Inventory, Vision Operations
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
− County: Orange
− Country: United States
− Telephone: (407) 828-5000
5. Save and Close form.

Chapter 3 - Page 14
Guided Demonstration - Setting Up Organizations
Responsibility: Inventory, Vision Operations
1. (N) > Setup > Organizations >Organizations.
2. Setup a new organization using the following information:

− Name: M12 Orlando MFG
− Type: Plant
− Location: M12 Orlando MFG
3. (M) File > Save.
4. Designate and enable as an inventory organization.
5. (M) File > Save.
6. (M) File > Close Form.

Chapter 3 - Page 15
Agenda
Agenda

• Defining Items
• Setting Up
• Summary

Chapter 3 - Page 16
Unit of Measure
Unit of Measure
Unit of Measure (UOM) Unit of Measure Class
Specifies the Groups of UOMs with similar

quantity of an item characteristics
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 3 - Page 17
Unit of Measure
Unit of Measure
Unit of measure conversion

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.

Chapter 3 - Page 18
Units of Measure
Units of Measure
• Define units of measure for tracking, moving,

storing, and counting items.
• Multiple related units of measure are grouped
together in a class with a base unit of measure
• 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.
Explaining Units of Measure

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

Chapter 3 - Page 19
Use of Units of Measure
Use of Units of Measure
• Planning Products
• Work in process
• Bills of Material and Engineering
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 3 - Page 20
Defining UOM Classes
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 units of measure such
as kilogram, gram, pound, and ounce.
UOM Class Base UOM Other UOMs
Quantity Each Dozen, Box

Weight Gram Pound, Kilogram
Volume Cubic inches Cubic feet, CC
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 3 - Page 21
Units of Measure Conversions
UOM Class = Weight UOM Conversion
UOM Base UOM

1 kg = 2.208 X lbs
lbs Yes
kg No 1 g = 0.002208 X lbs
g No
UOM Interclass Conversion

Destination Destination Source Source
Item Base UOM UOM Class Conversion Base UOM UOM Class
Keyboard lbs Weight 2 Each Quantity
2 Each = 1 lb
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 3 - Page 22
Units of Measure Setup
Units of Measure Setup
Perform the following steps to define multiple UOMs

and set up conversions:
Define one base UOM

Define UOM classes
for each UOM class
Define multiple nonbase

UOMs for each class
Define intraclass
conversions
Define interclass
conversions

Chapter 3 - Page 23
Guided Demonstration Overview: Units of Measure
Guided Demonstration Overview:

Units of Measure
In this practice, the instructor will create a unit of

measure class, units of measure, and units of measure
conversions.

Chapter 3 - Page 24
Guided Demonstration - Units of Measure
Responsibility: Oracle Inventory, Vision Operations
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 100 in the conversion field.
14. (M) File > New.
15. Select 00-Kilometer from the list of values.

Chapter 3 - Page 25
16. Enter .001 in the conversion field.
17. (M) File > Save.

Chapter 3 - Page 26
Practice Overview: Units of Measure
Practice Overview:
Units of Measure
In this practice, you will be directed to create your own

unit of measure class, units of measure, and unit of
measure conversion.

Chapter 3 - Page 27
Practice - Defining Units of Measure
Overview
In this lab you will be doing the following:
• Defining Units of Measure Classes
• 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 3 - Page 28
Note: A Gross = 144 each, and a case = 24 each.

Chapter 3 - Page 29
Solution – Defining Units of Measure
Responsibility = Inventory, Vision Operations
1. Navigate to the UOM Classes window.
• (N) Setup > Units of Measure > Classes
2. (M) File > New.

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

− Name: ##-Dozen
− Abbreviation: ##D
− Description: Team ## Dozen U of M

Chapter 3 - Page 30
− Class: The U of M class you created in Step 1
7. Repeat steps 5-6 create units of measure for ##-Gross and ##-Case using the same
conventions as in the previous steps.
8. (M) File > Save.
9. (M) File > Close form.
UOM Conversions
10. Set up Standard conversions for your units of measure.
• (N) Setup > UOM Conversions.
11. M: File > New (make sure your conversion type is “Standard” conversion)
− UOM: ##-Dozen
− Class: ##-Quantity
− Conversion: 12
− Base Unit: ##-Each
12. Create Standard Conversions for Case and Gross UOMs.

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

Chapter 3 - Page 31

Chapter 3 - Page 32
Agenda
Agenda

• Defining Items
• Setting Up
• Summary

Chapter 3 - Page 33

Item attributes describe an item. Status Attributes are
item attributes that enable key functionality of an item.
Status Attributes
Invoice Enabled =
BOM Allowed = Yes
Item Status Yes
Build in WIP = Yes Transactable = Yes

Active
Customer Orders
Purchasable = Yes
Enabled = Yes
Internal Orders
Stockable = Yes
Enabled = Yes

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 34
Item Status
Item Status
When you define an item, you use the Item Status
attribute to assign an item status.
Item Number = AS1359 Item Number = AS1359

Item Status = Prototype Item Status = Active
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 3 - Page 35
Status Attributes
Status Attributes
• Status attributes enable and disable the

functionality of an item over time.
• Each status attribute allows you to enable the item
for particular use. For example if you set the
status attribute Purchasing to yes then you can
place the item on a purchase order.
• The status attributes are related to the item
defining attributes. You cannot enable a status
attribute if you do not set the corresponding item
attribute to yes.
Status Attributes Help

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

Chapter 3 - Page 36
Item Attribute Relationships
Item Attribute Relationships

When you define an item, Oracle Inventory enforces
particular relationships between some of the item
attributes:
• Required Attributes
• Interdependent Attributes
• Updateable Attributes
• Control Level Dependencies
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 3 - Page 37
Status Attribute Interdependencies
Each status attribute is dependent on at least one

other attribute. For example you cannot have
Stockable set to yes if you have Inventory Item set to
No.
The following slides show the interdependencies for
the status attributes.

Chapter 3 - Page 38

Attribute Must be set to If
Stockable No Inventory item is set

to No
Transactable No Stockable is set to No
Purchasable No Purchased is set to No
Inventory item is set to

Build in WIP No No or BOM tem Type is
NOT set to Standard

Chapter 3 - Page 39

Attribute Must be set to If
Customer Orders Customer Ordered

No
Enabled Item is set to No
Internal Ordered
Internal Orders No Item is set to No
Enabled
BOM Allowed No Inventory Item is

set to No
No Invoiceable Item is
Invoice Enabled
set to No

Chapter 3 - Page 40
Status Attributes and Functionality

Status Attribute Functional Area Functionality
Allows you to store the
Stockable Inventory item in an asset
subinventory
Inventory, Allows you to
Order transact the item
Transactable Management, Inventory, Order
Purchasing, Management,
WIP Purchasing and WIP
Allows you to place
Purchasable Purchasing the item on a
purchase order
Allows you to build
the item on a
Build in WIP Work in Process discrete job and/or
a repetitive
schedule
Status Attributes and Functionality Help

For more information on this table, refer to the online help:
Status Control

Chapter 3 - Page 41

Status Attribute Functional Area Functionality
Allows you to place

Customer Orders Order Management the item on a sales
Enabled order
Inventory, Order Allows you to create

Internal Orders
Management, an internal sales
Enabled
Purchasing order for the item
Allows you to create

BOM Allowed Bills of Material a bill of material for
the item
Allows you to create

Invoice Enabled Receivables an invoice for the
item

Chapter 3 - Page 42
Guided Demonstration Overview: Viewing Item Attributes

Viewing Item Attributes
In this guided the demonstration the instructor

illustrates how to view item attributes.

Chapter 3 - Page 43
Guided Demonstration - Viewing Item Attributes
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.
Choose the Master radio button.
Choose the Org radio button.
(M) File > Close Form.

Chapter 3 - Page 44
Practice Overview: Viewing Item Attributes
Practice Overview:
In this practice, you learn how to view item attributes.

Chapter 3 - Page 45
Practice - Viewing Item Attributes
Overview
In this lab you will learn how to view item attributes.
Assumptions
• You are skilled at Oracle navigation.
• Responsibility Oracle Inventory Vision Operations.
Tasks
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 3 - Page 46

Chapter 3 - Page 47
Solution – 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 3 - Page 48
3. BOM Item Type for AS18947 is Standard, and Master controlled.
4. Item AS18947 is not under revision control or lot control. These attributes are organization
controlled.

Chapter 3 - Page 49
5. Find Item AS54888.
• (M) View > Find
• Select Find.
6. Item AS5488 Item Status is active, and master controlled.

Chapter 3 - Page 50
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 3 - Page 51
9. Invoicing is enabled for this item, and the attribute is master controlled.
10. This item is transactable, and the attribute is master controlled.
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 3 - Page 52
Agenda
Agenda

• Defining Items
• Setting Up
• Summary

Chapter 3 - Page 53
Defining items
Defining items
• Use the Master Item

window to define and
update items and item
attributes
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 3 - Page 54
Steps to Setup, Define and Maintain items
Steps to Setup, Define and Maintain items
Enter attribute values
Enable in child organizations
Update organization level attributes
Define item costs
Steps to Define and Maintain Items:

1. Enter Item attributes.
2. Assign a status to the item.
3. Enable the item in other organizations.
4. Update the organizational-level attributes values.
5. Define the item relationships.
6. Search for items.
7. Delete items

Chapter 3 - Page 55
Item Templates
Item Templates
• An item template can be assigned when creating

an inventory item. The template contains values
for any number of item attributes.
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 and 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 3 - Page 56
Organization Assignment and

Organization Item
Master Organization AS18947
Child Organization Enabled
Child Organization Not Enabled

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 3 - Page 57
Item Control Level
Item Control Level
Master Organization Item Status = active
Child Organization Item Status = active Build in Wip = no
Child Organization Item Status = active Build in Wip = yes
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 should be maintained 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 3 - Page 58
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.

Chapter 3 - Page 59
Guided Demonstration: Defining Items
Defining Items
In this guided demonstration, the instructor will

demonstrate how to set up an item.

Chapter 3 - Page 60
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. (T) Organization
9. Enable the Item in M1 Seattle
10. (M) File > Save
11. (M) File > Close Form

Chapter 3 - Page 61
Practice Overview: Defining Items
Practice Overview:
Defining Items
In this practice, you will be directed to define items

using an item template, and assign them to
organizations

Chapter 3 - Page 62
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.
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
Create Items

Chapter 3 - Page 63
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 3 - Page 64
Solution - Defining Items
1. Navigate to the Item Template Window.
• (N) Setup > Items > Templates
2. (M) 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
• Inventory Asset Value

Chapter 3 - Page 65
• 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) Item > Master Item

− Item: ##-Item01
− Description: Team ## - Item created from template
6. (M) Tools > Copy from

Chapter 3 - Page 66
• 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. Select the Organization Assignment Tab
• Select the Assigned box next to M1 Seattle.
• Select the Assigned box next to M2 Boston.
9. (M) File > Save.
10. (M) File > New.
11. Repeat Steps 5-9 using the following using the Finished Good Template and the following
item numbers descriptions.
− Item: ##-Item02
− Description: ##-No Inventory Controls
− Item: ##-Item03
− Description: ##-Locator Control ON
− Item: ##-Item04
− Description: ##-Revision Control ON
− Item: ##-Item05

Chapter 3 - Page 67
− Description: ##- Lot Control ON
− Item: ##-Item06
− Description: ##-Serial Number Control ON
12. Save and Close window.
• (M) File > Save.
• (M) File > Close Form.

Chapter 3 - Page 68
Agenda
Agenda

• Defining Items
• Setting Up

Chapter 3 - Page 69
Deletion Constraints
• If you want to enforce specific business rules and

add custom checks before Oracle Inventory
allows deletion of an item, you must define item
deletion constraints to supplement the standard
predefined item deletion conditions.
• The major use of item deletion is to correct data
entry errors. For example, if you defined an item
with the wrong primary unit of measure, you can
use the delete function to remove the item from
your database. If you decide to purge the item
immediately after incorrectly defining it and before
using it anywhere in the system, you will be able
to delete it.

Chapter 3 - Page 70
• After an item is used, for example in an assembly,

Oracle Inventory automatically creates references
to it.
• Oracle Inventory checks all possible references to
an item and does not allow it to be deleted until
every reference is removed.
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 3 - Page 71
Agenda
Agenda

• Defining Items
• Setting Up
• Summary

Chapter 3 - Page 72
Profile Values
Profile Values
Profile
Options
User
Responsibility
Application
Site
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
•Responsibility
•Application
•Site
Setting Profile Values
Oracle Applications treats user profile levels as a hierarchy, where User is the highest
level of the hierarchy, followed by Responsibility, Application, and at the lowest level,
Site. Each user profile option ordinarily exists at each level. For example, Oracle
Applications provides a Site–level Printer option, an Application–level Printer option,
and so on. Oracle Applications enforces the level hierarchy to ensure that a higher–
level option value overrides a lower–level value. For example, if your Site–level

Chapter 3 - Page 73
Printer value is “New York”, but your User–level Printer value is “Boston”, you can
be assured that your reports print to the Boston printer.
Oracle Inventory users use the Personal Profile Values window to set profile values only at the
user level. System administrators use the System Profile Values window to set profile values
at the site, application, responsibility, and user levels. Required profiles have no default; they
require input from a user or an administrator. Optional profiles have defaults which may be
accepted or manually overridden.

Chapter 3 - Page 74
Item Profile Options
Profile Option Level Req. Default Value

INV: Default Item Status All Yes Active
INV: Default Primary Unit All Yes Each

of Measure
INV: Item Master Flexfield All Yes No Default
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 3 - Page 75

Profile Option Level Req. Default Value
INV: Updateable All Yes No
Customer Item
INV: Updateable Item All Yes No

Name
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 3 - Page 76
Agenda
Agenda

• Defining Items
• Setting Up
• Summary

Chapter 3 - Page 77
Implementation Considerations
Org 1 Org 2
Item Cost
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 3 - Page 78
Agenda
Agenda

• Defining Items
• Setting Up
• Summary

Chapter 3 - Page 79
Summary
Summary

• Identify the product functionality governed by item
attributes and status codes
• Define Units of measure
• Define items using your own part-numbering scheme
• Define item deletion restraints
• Perform the general application setup steps for
inventory management
• Set up the application profile options
• Understand using organizations to model the enterprise
• Set up an inventory organization and its associated
tables

Chapter 3 - Page 80
11i Inventory Controls
Concepts
Chapter 4
11i Inventory Controls Concepts

Chapter 4 - Page 1

Chapter 4 - Page 2
Objectives
Objectives
After completing this module, you should be able to do the

following:
• Explain Subinventory Locator control, revision control,
lot control, and serial control
• Explain how locator control fits in to the inventory
business process

Chapter 4 - Page 3
Agenda
Agenda
• Overview
• Explaining Subinventories
• Explaining Locator Control
• Explaining Revision Control
• Explaining Lot Control
• Explaining Serial Control
• Summary

Chapter 4 - Page 4
Inventory Control Overview
Revision Control
Locator Control
Item
Serial Control
Lot Control
Item AS5222
Serial #5847329
Explaining 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 4 - Page 5
Agenda
Agenda
• Overview
• Summary

Chapter 4 - Page 6
Subinventories Overview
Subinventories Overview
Finished Goods
Raw Materials
Defective Items
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. The subinventory is the primary place where items are
physically stocked. You must specify for every inventory transaction.

Chapter 4 - Page 7
Agenda
Agenda
• Overview
• Summary

Chapter 4 - Page 8
Locator Control Overview
Locator Control Overview
Rack
Row
Bin
Explaining Locator Control

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 4 - Page 9
Agenda
Agenda
• Overview
• Summary

Chapter 4 - Page 10
Revision Control Overview
Item # AS5488 Item # AS5488

Revision A Revision B

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 4 - Page 11
Agenda
Agenda
• Overview
• Summary

Chapter 4 - Page 12
Lot Control Overview
Lot Control Overview
Lot Controlled Items
Item AS3339 Item AS3339

Lot# C1498 Lot# C1498.1
Explaining Lot Control

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 4 - Page 13
Agenda
Agenda
• Overview
• Summary

Chapter 4 - Page 14
Serial Number Overview
Serial Number Overview
Serial Controlled Items

Serial #5847329 Serial #3798490
Explaining Serial Numbers

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 4 - Page 15
Agenda
Agenda
• Overview
• Summary

Chapter 4 - Page 16
Summary
Summary

• Explain Subinventory Locator control, revision control,
lot control, and serial control
• Explain how locator control fits in to the inventory
business process

Chapter 4 - Page 17

Chapter 4 - Page 18
11i Inventory Controls
Fundamentals
Chapter 5
11i Inventory Controls Fundamentals

Chapter 5 - Page 1

Chapter 5 - Page 2
Objectives
Objectives
After completing this module, you should be able to do the
following:
• Define Subinventories
• Define locator control
• Define revision control
• Define lot control
• Generate serial numbers
• Recognize Implementation Considerations

Chapter 5 - Page 3
Agenda
Agenda
• Overview
• Defining Locator Control
• Defining Revision Control
• Defining Lot Control
• Defining Serial Number Control
• Summary

Chapter 5 - Page 4
Subinventory
Revision Control Locator Control
Lot Control Serial Control
Item AS5222
Serial #5847329
Explaining 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 5 - Page 5
Agenda
Agenda
• Overview
• Defining Subinventories and Locator Control
• Summary

Chapter 5 - Page 6
Defining Subinventories
• Subinventory
– Physical or logical separation of
material
– You must define at least one
subinventory for each organization
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 5 - Page 7
Subinventory Locator Relationship
Subinventory Locator Relationship
With locator control Without locator control

Subinventory: BULK Subinventory: FROZEN
Explaining Locator Structuring

You can structure your Oracle Inventory installation so 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
• Pre-specified
• Dynamic entry
• Item Level
For more information on setting up Locator Control, refer to the online help:
Structure > Defining Subinventories
Structure > Defining Stock Locators

Chapter 5 - Page 8
Locator Structuring
Locator Structuring
• You can restrict the life of any given Stock Locator

by assigning an Inactive On date.
• You can limit a Stock Locator by Volume, including
size and weight.
• You can limit a Stock Locator by Dimensions,
including Height, Width and Length.
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 5 - Page 9
Locator Control Reports
Locator Control Reports
Locator Quantities Report Locator Listing Report
Explaining 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 5 - Page 10
Guided Demonstration Overview: Defining Subinventories

In this demonstration the instructor illustrates how to

create subinventories.

Chapter 5 - Page 11
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.
8. (N) Setup > Organizations > Subinventories
9. (M) View > Find.

Chapter 5 - Page 12
Practice Overview: Defining Subinventories
Practice Overview:
In this practice you will learn how to create

subinventories.

Chapter 5 - Page 13
Practice - Creating Subinventories
Overview
In this practice you will learn how to create two subinventories.
Assumptions
• Responsibility > Inventory
Tasks
If you are not already in Seattle, change Organization to Seattle (M1).
Create three subinventories for your team. Create one subinventory for your finished goods
(FGI) stock, a subinventory as your MAIN inventory, and a subinventory for Raw Materials.
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 5 - Page 14
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 > Sub-inventories
3. (M) File > New.

− Name = ##FGI
− Description = ## Finished Goods Inventory
4. (M) File > Save
5. (M) File > New.

− Name = ##MAIN

Chapter 5 - Page 15
− Description = ## Main Stores
6. (M) File > Save.
7. (M) File > New.

− Name = ##RM
− Description = ## Raw Materials
• (M File > Close Form.
9. In which organization are your new subinventories? M1 Seattle
Verifying Subinventories
10. Does a subivnentory called FGI exist in M2 Boston? Yes.
• Select M2 Boston Manufacturing.
12. (N) Setup > Organizations > Subinventories.
13. (M) View > Find All.

Chapter 5 - Page 16
Guided Demonstration Overview Setting Up Locator Control
Guided Demonstration Overview

Setting Up Locator Control
In demonstration the instructor illustrates how to set

up locator control for one of your items.

Chapter 5 - Page 17
Guided Demonstration - Locator Control
Setting Up Subinventories for Locator Control
1. (N) Setup > Organizations > Subinventories.
2. (M) View > Find
3. Select a Subinventory.
4. Choose Item level control as the locator control level.
5. (M) File > Save.
(M) File > Close Form
Setting Up Locator Control for Items
(N) Items > Organization Items.
Find an Item.
(T) Inventory
Choose Dynamic entry as the locator control level.
(M) File > Save.
Setting Up Stock Locators
(N) Setup > Organizations > Stock Locators.
Choose New.
Enter a new Row Rack and Bin.
Enter a Description.
Enter the Subinventory.
(M) File > Save.
Transacting Locator Controlled Items

Chapter 5 - Page 18
(N) Transactions > Miscellaneous Transactions
Select Miscellaneous receipt as the transaction type.
Select Miscellaneous as the Account type.
Choose Transaction Lines.
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 from the list of values
− Quantity: 5
(M) File > Save.

Chapter 5 - Page 19
Practice Overview Setting Up Locator Control
Practice Overview
Setting Up Locator Control
In this practice you will learn how to set up locator

control for one of your items.

Chapter 5 - Page 20
Practice - Setting Up Locator Control
Overview
In this lab you will learn how to set up locator control for subinventories and items.
Assumptions
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 in to ##-FGI subinventory using a miscellaneous receipt.

− ##-Item02, Quantity 100
− ##-Item 03 Quantity 25

Chapter 5 - Page 21
6. Receive the following item in to ##Main subinventory using a miscellaneous receipt.
− ##Item02 Quantity 25
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, were you prompted for a locator when you received Item 03 into the
FGI subinventory?

Chapter 5 - Page 22
Solution – Setting Up Locator Control
Setting up Subinventories for Locator Control.
1. Navigate to the Subinventories window
• (N) Setup > Organization > Subinventory
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
5. Find your ## Main subinventory
• (M) View > Find
6. Make the following change to the ##-Main subinventory

− Locator Control Dynamic Entry

Chapter 5 - Page 23
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 5 - Page 24
9. Change the Locator control for ##Item-03.
• (T) Inventory
− Locator Control: Dynamic Entry


Chapter 5 - Page 25
Defining Stock Locators
11. Navigate to the Stock Locators window.
• (N) Setup > Organizations > Stock Locators.
• Select New.
12. 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: 02
− Bin: 01
− Description: Anything you want
− Subinventory ##-Main
− Locator Status: Active
13. Select (M) File > Save.
14. Select (M) File > Close.

Chapter 5 - Page 26
Receiving Locator Controlled Items
15. Navigate to the Miscellaneous Transactions window.
• (N) Transaction > Misc. Transaction.

− Date: Today’s Date
− Type Miscellaneous Receipt
− Account: Select Miscellaneous from the LOV.
• Select Transaction Lines
16. Enter the following information in the subsequent fields:

− Item: ##-Item02
− Quantity: 100
− Item: ##-Item02
− Subinventory: ##-Main
− Locator: ##.1.1 (Row ##, Rack01, Bin 1)
− Quantity: 25
− Item: Item03
− Locator: ##.1.2
− Quantity: 25

Chapter 5 - Page 27
17. 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?
18. 17.You set your FGI subinventory to item level locator control, and you changed Item03
locator control to dynamic entry.
19. Save and Close form.
• (M) File > Save

Chapter 5 - Page 28
Agenda
Agenda
• Overview
• Summary

Chapter 5 - Page 29
Revision Control
Revision Control
Item # AS5488 Item # AS5488

Revision A Revision B
Explaining 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 5 - Page 30
(Help) Oracle Manufacturing Applications > Oracle Inventory > Items > Defining Item
Revisions

Chapter 5 - Page 31
Agenda
Agenda
• Overview
• Summary

Chapter 5 - Page 32
Lot Control
Lot Control
Lot controlled item Item without lot control

Lot# C1498
Explaining 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 5 - Page 33
Lot Number Purging
Lot Number Purging
• You can purge all lot transaction information from

your current organization. The transactions must be
in closed accounting periods.
• Purging lot transactions eliminates information used
in lot reports and inquiries.

Chapter 5 - Page 34
Maintaining Lot Information
Maintaining Lot Information
Lot Controlled Items with Expiration

Lot# C1498 Lot# C1498.1
Expires 15-Jun-2007 Shelf Life Days = 44
Explaining 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 5 - Page 35
Cycle Counts Under Lot Control
Cycle Counts Under Lot Control
• The cycle count listing includes the lot numbers of

the items to be cycle counted.
• You must assign lot numbers to all items under lot
control for which you enter counts.
• If there is a difference between the Cycle Count
quantity and the system on-hand quantity, Inventory
adjusts the item quantity in that lot.

Chapter 5 - Page 36
Physical Inventory Under Lot Control
Physical Inventory Under Lot Control

• Inventory includes the lot numbers of the items to
count in your physical inventory when generating
tags.
• You must assign lot numbers to all items under lot
control for which you enter counts in the Physical
Inventory Tag Counts window.
• If there is a difference between the count quantity
and the system on-hand quantity, Inventory adjusts
the item quantity in that lot.

Chapter 5 - Page 37
Disabled Lots
Disabled Lots
• Disabling a lot prevents it from appearing

in a list of values when performing receipt
transactions.
• A lot number is valid and accepted when
entered even though it does not appear in
the list of values.
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 5 - Page 38
Lot Control Reports
Lot Control Reports

Lot Transactions Register
Supplier Lot Trace Report
Expired Lots Report
Item AS3339
Lot# C1498
Expires 15-Jun-2007
Explaining 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 5 - Page 39
Agenda
Agenda
• Overview
• Summary

Chapter 5 - Page 40
Generating Serial Numbers

Serial #5847329 Serial #005363
Predefined At inventory receipt
Explaining 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 5 - Page 41
Maintaining Serial Numbers
Maintaining Serial Numbers
• You can use the Serial Numbers window to update

supplier information associated with your serial
numbers.
• You can view all serial numbers you created in your
current organization.
• You can view location and status information and
update supplier information associated with your
serialized units.

Chapter 5 - Page 42
Serial Genealogy
Serial Genealogy
• Enables you to view the composition and

transaction history of a serial-controlled item
through a graphical user interface
• Includes all material transactions within an
organization
• Enables you to trace serial numbers from an
assembly to all components
• Enables you to trace serial numbers from a
component to a final assembly

Chapter 5 - Page 43
Serial Number Control Reports
Serial Number Control Reports
Serial Number Transactions Serial Number Detail Report

Register
Explaining 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 5 - Page 44
Guided Demonstration Overview: Revision, Lot and Serial
Controls

Revision, Lot and Serial Controls

set up revision, Lot and Serial Controls.

Chapter 5 - Page 45
Guided Demonstration - Revision, Lot, and Serial Numbers
Creating New Revisions
1. (N) Items > Organization Items
2. Find Item AS18456
3. (T) Inventory
4. Select the Revision Control check box.
5. Select the Revisions folder.
6. (M) File > New
7. Enter the following revision information”

− Revision: B
− Description: Lap Top Assembly Revision
− Effective Date: Today's Date.
8. (M) File > Save.
Enabling Lot Control
10. (N) Items > Organization Items.
11. Find item AS18456.
12. (T) Inventory.
13. Select Full Control in the Lot alternative region.
14. Enter the starting lot prefix.
15. Enter the lost starting number.
Enabling Serial Control

Chapter 5 - Page 46
20. (T) Inventory.
21. Select Pre-defined from the Serial alternative region.

− Starting Prefix: AS
− Starting Number: 000001
24. (N) On-hand, Availability > Generate Serial Numbers.
25. Enter the following information to generate serial numbers.

− Item: AS18947
− Quantity: 1000
26. Choose Submit.
Transacting Locator Controlled Items.
27. (N) Transactions > Miscellaneous Transactions
28. Enter the following transaction information:

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

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

− Lot Quantity: 10
33. Choose Done.
34. Enter the following receipt information:

− Item: AS18947

Chapter 5 - Page 47
− Quantity: 15
35. Choose Lot /Serial.
36. Select the first available serial number from the list of values.
Note: The End Serial Number field populates automatically according to the transaction
quantity.
37. Choose Done.
38. (M) File Save.
39. (M) File Close Form.

Chapter 5 - Page 48
Practice Overview: Revision, Lot and Serial Controls
Practice Overview:
Revision, Lot and Serial Controls
In this practice you will learn how to set up revision,

Lot and Serial Controls.

Chapter 5 - Page 49
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 in to stock that have revision, lot and serial control. You
will use the items you created in the defining items lab.
Assumptions
• 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 your 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 your item ##Item06 to enable serial control using the following information.
− Serial Number Generation: Predefined
− Starting Serial Prefix: T##

Chapter 5 - Page 50
− 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 in to stock as follows:

− Item: ##-Item04 ##-Item04 ##-Item04
− Revision: A B C
− Subinventory: ##FGI ##FGI ##FGI
− Quantity 200 10 5
8. Use a miscellaneous receipt transaction to receive item ##-Item05 follows:

− Item: ##-Item05
− Quantity 50
− Expiration Date: Two Months from today
− Quantity 50
9. Use a miscellaneous receipt transaction to receive item ##Item06 in to stock as follows:

− Item: ##-Item06
− Quantity 40
− Entry Type: Ranges
10. Verify that the items have been received in to stock.

Chapter 5 - Page 51
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.

− Revision: B
− Effective Date: Today

Chapter 5 - Page 52
− Revision: C
− Effective Date: 1st of next month
4. Save and Close Item.
• (M) File >Save.
Lot Control
5. Find ##Item05.
• (N) Organization Items
• Enter ##Item05
• Select Find
6. Update ##Item05 to enable lot control.
• (T) Inventory
− Lot Expiration (Shelf Life) Control: User Defined
− Starting Prefix: ## (team number)

Chapter 5 - Page 53
• (M) File >Save.
Serial Control
8. Find Item ##Item06.
• Enter your item number.
• Select Find.
9. Enable serial number control for ##Item06.
• (T) Inventory
− Serial Number Generation: Predefined
− Starting Serial Prefix T##
− Starting Serial Numbers: 0001

Chapter 5 - Page 54
• (M) File >Save.
11. Predefine a range of serial number.
• (N) On-Hand Availability > Generate Serial Numbers.
• Enter ##Item06.
• Select OK.
• Enter 1000 as the quantity to define.

Chapter 5 - Page 55
• Select OK.
• Select Submit.
Receiving Revision, Lot and Serial Controlled Items
12. Navigate to the Miscellaneous Transaction window.
• (N) Transaction > Miscellaneous Transaction.

− Transaction Type: Miscellaneous Receipt
− Account: Miscellaneous
• Select Transaction Lines.
13. Receive ##-Item-04 in to stock as follows:

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

Chapter 5 - Page 56
14. Receive ##Item-05 in to stock as follows:
− Item: ##-Item05
• Select the Lot/Serial Button.
• Enter the following Lot information.

− Quantity 50
− Expiration Date: Two Months from today
− Quantity 50
• Select Done.
15. Receive ##Item06 in to stock as follows:

− Item: ##-Item06
• Select the Lot/Serial Button.

− Quantity 40
− Entry Type: Ranges

Chapter 5 - Page 57
• Select the Starting Serial Number from the LOV. The End Serial Number populates
automatically.
• Select Done.

Chapter 5 - Page 58
16. Save and Close the Miscellaneous Receipt window to receive your items.
• (M) File >Save.
17. Verify that the items have been received in to stock.
• (N) On-hand, Availability > On-hand quantities
• Enter your ##-FGI subinventory in the subinventory field.
• Select the Details radio button from the display portion of the window.
• Select Find.

Chapter 5 - Page 59

Chapter 5 - Page 60
Agenda
Agenda
• Overview
• Summary

Chapter 5 - Page 61
Locator Flexfield Structure
M1 Seattle M2 Boston
Row 1A Row 1A
Rack 1A Rack 1A
Bin 1A Bin 1A

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 5 - Page 62
Changing Locator Control
Item Expires
Locator controlled Item

Uncontrolled item
Expires 12/01/02

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

Chapter 5 - Page 63
Transacting Controlled Items
Lot Controlled Item
Transact Item
Raw Materials Finished Goods

Subinventory Subinventory
Lot Controlled Item Lot Controlled Item

If an item is controlled in one subinventory, and you move it to another subinventory, the new
subinventory must have item control.
Locator Control
During a material transaction, Oracle Inventory checks the locate 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.
Serial Number Control

Chapter 5 - Page 64
If you enable serial number control for an item, you must provide a serial number when you
transact it.
Revision Quantity Control

You can define and enforce revisions 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 5 - Page 65
Agenda
Agenda
• Overview
• Summary

Chapter 5 - Page 66
Summary
Summary

• Define Locator Control
• Define Revision Control
• Define Lot Control
• Define Serial Number Control

Chapter 5 - Page 67

Chapter 5 - Page 68
11i Transacting Inventory
Concepts
Chapter 6
11i Transacting Inventory Concepts

Chapter 6 - Page 1

Chapter 6 - Page 2
Module Objectives
Module Objectives
After completing this module, you should be able

to do the following:
• Define Transactions
• Explain how transactions integrate with Oracle
Applications
• Explain the Inventory transaction flow
• Define key transactions concepts
• Explain Mobile Transactions

Chapter 6 - Page 3
Agenda
Agenda
• Overview
• Explaining Transaction Flows
• Overview of Transaction Types
• Overview of Move Orders
• Overview of Shortage Alerts and Notifications
• Overview of Mobile Transactions
• Summary

Chapter 6 - Page 4
Inventory Structure
Inventory Structure
Enterprise Structure
Items
Transactions ABC Analysis
Physical Inventory
Inventory Planning
Cycle Counting
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 6 - Page 5
Overview
Overview
Material Flow Business Flow
Receive Goods
WIP Purchasing
Move Goods Inventory
Services Order
Ship Goods Management
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 6 - Page 6
Agenda
Agenda
• Overview
• Summary

Chapter 6 - Page 7
Inventory Transactions
Miscellaneous Miscellaneous
Receipt Issue
Subinventory Organization Subinventory

Locator Locator
Subinventory
Subinventory Transfer
Transfer
Locator Locator
Direct Interorganization
Interorganization Transfer by Way
Transfer of Intransit
Organization
• 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 6 - Page 8
Agenda
Agenda
• Overview
• Summary

Chapter 6 - Page 9
Transaction Types
Transaction Types
+ = Transaction
Type
Transaction Source Transaction Action

Type
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 6 - Page 10
Transaction Source Types
Transaction Source Types

The type of entity against which Oracle Inventory
charges a transaction.
Transaction Source Type
Transaction Source Type

You use a transaction source type with a transaction action, it uniquely identifies 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
•Move Order
•Internal Order
•Standard Cost
•Update
•Internal Requisition
•Sales Order
•Cycle Count
•Periodic Cost Update
•Physical Inventory

Chapter 6 - Page 11
•RMA (Return Material Authorization)
•Inventory
•Job or Schedule
Setup > Defining and Updating Transaction Source Types

Chapter 6 - Page 12
Transaction Action
Transaction Action
A generic type of material movement or cost update.
Assembly Return
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 6 - Page 13
•Delivery adjustments
•Negative component return
•Assembly return
•Vendor Managed Inventory Planning Transfers

Chapter 6 - Page 14
Transaction Reasons
Transaction Reasons
• A standard means of classifying or explaining the
reason for a transaction.
• User defined.
• Used in all transaction forms.
• Used these with any type of material transaction.
• Reports available by Transaction Reason
Setup > Defining Transaction Reasons

Chapter 6 - Page 15
Transaction Managers
Transaction Managers
• Transaction managers control the

number of transaction workers,
processing intervals, and number of
transactions processed by each
worker during each interval.
• These run at the periodic intervals
you specify until you disable them
with the concurrent manager.
Setup > Transaction Managers

Chapter 6 - Page 16
Agenda
Agenda
• Overview
• Summary

Chapter 6 - Page 17
Move Orders
Move Orders
Movement Request Movement
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 ready to be sourced and transacted.

Chapter 6 - Page 18
Agenda
Agenda
• Overview
• Summary

Chapter 6 - Page 19
Shortage Alerts and Notifications
Alerting or notifying individuals that material needed

elsewhere in the organization is newly available.

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. 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 the
User to immediately redirect delivery. Notification messages are workflow-based notifications
that may be created by business events or periodic processes and require that the user initiate
action to address the identified shortages.

Chapter 6 - Page 20
(Help) Oracle Manufacturing Applications > Oracle Inventory >
Transactions > Shortage Alerts and Shortage Notifications

Chapter 6 - Page 21
Agenda
Agenda
• Overview
• Summary

Chapter 6 - Page 22
Mobile Transactions
Mobile Transactions
Mobile Transactions
Oracle Mobile Materials Management provides the ability to do inventory,receiving, and

shipping transactions using mobile devices. You have the capacity to
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 6 - Page 23
Agenda
Agenda
• Overview
• Summary

Chapter 6 - Page 24
Summary
Summary

• Define Transactions
• Explain how transactions integrate with Oracle
Applications
• Explain the Inventory transaction flow
• Define key transactions concepts
• Explain Mobile Transactions

Chapter 6 - Page 25

Chapter 6 - Page 26
11i Transaction Setup
Chapter 7

Chapter 7 - Page 1

Chapter 7 - Page 2
Objectives
Objectives
At the end of this module you should be able to do the
following:
• Define Transaction Managers
• Define Transaction Types
• Define Transaction Reasons
• Explain Shipping Methods
• Define Movement Statistics

Chapter 7 - Page 3
Objectives
Objectives
• Define Inventory Account Aliases
• Explain how to set up Move Orders
• Explain Alerts Notifications and Reports
• Set up Profile Options
• Define Transactions Implementation Concerns

Chapter 7 - Page 4
Agenda
Agenda
• Setting Up Transaction Managers, Types, Actions and

reasons
• Setting up Shipping Networks
• Setting Up Movement Statistics
• Setting Up Account Aliases
• Setting Up Move Orders
• Setting Up Alerts Notifications and Reports
• Setting Up Profile Options
• Summary

Chapter 7 - Page 5
Running Transaction Managers
Cost Transaction Manager Remote Procedure Manager
Material Transaction Manager Move Transaction Manager

Cost Transaction Manager
The material cost transaction manager must run to cost material transactions.
Remote Procedure Manager
Remote procedure manager processes online inventory transactions WIP initiates, such as
completions or component issue.
Material Transaction Manager
Immediately executes a material transaction after you save your changes in a transaction
window.
Move Transaction Manager
The move transaction manager moves assemblies received from an outside processing supplier
to the next operation.
You do not have to launch the other transaction managers if you decide to process your
transactions on-line, and do not use the transaction interface.

Chapter 7 - Page 6
Predefined Transaction Types
Source Type Action Type

Purchase Order Receipt into Stores PO Receipt
Cycle Count Cycle Count Adjmt Cycle Count Adjmt
RMA Issue from Stores Reject Cust Return
WIP Assy Compl Assy Completion Job or Schedule
Internal Order Issue Issue from Stores Internal Order
Miscellaneous Receipt Receipt into Stores Inventory

Oracle predefines transaction types in the system. For more information on Predefined
Transaction types see:
Setup > Transaction Types

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

Defining a Customized Transaction

define a customized transaction.

Chapter 7 - Page 8
Guided Demonstration - Custom Transactions
Setting Up Source Types
1. (N) Setup Transactions > Source Types
2. Select the User tab.
3. Choose New.
4. Use the following information to define a source type.

− Name: Charitable Donation
− Description: Charitable Donation
5. Choose Save.
6. Choose Close Form.
Setting Up Transaction Types
7. (N) Setup > Transactions >Types
8. Select the User tab.
9. Choose 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
11. Choose Save.
Setting Up Transaction Reasons
13. (N) Setup > Transactions > Reasons
14. Choose New.
15. Use the following information to define a transaction reason.

− Name: Goodwill
− Description: Charitable donation to Goodwill

Chapter 7 - Page 9
16. Choose Save.

Chapter 7 - Page 10
Practice Overview: Defining a Customized Transaction
Practice Overview:
Defining a Customized Transaction
In this practice you will learn how to define a

customized transaction.

Chapter 7 - 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
1. 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 7 - Page 12
Solution – Defining a Customized Transaction
Define a Transaction Source
1. Navigate to the Transaction Source Type window.
• (N) Setup > Transaction > 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 7 - Page 13
4. Navigate to the Transaction Type Window.
• (N) Setup > Transaction > Types
• (T) User
5. Define a Transaction Type and Associate it with the new Source type.
− 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 > Transaction Reasons.
8. Define new transaction reason.
• (M) File > New Record.

− Name: ##-Reason

Chapter 7 - Page 14
Processing a Customized Transaction
10. Navigate to the miscellaneous transactions window.
• (N) Transactions > Miscellaneous Transactions.
11. Enter a customized transaction.

− Type: ##-Donation
− Account: Select one from LOV
12. Select Transaction Lines.

Chapter 7 - Page 15
13. Enter the transaction information:
− Item: ##-Item02
− Quantity: 5
− Reason: ##-Reason

Chapter 7 - Page 16
Agenda
Agenda

reasons
• Summary

Chapter 7 - Page 17
Inter–Organization Shipping Network
Inter–Organization Shipping Network
Shipping Organization Destination Organization
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

Chapter 7 - Page 18
•Default receipt routing
•If internal orders are required
For more information see: (Help) Oracle Manufacturing Applications > Oracle Inventory >
Setting Up > Transaction Setup > Inter-Organization Shipping Network

Chapter 7 - Page 19
Shipping Method
Shipping Method
Shipping Method
A Quick Code used to define specific shipping methods. For example: Ground, Express, or
Air.

Chapter 7 - Page 20
Agenda
Agenda

reasons
• Summary

Chapter 7 - Page 21
Movement Statistics
Movement Statistics
You can collect statistics

associated with the
movement of material across
the border of two countries
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.
(N) Transactions > Movement Statistics
Navigation to the Movement Statistics Window
You can navigate to the Movement Statistics window from various material transaction
windows or manually through Oracle Inventory. The transaction windows are:
• Interorganization Transfer (Oracle Inventory)
• Receipt of Customer Return (Oracle Inventory)
• Return to Customer (Oracle Inventory)
• Confirm Shipment (Oracle Order Management)
• Receipts/Returns/Corrections (Oracle Purchasing)
Country-Specific List of Values
• Oracle Inventory supports a country-specific list of values.

Chapter 7 - Page 22
• 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)
(N) Shipping > Confirm Shipments-Departures (B) Delivery
Movement statistics entered through the Oracle Order Entry 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 7 - Page 23
Movement Statistics Parameters
You use the Movement Statistics Parameters window

to define the parameters for gathering movement
statistics.

(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:
(Help) Oracle Manufacturing Applications > Oracle Inventory > Transactions > Overview of
Movement Statistics > Setting Up Movement Statistics
and
(Help) Oracle Manufacturing Applications > Oracle Inventory > Transactions > Setting Up >
Transaction Setup >
Defining Movement Statistics Parameters

Chapter 7 - Page 24
Collecting and Reporting Movement Statistics
Collecting and Reporting Movement

Statistics
Follow these steps to collect and report movement

statistics:
Define movement statistics
1
parameters
Enter movement statistics
2
information
Link movement statistics to

3
Financial Documents
Report and review movement

4
statistics
5 Freeze movement statistics
Collecting and Reporting Movement Statistics

Defining 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 entire 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 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
You can generate both summary and detail reports for movement statistics, including hard
copies for government agencies and your own files.

Chapter 7 - Page 25
Freeze Movement Statistics
The Movement Statistics Reports run time parameter allows you to freeze movement
information for official INTRASTAT and EXTRASTAT reporting.
(Help) Oracle Manufacturing Applications > Oracle Inventory >Transactions > Overview of
Movement Statistics

Chapter 7 - Page 26
Agenda
Agenda

reasons
• Summary

Chapter 7 - Page 27
Account Aliases
Account Aliases
An account alias is an easily

recognized Name or label that
represents a general ledger (GL)
account number
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. Inventory does not honor GL account aliases.

Chapter 7 - Page 28
Agenda
Agenda

reasons
• Summary

Chapter 7 - Page 29
Setting Up for Move Orders
Setting Up for Move Orders
• Define the subinventory source type

• Define approval process parameters
• Define item transaction defaults
• Move order timeout action
• Define the Move order timeout period
Setting Up Move Orders

Subinventory Source Type
To automatically create move orders using min–max planning and replenishment counting, you
must define the subinventory source type at one of the following levels:
• Subinventory
• Item
To automatically create move orders 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
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

Chapter 7 - Page 30
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 this 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 7 - Page 31
Setup Steps for Move Orders
• Define a Planner
• Designate a Planner
• Notification list
• Define Picking Rules
• Locator Defaults

Set Up Planner
Define a planner for the item in the General Planning page of the Items window.
Designate a Planner
You designate a planner in the master items 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 7 - Page 32
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 7 - Page 33
Agenda
Agenda

reasons
• Summary

Chapter 7 - Page 34
Material Shortage Alerts and Notifications
<
Supply Demand
Shortage Alert

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

Chapter 7 - Page 35
•WIP Material Transactions
•WIP Completions
•Work–Orderless Completions- This occurs only if you 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 they are automatic
once they are set up. Notifications are optional and can be sent to a pre–specified list of
individuals.
Sources of Demand
In 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 7 - Page 36
Setting Up Shortage Alerts and Notifications
Shortage Alert
Shortage Transaction Types

Parameters
People Items

•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 7 - Page 37
Movement Statistics Reports
Movement Statistics Reports
Use the Movement Statistics window to:

• Run both summary and detail reports for
movement statistics.
• Use these reports to validate information and
identify missing or incomplete entries.
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) Report > Movement Statistics
Reports and Processes
../ Movement Statistics Exception Report
../ Movement Statistics Processor

Chapter 7 - Page 38
../ Movement Statistics Report
../ Movement Statistics Reset Status Report

Chapter 7 - Page 39
Transaction Reports and Inquiries
Transaction Reports and Inquiries
Use the Transaction

Reports window to run
reports and to review
transaction information.
Reports and Inquiries

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

Chapter 7 - Page 40
Agenda
Agenda

reasons
• Summary

Chapter 7 - Page 41
Transaction Profile Options

Profile Option Req’d Update Default Value
Levels
Cycle Count Yes All Online

Approval Form Processing
Cycle Count Yes All Online
Entries Form Processing
Enter Yes All Concurrent

Replenishment Processing
Count Form
Inter- Yes All Concurrent
Organization Processing
Transfer Form

Cycle Count Approval 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.
•Immediate concurrent processing- Displays the concurrent request number that represents the
concurrent process executing the cycle count transactions.
•On-line processing- processes you cycle count transactions while you wait, and returns control
to you once transaction processing 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.

Chapter 7 - Page 42
•Immediate concurrent processing- Displays the concurrent request number that represents the
concurrent process executing the cycle count transactions.
•On-line processing- processes you cycle count transactions while you wait, and returns control
to you once transaction processing complete.
Enter Replenishment Count Form
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, 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 7 - Page 43

Levels
Transaction Yes All Immediate

Processing Mode Concurrent
Processing
Misc. Issue and Yes All Online
Receipt Form Processing
Server Side On- Yes All Yes

line Processing
Transfer Yes All Online
Between Processing
Subinventories
Form

Transaction Processing Mode
Indicates the processing control for transacting items. Available values are as follows:
•Online processing- Process transactions while you wait, and returns control to you once
transaction processing completes.
•Background processing- Upon commit, controls returns to you immediately and allows you to
continue working. The transactions execute on a periodic basis.
•Immediate concurrent processing- Upon commit, 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 chooses
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 Processing, Completion
Transaction From, Material Transaction Form, Move Transaction, Operation Backflush Setup,
and Shop Floor Processing.

Chapter 7 - Page 44
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:
•Background processing- Upon commit, control returns to you immediately and allows you to
continue working. The miscellaneous issue and receipt transactions execute on a periodic
basis.
control to you immediately and allows you to continue working. It Displays the concurrent
request number that represents the concurrent process that executes the 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 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:
•Background processing- Upon commit, control returns to you immediately and allows you to
continue working. The transfer between subinventories execute on a periodic basis.
control to you immediately and allows you to continue working. It Displays the concurrent
request number that represents the concurrent process that executes the transfer between
subinventories.
•On-line processing- Processes subinventory transfers while you wait and returns control once
transaction processing completes.

Chapter 7 - Page 45

Levels
Update Average Yes All Online

Cost Form Processing
Transaction Date Yes All Allow Date in
Validation Any Open
Period
Move Order Yes All Online
Transact Form Processing

Update Average Cost Form
Indicates the processing 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, 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 you 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 7 - Page 46
•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, 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 you update average costs transactions while you wait, and
returns control once transaction processing completes.

Chapter 7 - Page 47
Agenda
Agenda

reasons
• Summary

Chapter 7 - Page 48
Item Restrictions
Receipt Transaction Default
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 restriction 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 organization 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, you shipment will fail.

Chapter 7 - Page 49
Implementation Considerations for Shortage Messages
Implementation Considerations for

Shortage Messages
• Which items should have shortage checks?

• Which demand sources should be considered as
potential shortages?
• Who should receive shortage messages?
• How should shortage messages be delivered?
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 7 - Page 50
Agenda
Agenda

reasons
• Summary

Chapter 7 - Page 51
Summary
Summary
• Define Transaction Managers, Transaction Types, and
Transaction Reasons
• Explain Shipping Methods
• Define Movement Statistics
• Define Inventory Account Aliases
• Explain how to set up Move Orders
• Explain Alerts Notifications and Reports
• Set up Profile Options
• Define Transactions Implementation Concerns

Chapter 7 - Page 52
11i Issue and Transfer
Material
Chapter 8
11i Issue and Transfer Material

Chapter 8 - Page 1

Chapter 8 - Page 2
Module Objectives
Module Objectives
After completing this module, you should be able

to do the following:
• Define Transaction Flows
• Define Transaction Options and Restrictions
• Perform Transactions
• Manage Receipts
• Explain Receiving Reports
• Perform Move Orders
• Perform Transactions Using a Mobile Device
• Manage Shipments

Chapter 8 - Page 3
Agenda
Agenda
• Defining the Transaction Flows
• Defining Transaction Options and Restrictions
• Performing Transactions
• Managing Receipts
• Explaining Receiving Reports
• Performing Transactions Using a Mobile Device
• Managing Shipments
• Summary

Chapter 8 - Page 4
Transaction Flows
Transaction Flows
Material Flow Business Flow
Receive Goods
WIP Purchasing
Move Goods Inventory
Ship Goods Services Order Management
Transaction Flows
• A transaction is an item movement into, within, or out of inventory.
• A transaction changes the quantity, location, or inventory value 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) that you enable for your items.
• You can choose your own transaction processing methods to use available computing
resources most effectively.

Chapter 8 - Page 5
Miscellaneous Miscellaneous
Receipt Issue
Subinventory Organization Subinventory

Locator Locator
Subinventory
Transfer
Locator Locator
Direct Interorganization
Interorganization Transfer by Way
Transfer of Intransit
Organization
You Can Perform the Following Oracle Inventory Transactions

• Receive items into your organization from a general ledger account number
• Issue items from your organization to a 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

Chapter 8 - Page 6
Inventory Transactions Without Documents and Requisitions
Without Documents and Requisitions
D1 M3 Dallas M1
Singapore (Ave Cost) Direct Seattle
org transfer
In-transit
In-transit In-transit org
org transfer transfer shipment
receipt
Zones Misc Issue

FGI Stores
Subinv Misc Receipt
transfer
Row 1, Rack 1, Bin 1 Subinv

Locators Row 1, Rack 1, Bin 2 transfer
Row 1, Rack 2, Bin 1 ...
Inventory Transactions Without Documents and Requisitions

• Inventory organization transfers can be accomplished without using an internal
requisition or internal sales order.
• You can use miscellaneous receipts to receive material without a purchase order number.
• Use miscellaneous issues to issue material without approvals or a document number.
• Use subinventory transfers to transfer the location of material without a document
number.

Chapter 8 - Page 7
Inventory Transactions With Documents and Requisitions
With Documents and Requisitions
D1 M3 M1
Singapore Dallas Internal Seattle
SO ship
In-transit confirm
Internal Internal SO
PO receipt ship confirm
Move order issue

Zones
FGI Stores
Move order: PO receipt
subinv transfer
Row 1, Rack 1, Bin 1 Move order:

Locators Row 1, Rack 1, Bin 2 subinv transfer
Row 1, Rack 2, Bin 1 ...
Inventory Transactions with Documents and Requisitions

You can use internal requisitions and internal sales orders as an approval mechanism and to
provide a document to track when you transport material between warehouses or transfer
material across inventory organizations.
Within a single warehouse or inventory organization:
• Use move orders with a Move Order Issue transaction type to approve a transaction and
to provide a document to track the issue of the material. Previously, sales orders with
approvals in the order cycle were used to issue the material and track the movement.
• Use move orders with a Subinventory Transfer transaction type to approve a transfer and
to provide a document to track the transfer of the material.

Chapter 8 - Page 8
Agenda
Agenda
• Summary

Chapter 8 - Page 9
Control Options and Restrictions
Control Options and Restrictions
The following options and restrictions may be

set before performing inventory transactions:
• Locator Control
• Lot Control
• Serial Number Control
• Revision Quantity Control
• Subinventory and Locator restrictions for
specific items

Chapter 8 - Page 10
Agenda
Agenda
• Summary

Chapter 8 - Page 11
You use the Subinventory Transfer window to transfer

material within your current organization between
subinventories, or between two locators within the
same subinventory.
Raw Materials Finished Goods
(N) Transactions > Subinventory Transfer (B) Transaction Lines
Choosing a Transaction Type
You can use one of your user-defined transaction types or one of the system predefined
transaction type, Subinventory Transfer.
Entering a Transaction Source
You can enter source information for the source type associated with the transaction type you
chose. The source type corresponding to the transaction type determines whether Oracle
Inventory validates the source information.
Application of Subinventory Transfers
•You can move items from one bin to another.
•You can replenish floor stock inventories or move items from one stockroom to another.
(Help) Oracle Manufacturing Applications > Oracle Inventory > Transactions > Transferring
Between Subinventories

Chapter 8 - Page 12
Guided Demonstration: Subinventory Transfer
In this guided demonstration the instructor will

transfer items between subinventories

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Guided Demonstration - Subinventory Transfers
1. (N) > Transactions > Subinventory Transfer
2. Enter Subinventory Transfer as the Type.
3. Choose Transaction Lines.
4. Enter the following transfer information.

− Item: AS18947
− Quantity: 45
− To Subinventory: Stores
5. (M) File > Save.

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Miscellaneous Transaction (Account Receipt)
Miscellaneous Transaction
(Account Receipt)
You use the Miscellaneous Transaction window to

issue material to or receive material from general
ledger accounts in your current organization.
Miscellaneous Transaction
(N) Transactions > Miscellaneous Transactions
Choosing a Transaction Type
You can use one of your user-defined transaction types or
one of the system-defined transaction types:
• Account alias issue
• Account alias receipt
• Account issue
• Account receipt
• Miscellaneous issue
• Miscellaneous receipt
Enter source information for the source type associated with the transaction type you chose.
The source type corresponding to the transaction type determines whether Oracle Inventory
validates the source information.

Chapter 8 - Page 15
If you enter an account or an account alias, the account is credited or debited depending on the
if you’re conducting an issue or a receipt. When your transaction type has a user-defined
source type, enter a source for your miscellaneous transaction. For example if your transaction
type is Issue to charity, you might enter Goodwill as your source and the expense account
corresponding to Goodwill or charities in the Account field.
Entering an Account Number
Charge each miscellaneous transaction to an account number or an account alias. If your source
type is Account alias, your account number is not displayed but Oracle Inventory uses the
account identified by your account alias.
(Help) Oracle Manufacturing Applications > Oracle Inventory > Transactions > Performing
Miscellaneous Transactions

Chapter 8 - Page 16
Application of Miscellaneous Transactions
Application of Miscellaneous Transactions
Receive Items without Expired Item, or

documentation damaged item
Issue to Department
or project
Miscellaneous Transaction Applications
Initial loading of item on-hand quantities when you start implementing Oracle Inventory
Scrapping items by issuing them to expense accounts denoting scrap
Issuing items to individuals, departments, or projects
Receiving items that were acquired by assorted means (without purchase orders)
Entering adjustments and corrections to system quantities due to theft, vandalism, loss, shelf-
life expiration, or inaccurate record keeping

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Interorganization Direct Shipment
Interorganization Direct Shipment
You use the Interorganization Transfer window to

move inventory directly from a shipping organization
to a destination organization.
Shipping Organization Destination Organization
Inventory Direct Shipment

(N) Transactions > Interorganization Transfer (B) Transaction Lines
Transaction Type
You must use a transaction type that corresponds to the type of transfer (direct or intransit).
Use either a user-defined or a system-defined transaction type.
You can enter source information for each interorganization transfer transaction. Enter source
information for the source type associated with the transaction type you chose. The source type
corresponding to the transaction type determines whether Oracle Inventory validates the source
information.
Entering Freight Information
You can choose the freight carrier to use for your shipment. Update the default
interorganization transfer accounts, freight charge, and transfer credit information.
You can specify the expected receipt date for your shipment. Oracle Inventory and MRP/MPS
use intransit shipments as supply sources for ATP checking and the planning processes.

Chapter 8 - Page 18
(Help) Oracle Manufacturing Applications > Oracle Inventory > Transactions > Inter-
organization Transfers

Chapter 8 - Page 19
Interorganization Intransit Shipment
Interorganization Intransit Shipment
Inventory Material Transfer
Subinventory
Shipment Number
Freight Information
% of TRX Value
Inventory Intransit Shipment

(N) Transactions > Interorganization Transfer (B) Transaction Lines
You use the Inventory Intransit Shipment window to:
•When you perform the transfer transaction, you do not need to specify the delivery
location.
•You only need to enter the subinventory you are shipping from, a shipment number,
the freight information, and, a percentage of the transaction value or a discrete amount
that Oracle Inventory uses to compute transfer charges.
Transaction Type
You must use a transaction type that corresponds to the type of transfer (direct or intransit).
Use either a user-defined or a system-defined transaction type.
You can enter source information for each interorganization transfer transaction. Enter source
information for the source type associated with the transaction type you chose. The source type
corresponding to the transaction type determines whether Oracle Inventory validates the source
information.

Chapter 8 - Page 20
Entering Freight Information
•You can choose the freight carrier to use for your shipment. Update the default
interorganization transfer accounts, freight charge, and transfer credit information.
•You can specify the expected receipt date for your shipment. Oracle Inventory and MRP/MPS
use intransit shipments as supply sources for ATP checking and the planning processes.
(Help) Oracle Manufacturing Applications > Oracle Inventory > Transactions > Inter-
organization Transfers

Chapter 8 - Page 21
Guided Demonstration Overview: Interorganization Transfer

Interorganization Transfer
In this demonstration the instructor transfers items

between two organizations.

Chapter 8 - Page 22
Guided Demonstration - Interorganization Transfers
1. (N) Transactions > Inter-organization Transaction.
Note: Verify a shipping network exists between the shipping organization and the receiving
organization.

− To Org: M2
− Type: Intransit Shipment
− Freight: DHL
− Shipment Number: 001
− Containers: 2
3. Choose Transaction Lines

− Item: AS18947
− From Subinventory: FGI
− To Subinventory: Stores
− Quantity: 10
5. (M) File > Save.

Chapter 8 - Page 23
Practice Overview: Interorganization Transfer
Practice Overview:
Interorganization Transfer
In this practice you will transfer items between two

organizations.

Chapter 8 - Page 24
Practice - InterOrganization Transfers
Overview
Your instructor has validated the shipment of product from the Seattle, WA organization (M1) to
the Boston, MA Organization (M2). Now we will ship a part between M1 and M2.
Note: Make sure the part you decide to ship has been assigned to both M1 and M2.
Assumptions
Transacting Items
Transfer an item from M1 Seattle Manufacturing to M2 Boston Manufacturing using the

following information:
• Transact Type: Inventory Intransit shipment
• Shipment Number: T##
• Freight: DHL
• Waybill: T##
• Containers: 1
• Expected Receipt date: 1 week from today.

Chapter 8 - Page 25
Solution – InterOrganization Transfers
Transacting Items
1. Navigate to the Inter Organization Transfer Window.
• (N) Transaction > Inter Organization Transfer

− Transact Type: Inventory Intransit shipment
− Shipment Number: T##
− Freight: DHL
− Waybill: T##
− Containers: 1
− Expected Receipt date: 1 week from today.
2. Select Transaction Lines.

− Item: Your Choice
− From subinventory: ##-FGI
− To subinventory: FGI (this is Boston’s subinventory)
− Quantity: 1

Chapter 8 - Page 26
NOTE: If you choose an item that has inventory controls, the system requires you to enter
that information for both the shipping organization and the receiving organization.
3. (M) File > Save.
Viewing Transactions
5. Navigate to the Material Transactions screen.
• (N) Transactions > Material Transactions.
6. Enter your part number and select the Find button.

Chapter 8 - Page 27
7. Select the Intransit tab.

Chapter 8 - Page 28
Agenda
Agenda
• Summary

Chapter 8 - Page 29
Managing Receipts
Managing Receipts
Correct
Transactions
Internal
Shipment Shipment
Optional Return
Optional to Supplier
Oracle Oracle Update Supplier
Order Mgmt Inventory
Optional
Return to
Receiving
Receive
Transfer Inspect
Deliver
Expense
Shop Floor
Inventory
Managing Receipts
Receive both internally and externally sourced shipments. You can deliver to inventory, shop
floor, and expense destinations.
You can satisfy the following receiving business needs:
• Increased receiving process control
• Streamlined receiving throughput
• Increased transaction visibility and traceability
• A common process for all receipt types

Chapter 8 - Page 30
Using Locations in Receiving
Ship-To Location
Receiving Locations Destination
Receiving Dock A Cold Storage A Factory 1 Receives
Receives 20 Items Receives 20 Items 10 Items
Internal Cold Sub A

Receiving Site Site
Ship-To Site
Receiving Site Transfer Office 1
Inspection Subinventory
Station 1 Locator 1
Receives 20 Items Receives 10
Office Site Items
Joe Requestor
Receiving Site Receives 10 Items

This slide shows the use of several Receiving locations, and the delivery of ten items each to
multiple destinations.

Chapter 8 - Page 31
Entering Receipt Lines
Entering Receipt Lines
You use the Receipts window to

enter receipt line information.
Specifying Receipt Line Information (Oracle Purchasing)

You typically process receipts by selecting the items you want to receive and noting actual
quantities. There are minor differences between the different Receiving transactions you will
process. See the next few slides for information on these different types, and when each should
be used.
Purchasing displays the Quantity due for the shipment. If you change the unit of measure, the
receipt quantity is adjusted to reflect the new unit of measure. You can override this value if
you are recording a partial receipt or an over-receipt.
The quantity received on the corresponding purchase order or return material authorization
(RMA) is updated to reflect the received quantity.
Substitutions
You can receive predefined substitute items when you allow suppliers to ship alternatives to
the items that you order.
Scenario
• You sell bicycles and assign unique internal item numbers to mountain bikes of the same
model but different colors.

Chapter 8 - Page 32
• You also have an agreement with your mountain bike supplier that allows him to ship
white bikes in place of the blue bikes you order if that is all he has in stock.
Specifying Substitute Receipt Details
You can select a substitute item in the Lines region based on the following restrictions:
• You must allow substitute receipts for the shipments you want to receive.
• You have defined substitutes for the items you want to receive.
When you query in the list of values for the item, Oracle Purchasing displays all valid
substitutes for the item you want to receive. All subsequent receipt processing is identical to
other standard and direct receipts.
Supplying Handling of Substitute Items
When you receive a substitute item, Oracle Purchasing removes the purchase order supply for
the original item.
• If you perform a standard receipt, Purchasing creates receiving supply for the new item.
• If you perform a direct receipt, Oracle increments on-hand balances for the new item.
(Help) Oracle Manufacturing Applications > Oracle Purchasing >

Receiving > Entering Receipt Lines

Chapter 8 - Page 33
Express Receipts and Receiving Transactions
Express Receipts and Receiving

Transactions
• The express function is a quick method of entering

receipts and receiving transactions.
• You can use an express receipt when the physical
receipt quantity equals the quantity due for the
shipments that you locate with search criteria.
Specifying Express Receipt Details Options

• Create a new receipt or add to an existing receipt for the supplier who shipped the items
you want to transact.
• Specify the supplier for new receipts.
• Click Express to select either the final destination or the default receiving location.
• Omit individual shipments that you do not want to process by selecting the Omit action in
the Receipt Lines region.
• Any receipts that cannot be transacted with an express receipt will remain in the Receipt
Line region after you save your work.
In order to enable the express button, the Find Expected Receipts window must be able to
derive the supplier either by specifying the supplier or a PO number.

Receiving > Express Receipts and Receiving Transactions

Chapter 8 - Page 34
Receiving Unordered Items
Receiving Unordered Items

Unordered Receipts
Shipment
Supplier Receive Match
Purchase
Order
Transfer Inspect
Deliver
Expense
Shop Floor
(Oracle WIP) Inventory
(Supplier Only Source) (Oracle Inventory)
Unordered Items
You can receive items for which there is no corresponding purchase order. The first step is to
create a record of the receipts, citing Supplier, Item, and Quantity details. Match these received
items to an existing purchase order in a second step, and then continue transacting them as you
would any other supplier receipt.
Scenario
• You receive items that you actually did order, but the shipping documentation is illegible
or missing.
• You have an agreement with the supplier that allows overruns against existing orders;
however, you do not allow over-receipts for this item.
• In both cases you want to receive the items so you can track them on the system while
you wait for a buyer to decide which purchase order to use for the match transaction.
Receipt Header window (Oracle Purchasing)

Choose the Supplier and Internal tabbed region to create an unordered receipt that will later be
matched to a purchase order or release.

Chapter 8 - Page 35
Choose the Customer tabbed region to create an unordered receipt that will later be matched to
a return material authorization (RMA). An RMA is created in Order Management to
authorize a customer's returning an item to your company.
Initiating an Unordered Receipt

• Click Unordered in the Find Expected Receipts window.
• Or enter receipt header information such as Freight Carrier, Packing Slip, Number of
Containers, and so forth in the Receipt Header window.
• You cannot add to an unordered receipt header but you can attach detail lines to that
header.
Specifying Unordered Receipt Lines
Enter specific line information such as quantity, unit of measure, item, or item description for
all unordered items received. This information is critical to the subsequent process of matching
this receipt to its’ proper order.
• Create a new receipt for the supplier who shipped the unordered items.
• Perform a standard receipt for the unordered item shipment quantity.
• Destination Type defaults to Receiving.
• Location is a required field and must be a receiving location.
• Optionally, you can provide receipt details or attachments for this transaction.
Specifying Unordered Receipt Details (Oracle Purchasing)

You can enter specific line information such as quantity, unit of measure, item, or item
description.
Supplying Handling of Unordered Items
When you receive unordered items, the supply is invisible to Oracle planning and Inventory
products until you match this receipt to a purchase order.
When you perform the match, Oracle Purchasing reduces the purchase order supply by the
received quantity and replaces it with a receiving supply for that same quantity
Receiving > Unordered Receipts

Chapter 8 - Page 36
Direct Receipts
Direct Receipts
A direct receipt enables you to receive the shipment

and deliver it to the final destination in one
transaction.
Performing a Direct Receipt

If the associated receipt Routing is Standard Receipt or Inspection Required, you cannot
perform a direct receipt, unless your Allow Routing Override profile is set to Yes.
You can specify the quantity you want to receive in your selected unit of measure.
Optionally you can enter receipt line details and attachments for this shipment.
Delivery Requirements for Direct Receipts
Oracle Purchasing requires that all destination details be complete for direct receipts. When
you save your work, Purchasing prompts you for any missing destination details, including:
Destination Type Destination Details
Inventory Lot and serial numbers if required by Inventory setup
Inventory Subinventory
Inventory Locator if required by Inventory setup
Inventory Item revision if required by Inventory setup
Expense Deliver to location
Direct Receipts with Multiple Distributions


Chapter 8 - Page 37
If you record a direct receipt for a shipment with multiple distributions, Purchasing also
prompts you to allocate your receipt quantity manually across these distributions. You can
double-click the plus sign to expand, or the minus sign to collapse, the multiple distributions.

Chapter 8 - Page 38
Inspecting Received Items
Inspecting Received Items
You use the Inspection Details window to select

accept or reject for each transaction you want to
inspect.
Inspection Details (Oracle Purchasing)

Specifying Inspection Details
Select Accept or Reject for each transaction you want to inspect.
Enter the quantity associated with this inspection result.
You can add additional information, including a user-defined Quality Code.
Multiple Inspection Results by Transaction
You can record multiple inspection results for each transaction. For example, if a lot of 15
items fails inspection due to four discrete quality problems, you can record three Reject actions
for the inspected quantity. Oracle Purchasing constructs this transaction history as follows:
Receive 15
Reject 15
Reject 15
Reject 15

Receiving > Inspections

Chapter 8 - Page 39
and
Receiving > Inspecting Received Items

Chapter 8 - Page 40
Guided Demonstration Overview: Receiving Items into Inventory

Receiving Items into Inventory
In this demonstration the instructor receives items in

to inventory.

Chapter 8 - Page 41
Guided Demonstration - Receiving Stock in to Inventory
Receipts

− M2 Boston Manufacturing
2. (N) Transactions > Receiving > Receipts.

− Source Type: Internal
− Item: AS18947
4. Choose Find.
5. Select the Item to receive.
6. Enter the receiving Location.
7. (M) File > Save.
Receiving Stock
9. (N) Transactions > Receiving > Receiving Transactions.

− Type: Internal
− Item: AS18947
11. Choose Find.
12. Select the transaction to deliver.
13. Enter the following receiving information:

− Location: M2 Boston
− Subinventory: Stores
Verifying Receipts and Receiving Transacitons
16. (N) Transactions > Receiving > View Receiving Transactions

Chapter 8 - Page 42
− Type: Internal
− Item: AS18947
18. Choose Find.
19. Select the appropriate receipt number.
20. Choose Transactions.

Chapter 8 - Page 43
Practice Overview: Receiving Items into Inventory
Practice Overview:
In this practice you will learn how to receive items in to

inventory.

Chapter 8 - Page 44
Practice - Receiving Material in to Inventory
Overview
In this practice you learn how to receive items in to inventory.
Assumptions
• You completed the defining items practice
• You completed the interorganization transfer practice
Tasks
Receiving Inventory
Receive the item in to stock that you transferred in the interorganization transfer practice.
Moving Items from Receiving in to Inventory
1. After you take delivery of the item in receiving, move it in to inventory.
Verify the Items are in Inventory
Verify the transaction processed, and the resulting on-hand quantity.

Chapter 8 - Page 45
Solution – Receiving Material in to Stock
Receiving Inventory
1. Change Organization to M2 Boston.
• (N) Change Organization

− M2 Boston Manufacturing
2. Navigate to the Receiving Receipts window.
• (N) Transactions > Receiving > Receipts

− Source Type: Internal
− Item: The item you transferred in the Interorganization practice.
3. Select Find.
4. Close the Header when it opens
5. Select the item you want to receive
6. Verify the item quantity

Chapter 8 - Page 46
7. Verify the UOM.
8. Enter the appropriate inventory control information if necessary.
9. Enter M2 Boston in the Location column
10. Save and Close window
• (M) File > Save
Receiving Inventory in to Stock
11. Navigate to the Receiving Transactions window.
• (N) Transactions > Receiving > Receiving Transaction.
12. Find your item in the Find Receiving Transactions window.
13. Select the Item to receive.
14. Enter M2 Boston as the Location.
15. Verify FGI is the subinventory.

Chapter 8 - Page 47
16. Save and Close window
• (M) File > Save
17. Verify the transaction processed.
• (N) Transaction > Receiving > View Receiving Transaction
• Find your item
• View the Transaction Header Summary

Chapter 8 - Page 48
• Select Transactions
• Verify the transaction receipt and delivery.
18. Close the window.
• (M) File Close Form.

Chapter 8 - Page 49
Returns to Receiving
Returns to Receiving
Return
Customer Defective Item Defective Item
Item
Return Return
Customer Supplier
Returns
Purchasing allows you to perform returns to suppliers and returns to customers in the
Receiving Returns window. Use the Receiving Returns window to return delivered
items to receiving and to return received or delivered externally sourced items to the
supplier if the purchase order has neither been cancelled nor final closed. For
controlled items, you must specify lot numbers, serial numbers or locators, as
appropriate. If the Quality module is installed, you can enter quality information. Use
the Receiving Returns window to return items back to a customer.
For example, a customer returns to your company a part that does not work properly.
You receive and fix the part, then return the part to the customer.
Note: You cannot enter returns for internal shipments.
For more information on returns, refer to the online help:

Receiving > Returns

Chapter 8 - Page 50
Returns to Inventory
Returns to Inventory
Build in WIP
Return to
Defective item Inventory
X Return to
Inventory

Chapter 8 - Page 51
Entering Returns
Entering Returns
You use the Receiving Returns window to:

• Enter returns against receipts, deliveries, transfers,
acceptances, and rejections.
• Return To Supplier transactions, Purchasing
reopens the associated purchase order for the
return quantity by reducing the original receipt
quantity.
• Customer returns that you return back to the
customer, Purchasing updates the RMA to reflect
the returned quantity.
Receiving Returns (Oracle Purchasing)

You can return both received and delivered items to their source supplier when you experience
quality problems, purchased the wrong item, or have excess inventory.
Specifying Return to Supplier Details
You can choose the Return To Supplier action and enter the quantity you want to return. Oracle
Purchasing populates the Return To field with the source supplier for your items.
You can update the Return From subinventory for Inventory deliveries. You cannot update the
Return From information for Expense and Shop Floor deliveries. You can specify additional
return information such as Reason Code and RMA Number and a lot and serial information, if
required.
Purchase Order Effects
When you perform a Return To Supplier transaction, Purchasing reopens the associated
purchase order for the return quantity by reducing the original receipt quantity. You cannot
perform a Return To Supplier transaction against a Finally Closed or Cancelled purchase order.
Return to Supplier Transaction History
When you perform a Return To Supplier transaction, Oracle Purchasing automatically creates
both a Return To Receiving and a Return To Supplier transaction.

Chapter 8 - Page 52
For example, if you receive, deliver, and return ten items to their supplier, Oracle Purchasing
constructs your transaction history as follows:
Receive 10
Deliver10
Step 1 Return to receiving 10
Step 2 Return to supplier 10

Receiving > Entering Returns

Chapter 8 - Page 53
Guided Demonstration Overview: Receiving Items into Inventory


process returns.

Chapter 8 - Page 54
Guided Demonstration - Receiving Returns
Receiving Returns
1. (N) Transactions > Receiving > Receipts.
2. (T) Customer.
3. Enter the RMA number.
4. Choose Find.
5. Close the Receipt Header
6. Verify the receipt information.
7. Select M1 Seattle as the receiving location.
8. Select the subinventory from the list of values.
9. (M) File> Save.
Viewing Returns
(N) Transactions > Receiving > View Receiving Transactions
11. (T) Customer.
12. Enter the Item number.
13. Choose Find.
14. Choose Transactions.

Chapter 8 - Page 55
Agenda
Agenda
• Summary

Chapter 8 - Page 56
Receiving Reports
Receiving Reports
Expected Receipts
• You can run the Expected Receipts report to
evaluate anticipated receiving workload.
• You can also use this report to manually record
the actual quantity received and the receipt date
for shipments that you plan to transact at a
different time.
Overdue Supplier Shipments
• You can run the Overdue Supplier Shipments
report to identify shipments that might require
expediting or buyer notification when they arrive.
Further Help
For more information on expected receipts or overdue supplier shipments, refer to the online
help:
Reports and Processes
../ Expected Receipts Report
../ Overdue Supplier Shipments Report

Chapter 8 - Page 57
Agenda
Agenda
• Summary

Chapter 8 - Page 58
Move Orders Process Flow
Move Orders Process Flow

Move order locates
material sources
Approve
Create move
move order order -
requisitions Pick Ticket
only
In case of shortage
move order
can be re-planned
Putaway Picking
Destination Source
location location
Move Order Requisition Process Flow

This slide illustrates the move order process for 11i. This move order can be created manually
or automatically. Order Management creates then automatically to support the staging of
Picking Waves.
Move Orders come in three flavors:
• Requisition Move Order - to relocate material or adjust perpetual inventory records
• Inventory Replenishment Move Orders - to refill depleted inventory locations
• Pick Release Move Orders - to replenish forward pick locations
Move orders will be manually or automatically generated, depending on the source of the
transaction.
Move orders must be assigned detailed source and destination locations, or used to identify
shortages for further action. This process is called Allocating, and must occur for all move
orders.
If the material could not be fully sourced because of a lack of available quantity, the Move
Order is in backorder and the unsourced balance can be re-released at a later time.

Chapter 8 - Page 59
Move instructions can now be issued for available quantities either through printing of a paper
pick slip or transmission to a mobile device through Move Order APIs.

Chapter 8 - Page 60
Move Order Requisition Approval Process
Move Order Requisition

Approval Process
Automatic
Action
Notification sent Reminder sent
to item planner to item planner
Request
1 Time-out 1 Time-out
Period Period
Notification Sent Order ready

Approve to subinv planner
for allocation and
transaction
Move Order Approvals

If approvals are required on Move Order requisitions, Oracle Inventory manages the approval
process through Oracle Workflow.
When the requisition is created, a notification is sent to the item planner to let him or her know
that a move order requisition line is awaiting his or her approval.
There is a new organization-level attribute that determines the number of days the order can
wait for an approval action, the time-out period. After one time-out period, if the order is still
not approved or rejected, a reminder notice is sent to the item planner. After another time-out
period the order is automatically approved or rejected depending on the move order time-out
action you determine at the organization level.
The Move Order Time-Out Period and Time-Out Action are both inventory organization
parameters. These inventory parameters do not override any periods set up by Oracle
Workflow.
The item planner is an item attribute. If no planner is specified on the item, the requisition line
is automatically approved.
If no approvals are required in your organization, set the time-out period to 0 and the time-out
action to Approve.

Chapter 8 - Page 61
Once the order line is approved, notices are sent to a notification list that is attached to the
source and destination subinventories to let the subinventory planners know that material will
be moved to or from their areas.
Note: Replenishment and pick wave move orders are pre-approved.

Chapter 8 - Page 62
Benefits of Managed Material Flow in a Facility
Benefits of Managed Material Flow

in a Facility
Quick Response
Warehouse Visibility
Tracking
Benefits of Managed Material Flow

Oracle Inventory uses move orders to distinguish the user roles that should manage inventory
levels from those who carry out actual transactions. This provides:
Quick Response
You can now request a transaction and forward the request on to a picker for actual transaction
execution. The request is tracked in Oracle Inventory to avoid manual systems that can result
in inaccurate information transfer. When warranted, replenishment mechanisms can
automatically generate move orders without the intervention of an item planner for simple
cases where the material is drawn from within the facility. This results in faster inventory
replenishment with minimal human intervention.
Warehouse Visibility
Move orders use inventory picking rules to determine where to source material for a
subinventory or Move Order Issue. This ensures that the same mechanisms created to rotate
material properly for deliveries can be used to rotate material within the facility. It also uses the
material visibility in Oracle’s Inventory to suggest source locations, lots, and so on
automatically.
Tracking

Chapter 8 - Page 63
Move orders can be transacted through application program interfaces (APIs). APIs allow you
to use mobile devices to transact, giving you better material visibility and accuracy. Move
orders can also be created to cross-dock material to staging locations.

Chapter 8 - Page 64
Move Order Source Types

• Account
Move Order • Manually Generated
Transfer
• Optional Approval
Requisition • Subinventory
Processing
Transfer
• Kanban • Automatically
Replenishment • Min Max Generated
Move Orders • Replenishment • Pre-approved
• Count • Transaction Ready
Pick Wave • Sales Order Pick • Pre-approved

Move Orders • Internal Order Pick Print Pick Slip
• Automatically
WIP Issue • Blackflush Transfer
Generated
Move Orders • Component Issue
•Pre-approved

Oracle Inventory Release 11i provides three types of move orders.
• Move Order Requisitions
• Replenishment Move Orders
• Pick Wave Move Orders
The move order type refers to the entity that created the move order. For all move orders, the
final result is one of the two supported transactions: subinventory or move order issue.
Move Order Requisition
The requisition is a manually generated request for a move order. You must create a move
order requisition. You can generate requests for subinventory transfers or move order issues.
The requisition can optionally go through an Oracle Workflow approval process before it
becomes a move order. If no approval process is used, the requisition becomes a move order
immediately.
Replenishment Move Order

Chapter 8 - Page 65
These move orders are generated by kanban cards where the pull sequence calls for a
subinventory transfer (intra-organization kanbans), or by min-max planned items where the
item’s replenishment source (set at the item-subinventory level) is another subinventory. In this
case, the min-max or replenishment count report automatically generates a move order.
Replenishment move orders are pre-approved and ready to be transacted.
Replenishment Options
The following source types request the corresponding documents:
• A Supplier source type creates a requisition.
• An Inventory source type creates an internal requisition.
• A Subinventory source type creates a replenishment move order.
• The source subinventory must be set up at the item subinventory level. For the min-max
report to generate a move order, the report must be generated at the subinventory level.
• For kanban to generate a move order, the pull sequence source type must be set to Intra-
org.
Pick Wave Move Order

The pick release process generates move orders to bring the material from its source location in
stores to a staging location, which you define as a subinventory in Oracle Inventory. This
transaction is a subinventory transfer.
These move orders are generated automatically by the Oracle Shipping Execution pick release
process.
These orders are pre-approved and ready to transact. Pick slips and other shipping and
inventory reports will also be available with Oracle
WIP Issue Move Orders

An Optional process in oracle WIP allows you to run pikc release for the components of a
range of jobs or schedules. This process creates move orders to either directly issue the
material to wip, or to move the material to the backflush locator. These orders are
automatically approved, the picking rules are sued to allocated material for the job and pick
slips can be printed for warehouse users.

Chapter 8 - Page 66
Move Order Components
Move Order •Order Type •Default Source

Header •Order Number •Default Destination
•Item •Source
Move Order
•Project/Task •Destination
Lines
•Request Qty •Completed Qty
•Item
Move Order •Destination Details
•Lot/Serial
Line Details •Source Details
•Quantity/UOM

Move Order Header
Oracle Inventory uses the move order header to store the move order source type. This refers to
the entity that created the move order. An order could be a pick wave, for sales order picks, a
replenishment type, a requisition for subinventory transfer, and so on. The move order header
also stores the default source and destination, if available, the order number, and the requested
date.
Move Order Lines
Move order lines are the requests on a move order. They store the item, requested quantity, the
completed quantity (if the move order has been partially fulfilled), and a source and
destination, if known. The move order lines also include any project and task references, if the
organization is project-manufacturing enabled. If known, the user can also request specific
serial or lot numbers on the move order line.
Move Order Line Details
The line details are the Inventory transactions that will occur to fulfill a particular request line
(move order line). If the material is locator-, lot-, or serial-controlled, this information is filled
in at the line detail level. These details are automatically filled in by Oracle Inventory using the

Chapter 8 - Page 67
inventory picking rules and the item-transaction defaults, for destination locators, or the user
can manually fill in the details. You can edit these details prior to transaction.

Chapter 8 - Page 68
Move Order Allocating
Move Order Allocating
Move Order Move Order

Allocating
Lines Line allocations
• Where will the material come from?

• Use Inventory picking rules
• Where will the material go?
• Use Item Subinventory Locator Defaults
Allocating Move Orders

Allocating is the process in Oracle Inventory that uses picking rules and item transaction
defaults to suggest move order line details to fulfill a move order line. The line details are the
inventory transactions that must be fulfilled to complete the move order allocation. You can
consider the allocating process as a sourcing process. Allocating occurs when you click the
Allocate button in the move order transaction window.
Suggesting Sources
Oracle Inventory uses the picking rules you set up at the organization or organization-item
level, to suggest source locators, revisions, and lots to source the material in order to fulfill a
move order allocation.
Suggesting a Destination
The picking rules only suggest source locations. If the destination subinventory is locator-
controlled and no locator was specified on the move order line, Oracle Inventory generates a
suggestion based on the item subinventory locator default you set up for move orders. Before
release 11i, the item subinventory defaults were used only for put away locations in the
receiving process. You can now set up a default locator for each item that you want to move

Chapter 8 - Page 69
around the warehouse on a move order. This is not the same default type that you would use
for receiving or shipping.
You have two choices in transacting the move orders to transfer the material to the destination
location:
• Automatic Pick Confirmation: The move order is transacted instantly after the order is
allocated without any further human intervention. On hand inquiries will show the
material in staging. The next step for the user to perform is the ship confirmation.
• Manual Pick Confirmation: The user confirms the pick of the move order allocation.
This gives the user the chance to update any picking details such as the source locations,
lots or serials and to report shortages or inventory inaccuracies and allow the system to
generate more pick suggestions. Reporting inventory inaccuracies allows the user to
request a cycle count in the inventory area where the material was not found if so desired.
Oracle Shipping
Oracle Shipping provides two choices for when and how the user will fill in the line details.
These choices are made by setting up an organization parameter but can be overridden at pick
release.
• Auto allocate--the allocating process is done at pick release instantly after the move order
is created. No more human intervention is needed and the pick slip can be printed
automatically.
• Pick release only creates move orders but does not fill in the line details. A user must
navigate to the move order form after pick release and press the Allocate button. This
option allows warehouse managers to determine when to release the pick to the floor and
might be a better solution for implementations running a global order entry with
distributed warehouse management and/or shipping. In these cases orders can be
released to regional warehouses from the central order management location in advance
and individual warehouses can schedule picks closer to actual ship time.

Chapter 8 - Page 70
Generate Move Orders
Generate Move Orders
Enter Move Order Information
Item Quantity
Source Destination
Generating Move Order Requisitions

You use the move orders window to create move order requisitions by specifying item,
quantity, source, destination, locations, and other order information.
For each order, an order number is required. A number is defaulted for you if you leave the
field without entering a value.
In the default region, you can set up values that default to the lines. Default fields are not
required. You can set up a default transaction type of either Subinventory Transfer or Move
Order Issue. A Move Order Issue is the same as an account issue. You can specify the Move
Order Issue for accounts and account aliases. You can define a default source subinventory,
destination subinventory or account, for Move Order Issues, as well as the requested delivery
date (date required) for the material.
The lines are the actual material requests for the move order. In the Item page, users specify the
item, revision, and quantity, and they can update the delivery date for that item.
A move order requisition manually requests subinventory transfers or Move Order Issues.
These requests can optionally go through an approval process before they become move orders
ready to be sourced and transacted. The approval process does not include dollar amount
constraints.

Chapter 8 - Page 71
Defining Project and Task Information
If the organization is a project manufacturing-enabled organization, you specify the project and
task in the Project and Task page.
Defining Source Information
You use the Source page to specify the subinventory from which to draw the material. This
field defaults from the header-level default block but can be overridden if necessary. You can
also specify the locator, lot, and serial numbers, if known, to use for the transactions. Only the
subinventory field is required. If you do not know from where the items should come, the On
Hand button takes you to an on-hand inquiry window for that item to locate the material within
your organization.
Defining Destination Information
You use the Destination page to specify the subinventory, or account for Move Order Issues,
that the material should be delivered. This field defaults from the header-level default block but
can be overridden if necessary. You can also specify the destination locator for subinventory
transfer move orders if known.
Defining Control Information
You use the Control page to request a subinventory transfer or Move Order Issue at the line
level, by selecting a transaction type. This field defaults from the header-level default block but
can be overridden if necessary. You can optionally specify a reason and reference code on the
inventory transactions.

Transactions > Overview of Move Orders
.. / Generating Move Order Requisitions
../ Generating Replenishment Move Orders

Chapter 8 - Page 72
Item Allocation
Item Allocation
Item Reservation Pending Transaction
Allocating Items
Reservation
A reservation is a line in the inventory reservations table. In the reservation table supply (such
as on-hand inventory) is matched with a demand source (such as a sales order). A reservation is
used to earmark your inventory for a particular use.
Pending Transaction
A pending transaction is a transaction that Oracle Inventory expects to occur shortly, but
confirmation of the transaction has not yet been recorded. This is a material pick that has not
yet been completed. Move order line details are an example of the pending transaction. A pick
slip may have already been printed, but the picker has not yet indicated that they have
deposited the material in the destination location.
Neither reserved material nor a pending transaction quantity is included in any availability
calculation for the source location.
You should not allocate a move order line too soon in the business process, because the
allocating process for a move order creates pending transactions and removes that quantity
from an availability picture. Allocating should not be done until you are ready to print the pick
slip and move the material.

Chapter 8 - Page 73
Transact Move Orders
Source
Transact
Destination
Transacting Move Order Lines

Use this window to view, allocate, transact move order allocations, view the move order line
details, and transact move order allocations. Transacting move orders will post all movement
activity immediately for the selected move order line and its related details.
Transact
Once the lines have been allocated, you can commit all of the transactions for a single move
order line by selecting the lines you want to transact and clicking the Transact button. You can
save and exit the move order line details without transacting if you need to print a pick slip
report. This enables you to transact each detail line before or after picking the material.
Move Orders > Transacting Move Orders

Chapter 8 - Page 74
Guided Demonstration Overview: Transacting Move orders

Transacting Move orders

generate and transact a move order.

Chapter 8 - Page 75
Guided Demonstration - Transact Move Orders
Create an Item
1. (N) Items >Master Items.
2. Create an Item using the following information:

− Item: CM11445
− Description: Mother Board
3. (M) Tools > Copy from.
4. Enter Finished Good in the template field.
5. Choose Apply.
6. Choose Done.
7. (T) Inventory.
8. Use the following information to enable the Locator Control attribute:

9. (M) File > Save.
10. (M) Tools > Organization Assignment.
11. Enable item CM11445 in the following organizations:

− M1 Seattle
− M2 Boston
Receive the Item
14. (N) Transactions > Miscellaneous Transaction

− Type: Miscellaneous Transaction
− Account: Miscellaneous
16. Choose Transaction Lines
17. Use the following information to complete a miscellaneous receipt:

Chapter 8 - Page 76
− Item: CM11445
− Locator: 1.2.1
− Quantity: 500
Generate Move Order
(N) Move Orders > Move Orders
Use the following information to generate a move order:

− Number: 001
− Description: Mother Board Move Order
− Transaction Type: Move Order Transfer
− Source Subinventory: FGI
− Destination Subinventory: Stores
20. Choose Approve.
22. (N) Move Orders > Transact Move Order.
23. Find move order 001.
24. Choose View / Update Allocations.
25. Use the following information to update the move order:

− Source Subinventory Locator: 1.2.1
− Destination Subinventory Locator: 1.1.2
26. Choose Transact.

Chapter 8 - Page 77
Practice Overview: Transacting Move orders
Practice Overview:
Transacting Move orders
In this practice you will learn how to transact a move

order.

Chapter 8 - Page 78
Practice - Transacting Move Orders
Overview
In this practice you will generate and transact move orders.
Assumptions
• You are skilled in Oracle navigation
• You completed the Define Items practice
• You completed the Locator controls practice
• You completed the define subinventory practice
Tasks
Create an Item
Create an item using the following information.

− Name: ##-1234
− Template: Purchased Item
− Organizations: M1, M2
Receive your item
Create a miscellaneous receipt for 500 pieces of your item and receive them into at least two
locators of your ##-FGI subinventory.
Create a Move Order
Create a move order for your item and move 10 pieces from the ##-FGI subinventory to the FGI
subinventory using the following information:
− Number: ##-1
− Description: Team ## Move order
− Item: 00-1234
Transact Move Order

Chapter 8 - Page 79
Verify your move order, and make changes such as locator control. When complete transact
your move order.
Verify the Results
Verify your transaction was processed.

Chapter 8 - Page 80
Solution – Transacting Move Orders
Create an Item
1. Navigate to the Master Item window.
• (N) Item > Master Items
2. Define an item using the following information:

− Name: ##-1234
− Description: Move Order Item
3. Apply the Purchased Item template
• (M) Tools > Copy From.
• Select Template.
• Select Purchased Item from the LOVs.
• Select Apply.
• Select Done.

Chapter 8 - Page 81
4. Enable Inventory Control.
• (T) Inventory
5. Save your work.
6. Assign your item to organizations M1 and M2.
• (M) Tools > Organization Assignment
• Enable item in M1 Seattle, and M2 Boston..

Chapter 8 - Page 82
Receive Your Item
8. Receive 500 pieces of your item in to stock.
• (N) Transactions > Miscellaneous Transactions

− Type: Miscellaneous Receipt
− Account: Miscellaneous (From LOV)
• Select Transaction Lines.

Chapter 8 - Page 83
• Enter the following information in the subsequent fields:
− Item: ##-1234
− Quantity 250
− Locator: ##.1.1
− Item: ##1234
− Quantity 250
− Locator: ##.1.1

Chapter 8 - Page 84
• Save and Close window.
Create a Move Order
9. Navigate to the Move Order window.
• (N) Move Orders > Move Orders
10. Define a Move Order Using the following Information:

− Number: ##-1
− Description: Team ## move order
− Source Subinventory: ##-FGI
− Item: ##-1234
− Quantity: 10

Chapter 8 - Page 85
−
11. (T) Destination.


Chapter 8 - Page 86
12. Choose Approve.
Navigate to the Transact Move Orders window.
14. (N) Move Orders > Transact Move Orders
15. Find your move order.

− Numbers: ##-1
• Choose Find.

Chapter 8 - Page 87
16. Update your Move Order.
• Select View / Update Allocations
• Verify / Update the following:

− Locator: ##.1.1
− To Subinventory: FGI
− To Locator: 1.2.1
− Quantity: 10
18. Choose Transact.

Chapter 8 - Page 88
19. (M) File > Close Form
Verify the Results
20. View the results to verify the transaction processed.
• (N) On-Hand, Availability > On-Hand Quantity

− Item: ##-1234
− Display: Subinventory

Chapter 8 - Page 89
• Select Find.

Chapter 8 - Page 90

Chapter 8 - Page 91
Agenda
Agenda
• Summary

Chapter 8 - Page 92
Transactions Using a Mobile Device
Receive Goods
Move Goods
Mobile Device
Issue Goods

You can perform inventory transactions using a mobile device. You can perform the following
transactions:
•Miscellaneous Receipt
•Alias Receipt
•Inventory Issues
•Subinventory Transfers
•Move Orders
•Organization Transfers
•PO
•RMA
•Intransit Shipment
•Internal Requisition
•Receipts

Chapter 8 - Page 93
•Sales Orders
•Internal Order Shipments
•Cycle Count
•Physical Inventory Entries

Chapter 8 - Page 94
Guided Demonstration Overview: Mobile Transactions

Mobile Transactions

transact items using a mobile device.

Chapter 8 - Page 95
Guided Demonstration - Mobile Application Inter-organization
Transfer
1. Select Inventory from the main menu.
2. Select Transfers.
3. Select Org Transfer.
4. Enter M1 as the Org code.
5. Enter M2 as the To Org.
6. Enter Intransit as the transaction type.
7. Enter 001 as the shipment number.
8. Enter AS18947 as the item to ship.
9. Enter FGI as the from subinventory
10. Enter 5 as the quantity to transfer.
11. Select Done.

Chapter 8 - Page 96
Practice Overview: Mobile Transactions
Practice Overview:
Mobile Transactions
In this practice you will learn how to transact items

using a mobile device.

Chapter 8 - Page 97
Practice - Mobile Transactions
Overview
In this lab you will transfer items from one organization to another.
Assumptions
Tasks
Interorganization Transfers Using the Mobile Interface
Use the Mobile interface to conduct an interorganization transfer using the following
information:
− From Organization: M1 Seattle
− To Organization: M2 Boston
− Item: your choice
− Quantity: 5

Chapter 8 - Page 98
Solution – Mobile Transactions
Interorganization Transfers Using the Mobile Interface
Responsibility = (Mobile) Inventory, Vision Operations
1. Select Inventory from the Main Menu.
2. Select Transfers from the Inventory Menu.
3. Select Org Transfer from the Transfers Menu.

Chapter 8 - Page 99
4. Enter your item to transfer using the following information:
− To Org: M2
− Trx Type: Intransit
− Shipment Number: ##
− Item: Your Choice
− From Sub: ##-FGI
− Quantity: 1
− To Sub: Stores
Note: Use the down arrow to advance to the next field.
5. Select Done

Chapter 8 - Page 100
6. Select Logout

Agenda
Agenda
• Summary

Managing Shipments
Managing Shipments
You use the Manage Shipments window to review and

update intransit shipments between inventory
organizations.
Shipping Organization Intransit Receiving Organization
Managing Shipments (Oracle Purchasing)

You can review and update intransit shipments between inventory organizations.
Shipment Visibility: You can access all incoming and outgoing shipments associated with the
current organization.
Shipment Header: You can update information pertaining to the shipment header such as
Ship-To Location and Number of Containers. If you change the Expected Receipt Date, Oracle
Purchasing updates Shipment Supply to reflect the new due date.
Shipment Lines: You can update information pertaining to the shipment lines such as
Expected Receipt Date, Receipt Routing, Packing Slip, and Note to Receiver. The receipt
routing that you specify in Maintain Shipments overrides routings specified at the item,
organization, or system levels.

Receiving > Managing Shipments

Agenda
Agenda
• Summary

Summary
Summary

• Define Transaction Flows
• Define Transaction Options and Restrictions
• Perform Transactions
• Manage Receipts
• Explain Receiving Reports
• Perform Transactions Using a Mobile Device
• Manage Shipments


11i Replenishment Concepts
Chapter 9

Chapter 9 - Page 1

Chapter 9 - Page 2
Objectives
Objectives

do the following:
• Describe focus and statistical forecasting
• Describe Oracle Inventory replenishment
• Describe Oracle Inventory replenishment methods

Chapter 9 - Page 3
Agenda
Agenda
• Overview
• Overview of Oracle Inventory forecasting
• Overview of Oracle Inventory replenishment
planning
• Summary

Chapter 9 - Page 4
Overview
Overview
Oracle Inventory forecasting Oracle Inventory planning
Course Overview
This module provides an overview of Oracle Inventory forecasting and replenishment methods.
(Help) Oracle Inventory > Inventory Planning and

Replenishment > Overview of Inventory Planning and
Replenishment > Forecasting

Chapter 9 - Page 5
Overview of Inventory Planning
Overview of Inventory Planning
Time to replenish
• Min-Max planning
• Reorder-point planning
• Kanban replenishment
• Replenishment counting
Overview of Oracle Inventory

Inventory planning involves answering two question:
• When should you place a new order?
• How much should you order?
Using the Oracle Inventory application, you can set up the following types of inventory
replenishment plans:
• Reorder-point planning
• Kanban replenishment planning
• Replenishment counting (for non-quantity tracked replenishment)
After you select the replenishment method that you want to use, Oracle Inventory concurrent
programs populate the requisition interface.
Oracle Inventory planning interfaces with Oracle Purchasing, and indirectly with Oracle Order
Management.

Chapter 9 - Page 6
Order Planning
Order Planning
Order time Order size

“When should I order?” “How much should I order?”
Planning methods
“Which planning method should I use?”
Describing Replenishment Considerations

Before you replenish your inventory, you should consider the following
• Order time
• Order size
• Planning method
Typically, you should order when the on-hand quantity plus incoming supply minus demand is
less than the specified minimum inventory level. On-hand quantity refers to what you
currently have in stock. Supply represents On-Hand stock plus inventory coming into the
organization. Demand represents the need for a particular item.

Chapter 9 - Page 7
How Much to Order
How Much to Order
Carrying costs
Order costs
Expected
Demand
How Much to Order

Typically, you should order a quantity that balances the cost of placing an order with the cost
of carrying inventory, while covering expected demand. After you determine the amount to
order, you can create a requisition to replenish inventory from another organization or a
supplier. Note: Suppliers may have minimum order quantities.

Chapter 9 - Page 8
Replenishment Process for Intra-Org Supply Sources
Replenishment Process for Intra-Org

Supply Sources
Create allocations
Replenishment move for inventory to be
order automatically moved
created
Print move
order pick slip
Transact move
order

Chapter 9 - Page 9
Replenishment Process for Supplier Supply Sources
Replenishment Process for Supplier

Supply Sources
External purchase
requisition created
Run requisition
import
Auto create Approve Receive material

purchase order purchase order from supplier

Chapter 9 - Page 10
Replenishment Process for Inter-Org Supply Sources
Replenishment Process for Inter-Org

Supply Sources
Internal purchase Run Requisition

requisition created Run Order import
import
Pick release internal Receive material from

Ship confirm other organization
sales order
internal sales order

Chapter 9 - Page 11
Replenishment Process for Product Supply Sources
Replenishment Process for Product

Supply Sources
Work order created Release work order
Complete work order

when assembly finished

Chapter 9 - Page 12
Agenda
Agenda
• Overview
planning
• Summary

Chapter 9 - Page 13
Overview of Oracle Inventory Forecasting
Overview of Oracle Inventory Forecasting
Inventory forecasting is the process of extrapolating

the expected demand of an item over a number of
periods in the future.
Supply Demand
Describing Inventory Planning and Forecasting

Forecasts generated by Oracle Inventory are based on historical transaction activity only. When
creating a forecast, you can select the type of transactions that you want to use. You can also
specify how far into the future that you want to forecast demand.
After you complete a forecast, you can use it to determine reorder-point planning. You can also
load forecasts into the master schedule, which is a component of the Oracle Material
Requirements Planning (MRP) application.
Note: If you install only Oracle Inventory, you can manually create forecasts. Manually
created forecasts can be based on transaction activity other than historical data.

Chapter 9 - Page 14
Forecast Types
Forecast Types
Statistics Time period
Demand
Describing Forecast Types

Forecast generation uses mathematical algorithms to calculate a prediction of future demand.
You can calculate estimated future demand for items using historical data and focus or
statistical forecasting techniques. You can create multiple forecasts and group complimenting
forecasts into forecast sets. Oracle Inventory supports the following forecast types:
• Focus
• Statistical
Focus forecasting enables you to simulate various methods of calculating demand so that you
can select the best forecasting model. Statistical forecasting enables you to use detailed history
and applies weighting factors to exponentially smooth the data. Statistical forecasting also
enables you to apply exponentially weighted trend and seasonality factors to predict demand.
You typically use Focus forecasting to produce single period forecasts, whereas you can use
Statistical forecasting to forecast any number of periods into the future.

Chapter 9 - Page 15
Agenda
Agenda
• Overview
planning
• Summary

Chapter 9 - Page 16
Oracle Inventory Replenishment Methods
Oracle Inventory Replenishment Methods
Reorder-point Planning
•Safety stock
•Replenishment lead time
•Item demand
•Order cost
•Carrying cost Min-Max Planning
•Minimum inventory level
•Maximum inventory level
Kanban Replenishment
Replenishment by visual cue
Replenishment Counting
Nontracked subinventories
Describing Oracle Inventory Replenishment Methods

However, with Oracle Inventory, you can set up specific replenishment methods to help you
decide the size, timing, and amount to order. Oracle Inventory supports the following
replenishment methods:
• Reorder-Point-planning
• Kanban replenishment
• Replenishment counting
For more information see: (Help) Inventory Planning > Overview of Planning

Chapter 9 - Page 17
Replenishment Methods Levels
Replenishment Methods Levels
Planning Method Organization Subinventory
Reorder-point Yes No
Min-Max Yes Yes
Replenishment Counting No Yes
Kanban N/A N/A
Describing Oracle Inventory Replenishment Methods (continued)

Based on the replenishment method that you select, you can perform replenishment planning at
the organization or subinventory level. The table in the slide summarizes the levels at which
you can perform a specific replenishment method.

Chapter 9 - Page 18
Safety Stock
Safety Stock
Planning of Item
Base Level of Inventory
Fluctuations in Demand
Safety Stock
Safety Stock is a base level of inventory from which Oracle inventory performs planning. In
other words, the item is planned as if the safety stock quantity for the period is the zero
inventory balance of the item. This ensures that the safety stock quantity remains in inventory
to cover any fluctuations in demand.

Chapter 9 - Page 19
Economic Order Quantity
2 x annual demand x avg cost of order preparation

Quantity =
Annual inventory carrying cost percentage x unit cost

The economic order quantity (EOQ) is a type of fixed order quantity that determines the
amount of an item to be purchased or manufactured at one time. The intent is to minimize the
combined costs of acquiring and carrying inventory.

Chapter 9 - Page 20
Overview of Reorder-Point Planning
Overview of Reorder-Point Planning

Reorder Point = Safety Stock + Forecast demand during lead time
Quantity
Reorder-Point
Safety Stock
Reorder-Point Planning Overview

As shown in the graphic, with Reorder-point planning, you order a quantity when the quantity
falls to a predetermined reorder-point. Ideally, it is best to reorder at some point before
inventory levels fall into the safety zone. Safety stock typically provides a buffer from which to
fill orders, between reorder-points. At the end of the lead time, the onhand quantity should
equal the safety stock.
The essential feature of Reorder-Point planning is that it projects what the stock level will be—
based on forecast demand and no visibility of sales orders—at the end of the item's lead time.
This projection is then used to decide whether or not the reorder-point has been reached.
The reorder-point is calculated by adding expected demand during lead time to safety stock.
You perform reorder-point planning for the entire organization. You can use Reorder-Point
planning for items under independent demand. That is, demand for items (or materials) that
are independent of the demand for other items (or materials). When you define an item, you
can specify Reorder-Point planning as the inventory planning method.
For more information see: (Help) Oracle Inventory > Inventory Planning and Replenishment >
Reorder-Point Planning

Chapter 9 - Page 21

Chapter 9 - Page 22
Overview of Min-Max Planning
Overview of Min-Max Planning
Minimum inventory level Maximum inventory level
Below minimum! Time to order
Min-Max Planning Overview

Min-Max planning is a method of inventory planning that determines how much to order
based on user-defined minimum and maximum inventory levels. In contrast to Reorder-Point
planning, Min-Max planning is not based on demand projections and does not consider lead
time. With Oracle Inventory, you can perform Min-Max planning at the both the organization
and the subinventory levels. To perform organization-level Min-Max planning for an item,
you must specify organization-level minimum and maximum quantities. Min-Max planning is
typically used to control low value inventory items that do not need great control. To perform
subinventory-level Min-Max planning for an item, you must specify subinventory-level
minimum and maximum quantities.
Min-Max Planning

Chapter 9 - Page 23
Overview of Kanban Replenishment
CM1148 Full Bin CM1123
CM1148 CM1148
Ready to Replenish Bin in Use
Describing Kanban Replenishment

Kanban is a means of supporting pull-based replenishment in manufacturing systems. A
kanban system is a self-regulating pull system that leads to shorter lead times and reduced
inventory. Kanban systems are typically applied to items with relatively constant demand and
medium-to-high production volume.
Kanbans represent replenishment signals that are manual and highly visible, such as a color-
code card that moves with the material, a light that goes on when replenishment is required, or
an empty bin that is moved to the supply location to trigger replenishment.
Kanban systems typically provide support for external devices, such as bar code readers to read
kanban cards and trigger a replenishment signal.
Kanban System Features
Kanban systems include the following characteristics:
• Close cooperation between the using company and the supplying
company
• Short re-supply lead times
• Relatively small quantities reordered at a time

Chapter 9 - Page 24
• Relative frequent ordering

Chapter 9 - Page 25
Overview of Replenishment Counting
Overview of Replenishment Counting
Replenishment Counting is a method of ordering

items for non-tracked inventories. With this method
of replenishment, you can perform counts for
Non-tracked subinventories and then direct Oracle
Inventory to check these counts against the
minimum quantities that you specified.
Describing Replenishment Counting

A non-tracked subinventory is an expense subinventory for which Oracle Inventory does not
maintain on-hand quantity information. When you move valued material to a non-tracked
subinventory, Oracle Inventory automatically charges the appropriate expense account, and
discards that quantity. Non-tracked subinventories typically store items of low value, such as
office stationary. You can also use replenishment counting if you do your own planning. In
this case you may order either a specific quantity, or the maximum quantity specified in the
Min-Max values. Other non-tracked subinventories might include hospital drug trolleys, where
there is no opportunity to record accurate and timely issue transaction information.
Replenishment Counting

Chapter 9 - Page 26
Agenda
Agenda
• Overview
planning
• Summary

Chapter 9 - Page 27
Summary
Summary
You should be able to do the following:

• Describe focus and statistical forecasting
• Describe forecast rules
• Describe Oracle Inventory replenishment
• Describe Oracle Inventory replenishment methods

Chapter 9 - Page 28
11i Replenishment
Fundamentals
Chapter 10
11i Replenishment Fundamentals

Chapter 10 - Page 1

Chapter 10 - Page 2
Objectives
Objectives

do the following:
• Perform Forecasting
• Perform Reorder-point planning
• Perform Min-max planning
• Perform replenishment counting
• Generate kanban cards
• Set up available to promise (ATP)
• Perform ATP checks
• Set up inventory planning profile options
• Identify Implementation Considerations

Chapter 10 - Page 3
Agenda
Agenda
• Overview
• Forecasting
• Performing Reorder-point planning
• Performing Min-max planning
• Performing replenishment counting
• Generating kanban cards
• Setting up available to promise (ATP)
• Setting up Inventory profile values
• Summary

Chapter 10 - Page 4
Overview
Overview
Replenishment Methods
Available Supply
Reorder-point
Available to
Promise
Min-max
Planning setup
Replenishment
counting
Planning profile
options
Kanban
replenishment

Chapter 10 - Page 5
Agenda
Agenda
• Overview
• Forecasting
• Performing Reorder-point Planning
• Performing Min-max Planning
• Summary

Chapter 10 - Page 6
Focus Forecasting
Focus Forecasting
1 Forecast = actual demand in the same period of the previous

year
Example: Demand for April 2000 = Demand April 1999
2
Forecast = actual demand in the previous period this year
Example: Demand for April 2000 = Demand for March 2000
Describing Focus Forecasting Methods

Focus forecasting simulates five forecast methods to determine the best forecasting model to
use. An example of each focus forecast method is shown in this slide and on the following
pages. Each method generates a forecast for the current period based on demand from
previous periods.
Note: If not using daily time buckets, focus forecast methods 1 and 4 require at least one year
of historical data. When you use daily time buckets, a week is used instead of a year in
calculating Models 1 and 4. Fifty-two week years are presumed in yearly calculations with
weekly time buckets. This means that the same week last year is taken to be the week fifty-two
weeks before the current week.

Chapter 10 - Page 7
Focus-Forecasting (continued)
Forecast = (actual demand in previous period this year +

3 actual demand two periods ago this year) / 2
Example: Demand in April 2000 = (March 2000 + February

2000) / 2
4 Forecast = actual demand in the same period last year ×

(actual demand in the previous period this year / actual
demand in the previous period before the same period last
year)
Example: Demand for April 2000 = Demand in April 1999 ×

(March 2000 / March 1999)

Chapter 10 - Page 8
Forecast = actual demand in the previous period this year ×

5 (actual demand in previous period this year / actual demand
two periods ago this year)
Example: Demand for April 2000 = Demand for March 2000 ×

(Demand for March 2000 / Demand for February 2000)

Chapter 10 - Page 9
Using Focus Forecasting
Using Focus Forecasting
Last Year Demand
Jan Feb Mar Apr
220 210 250 260
This Year Demand

Jan Feb Mar Apr
270 255 290 ???
Focus forecasting assumes that the forecasting

method that worked best the previous period will
work best for the current period.
Determining the Best Forecast Method

The system uses the absolute percentage error (APE) to determine the best forecasting method
to use. The APE is the difference between the actual demand and the forecast associated with
the actual demand. You calculate the APE using actual and forecast demand. Oracle
Inventory selects the model with the smallest APE to calculate the current period forecast.
The following formula determines the APE:
APE = ( |actual demand - forecast demand| ) / actual demand
Note: Focus forecasting provides a one-period forecast. If you request a focus forecast for
multiple periods, then Oracle Inventory uses the forecast of the first period for all of the
forecast periods in the request. If actual demand is available for the current period, then you
can recompile the focus forecast to update the forecast.

Focus Forecasting Example
Focus Forecasting Example
Actual demand history for years 2000 and 2001
Forecast Year January February March April
2000 220 210 250 260
2001 270 255 290 ???
Question: Using Focus forecasting methods, what is the forecast

for April 2001?
Example of Focus Forecasting

To evaluate which forecasting model produced the best forecast last period, the absolute
percentage error (APE) is calculated for the five forecasts. The forecast model with the
smallest APE is then chosen to calculate the forecast for the next period.
In this example, Forecast Model 4 represents the best model for April of 1997, because the
APE associated with this forecast is only 5 percent compared to the higher APEs for Models
1, 2, 3 and 5.
To determine the best forecast model to use, you would first, calculate the forecast and APE
for March 2001 for each of the five focus forecasting methods. Then, to forecast demand for
April 2001, select the the focus forecast method that yielded the smallest APE (in this example,
Method 4).
Note: This example shows the calculation for Method 4 only.
Forecast = actual demand in the same period last year × (actual demand in the previous period
this year / actual demand in the previous period before the same period last year)
Calculating the Forecast and APE for Model 4
March 2001 = March 2000 × (February 2001 / February 2000)
= 250 × (255 / 210)

= 303.57142, rounded to 304
APE for model 4:
APE = (| actual demand - forecast demand |) / actual demand
= (|290 - 304|) / 290
= 0.05 or 5%
Calculating the Demand Forecast for April 2001
Because 5% is the smallest error of the five models, you would select Model 4 to calculate the
April 2001 forecast.
April 2001 = April 2000 × (March 2001 / March 2000)
= 260 × (290 / 250)
= 301.6000 or 302
Note: Results have been rounded to the nearest whole number.

Statistical Forecasting
Statistical Forecasting
Statistical forecasting uses exponential smoothing to

extrapolate demand from previous periods. The
statistical forecast methods that you can use with
Oracle Inventory include the following:
• Exponential smoothing (ESF)
• Trend-enhanced forecast (TEF)
• Season-enhanced forecast (SEF)
• Trend- and Season-enhanced forecast (TSEF)

Exponential Smoothing Forecast (ESF)
Exponential Smoothing Forecast (ESF)
ESFt = ESFt-1 + α × ( At-1 – ESFt-1 )

= α × At-1 + ( 1 – α ) × ESFt-1
Where:
α = Primary smoothing factor (0 Ù α Ù 1)
ESFt = Smoothed forecast at the end of period t
At = Actual demand for period t
At-1 = Actual demand for the previous period t
Describing the Exponential Smoothing Forecast (ESF)

Exponential smoothing uses the forecast from the prior period and adds an adjustment to obtain
the forecast for the next period. With ESF, demand is forecast by averaging all of the past
periods of actual demand. This forecasting method weighs more recent data to give it greater
influence over the forecast results than older data.
You can calculate the current period forecast by using a weighted average of the most recent
and forecasted demand. The alpha factor, also called the smoothing constant, is multiplied by
the forecast error to determine the adjustment. You can specify an alpha factor between zero
and one. The larger the alpha factor, the less impact the older data has on the new forecast.
The current forecast is equal to the old forecast, plus a portion of the forecast error from the
previous period. You can use this method when trend or seasonality patterns do not exist.
Example of Exponential Smoothing Forecasting
This example shows the ESF calculations for three different values of alpha (α) for period 9 of
a 9 period time frame.
The forecast for period 9 for α = 0.9 is calculated:
ESFt = α × At-1 + (1 - α) × ESFt-1

ESF9 = 0.9 × A8 + (1 – 0.9) × ESF8
= 0.9 × 270 + 0.1 × 288
= 271.8
As shown in the table, actual demand for period 3 was abnormal, but otherwise the the trend is
upward. With a higher alpha the forecast reacted more strongly to the third period, and
produced a very low period 4 forecast, but was also faster to correct itself and adjust for the
trend. By period 9, the period that this example is forecasting, the abnormal period 3 has only a
minor effect on the forecast. All three forecasts become more accurate when they have more
historical data upon which to draw.
Note: ESF always lags behind the trend by at least one period.

Trend-Enhanced Forecast (TEF)
Trend-Enhanced Forecast (TEF)
βt = α × At-1 + ( 1 - α ) × TEFt-1
Rt = β × ( Bt - Bt-1 ) + (1 - β) × Rt-1
TEFt = Bt + Rt
Where:
α = Primary smoothing factor (0 < = α < = 1)
β = Trend smoothing factor (0 < = β < = 1)

At-1 = Actual demand of period t
Bt = Base value computed at the end of period t
Rt = Trend value computed at the end of period t
Describing the Trend-Enhanced Forecast (TEF)

For longer-range forecasts, you can use the trend-enhanced forecast to estimate the amount of
persistent change in basic demand from period to period.
TEF is based on the exponential smoothing factor (α), but also considers the trend (β).
Both the exponential smoothing and trend values closer to zero are weighted towards the past
trend and values closer to one are weighted more heavily towards the current trend.
Example of Trend-Enhanced Forecasting
This example shows the effect of adding the trend enhancement to the ESF calculation. With
the Trend-enhanced forecast, you can reflect the current trend in a forecast.
Assuming an alpha (α) value of 0.5 and a beta (β) value of 0.1, The trend-enhanced forecast
for period 9 is derived by performing the following calculations:
• Determining base value
• Updating the trend index
• Adding the two for the period 9 trend-enhanced forecast
Determining the Base Value
Bt =α × At-1 + (1 – α) × TEFt-1

B9 = 0.5 × A8 + (1 – 0.5) × TEF8
= 0.5 × 270 + 0.5 × 306
= 288
Updating the Trend Index
Rt = β × (Bt - Bt-1) + (1 - β) × Rt-1
R9 = 0.1 × (B9 - B8) + (1 - 0.1) × R8
= 0.1 × (288 – 287) + 0.9 × 19
= 17.2
Adding the Base and Trend Index to Determine the Period 9 Trend Forecast
Recall that the calculated base value was 288 and the trend index was 17.2.
TEFt = Bt + Rt
TEF9 = B9 + R9
= 288 + 17.2
= 305.2 = Period 9 Forecast

Season-Enhanced Forecast (SEF)
Season-Enhanced Forecast (SEF)
Bt = α × ( At-1 + St-1 ) + ( 1 - α ) × Bt-1

St = γ × (At-1Bt ) + ( 1 – γ ) × St
SEFt = Bt × St
Where:
α = Primary smoothing factor (0 < = α < = 1)
γ = Seasonal index-smoothing constant (0 < = γ < = 1)
At-1 = Actual demand for period t
Bt = Base value computed at the end of period t
St = Adjusted seasonal index for period t, one period ago
Describing the Season-Enhanced Forecast (SEF)

You can use seasonality indexes to indicate the degree of seasonal variation for a product. You
can specify a seasonality factor to estimate how much demand during the season will be above
or below the average demand for the product.
Values closer to zero give more weight to past seasonal indexes, and values closer to one one
give more weight to current seasonal indexes. This method produces a more consistent pattern
of seasonal demand from period to period, over the course of the forecast.
You can use SEF to track changes in demand that result from annual promotions and expected
peaks in demand. For example, you might use SEF to track the demand of children’s clothing
purchases at the beginning of the school year versus the demand for children’s clothing at other
times of the year.
Example of Season-Enhanced Forecasting
With highly seasonal goods, such as winter clothing, holiday cards and decorations, you should
take seasonal demand variations into consideration. To do this, you must first enter seasonality
indices for each period indicating how much demand during the period is above or below
average. A seasonality index of 2 indicates that demand during this period is twice the average
demand. Therefore an index of 0.5 indicates that demand during this period is half the average

demand; 1 means that the demand is average during this period. If the average seasonality
index entered is not equal to 1, then Oracle Inventory normalizes the indices so that the average
seasonality indices do equal 1.
The same kind of logic that is used for adjusting for trend in the TEF is used to adjust for the
seasonal variations. Demand is first desasonalized by dividing by the seasonality index for that
period, and then exponential smoothing is used to produce a new base value. The base value is
then multiplied by the seasonal index for the period being forecasted to produce the season-
enhanced forecast (ESF).
This table shows an example of season-enhanced forecasting. Notice how the expected drop in
period 3 also produced a drop in the forecasted for period 3.
To determine seasonality index, you perform the following calculations:
• Adjust the last period’s seasonality index
• Calculate the forecast base value
• Multiply by the period 9 seasonality index
This example assumes an smoothing constant (α) of 0.5 and a seasonality factor (γ) of 0.3.
Adjust The Last Period’s Seasonality Index
S’t = γ × (At / Bt) + (1 – γ ) × St
S’8 = 0.3 × (A8 / B8) + (1 – 0.3 ) × S8
= 0.3 × (270 / 238) + 0.7 × 1.15
= 1.14536
Calculate the Forecast Base Value
Bt = α × (At-1 / St-1) + (1 – α) × Bt-1
B9 = 0.5 × (A8 / S8) + (1 – 0.5) × B8
= 0.5 × (270 / 1.14536) + 0.5 × 238
= 236.86687
Multiply by the Period 9 Seasonality Index
SEFt = Bt × St
SEF9 = B9 × S9
= 236.8667 × 1.10
= 260.55356
Note: After determining period 9 results, you can recalculate period 9’s seasonality index and
then forecast for period 10.

Trend- and Season-Enhanced Forecast (TSEF)
Trend- and Season-Enhanced Forecast

(TSEF)
Bt = α × ( 1 + St-1 ) + ( 1 - α ) × ( Bt-1 + Rt-1 )
Rt = β × ( Bt + Bt-1 ) + ( 1 - β ) × Rt-1
St = γ × [( At-1 Bt + Rt )] + ( 1 - γ ) × St
TSEFt = ( Bt + Rt) × St
Where:
α = Smoothing constant for the average (0 < = α < = 1)
β = Smoothing constant for the trend (0 < = β < = 1)

γ = Seasonal index-smoothing constant (0 < = γ < = 1)
At-1 = Actual demand of period t
Rt = Trend value computed at the end of period t
St = Adjusted seasonal index for period t, one period ago
Describing the Trend- and Season-Enhanced Forecast (TSEF)

The Trend- and Season-Enhanced forecast, combines the trend and seasonal methods to
incorporate both types of demand. With TSEF, you specify a trend factor, as well as a
seasonality index.
Example of Trend- and Season-Enhanced Forecasting
Despite the seasonal adjustments made in the SEF, a trend element remained as seen in the
gradual increase in the forecast base, B. The TEF and the SEF can be combined to derive a
trend- and season-enhanced foremast (TSEF). The TSEF uses all three smoothing factors:
alpha (α), beta (β ), and gamma (γ ).
As with the Season-enhanced forecast, you calculate the new period 8 seasonality index as
soon as period 8 actual demand is determined.
To calculate the trend- and season-enhanced forecast for period 9, you perform the following
calculations:
• Calculate the period 8 seasonality index
• Calculate the period 9 base value
• Calculate the new trend factor

• Add the base and trend factors together and multiply by the seasonality factor to get the
period 9 trend- and season-enhanced forecast
For this example, assume the following values:
• Smoothing constant, α = 0.5
• Trend smoothing constant, β = 0.1
• Seasonality smoothing constant, γ = 0.3
Calculating the Period 8 Seasonality Index
S’t = γ × [At / (Bt + Rt)] + (1 – γ ) – St
S’8 = 0.3 × [A8 / (B8 + R8)] + (1 – 0.3 ) – S8
= 0.3 × [270 / (255 + 10)] + 0.7 – 1.15
= 1.11066
Calculating the Period 9 Base Value
Bt = α × (At / S’t-1) + (1 – α) × (Bt-1 + Rt-1)
B9 = 0.5 × (A8 / S’8) + (1 – 0.5) × (B8 + R8)
= 0.5 × (270 / 1.11066) + 0.5 × (255 + 10)
= 254.04935
Calculating the New Trend Factor
Rt = β × (Bt – Bt-1) + (1 – β) × Rt-1
R9 = 0.1 × (B9 – B8) + (1 – 0.1) × R8
= 0.1 × (254.04935 – 255) + 0.9 × 10
= 8.90494
Calculating the Period 9 Trend- and Season-Enhanced Forecast
TSEFt = (Bt + Rt) × St
TSEF9 = (B9 + R9) × S9
= (254.04935 × 8.90494) × 1.10
= 289.24972

Forecast Setup and Maintenance
Forecast Setup and Maintenance
Focus and Statistical forecast

setup and maintenance steps
1 Define forecast set
2 Define forecast rules
3 Generate forecasts
4 Maintain forecasts
5 Use forecasts
Accessing Forecast Help

For an overview about the forecast setup components, access the online help topic: Overview
of Forecasting.
(Help) Oracle Inventory > Inventory Planning and Replenishment > Forecasting
Accessing Forecast Setup Help
For instructions on how to set up forecast rules, access the following online help topic:
(Help) Oracle Inventory > Inventory Planning and Replenishment > Forecasting
The Overview of Forecasting topic appears. To access instructions on how to set up a forecast,
scroll to the bottom of the page and click the “Defining a Forecast” link.
The Defining a Forecast topic appears. Follow the instructions provided to set up a forecast.

Guided Demonstration Overview: Creating a Manual Forecast

Creating a Manual Forecast

create a manual forecast.

Guided Demonstration - Creating a Manual Forecast
Creating a Forecast Set
1. (N) Planning > Forecasts > Sets
2. Enter the following the information to create a forecast set:

− Forecast Set: FG Set
− Description: Finished Goods forecast set
− Bucket Type: Weeks
− Forecast: FGI
− Description: Finished Goods forecast
3. (M) File > Save.
Setting Up Forecast Entries
(N) Planning > Forecasts > Entries
(M) View > Find
Select the FG Set Forecast set.
Enter the following forecast entry information

− Item: AS18947
− Date: Today’s Date
− End Date: 1 week in advance.
− Current: 1000
− Item: AS18947
− Date: 1 week in advance
− End Date: .2 weeks in advance
− Current: 2000
− Item: AS18947
− Date: 2 weeks in advance
− End Date: 3 weeks in advance.
− Current: 3000
(M) File > Save.
Viewing Forecast Quantities

(N) Planning > Forecasts > View Entries
(M) View > Find.
Select the FG Set Forecast set.
Choose Bucketed
(M) File > Save.

Practice Overview: Creating a Manual Forecast
Practice Overview:
Creating a Manual Forecast
In this practice you will learn how to create a manual

forecast.

Practice - Creating a Manual Forecast
Overview
In this lab you will create a manual forecast for one of your items.
Assumptions
• You completed the define items lab.
Tasks
Define a Forecast Set
Define a forecast set using the following information:

− Forecast Set Name: ##-FSET
− Description: Forecast Set for Team##
− Bucket type: Weeks
− Forecast Name: ##-FNAME
Enter Forecast Entries
Define forecast entries using the following information:

− Forecast Item: ##-Item02
− Quantities: 3000, 4000, 2000, 2500, 2000, 4500
View Forecast Quantities
View the forecast quantities for your forecast.

Solution – Creating a Manual Forecast
Define a Forecast Set
1. Navigate to the Forecast Set Window
• (N) Planning > Forecasts > Sets
2. Define a forecast set using the following information:

− Name: ##- FSET
− Description: Forecast Set for Team ##
− Bucket type: Weeks
3. Enter the following information in the forecast field:

− Name: ##-FNAME
− Description: Forecast name for team ##
• (M) File > Save

Enter Forecast Entries
5. Navigate to the Forecast Entries window.
• (N) Planning > Forecasts > Entries
6. Open your forecast set
• (M) View > Find
• Enter your ##-Item02 in the item field.
7. Enter the following quantities in progressive weeks for the next 6 weeks. Start with the first
date field, and use the LOV for each available date.
− 3000
− 4000
− 2000
− 2500
− 2000
− 4500
• (M) File > Save

View Forecast Quantities
9. Navigate to the Item Forecast Entries window.
• (N) Planning > Forecasts > View Entries
10. Open your forecast set
• (M) View > Find
• Enter your ##-Item02 in the item field.
11. Select Bucketed to view your forecast quantities.
12. Close window.

Agenda
Agenda
• Overview
• Forecasting
• Summary

Uses of Reorder-Point Planning
Uses of Reorder-Point Planning
By Organization Independent Demand
Item Definition Inexpensive Items
Uses of Reorder Point Planning

•You can perform-reorder point planning for the entire organization.
•You can use Reorder-point planning for items under independent demand.
•You can specify Reorder-point planning as the inventory planning method when you define an
item.
•You can use Reorder-point planning for items that you do not need to control very tightly and
that are not very expensive to carry in inventory.
•You can use Reorder-point planning to decide when to order new quantity before using safety
stock.

Reorder-Point Planning: Safety Stock
Reorder-Point Planning: Safety Stock
Quantity
Reorder
Point
Safety
Stock
Time
Describing Reorder-Point Planning

Recall from Replenishment I that with Reorder-point planning, you order a quantity when the
quantity falls to a predetermined reorder point, as shown in the above graphic.
Reorder-point planning uses the following pieces of information:
• Safety stock
• Replenishment lead time
• Item demand
• Order cost
• Carrying cost
Safety Stock
Safety stock is the quantity of an item that you plan to have in inventory to protect against
fluctuations in supply and demand. You can manually enter safety stock quantities, or Oracle
Inventory can calculate a safety stock level based on an existing forecast for an item.

Reorder-Point Planning: Lead Time
Reorder-Point Planning: Lead Time
Quantity
Reorder
Point
Safety
Stock Lead time
Time
Describing Reorder-Point Planning (continued)

Replenishment Lead Time
Replenishment lead time is the total time between recognizing the need to reorder and the
receipt of items. Order processing lead times include the following components:
• Preprocessing lead time
• Processing lead time
• Postproccessing lead time
Oracle Inventory calculates reorder point planning lead time by adding all three components.
Item Demand
The reorder point planning routine uses the average demand during the replenishment lead
time. Oracle Inventory uses forecast information to calculate average demand.
Timing of Reorders
You should reorder when the following is true:
(quantity on hand + quantity on order) < reorder point
where the reorder point = safety stock + [(lead time) × (average demand during lead time)]

Reorder-Point Planning: Reorder Quantity
Reorder-Point Planning: Reorder Quantity
Quantity
Reorder Quantity
Reorder
Point
Safety
Stock
Time
Describing Reorder-Point Planning (continued)

Quantity of Reorders
The reorder quantity is equal to the Economic Order quantity (EOQ). The EOQ is the quantity
that minimizes the total cost of ordering and storing inventory. Use the following formula to
determine the EOQ:
EOQ = SQRT {[2 × (annual demand) × (order cost)] / (annual carrying costs)}
Oracle Inventory calculates the EOQ by using annual demand from the forecast that you
provide when you perform Reorder-point planning. The system also uses the order and annual
carrying costs that you specify when you define items.
You can constrain the reorder quantity by specifying the following information for each item:
• Fixed-lot multiplier
• Minimum order quantity
• Maximum order quantity
Quantity on Order

Quantity on order represents supply that you have not yet received. The quantity on order is the
sum of the purchase order, requisition (internal and supplier), and in-transit quantities owned
by the organization.

Reorder-Point Planning Steps
Reorder-Point Planning Steps
Enter item planning

1 attributes.
2 Forecast item demand.
3 Define safety stocks.
Run Reorder-point
4 report.

Entering Item Planning Attributes
Entering item planning attributes includes setting up

general planning attributes. At this point, you also
enter the following:
• General Planning Attributes
• Lead times
• Safety stock

Entering General Planning Attributes for Reorder-Point Planning
Entering General Planning Attributes for

Reorder-Point Planning
Select Reorder-point
Enter a carrying cost
as the inventory
percent.
planning method.
Specify a fixed-lot
Enter an order cost. size multiplier.
(Optional)
Specify a minimum- Specify a maximum-

order quantity. order quantity.
(Optional) (Optional)
Organization Items: General Planning Window

Inventory Responsibility (N) Items > Organization Items > (T) General Planning
Carrying Cost Percent
Oracle Inventory uses the carrying cost percent information to calculate the EOQ for the item.
The annual carrying cost represents you internal cost to stock one of that item per year.
Carrying cost = (carrying cost percent) × (standard unit cost)
Order Cost
Oracle Inventory uses the order cost to calculate the EOQ for the item. The order cost
represents the fixed cost of placing an order for any quantity of the item.
Fixed-lot Size
Oracle Inventory orders a quantity that is a multiple of the fixed-lot size multiplier.
Minimum-Order Quantity
Oracle Inventory orders a quantity that is at least as large as the minimum-order quantity.
Maximum-Order Quantity
Oracle Inventory orders a quantity that is less than or equal to the maximum-order quantity.

Entering Lead Times
Entering Lead Times
Enter preprocessing
lead time.
Enter processing lead

time.
Enter postprocessing
lead time.
Organization Items: Lead Times Window

Describing Lead Times
You can specify the following lead times:
• Preprocessing lead time: Represents the number of days required to place a purchase or
manufacturing order.
• Processing lead time: Represents the number of days required to procure or manufacture
the item.
• Postprocessing lead time: Represents the number of days required to deliver a purchased
item from the initial supplier receipt of the purchase order (PO).
Navigation Path
Inventory Responsibility (N) Items > Organization Items > (T) Lead Times

Entering Safety Stocks
Entering Safety Stocks
Quantity
Percentage
Mean absolute
deviation
Accessing the Enter Item Safety Stocks Window

With safety stock, you can enter a user-defined quantity or have the system calculate a safety
stock for you. You enter user-defined quantities in the Enter Item Safety Stocks window.
Navigation Path
Inventory Responsibility (N) Planning > Safety Stocks
If you want Oracle Inventory to calculate safety stock, using the Mean Absolute Deviation
method, you must submit a concurrent request through the Reload Safety Stock window.
Navigation Path
Inventory Responsibility (N) Planning > Safety Stock Update
Describing Stock Calculation Methods
• User-defined quantity method: You can enter safety stock quantities and the date for which
each quantity is effective. You can update safety stock quantities that you previously
entered or that Oracle Inventory calculated for you.
• User-defined percentage method: To use the user-defined percentage method, you must use
the Reload Safety Stock window and specify the following information for the item:
- A forecast

- A safety stock percent
Accessing the Enter Item Safety Stocks Window
Describing Stock Calculation Methods
Oracle Inventory uses the following equation to calculate safety stock
quantities:
Safety stock = (safety stock percent) × (forecast demand)
• Mean Absolute Deviation Method: To calculate safety stock using this method, you submit
a concurrent request using the Reload Safety Stock window. In this window, you must
specify the following information:
- A forecast
- A service level percent
The service level percent represents the probability that you can fill an
order from available inventory. If you enter a high service level, then
Oracle Inventory calculates relatively larger safety stock quantities.
Oracle Inventory calculates safety stock quantity by using the following
equation:
safety stock = Z × 1.25 × (mean absolute deviation)
where Z is the appropriate value from a table of standard normal
distribution, corresponding to the service level. The mean absolute
deviation is a measure of how the forecast demand deviates form the
actual demand.

Performing Reorder-Point Planning
Performing Reorder-Point Planning
Planning
On-order quantity Information
Forecast information
Creating
requisitions
Exception
Reporting
Providing a Forecast
The reorder-point planning program uses information from the forecast to calculate the
economic order quantity (EOQ) and the reorder-point quantity. The following equations show
each of these calculations:
• EOQ = SQRT {[2 × (annual demand) × (order cost)] / (carrying cost)]}
• Reorder point = safety stock + [(lead time) × (average demand)]
Providing On-Order Quantity Information
Oracle uses on-order quantity information to determine when to reorder an item. You should
reorder when the following is true:
(quantity on hand + quantity on-order) < reorder point
Oracle uses the following sources to calculate on-order quantities:
• Purchase orders
• Requisitions (internal and supplier)
• In-transit shipments owned by the organization
Oracle Inventory uses purchase orders, requisitions, and in-transit shipments that are scheduled
to be delivered before the supply cutoff date.

Viewing Planning Information
You can view planning information before creating replenishment orders. If you want to create
replenishment orders automatically, then you must request requisitions.
Creating Requisitions
Oracle creates requisitions for all items that meet the following condition:
(quantity on hand + quantity on order) < reorder point
Oracle creates either purchase requisitions (if the source is the supplier) or internal requisitions
(if the source is the organization). The reorder quantity is the EOQ constrained by the
following attributes:
• Fixed-lot size multiplier
Describing Exception Reporting
You can submit the planning process for all items under reorder-point planning, or submit the
planning process for just those items that are below their reorder-point quantities.

Guided Demonstration: Reorder Point Planning
Reorder Point Planning
In this guided demonstration the instructor will

perform reorder point planning.

Guided Demonstration - Reorder Point Planning
Responsibility: Inventory
1. (N) > Items > Organization Items.
3. (T) General Planning.
4. Change the Inventory Planning Method to Reorder Point Planning.
5. Change the Minimum Order Quantity to 35.
6. Change the Order Cost to 45.
7. Change the Carrying Cost % to 12.
8. (T) Lead Times.
9. Change the Processing lead time to 5.
10. Save and Close Window.
11. (N) > Planning > Reorder Point Planning.
12. Select Items Under Reorder Point as the Item Selection.
13. Enter Demand and Supply cut off dates.
14. Select a Forecast from the list of values.
15. Submit your request.

Agenda
Agenda
• Overview
• Forecasting
• Summary

Uses of Min-Max Planning
Uses of Min-Max Planning
Structure Items
Independent Demand
Entire Organization
Tightly Controlled
Subinventory

Min-Max Planning
Min-Max Planning
Determine minimum Enter minimum
and maximum quantity
quantities
Enter maximum
quantity
Do you want Yes Enter fixed lot

specific lot increments
increments?
No Enter minimum
order quantity
Run Min-max Enter maximum

report order quantity
Describing Min-Max Planning

Recall that Min-max planning is a method of determining when and how much to order based
on user-defined minimum and maximum inventory levels.
Note: To perform organization-level Min-max planning for an item, you must specify
organization-level minimum and maximum quantities.
Deciding When to Order with Min-Max Planning
You should order when the following is true:
(on-hand quantity – demand) + (quantity on order) < minimum quantity
Quantity on order is the sum of purchase order quantities, requisition quantities, and in transit
shipments. It also includes WIP jobs as supply at the organization level. Quantity on order
represents supplies that you have not yet received in your organization.

Min-Max Planning: When to Order?
Min-Max Planning: When to Order?
Below minimum! Time to order
When to Order?
You can constrain the order quantity by specifying the following order modifiers for an item:
•Fixed lot multiplier
•Minimum order quantity
•Maximum order quantity

Min-Max Planning: How Much to Order?
Min-Max Planning: How Much to Order?
The following equation represents how much you

should
order:
Order quantity = (maximum quantity) - [(on-hand

quantity) + (quantity on order) ]
= - +
How much to Order?

You can constrain the order quantity by specifying the following order modifiers for an item:
•Fixed lot multiplier
•Minimum order quantity
•Maximum order quantity

Min-Max Planning Steps
Min-Max Planning Steps
Enter item planning

1 attributes.
Define subinventory-
2 level min-max
information (optional).
Run the Min-max

3 report.

Item Planning Attributes
Item Planning Attributes
Item planning attributes include setting up general

planning attributes for either the organization or the
subinventory in which you want to use Min-max
planning.

Min-Max Planning Setup Procedure
Min-Max Planning Setup Procedure
Set up the appropriate Select an Inventory

profile value for Planning method.
requisition approval.
Specify a planning level

(either Organization or
Subinventory).
Enter the following:

• Min-max minimum quantity
• Min-max maximum quantity
• Fixed-lot-size multiplier

Selecting a Planning Level
Selecting a Planning Level
You can select Min-Max planning as the inventory

planning method for each item. If you select the Min-
Max planning method for an item, Oracle performs
Min-max planning for that item at both the
organization and subinventory levels. To perform
Min-Max planning at both the organization and the
subinventory levels, you need to enter minimum and
maximum quantities for each level.

Entering Planning Attributes
Entering Planning Attributes
Select an inventory Enter min-max

planning method. minimum quantity.
Enter min-max Specify a fixed-lot-size

maximum quantity. multiplier.
Specify a minimum Specify a maximum

order quantity. order quantity.

After you select a planning level, either Organization or Subinventory, you enter the
appropriate planning attributes. The following table describes these attributes in more detail:

Submitting the Min-Max Planning Requests
Submitting the Min-Max Planning

Requests
Set up Item Planning Attributes
Submit concurrent process
Generate Min-Max planning report
Submitting the Min-Max Planning Report

In addition to setting up planning attributes, Min-Max planning involves submitting a
concurrent process that generates the Min-Max planning report. You can also perform
exception reporting with the Min-Max planning reporting feature. When you submit the Min-
Max planning report, you must specify a number of parameters, including parameters that
address the following:
• Nettable Subinventories
• Demand quantities
• On-order quantity information
• Requisitions and WIP unrealized jobs
• Exception reporting
You can submit the planning process for all items under min-max planning. You can also
submit the planning process for just those items under their minimum quantities and submit the
planning process for just those items over the maximum quantities.
Using Nettable Subinventories

Oracle Inventory enables you to use on-hand quantities that exist in either nettable or non-
nettable subinventories, or both.
Displaying Demand Quantity

Oracle Inventory displays the sum of all unfulfilled demand created before the cutoff date. The
system calculates demand quantity by using information from the following sources:
• Sales orders
• Internal orders
You can include WIP job component requirements as a source of demand as well. You can net
unfulfilled demand against on-hand quantity and also include inventory reservations in netting
on-hand quantity against demand.
Viewing Planning Information
You can view planning information before creating replenishment orders. To automatically
create replenishment orders, you must request requisitions.
Creating Requisitions and WIP Unrealized Jobs

If you request a restock, Oracle Inventory creates requisitions and WIP unreleased jobs for all
items that meet the following condition:
(on-hand quantity) + (quantity on order) < minimum quantity
Oracle Inventory creates purchase requisitions (if the source is Supplier) and internal
requisitions (if the source is Inventory Organization) for all Buy items, and WIP unreleased
jobs for all Make items. The order quantity is constrained by the following attributes:
• Fixed-lot size multiplier
Navigation Path
Inventory Responsibility (N) Reports > Planning

Guided Demonstration Overview: Min-Max Planning

Min-Max Planning

perform Min-Max Planning.

Guided Demonstration - Min-Max Planning
Responsibility: Inventory, Vision Operations.
Setting Up Min-Max Planning for an Item.
2. Find Item AS54888
3. (T) General Planning
4. Change the Inventory Planning Method to Min-Max.
5. (M) File > Save.
6. (M) Tools > Item Subinventories.
7. (M) File > New
8. Enter FGI as the subinventory.
9. Select the Min-Max Planning Check box.
10. Enter 300 as the Minimum Qty.
11. Enter 900 as the Maximum Qty.
Running the Min-Max Planning Report.
14. (N) Planning > Min Max Planning
15. Enter the following planning information.

− Planning Level: Subinventory
16. Choose OK.
17. Choose Submit.
Viewing the Min-Max Planning Report
(N) Requests.
18. Find your request.

19. Choose View Output.
20. (M) File > Close.

Practice Overview: Min-Max Planning
Practice Overview:
Min-Max Planning
In this practice you will learn how to perform Min-Max

Planning.

Practice - Performing Min-Max Planning
Overview
In this lab you will perform min-max planning for an item.
Assumptions
• You completed the define items lab.
Tasks
Enable Min-Max Planning for Item
1. Enter Min-Max planning for ##-Item03 and restrict to your ##-FGI subinventory.
Use the following minimum and maximum quantities:

− Minimum quantity: 300
− Maximum quantity: 900
Request a Min-Max Planning Report
Request a min-max planning report for your item and subinventory using the following
information:
− Planning level: Subinventory
View Min-Max Planning Report
View your min-max planning report.

Solution – Performing Min-Max Planning
Enable Min-Max Planning for Item
1. Navigate to the Organization Items window and find your ##-Item03 Item.
• (N) Items > Organizational Items
• (M) View > Find
2. (T) General Planning

− Inventory planning Method: Min-Max
3. (M) File > Save
4. (M) Tools Item Sub-inventories
5. Enter the minimum and maximum quantities for the item/subinventory combination as
follows:
− Name: ##-FGI
− Minimum Quantity: 300
− Maximum Quantity: 900

• (M) File > Save
Request a Min-Max Planning Report
7. Navigate to the Min-Max Planning window.
• (N) Planning > Min-Max Planning
8. Enter the following information in the Parameters window:

− Planning Level: Subinventory

9. Choose Ok.
10. Choose Submit.

View Min-Max Planning Report
11. (N) Requests
12. Select My Completed Requests
13. Select Find.

14. Select your request.
15. Select View Output.

16. Select View Output.
17. (M) File > Close.

Agenda
Agenda
• Overview
• Forecasting
• Summary

Uses of Replenishment Counting
Buyer
Item
Subinventory

Recall that replenishment counting is a method of ordering items subinventories. You can
perform counts for the non-tracked subinventories and then have Oracle Inventory check these
counts against the minimum quantities that you have specified. Oracle Inventory creates
requisitions that are based on the sourcing options that you specify for each item.

Replenishment Planning Steps
Replenishment Planning Steps
1 2
Specify requisition
Define subinventory.
approval status.
3 Define subinventory 4
Enter replenishment
replenishment
counts.
information.
5 Validate and process

6
Create requisitions.
replenishment counts.

Subinventories Window
You utilize the Subinventories window to define

subinventories for which you want to perform replenishment
counts.
Inventory Responsibility (N) Setup > Organizations > Subinventories (B) New > (B) Open

Item Subinventories Window
Item Subinventories Window
Access the Item Subinventories window to enter

minimum and maximum quantities for each item
that you store in a subinventory.
Specifying Min-Max Planning

To enter replenishment counts for an item, you must specify subinventory-level min-max
planning for the item.
Entering Subinventory-Level Min-Max Minimum and Maximum Quantities
You can use the Min-max method to replenish subinventories. In one replenishment count
entry method, you can order the min-max maximum quantity.
In another replenishment count entry method designed only for non-tracked subinventories,
you can enter an on-hand quantity, after which Oracle Inventory performs min-max
calculations.
Navigation Path
Inventory Responsibility (N) Setup > Organizations > Subinventories (B) Item/Subinventory

Item Subinventories: Order Modifier Tab
Item Subinventories: Order Modifier Tab
In the Item Subinventories window, Order Modifier

tabbed region, you specify the following information:
• Fixed-lot-size multiplier
Entering Order Modifiers

Fixed-Lot-Size Multiplier
When you perform replenishment counting, Oracle Inventory calculates order quantities that
are multiples of the fixed-lot-size multiplier.
Minimum Order Quantity
When you perform replenishment counting, Oracle Inventory calculates order quantities that
are greater than the minimum order quantity.
Maximum Order Quantity
When you perform subinventory replenishment, Oracle Inventory calculates order quantities
that are less than the maximum order quantity.
Navigation Path
Inventory Responsibility (N) Setup > Organizations > Subinventories > (T) Order Modifiers

Replenishment Count Headers
Replenishment Count Headers
You can enter counts to replenish subinventories.

Oracle Inventory replenishes subinventories
according to the method that you use to enter counts.
Oracle Inventory does not store on-hand quantity
information for non-tracked subinventories.
On hand quantity Subinventory
Entering Replenishment Count Header Information

In the Replenishment Count Header window, you enter a name and subinventory for which you
want to perform replenishment counting.
Navigation Path
Use the following navigation path to access the Replenishment Count Header window:
Inventory Responsibility (N) Counting > Replenishments Counts > Counts (B) New

Replenishment Count Lines
Replenishment Count Lines
You can select one of three replenishment count

types for each item:
On hand Quantity
Order Maximum
Order Quantity
Entering Replenishment Count Lines

You must enter replenishment count header information to enter replenishment count lines for
items that are associated with the subinventory that you specify.
On-Hand Quantity
This method is designed only for non-tracked subinventories. The item for which you select
this method must be a min-max planned item.
You can count the contents of the subinventory and then enter the on-hand quantity. Oracle
Inventory uses the quantity that you enter to perform min-max comparisons and to generate
requisitions.
Requisition quantities are constrained by fixed-lot multiple quantities, maximum order
quantities, and minimum order quantities. Oracle Inventory uses the sourcing options defined
for that item and subinventory combination.
Order Maximum
The item for which you select this method must be a min-max planned item. Oracle Inventory
generates a requisition in the min-max maximum quantity specific to that item and
subinventory combination.

Requisition quantities are constrained by fixed-lot multiple quantities, maximum order
quantities, and minimum order quantities. You cannot enter a quantity if you select this option.
Oracle Inventory uses the sourcing options defined for that item and subinventory combination.
Order Quantity
The item for which you select this method can be planned using any replenishment planning
method. With the Order Quantity count type, Oracle Inventory generates a requisition for the
quantity that you enter. Requisition quantities are constrained by fixed-lot multiple quantities,
maximum order quantities, and minimum order quantities. Oracle Inventory uses the sourcing
options defined for that item and subinventory combination.
Navigation Path
Use the following navigation path to access the Replenishment Count Lines window:
Inventory Responsibility(N) Counting > Replenishment Counts > Counts (B) Lines

Processing Replenishment Counts
Processing Replenishment Counts
The replenishment processor performs the

calculations that are necessary to verify whether
Oracle Inventory should create requisitions. You can
select whether Oracle Inventory should process the
replenishment counts. You can save your changes
and run the replenishment processor later.
Entering Counts Using External Devices

You can use external data collection devices, such as bar code readers to enter replenishment
counts. You can run the replenishment validator and processor after entering counts directly
into the replenishment open interface.
Submitting the Replenishment Validator and Processor
The replenishment validator reads the count records that exist in the interface table. The
interface table stores the counts that you enter with an external device. Oracle validates the
items, subinventories, and counts, and then writes the records to the count tables. The
replenishment count processor performs the calculations that are necessary to determine
whether Oracle should create requisitions. Oracle creates internal or purchase requisitions
according to each item’s default sourcing options. Run the replenishment validator program
before submitting the replenishment processor.
Purging Replenishment Counts
If you want to purge replenishment counts, use the following navigation path to access the
Purge Replenishment Counts window:
Navigation Paths

Inventory Responsibility(N) Counting > Replenishment Counts > Process Interface
Inventory Responsibility (N) Counting > Replenishment Counts > Purge

Agenda
Agenda
• Overview
• Forecasting
• Summary

Kanban Cards
Kanban Cards
Part A
KANBAN
Part B
KANBAN
• Shorter lead times

• Reduced inventory
Describing Kanban Replenishment

Recall that a kanban system is a self-regulating pull system that leads to shorter lead times and
reduced inventory. Kanban systems are typically applied to items with relatively constant
demand and medium-to-high production volume.

Kanban Planned Items
Set Release Time Fence

Item Attribute to Kanban
Define the Pull sequence

KANBAN and generate new
kanban cards

To define a kanban planned item, you must set the Release Time Fence attribute in the
MPS/MRP Planning attribute group to the Kanban Item (Do Not Release) option in the Master
Items window. Use the following navigation path to access the MPS/MRP Planning attribute.
Only kanban planned items can be used in defining a pull sequence.
Navigation Path
Inventory Responsibility (N) Items > Master Items
Defining Pull Sequence Sources

For every kanban planned item, you must define a pull sequence, which is a series of kanban
locations that model the replenishment network on the shop floor. A kanban location can be a
subinventory locator. The replenishment source for a kanban location can be another kanban
location, a production line, or an external source. You can use locators even if locator control
is turned off at the organization, and item levels.

Kanbans can be sourced from an external supplier or an internal organization. A Supplier
source type kanban triggers a purchase request to the supplier, while an Inter-org. source type
kanban results in an inter-organization transfer.
Navigation Path
Inventory Responsibility(N) Kanban > Pull Sequences > (T) Source

Kanban Cards
Kanban Cards
Subinventory
KANBAN
Item
Locator
Describing Kanban Cards

Kanban cards are created for an item, subinventory, and locator (optional). They are uniquely
identified by a kanban number. For cards generated from a kanban pull sequence, the number
is automatically generated. For manually defined cards, both replenishable and
nonreplenishable, you can enter an unused kanban number or let the system create the number.
You cannot override the quantity for generated cards, but you can add additional cards or
delete existing cards from the pull sequence to control the inventory in the replenishment
chain.
A supply source defaults from the sourcing rules if a sourcing rule is available for the item and
kanban location. Only the primary supplier, based on the split percentage and ranking, is used.
You can manually override the quantity and supply source on a pull sequence only before the
cards that have been printed. Changes to the pull sequence are not reflected until the old cards
are deleted and new ones are created. Updates to the sourcing rules apply only to cards created
after the update.
Kanban Card Status
Kanban cards are generated with a default card status of Active. When you define a card
manually,you can initially give it either Active or Hold status.You can terminate use of a card

by changing the card status to Canceled, but you cannot reverse this change. Only canceled
cards can be deleted.
Navigation Path
Inventory Responsibility(N) Kanban > Pull Sequences (T) Kanban

Kanban Supply Status
New
Full
Wait
KANBAN
In-Transit
Empty
In-Process

You can set all of the supply status codes manually. You can set all of the supply statuses
automatically except for In-Transit. All cards are generated with a status of New. You can
switch this status to Empty to trigger a kanban replenishment signal. During initial setup, you
can switch the status to Full if you are starting out with a full bin. When you a re defining a
card manually, you create a car with at status of Empty, Full or New.

Kanban Replenishment Sources
Kanban Replenishment Sources
New
Full
Wait
KANBAN
In-Transit
Describing Kanban Sources of Replenishment

You can create kanban cards with the following source types:
• Inter-Org- Replenished by another organization.
• Intra-Org- Replenished from another subinventory in the same organization.
• Production- Replenished by a production line.
• Supplier- Replenished by an external supplier.
• Flow Schedules- Replenished by flow.
• User Defined- You can define a replenishment source.

Kanban Card Printing
KANBAN

You can print kanban cards for a replenishment plan or a replenishment chain when you
generate the cards. You can also print cards individually if the card information is complete.
You can print duplicate cards only if the original is lost or voided. You are given a warning
message before.

Guided Demonstration Overview: Generating Kanban Cards

Generating Kanban Cards

generate Kanban cards.

Guided Demonstration - Kanban
Create Kanban Pull Sequence
1. (N) Kanban > Pull Sequences.
2. Choose New.
3. Enter the following information to create the pull sequence.

− Item: AS18947
− Source Type: Supplier
− Supplier: Advanced Network Devices
− Supplier Site: Santa Clara
(T) Kanban
− Calculate: Number of Cards
− Size: 10
− Number of Cards: 10
− Minimum Order Qty: 20
4. (M) File > Save
Choose Generate Cards
Choose Cards
Select the first card.
Choose Replenish
Select the second card.
Choose Replenish
(N) File > Save
(N) File > Close Form.

Practice Overview: Generating Kanban Cards
Practice Overview:
Generating Kanban Cards
In this practice you will learn how to generate Kanban

cards.

Practice - Generating Kanban Cards
Overview
In this lab you will learn how to generate Kanban Cards.
Assumptions
• You have completed the defining Subinventories Lab
• You have completed the Defining Items Lab.
Tasks
Setting up a Kanban Pull Sequence
Set up a Kanban pull sequence using the following information:

− Item ##Item003
− Locator:
− Supplier: Advanced Networking Devices
− Size: 10
− Cards: 10
− Minimum Order Quantity: 20
Generate Kanban Cards
Generate Kanban cards for the pull sequence you created.
Replenish Kanban Cards
Replenish your Kanban cards.

Solution – Generating Kanban Cards
Setting up a Pull Sequence
1. Navigate to the Pull Sequences window.
• (N) > Kanban > Pull Sequences
2. Use the following information to define a new pull sequence:

− Item: ##Item-03
− Locator: Row ##, Rack 1, Bin 1
− Supplier: Advanced Networking Devices
• (T) Kanban
− Size: 10
− Number of Cards: 10
− Minimum Order Quantity: 20

3. (M) File > Save
Generate Kanban Cards
4. Choose Generate Cards
5. Choose Yes to print Kanban cards.
6. Verify your Kanban cards printed.
• (M) View > Request
• Select All My Requests
• Choose Find

Replenish Kanban Cards
7. Navigate to the Kanban Cards Summary window.
• Choose Cards or (N) Kanban > Kanban Cards.
8. Replenish Kanban cards.
• Select the first Kanban card in the list, and choose Replenish.
• Verify the supply status changed to Wait.
• Select the second Kanban card in the list and choose replenish.
• Verify the supply status is Empty.

9. Save and Close Form.
10. (N) File > Save.
11. (N) File > Close Form.

Agenda
Agenda
• Overview
• Forecasting
• Summary

Available to Promise
Available to Promise
Quantity
On-hand qty = 0 On-hand qty = 0

12 New supply = 12 New supply =8
Demand = 12 On-hand qty = 0 Demand = 4
10
New supply = 10
8 Demand = 13
6
4
2
Time
Beginning of End of ATP

ATP period Period
Describing Available to Promise

Available to promise (ATP) represents the quantity available for sale at any given period. The
basic formula for ATP is ATP quantity = on-hand quantity + supply - demand – shortage.
Oracle Inventory enables you to define different rules that govern what is considered supply
and demand.

ATP Rules and ATP Checks
ATP Rules and ATP Checks
Setting up items and bills for ATP checks includes the

following:
• Item ATP rule
• Check ATP attribute
• ATP components attribute
• Bill component check ATP attribute

Uses of ATP in Oracle Inventory
Uses of ATP in Oracle Inventory
Quantity
ATP
Time Supply
Data Demand
Uses of ATP in Inventory
You can view the earliest available data for a specific quantity of an item or a group of items
and the available quantity of an item for a specific date. You can view the supply, demand, and
ATP item quantities for the periods that fall between the current date and the end of the ATP
horizon.

Steps for Checking ATP
Steps for Checking ATP
1 Define ATP rules.
2 Select a default ATP rule for your organization.
3 Attach ATP rules to each item.
Attach ATP rules to bills of materials in Oracle Bills

4 of Material.
Use the ATP Information window to perform ATP

5 queries.
Enter sales orders in Oracle Order Entry and request

6 automatic ATP checking.
Checking ATP
Note: Oracle Inventory displays the organization-level default ATP rule whenever you perform
ATP queries in your organization.

ATP Rules Setup Steps
ATP Rules Setup Steps
1. Define computation options.

2. Specify supply time fence.
3. Specify end of ATP horizon.
4. Specify demand time fence.
5. Specify demand sources.
6. Specify supply sources.
Defining an ATP Rule

Navigation Path
Inventory Responsibility (N) Setup > Rules > Available to Promise
You can use the following equation to calculate the ATP quantity for each supply period.
Period ATP = (period supply) – (period demand)

Defining Computation Options
Backward Consumption
Forward Consumption
Describing ATP Consumption Options

When you define ATP rules, you must specify computation options. Computation options
govern how to calculate the ATP quantity in each period. You can use computation options
individually or in combination.
Forward Consumption of Shortage
You can calculate ATP information by using a surplus quantity of an item from future ATP
periods to cover an earlier period shortage. If the period ATP is negative, then you can go
forward through the supply periods, one at a time, and subtract the shortage from the available
quantity. You can keep going forward until the shortage disappears or you run out of periods.
Backward Consumption of Shortage
You can calculate ATP information by using the surplus quantity of an item from prior ATP
periods to cover a period shortage. If the period ATP is negative, you can go backward through
the supply periods, one at a time, and subtract the shortage from the available quantity. You
can keep going backward until the shortage disappears or you run out of periods.

Accumulate Available
Window
Accumulation options
Determining ATP using Accumulation Options

You can use the Accumulate Available option to calculate ATP by carrying over the available
quantity of an item from one ATP period to the next. Note: This option assumes backward
consumption of shortage.
Entering an Accumulation Window
You can also enter the number of workdays by which to limit the accumulation of available
supply. The Accumulation Window is measured in workdays based on the organization
calendar and exception set.
The Accumulation Window option prevents the commitment of near-term supply to orders that
have requirement dates far into the future. The Accumulation Window applies to only the
following two computation options:
• Accumulate Available
• Backward Consumption

Specifying Supply and Demand Time Fences
Specifying Supply and Demand Time

Fences
Purchase
Time Fence
=
Total Lead Time
Manufacture

A time fence is the total lead time required to purchase or manufacture an item. You can
define item time fence options to provide timing information for the ATP calculation.
The ATP calculation algorithm uses the following

time fences:
Past-due-supply time fence
Past-due-demand time fence
Infinite-supply time fence
Entering Past Due Supply and Demand Days
Past-Due-Supply Days
The ATP process does not consider any supply scheduled before the past-due-supply time
fence date. The ATP process considers all supply from the beginning of the past-due-supply
time fence date to the current date as supply for the current date.

Past-due-supply time fence date = (current date) – (past-due-supply days)
Past-Due-Demand Days
The ATP process does not consider any demand scheduled before the past-due-demand time
fence date. The ATP process considers all demand from the beginning of the past-due-demand
time fence date to the current date as demand for the current date.
Past-due-demand time fence = (current date) – (past-due-demand days)


Fences
Infinite-Supply Option
End of ATP horizon
Options
• Cumulative manufacturing lead time
• Cumulative total lead time
• Total lead time
• User-defined time fence
Selecting an Infinite-Supply Option

The infinite-supply time fence date is the end of the ATP horizon. Oracle Inventory does not
consider supply sources scheduled on or after this date in ATP calculations. The infinite-
supply option represents the total time beyond which the ATP process Assumes that infinite
supply is available to cover any scheduled demand.
You can select one of the following infinite-supply options:
• Cumulative manufacturing lead time: The manufacturing lead time of an assembly plus the
largest adjusted cumulative manufacturing lead time of its components
• Cumulative total lead time: The total lead time of an assembly plus the largest adjusted
cumulative total lead time of its components
• Total lead time: The sum of the preprocessing, processing, and postprocessing lead times
of an item
• User-define time fence: A lead time that you specify for the item


Fences
Day before
the next
scheduled
supply date
Supply Period
Scheduled Next
supply date scheduled
supply
date
Specifying a Supply Period

Oracle Inventory designates a period as beginning on a scheduled supply date and ending on
the day before the next scheduled supply date. A supply period can cover several days or be a
minimum of one day.
If supply occurs on a nonworkday, the ATP calculation considers that supply as belonging to
the next workday. If multiple supply events occur on the same day, the ATP process considers
the total supply.

Specifying Demand Sources
Specifying Demand Sources
You can define demand sources for each ATP rule.

Oracle Inventory includes in the ATP calculation only
those demand sources that you enable.
Demand Sources
Describing ATP Demand

ATP demand is the sum of all demand quantities in the supply period. If demand occurs on a
nonworkday, the ATP calculation considers that demand as belonging to the previous workday.
ATP by Demand Class Checkbox
If you select the ATP by Demand Class check box, the ATP calculation considers only supply
and demand for a particular demand class. The demand class feature enables you to forecast,
plan, and promise based on subdivisions of your demand. For example, a demand class might
represent a large customer or a group of related customers.
If you select ATP by Demand Class, Oracle Inventory considers only the following sources of
supply:
• Discrete MPS
• Repetitive MPS
• Discrete WIP
• Repetitive WIP
• Nonstandard WIP
User-defined Demand Sources

In addition to Oracle’s predefined sources, you can use your own demand source. To use your
own demand sources, you must populate the user-defined demand interface table with your
external demand information.

Specifying Supply Sources
Specifying Supply Sources
You can define supply sources for each ATP rule.

Oracle Inventory includes in the ATP calculation only
for those supply sources that you enable.
Using the Available On-Hand Quantity as the Supply Source

You can decide whether to include available on-hand quantity as a source of supply. However,
you should not typically use available on-hand quantity as supply in make-to-order and
assemble-to-order environments.
Including User-Defined Supply as a Supply Source
In addition to Oracle’s predefined supply sources, you can use your own supply source.
However, you must populate the user-defined supply interface table with your external supply
information.

Setting Up Item and Bills for ATP Checking
Setting Up Item and Bills for ATP

Checking
Enable the item for ATP checking.
Assign ATP rule to the item.
Is item, Is Item a
ATP/PTO only, a
No component of
parent of an an ATO/PTO
assembly? assembly?
Yes Yes
Enable components for ATP
checking.
Update ATP checking ability at the

bill-component level.

ATP Checking
ATP Checking
Enable Check ATP Attribute
ATP Test
Enter Demand
Enabling ATP Checking When Placing a Demand

If you enable the Check ATP attribute, the item must pass an ATP test before you can place a
demand for it in Oracle Order Management. When you place a demand for the item in Oracle
Order Management, the ATP process checks to see if there is sufficient quantity.
If you decide not to enable the Check ATP attribute, then you can place a demand for the item
even if there is not sufficient stock to satisfy the demand. You should not enable the Check
ATP attribute for items that are noncritical, rarely out of stock, on a short manufacturing cycle,
or replenishable on short notice.
Specifying an Item ATP Rule
Oracle Inventory uses the ATP rule that you assigned to check ATP when you place a demand
for the item in Oracle Order Management. If you do not specify an ATP rule for the item, the
ATP process uses the organization-level default ATP rule that you enter in the Organization
Parameters window.

ATP Checking
ATP Checking
You can select the ATP Components only if you select

one of the following attribute values for the item:
• Assemble to Order
• Pick Components
• Phantom WIP Supply Type
Selecting the ATP Components Attribute

If you enable the ATP Components attribute for an assembly, you can place a demand for the
assembly only if all of the components with the enabled Check ATP attribute at the bill-
component level pass the ATP check. If you enable the Check ATP attribute for the assembly,
then the assembly must also pass the ATP check before you can place a demand for it.

ATP Checking
ATP Checking
Oracle Inventory: ATP

Components attribute
Oracle Bills of Material:

Check ATP attribute
Setting the Check ATP attribute at the Bill Level

Use the following navigation path to access the Bill of Material window:
Navigate to the Oracle Bills of Material application, (N) Bills > Bills.
If an item is a component in a bill of material, you can change the value of the Check ATP
attribute, at the bill-component level, to something other than what you set at the master-item
level.
If you enabled the Check ATP attribute when you defined the item, you can decide whether to
enable or disable the component Check ATP attribute.
If you decide not to enable the Check ATP attribute when you defined the item, Oracle
Inventory does not enable the bill component Check ATP attribute.
This enables you to set up items that require passing ATP checks when ordered directly, but
that do not require passing ATP checks when they are components of an assembly.

Viewing ATP Criteria
Viewing ATP Criteria
Oracle Inventory calculates ATP quantities based on

the ATP rule that you select in the ATP Criteria
window.
Viewing ATP Information for Individual Items

When you set up ATP criteria, you must specify the following information:
• Required quantity
• Required date
Oracle Inventory then displays the following ATP results:
• Earliest date on which the required quantity will be available
• ATP quantity for the required date
Viewing ATP Information for a Group of Items
Oracle Inventory returns the date when all for the items in the group will be available. You can
view the ATP result and supply and demand detail for each item by navigating to the ATP by
Period and Supply/Demand Detail windows, respectively.
Viewing ATP Information for a Demand Class
You can view ATP information for individual items and groups of items that belong to a
particular demand class.

Agenda
Agenda
• Overview
• Forecasting
• Summary

Planning and Forecasting Profile Options

Levels
INV: Minmax Yes All Approved
Reorder
Approval
Enter Yes All Concurrent
Replenishment Processing
Count Form
RC Line Failure Yes All Continue
Processing
RC Requisition Yes All Approved
Approval
Minmax Reorder Approval

Indicates the status of requisitions created by the Minmax Planning Report. Inventory
predefines a value of Approved for this profile for all levels upon installation. If you choose
Incomplete, you can optionally load requisitions as unapproved and use the document approval
functionality in Oracle Purchasing.
Enter Replenishment Count Form

Indicates processing control in the Enter Replenishment count window. The available values
are as follows:
• Background processing: Upon commit, control returns immediately to you, allowing you to
continue working. The replenishment count transactions are executed on a periodic basis.
• Upon commit- Inventory spawns the concurrent process and returns control immediately to
you, allowing you continue working. Displays the concurrent request number representing
the concurrent process executing the replenishment.

RC Line Failure
Indicates the action taken when a failure is detected while processing a replenishment count
line. Inventory predefines a value of Continue processing for this profile for all levels upon
installation.
• Continue processing- Other (successful) lines for the replenishment header are processed to
requisition lines
• Halt processing- Do not process other (successful) lines for the replenishment header.
RC Requisition Approval
Indicates the status of Subinventory Replenishment requisitions created by the replenishment
processor. Available values are:
• Approved- Requisitions created by the replenishment processor are approved.
• Unapproved- Requisitions created by the replenishment processor are not approved.
Inventory predefines a value of approved for this profile. If you choose unapproved, you can
optionally load subinventory replenishment requisitions as unapproved and use the document
approval functionality in Purchasing.

Setting Up the Min-Max System Profile Value
Setting Up the Min-Max System Profile

Value
INV: Minmax Reorder Approval - YES or NO
Entering Min-Max Approval Status

When you run the Min-max report, the INV: Minmax Reorder Approval profile option enables
you to create requisitions as either approved or unapproved.
How to Enter a Min-Max Approval Status
To enter a min-max requisition approval status, navigate to the System Profiles window to
enter a personal or system profile value to specify a min-max reorder approval status.
A Find window appears. Enter “%Minmax%” in the find window to locate the Minmax
Reorder Approval profile option.
Note: If you do not have access to system-level profile values, ask your system administrator
for assistance in setting up the system-level Minmax Reorder Approval profile option.
Navigation Path
Inventory Responsibility (N) Setup > Profiles > Personal

Subinventory Setup Windows
Subinventory Setup Windows
You use the following windows to set up and process

subinventories for which you want to enter
replenishments counts:
• Subinventories
• Item Subinventories
• Replenishment Count Headers
• Replenishment Count Lines
• Process Replenishment Counts
• Purge Replenishment Counts

Agenda
Agenda
• Overview
• Forecasting
• Summary

Min-Max Order Type and Order Source
Item
Make Buy
The source type specified and whether the item is set up as a “Make” item or a “Buy” item
determines the type of replenishment order created. For organization level min-max planning,
the source type is specified on the “General Planning” tab of Organization Item form.
For subinventory level min-max planning, the source type is specified on the Sourcing tab of
the Item Subinventories form If this is left blank, the report checks to see if a source type is
specified either at the Subinventory level, the Organization Item level, or on the Organization
Parameters form.
If the item is a Buy item and the source type is set to “Inventory” min-max creates requisitions,
if the source type is “Supplier” it creates purchase orders and if the source type is
“Subinventory” it creates move orders. Note that source type “Subinventory” is not valid for
organization level planning (it is not a valid option on the Organization Parameters form; if
used on the Organization Item form for an item that is planned at the organization level it will
not restock the item). Items must also be transactable in order for min-max to create purchase
orders, requisitions or move orders (“Transactable” flag on Inventory tab of Organization Item
form checked).

Purchasable Item Considerations
The following conditions must be satisfied before min-max can insert records into the PO
interface table:
• For requisitions (source type Inventory), internal orders are enabled for the item Internal
Orders Enabled” flag on Order Management tab of the Organization Item form is checked.
• For purchase orders source type Supplier, the item is purchasable Purchasable” flag on
Purchasing tab is checked.
• An Inventory AP Accrual account is defined for the organization.
• An Invoice Price Variance account is defined for the organization.
• For Min Max Report to create Purchase / Internal requisitions successfully, Encumbrance
Account SHOULD BE specified at Item or Org level, if the 'Use Requisition Encumbrance'
flag is checked in Financial Options form under Encumbrance tab. For subinventory level
planning, Encumbrance Account SHOULD BE specified at the item-subinventory,
subinventory, organization-item or organization level. For organization level planning,
min-max will only look at the organization-item or organization level to find the
encumbrance account. If the 'Use Requisition Encumbrance' flag is unchecked, it is
optional to specify Encumbrance Account in the Organization Items form or Organization
Parameters form.
• A charge account is defined. If the “Inventory Asset Value” flag on the Costing tab of
Organization Item form is checked, then the material account is used. For organization
level planning, the material account is specified in the Valuation Accounts section of the
Costing Information tab of the Organization Parameters form; for subinventory level
planning, the material account is specified at the subinventory level. If the Inventory Asset
Value flag is not checked, the expense account is used for org level planning, the expense
account is defined on the Purchasing tab of the Organization Item form, or in the Valuation
Accounts section of the Costing Information tab of the Organization Parameters form; for
sub level planning it checks the expense account defined at the subinventory level before
looking at the org-item or org level expense account.
Additional considerations for Creation of WIP Jobs
For ‘Make’ items min-max inserts a record into the WIP interface table
wip_job_schedule_interface for creating a WIP Job or Schedule for manufacturing this item.
WIP work orders cannot be generated for subinventory level min-max planning – if a Make
item is min-max planned at the subinventory level, the report flips the flag and treats it as a
Buy item instead. Also, the item must have the Build in WIP and Pick components enabled.
Make Item Considerations

The following considerations should be considered when using min-max on make type items.
• Discrete MPS
• Set the item type to Make.
• Make certain that under the general planning tab the sourcing is set to null and cleared out.
• Make certain to run the min-max planning with restock = yes. Whether or not wip demand
and supply are included in the calculations is specified in the report parameters
• It is possible to verify that an entry has been made into the table
WIP_JOB_SCHEDULES_INTERFACE.

• Run the associated Mass load Concurrent Program (WIP->Discrete Jobs->Import Jobs and
Schedules) to ensure that the WIP interface tables have been picked up and processed.

Replenishment Method Selection
Supplier Sources
Demand Sources
Documents

Consider the following information when determining the replenishment method to use:
• Supply sources
• Document created during replenishment
• Demand Sources – Although not listed in the table, demand sources might include the
following:
- Sales orders
- Forecasts

Agenda
Agenda
• Overview
• Forecasting
• Summary

Summary
Summary

• Perform Forecasting
• Perform Reorder-point planning
• Perform Min-max planning
• Perform replenishment counting
• Generate kanban cards
• Set up available to promise (ATP)
• Perform ATP checks
• Set up inventory planning profile options
• Identify the Implementation Considerations


11i Inventory Accuracy
Concepts
Chapter 11
11i Inventory Accuracy Concepts

Chapter 11 - Page 1

Chapter 11 - Page 2
Objectives
Objectives
After completing this module, you should be able to:

• Define ABC Analysis
• Define Cycle Counting
• Define Physical Inventory
• Explain how Mobile Devices can be used for
inventory accuracy

Chapter 11 - Page 3
Agenda
Agenda
• Overview of Inventory Accuracy

• Overview of ABC Analysis
• Overview of Cycle Counting
• Overview of Physical Inventory
• Overview of Mobile Device Inventory Accuracy
• Summary

Chapter 11 - Page 4
Overview
Overview
A B C
ABC Analysis
Physical Inventory Cycle Counting
Overview
Oracle Inventory Management provides several tools to aid users in controlling and improving
the accuracy of inventory records:
•ABC Analysis
•Cycle Counting
•Physical Inventory

Chapter 11 - Page 5
Agenda
Agenda

• Summary

Chapter 11 - Page 6
ABC Analysis Overview
ABC Analysis Overview
Higher More
Importance Control
Lower Less
Explaining ABC Analysis

ABC Analysis is the classification of a group of items in decreasing order of annual dollar
volume or other criteria. This array is then normally split in to three classes A, B, and C.
•A Group- The A group usually represents 10% to 20% by number of items, and 50%-70% by
projected dollar volume.
•B Group- The B group usually represents about 20% of the times and about 20% of the dollar
volume.
•C Group- The C group contains 60%-70% of the items and represents about 10%-30% of the
dollar volume.

Chapter 11 - Page 7
Agenda
Agenda

• Summary

Chapter 11 - Page 8
Cycle Counting Overview
Cycle Counting Overview
• The periodic counting of individual inventory

items throughout the year.
Cycle Counting
With cycle counting, Inventory is counted on a cyclic schedule rather than once a year. A
cycle inventory count is usually taken on regular defined basis. Most effective cycle counting
systems require the counting of a certain number of items every workday with each item
counted at a prescribed frequency. With ABC analysis you can use cycle counting to count
items of greater importance more frequently than those of less importance. Cycle counting
supports scheduled counting based on value or counting by location, and can be set up at the
organization level or the subinventory level.
Benefits of Cycle Counting

Keeping inventory records accurate by correcting errors between the system on-hand
(perpetual) and actual on-hand (physical quantities). Cycle counting can also be a valuable
tool to help identify patterns in the errors found. Analysis of these patterns can suggest and
help to prioritize improvements in training, tools, and processes. Over a period of time these
improvements may increase the average level of inventory record accuracy.

Chapter 11 - Page 9
Agenda
Agenda

• Summary

Physical Inventory Overview
Physical Inventory Overview
Inventory Organization
Subinventory
Physical Inventory
Physical Inventory
A physical inventory is a periodic reconciliation of system on-hand balances with physical
counts in inventory. You can perform physical inventories whenever you choose to verify the
accuracy of your system on-hand quantities. You can perform a physical inventory for an
entire organization or for particular subinventories within an organization. Physical
inventories are usually performed once every six months, or once a year depending on
organization requirements.

Why Perform Physical Inventories?
Why Perform Physical Inventories?
• Accurate on-hand quantities are essential for

effective planning and for minimizing inventory
investment.
• Accurate on-hand quantities are required for tax
and audit purposes.

Agenda
Agenda

• Summary

Mobile Inventory Accuracy Overview
Mobile Inventory Accuracy Overview
Mobile Device Inventory Accuracy

Oracle Mobile Materials Management provides windows to perform cycle counting and
complete physical inventory functions.

Agenda
Agenda

• Summary

Summary
Summary

• Define ABC Analysis
• Define Cycle Counting
• Define Physical Inventory
• Explain how Mobile Devices can be used for
inventory accuracy

11i Inventory Accuracy
Fundamentals
Chapter 12
11i Inventory Accuracy Fundamentals

Chapter 12 - Page 1

Chapter 12 - Page 2
Objectives
Objectives
After completing this module you should be able to do the

following:
• Create an ABC Compile
• Define and Maintain a Cycle Count
• Demonstrate Count Adjustments and Approvals
• Discuss Inventory Accuracy Implementation concerns

Chapter 12 - Page 3
Agenda
Agenda
• Defining an ABC Analysis
• Defining ABC Valuation Scope
• Defining ABC Groups, Classes and Items
• Defining and Maintaining a Cycle Count
• Explaining Approval Tolerances
• Defining Cycle Count Scheduling and Requests
• Defining Recounts, Adjustments and Approvals
• Explaining Implementation Considerations
• Summary

Chapter 12 - Page 4
Defining an ABC Analysis
Defining an ABC Analysis
ABC Analysis Process Steps
Define and run an ABC

1 compilation.
2 Define ABC classes.
Define ABC group, assign items to

3 ABC classes within a group.
4 Update item assignments.
5 Purge ABC information.

Chapter 12 - Page 5
Define and Run an ABC Compilation
Define and Run an ABC Compilation
“B” Item “A” Item “C” Item
Explaining ABC Compilation

An ABC Compile is a ranking of your items based upon selected criteria. You can define and
compile an ABC analysis for your entire organization or for a specific subinventory within
your organization.
You choose the compilation criterion, the scope of your analysis, the cost type to use in
determining item values and any additional information that may be conditionally necessary
based on your compilation criterion.

Chapter 12 - Page 6
ABC Compilation Criteria
ABC Compilation Criteria
On-Hand Value
Item AS6026 Item AS4922 Item AS6026

$300 $75 $5
On-Hand 3 On-Hand 100 On-Hand 25
“A” Item “B” Item “C” Item
Explaining ABC Compilation Criteria

For each distinct compile, you can choose one criterion (such as Current On-Hand Value or
MRP Demand Usage Value) to value and rank each item included in the ABC compile. The
criterion that you choose defines what the rank of a particular item will be in the ABC
Compile.
For example, if you use Current on-hand quantity as your compile criterion, then item X with
an on-hand quantity of 10 units is of higher rank than item Y with a quantity of 5 units. If you
use Current on-hand value criterion item X has a cost of $10 per unit and item Y has a cost of
$25 per unit, item Y has a higher value than item X since Oracle Inventory compares $100
($10x10 units) to $125 ($25x5 units).
Explaining ABC Compilation Criteria Options

Current On-Hand Quantity
Use the current on-hand quantity of inventory. Assign the sequence number by descending
quantity.
Current-On-Hand Value

Chapter 12 - Page 7
Use the current on-hand quantity of inventory multiplied by the cost for the cost type. Assign
the sequence number by descending value.
Historical Usage Value
Use the historical usage value (transaction history). This is the sum of the transaction
quantities times the unit cost of the transactions for the time period you specify. Assign the
sequence number by descending value.
Historical Usage Quantity
Use the historical usage quantity (transaction history) for the time period you specify. Assign
the sequence number by descending quantity.
Historical Number of Transactions
Use the historical number of transactions (transaction history) for the time period you specify.
Assign the sequence number by descending number of transactions.
Forecasted Usage Value
Use the forecasted usage value based on the forecast quantity calculated and the cost type you
specify. Assign the sequence number by descending value.
Forecasted Usage Quantity
Use the forecasted usage quantity. Assign the sequence number by descending quantity.
Previous Cycle Count Adjustment Quantity
Oracle Inventory sums the value of all cycle count adjustments that have occurred since the last
ABC compile date. Assign the sequence number by descending quantity.
Previous Cycle Count Adjustment Value
Oracle Inventory sums the value of all cycle count adjustments that have occurred since the last
ABC compile date. Assign the sequence number by descending value.
MRP Demand Usage Quantity
Oracle Inventory sums the MRP gross requirements for the MRP plan you specify. Assign the
sequence number by descending quantity.
MRP Demand Usage Value
Oracle Inventory sums the MRP gross requirements for the MRP plan you specify, then
multiplies each by the item cost type you choose in the ABC compile form. Assign the
MPS Demand Usage Quantity
Oracle Inventory sums the MPS gross requirements for the MPS schedule you specify. Assign
the sequence number by descending quantity.
MPS Demand Usage Value
Oracle Inventory sums the MPS gross requirements for the MPS schedule you specify, then
DRP Demand Usage Quantity
Oracle Inventory sums the DRP gross requirements for the DRP plan you specify. Assign the
sequence number by descending quantity.
DRP Demand Usage Value

Chapter 12 - Page 8
Oracle Inventory sums the DRP gross requirements for the DRP plan you specify, then

Chapter 12 - Page 9
Agenda
Agenda
• Summary

ABC Valuation Scope
ABC Valuation Scope

Subinventory 1
Inventory
Subinventory 2
Organization
Subinventory 3
Item Valuation
Subinventory 1
Subinventory 1 Inventory
Subinventory 2
Organization
Subinventory 3
ABC Valuation Scope

You select a valuation scope for determining the ranking of items. You can do an ABC
compile across individual subinventories, or across an organization. If you choose to restrict
ABC compile to items within a particular subinventory, you have the option of valuing your
items across all subinventories in the organization or by the individual subinventory.

Agenda
Agenda
• Summary

Defining ABC Groups
Defining ABC Groups
Class “A” ABC Group 1
ABC Group 2 Class “B” Class “C”
Defining ABC Groups

ABC assignment groups link a particular ABC compile with a valid set of ABC classes. This
allows you to selectively reduce or increase the number of ABC classes you want to use in
your item assignments for a particular ABC compile.
Oracle Inventory uses these groups when you automatically assign your items to ABC classes.
It ensures that you divide your items into the exact number of groupings you specified in the
ABC group.
You must also assign a sequence number to each class associated with the ABC group. The
class with the lowest sequence number is assumed to have the highest rank and will have
higher rank items assigned to that class than the next higher sequence number.
You may update an assignment group to add new classes, however you cannot delete a class.
If you need to delete a class, you must create a new assignment group with only the desired
classes.

Defining ABC Classes
Class “A”
ABC Classes Class “B”
Class “C”

You use ABC Classes to identify the value groupings to which your items belong. You define
these classes using you own terminology. For example you might define classes High,
Medium, Low, and later assign your items of highest rank to high, those of lower rank to
Medium, and those of the lowest rank to low. You must assign an ABC class to at least one
ABC group.
You can use ABC classes to group items for a cycle count where you count “A” items more
frequently than “B” items. When you use ABC classes in this way, you perform an ABC
analysis and assign items to classes based on analysis results.

ABC Item Assignments
ABC Item Assignments
Class A
Class B Class C
When you define ABC assignments you specify the cutoff point for each ABC class. Each
ABC class must have at least one item assigned to it and all items in the ABC compile must be
assigned to an ABC class. You can use any of the following fields to determine the cutoff
points:
Seq: You can enter the sequence number from the ABC Descending Value Report for the last
item to be included in each ABC class. Oracle Inventory automatically calculates this value if
you choose to assign classes by another method. Oracle Inventory displays the last sequence
number as the default of the last class.
Inventory Value: You can enter the cumulative value from the ABC Descending Value Report
for the last item to include in each ABC class. Oracle Inventory automatically calculates the
maximum value. This maximum value is restricted to the total inventory value compiled and is
displayed in the Total Compile Value field. Oracle Inventory displays the total inventory value
as the default for the last class.
ABC Item Assignments Note

% Items: You can enter the percent of number of items compiled from the ABC Descending
Value Report to include in each class. Oracle Inventory automatically calculates this value if
you choose to assign classes by another method.
% Value: You can enter the percent of total compile value from the ABC Descending Value
Report to include in each class. Oracle Inventory automatically calculates this value if you
choose to assign classes by another method.
It is possible to have several items in the ABC compile with zero value. If any item with zero
value is in a class other than the last class, you may only assign items using the sequence
number or item percent.
For the Inventory Value, % Item and % Value fields, if the value entered does not exactly
match any item, Oracle Inventory chooses the first item with a value greater than the value
entered. For example, if you choose 20% to be A items, inventory calculates which items
comprise 20% and will include the next item if a partial is in the calculation. If 20% = the first
10 items in my compile, plus part of the 11th item, then items 1-11 are A items.
If you are not satisfied with the class into which an item falls as a result of the automatic ABC
assignment process, you can change it. For example, you compile your ABC analysis based on
historical usage value. A new item in your inventory is ranked low because it has little
transaction history. However, you know that for the future this item should really be ranked
higher. Use the Update ABC Assignments form to reclassify this item.
Whenever you recompile an ABC analysis or change the method by which you assign your
ABC classifications, you lose any changes you might have made to your item assignments. All
items are reclassified based on their new ranks in the ABC Descending Value Report and the
method you choose to determine cutoff points.

Guided Demonstration Overview: Compiling an ABC Analysis

Compiling an ABC Analysis

compile an ABC Analysis.

Guided Demonstration - ABC Analysis
Creating an ABC Compile
1. (N) ABC Codes > ABC Compiles.
2. Choose New.
3. Enter Finished Goods as the compile name.
4. Enter Finished Goods Analysis as the description.
5. Choose the subinventory as the content scope.
6. Choose the subinventory as the valuation scope.
7. Select the FGI subinventory.
8. Select Current on hand quantity as the compile criterion.
9. Choose Compile.
Note: Note the concurrent request number.
10. Choose Yes to print the compile results.
Note: Note the concurrent request number.
11. Choose Close Form
Creating ABC Classes
12. (N) ABC Codes > ABC Classes.
13. Choose New.
14. Create three ABC Classes using the following information.

− Name: Finished Goods A
− Description: Finished Goods Class A
− Name: Finished Goods B

− Description: Finished Goods Class B
−
− Name: Finished Goods C
− Description: Finished Goods Class C

15. Choose Save.
ABC Assignment Groups
17. (N) ABC Codes > ABC Assignment Groups.
18. Choose New.
19. Enter Finished Goods ABC as the Group Name.
20. Enter Finished Goods as the compile name.
21. Choose Group Classes.
22. Choose the following ABC Classes.

− Finished Goods A
− Finished Goods B
− Finished Goods C
23. Choose Save.
24. Choose Assign Items.
25. Enter the following percentage values.

− A items: 50%
− B items 80%
− C items populates automatically
26. (M) File > Save and Proceed.
Note: Note the Concurrent request number.

Practice Overview: Compiling an ABC Analysis
Practice Overview:
In this practice you will how to compile an ABC

Analysis.

Practice - Compiling an ABC Analysis
Overview
In this practice you will compile an ABC analysis.
Assumptions
• You are skilled in Oracle Navigation.
Tasks
Receive Items
Receive 20 items of your choice in to your ##-FGI subinventory. You can use part numbers
from other teams as well as system items that begin with AS, CM, or SB. Be sure to receive
different quantities of each item ranging from 5-100.
Note: Receive at least one system item. These items are associated with standard costs.
Compile an ABC analysis
1. Compile an ABC Analysis using the following information:

− Name: ##-FGI ABC
− Description: ABC Complie for Team ##FGI
− Content and Valuation Scope: Subinventory
− Criterion: Current on hand quantity
− Cost Type: Frozen
Define an ABC Class
2. Define three ABC Classes using the following naming convention:

− Name: ## Class A
− Description: A items
Define an ABC Group
3. Define an ABC group using the following information

− Group Name: ##-ABC Group
− Compile Name: ##-FGI ABC
Define an ABC Sequence

4. Define an ABC Sequence using the following information:
• Sequence Name
− ## Class A
− ## Class B
− ## Class C
Assigning Item Valuation
Assign item valuation as follows:

− ## Class A: 50
− ## Class B: 80
− ## Class C: (system calculates)
Updating ABC Codes
Change one item from a C item to an A item, and change one item from a C item to a B item.

Solution – Compiling an ABC Analysis
1. Navigate to the ABC Compile window.
• (N) ABC Codes > ABC Compiles
• (M) File > New
2. Compile an ABC Analysis using the following information:

− Name: ##-FGI-ABC
− Description: ABC Complie for Team ##-FGI
− Content and Valuation Scope: Subinventory
− Criterion: Current on hand quantity
− Cost Type: Frozen
• Select Compile, and note your report request number. ___________________
• Select Yes to print results, and note your request number. _________________

Define an ABC Class
3. Navigate to the ABC Classes window.
• (N) ABC Codes > ABC Classes
• (M) File > New
4. Define three ABC Classes using the following naming conventions:

− Name: ## Class A
− Description: A items
− Name: ## Class B
− Description: B items
− Name: ## Class C
− Description: C items
Define an ABC Group
6. Navigate to the ABC Assignment Groups window

• (N) ABC Codes > ABC Assignment Groups
• (M) File > New
7. Define an ABC group using the following information

− Group Name: ##-ABC Group
− Compile Name: ##-FGI-ABC
Note: Make sure your cursor is on the group you created
• Select Group Classes
Define an ABC Sequence
8. Define an ABC Sequence using the classes you created earlier.
• Class Name
− ## Class A
− ## Class B
− ## Class C

9. Save your work.
• (M) File > Save
Assigning Item Valuation
10. Select Assign Items.
11. Enter the following percentages in the item % field

− 00-Class A: 50
− 00-Class B: 80
− ## Class C: (system calculates)

12. (M) File > Save and Proceed
Updating ABC Codes
13. Review and update the ABC codes assigned to items in your FGI subinventory
• Select Update Items
• Change one item from 00-Class C to 00-Class A.
• Change one item from 00-Class B to 00-Class C.
• (M) File: Save.
• (M) File: Close Form.

Agenda
Agenda
• Summary

Defining and Maintaining a Cycle Count
Defining and Maintaining a Cycle Count
Cycle Count Steps
Define Cycle Count

Establish Tolerances & other limits
Load Items to be counted into
Cycle Count Classes
Schedule Counts and generate
Count Requests
Enter Counts and report results
Approve / Reject cycle count
Manage Count interface processes

Agenda
Agenda
• Summary

Cycle Count Approval Tolerance
System On-hand
Actual Count
Quantity

A cycle count is a count of a subset of items, counted during the working day, rather than after
freezing stock levels. When the actual count and the system’s on-hand quantity do not exactly
agree, the cycle count will be compared to an approval tolerance.

Approval Tolerances
Approval Tolerances
-
Quantity Tolerance
Variance =
System On- Actual Count
hand Quantity
-
Adjusted Value
Tolerance = System On- Actual Count X
hand Quantity
Current
Item $
Approval Tolerances
Oracle Inventory supports two types of cycle count approval tolerances, Quantity Variance
Tolerance and Adjustment Value Tolerance. For each type, you can specify a positive and a
negative limit which can differ from each other. When a particular cycle count entry results in
an adjustment that exceeds any one of these limits, you have a cycle count adjustment that
exceeds approval tolerances. Based on the approval option you choose when you define your
cycle count, this adjustment is either posted automatically or held for approval.
Quantity Variance Tolerance Note
Quantity Variance Tolerance:

The quantity variance tolerance is a user-defined limit for the difference between the actual
cycle count quantity and the system tracked on-hand quantity. You express positive and
negative quantity variance tolerances as percentages of the system on-hand quantity.
You enter these percentages when you define your:
Cycle Count Header

Cycle Count Classes
Cycle Count Items
Inventory uses any percentages you define at the cycle count item level first. If you do not
have any defined for an item, it uses the tolerances defined for that item’s cycle count class. If
you do not have any defined for the class, it uses the tolerances at the cycle count header level.
If you have no tolerances defined for the header, Inventory assumes that there is no limit to the
approval tolerance.
Adjustment Value Tolerance Note

Adjustment Value Tolerance:
The Adjustment Value Tolerance is a user-defined limit for the total value of a cycle count
adjustment.
• The adjustment value is calculated as:
adjusted value = (count qty - system on-hand qty) * current item cost
The Adjustment Value Tolerance is expressed as positive and negative amounts in your
functional currency. An adjustment value is out of tolerance if it falls outside of these
amounts.
You enter these tolerances when you define your cycle count header and cycle count classes.
Inventory uses the values you define at the cycle count class level first. If you do not have any
defined for an item’s class, it uses the values at the cycle count header level. If you have no
tolerances defined for the header, Inventory assumes that there is no limit to the approval
tolerance.

Hit/Miss Tolerance
Hit/Miss Tolerance
-
Hit / Miss % of
Tolerance =
System On- Actual Count
hand Quantity
Hit/Miss Tolerance
The Hit/Miss Tolerance is a user-defined limit for the difference between the system tracked
on-hand quantity and the actual cycle count quantity. You express positive and negative
hit/miss tolerances as percentages of the system on-hand quantity. A count is considered a
“hit” if it is within these tolerances, and a “miss” if it is outside them.
The Hit/Miss Tolerance allows you to evaluate the actual accuracy of your inventory.
You enter hit/miss tolerance percentages when you define your cycle count header and when
you define your cycle count classes. Inventory uses the percentages you define at the cycle
count class level first. If you do not have any defined for an item’s class, it uses the tolerances
at the cycle count header level. If you have no tolerances defined for the header, Inventory
assumes that there is no limit to the hit/miss tolerance, and all variances are therefore “hits”
regardless of the size.
Inventory uses these tolerances to generate the Cycle Count Hit/Miss Analysis report which
will be covered later in this course.

Measurement Errors
Measurement Errors
-
Measurement User Defined System On- Actual Count
Errors = Limits for hand Quantity
Measurement Errors Note

Measurement Errors:
Negative and positive measurement errors are user-defined limits for the difference between
the cycle count quantity and the system tracked on-hand quantity. Measurement Error limits
are assigned by Item. Inventory does not make any adjustments to an item whose cycle count
quantity differs from the system tracked on-hand quantity by less than the measurement error.
Because of this, measurement errors implicitly override any approval tolerances you specify.
You specify measurement errors when you define or update an item at the Master Item or
Organizational Item level. Use measurement errors with extreme caution since they actually
prevent cycle count adjustments from taking place. You would typically use this feature on an
exception basis for items you cannot accurately count. For example, if you visually check the
level of bolts in a bin to estimate the quantity, or you use their weight to approximate the
quantity, you might want to allow for measurement errors. Therefore, if your system tracked
on-hand quantity for the bolts in that bin is within an acceptable range, you do not perform a
cycle count adjustment.

Cycle Count Items
Cycle Count Items
Individual Items
ABC Group
Class “B” Class “C”
Cycle Count Items

You must load items into your cycle count before you can schedule or count them. There are
two methods you can use to do this:
•Specify an existing ABC group from which to automatically load your items
•Manually enter, delete or update the items you want included/excluded
When you specify an existing ABC group, Oracle Inventory automatically includes all items in
the ABC group you choose in your cycle count. Inventory also copies the ABC classes for that
ABC group into the current cycle count classes and maintains the same classifications for the
included items. You can change the classifications of your items for your cycle count
independent of the ABC classes.
Once you have generated your list of items to count from an ABC group, you can periodically
refresh the item list with new or reclassified items from a regenerated ABC group. Using the
Cycle Counts window, you can choose whether to automatically update class information for
existing items in the cycle count based on the new ABC assignments. You can also choose to

have any items that are no longer in the ABC group automatically deleted from the cycle count
list.
You manually enter, delete, or update the items you want included/excluded using the Cycle
Count Items window. You may want to use this form to load all your items for a cycle count
or to simply add items as they are defined in the system rather than recompiling your ABC
group and doing a complete reinitialization.

Agenda
Agenda
• Summary

Automatic Scheduling
Automatic Scheduling
To determine which items, and the quantities you

need to count during the scheduling frequency,
Inventory Uses the following:
• Number of items in each cycle count class,
• Frequency of each class, and the
• Workday calendar
Class “A”
Explaining Automatic Scheduling
In order for Inventory to perform automatic scheduling you must do the following:
•Set the Cycle Count Enabled item attribute to Yes for the items you want to include in the
cycle count.
•Enable automatic scheduling when you define your cycle count.
•Request the schedule using the Generate Automatic Schedule Requests window.
Each time the auto scheduler runs, it schedules counts only for the schedule interval you
defined for the cycle count header. So if your schedule interval is weeks, Inventory schedules
all items that you need to be counted on all of the workdays in the current week. If your
schedule interval is days, then Inventory only schedules those items that are due for counting
on the current date.

Manual Scheduling
Manual Scheduling
You can manually schedule counts in addition to or

instead of those generated with automatic scheduling.
Items
Locators
Subinventories
Explaining Manual Scheduling

You can request counts for specific subinventories, locators and items, and set the count for
any inventory date. For example, you could enter a request to count item A wherever it can be
found in subinventory X. Or you could request to count all item quantities in subinventory Y,
locator B-100.
Since manually scheduled counts have no impact on automatically scheduled counts, you can
potentially count some items more frequently than you had initially planned.
Physical Location Scheduling
You can use this feature to execute location-based cycle counting. You first need to generate a
schedule for counting each subinventory and locator. You then need to enter the schedule
requests for each locator, specifying the schedule date.

Count Requests
Count Requests
After you have successfully scheduled your counts,

you can submit the process to generate count
requests.
Schedule Generate Count

Output Request
Order by Assigns Unique

Subinventory Sequence
Locator Item Number
Revision Lot
Explaining Count Requests

This process takes the output of the automatic scheduler and your manual schedule entries and
generates a count request for each item number, revision, lot number, subinventory and locator
combination for which on-hand quantities exist. These count requests are ordered first by
subinventory and locator, then by item, revision and lot. Oracle Inventory assigns a unique
sequence number to each count request that can be used for reporting, querying and rapid count
entry.
Because the count requests are derived from the state of on-hand balances at the time the
Generate Cycle count Requests process is run, you should wait to run it until you are ready to
count.
Note: When you schedule an item to be counted using manual scheduling, some schedule
requests may have overlapping count requirements. The count request generator does not
create duplicate count requests, but instead cross-references one count request back to each
associated schedule request.
By default Inventory does not automatically generate requests to count items with an on-hand
quantity of zero. To include such items:

Define all sourcing details and inventory controls for the item. (For example, if an item is
under predefined locator control be sure it is assigned to a subinventory and locator.)
Select the Generate Zero Counts option when you define your cycle count.
Explaining Count Requests

The count request generation process automatically creates a count request. If a quantity is
found and counted, an adjustment is made.
At count entry, you may receive a warning message stating “Zero count, no adjustment
performed.” Inventory generates this warning if it cannot find all levels of inventory control
defined for the item. In this situation, enter the count but no adjustment is performed. To
make an adjustment and update the missing information, enter an unscheduled count using
either the Cycle Count Entries or Approve Adjustments window.

Entering Cycle Counts
Entering Cycle Counts
Unscheduled
Cycle Counts
Manual Cycle
Counts
Scheduled Cycle
Counts
Explaining Entering Cycle Counts

You can use the same window to enter counts of items requested via automatic or manual cycle
count scheduling. You can also enter unscheduled count entries, if they are allowed for your
cycle counts. You can use unscheduled counts to perform location based cycle counts. You
can also use a mobile device to enter cycle count quantities.
Oracle Inventory automatically queries all count requests for which you have not yet entered a
count. You can use flexible search criteria to specify the group of count requests for which
you want counts entered to speed up the count entry process. For example, you can specify a
range of count request sequences assigned to one person so they can be entered in the same
order they were printed on the count sheet.

Cycle Count Open Interface
Cycle Count Open Interface
Cycle Count
Open Interface
Import Cycle Export Cycle

Counts Counts
Explaining Cycle Count Open Interface

You can import / export cycle count entries from external systems into Oracle Inventory using
the Cycle Count Entries Open Interface.
Export Cycle Count Request

This process enables you to export cycle count requests into external systems.
Update Cycle Count Open Interface
This process enables you to update cycle count entries.
Import Cycle Count Entries from Open Interface
This process enables you to import cycle count entries open interface records into the database.
Purge Cycle Count Entries Open Interface Data
This process enables you to purge all cycle count entries from the open interface.
Print Cycle Count Entries Open Interface Data
This process enables you to print cycle count entries open interface data.

Agenda
Agenda
• Summary

Count Adjustments and Approvals
Enter Cycle
Counts
Review
tolerances
Make
adjustments

Once you enter and save your cycle counts, Oracle Inventory determines whether any
adjustments need to be made depending on the approval options and tolerances you set when
you defined the cycle count.

Automatic Recounts
Automatic Recounts
Items Outside
Tolerance Limits
Automatic Recount
Request
Automatic Recounts Note

If you turned the Automatic Recount option on when you defined your cycle count, Inventory
automatically submits recount requests for items that are outside the limits of the approval
tolerances you specify. Inventory submits recounts as many times as necessary, limited by the
maximum automatic recounts you specify for the cycle count. After you reach the maximum
number of recounts, Inventory holds the count for approval. Any count request with the
Recount status automatically appears on the next cycle count listing. You can manually
request recounts when you are approving adjustments. This recount request will be included in
the next cycle count listing.

Approving Cycle Counts and Adjustments
Approving Cycle Counts and Adjustments
Request Recounts
√ Approve Counts and

Adjustments
Query Counts
Approving Cycle Counts Held for Approval

Employees with access to the Count Adjustments Approvals Summary window can query,
request the recount of, or approve cycle counts pending approval. You can query all counts or
only those pending approval. You can approve adjustments, recount an item in question, reject
the count or take no action until further investigation takes place.
Approving Cycle Count Adjustments

You use the Count Adjustment Approvals Summary window to approve cycle count
adjustments, to request/approve recounts, or to reject the adjustment. Inventory determines
which counts need approval by using the approval tolerances you entered while defining your
cycle count. You can use flexible search criteria to specify the cycle count adjustments you
want to review or approve.
Inside the Count Adjustment Approvals Summary window, you can view a variety of current
item information to help determine whether to approve an adjustment. Select the information
from the following tabbed regions:

•Adjustment: View information for the count adjustment UOM, variance quantity, variance
value, variance percentage and system quantity.
•Revision, Subinventory, Locator: View information for revision, subinventory, locator, unit of
measure and adjustment quantity.
•Lot: View information for a lot number, unit of measure, adjustment quantity and serial
number.
•Reason, Reference: View or update the transaction reason and reference information. You
can also view the unit of measure and adjustment quantity.
•Count: View information for UOM, count quantity, counter and count date.
•Count Status, Class: View information for the sequence number, count status and cycle count
class
•Approval: View information for date approved and approver.
Approval Actions and Adjustments Options
For items appearing in the Approval Actions, Adjustments region, you can approve, request a
recount, or reject cycle count entries that are pending approval. You can also approve or reject
any count for which a recount has already been requested. You can reject any cycle count
request that has not yet been counted. You can display count history information or open the
Count Adjustment Approvals window.
•Select Approved to approve the selected count entry and post the adjustment to the transaction
manager for processing.
•Select Rejected to reject the selected count record. An adjustment is not posted. No further
processing of this count entry takes place.
•Select Recount to process a recount request for the selected count request. An adjustment is
not posted.
•Select the Count History button to open the Count History window for the current item. For
the current item, this window displays count and variance information for the current, prior and
first counts.
•Select the Open button to open the Count Adjustment Approvals window for the current line.
This window is a combination block which you can use to view and enter approval and
adjustment information for the current line instead of using the Count Adjustment Approvals
Summary window.

Guided Demonstration Overview: Performing Cycle Counts

Performing Cycle Counts

perform a cycle count.

Guided Demonstration - Cycle Counting
1. (N) Counting > Cycle Counting > Cycle Counts.
2. Choose New.
3. Enter the following cycle count information.

− Name: FGI Cycle Count
− Description: Finished Goods Cycle Count
− Adjustment Account: Miscellaneous
− Late Days: 1
− Starting Sequence: 0
− Unscheduled Entries: Yes
− Display System Qty: Yes
4. Select Specific in the Count Subinventories alternative region.
5. Select the FGI subinventory from the drop down list.
6. (T) Serial and Schedule
7. Enter the following Serial and Schedule information:

− Auto Schedule: Yes
− Frequency: By period
8. (T) Adjustments and ABC
9. Enter the following approval tolerances:

− Qty Variance: 3
− Adjustment Value: 50
− Hit / Miss Analysis: 10
10. Enter the following ABC Information:

− Group: Group created during ABC analysis
− Option: (Re)initialize
11. Choose Classes.
12. Enter the following ABC Class information:

− Class: Class A class created during ABC analysis
− Count: 150
− Class: Class B class created during ABC analysis
− Count: 100
− Class: Class C class created during ABC analysis

− Count: 50
13. (M) File Save.
14. (M) Tools > Perform Full > Cycle Count
15. Enter the cycle count name for the following parameters
− Generate automatic schedule recount
− Generate cycle count request
− Cycle count listing.
16. Choose Submit.
Entering Cycle Count Entries Using a Mobile Device
18. Select Inventory.
19. Select Counting
20. Select Cycle Count
21. Select Normal
22. Enter the following cycle count information:

− Org Code: M1
− Cycle count name: FGI Cycle Count
− Item: AS18947
− Quantity: Enter a number plus or minus the system quantity.
23. Select Done.
Cycle Count Entries and Approvals
24. (N) Counting > Cycle Counting > Cycle Count Entries
25. Enter FGI Cycle Count in the Name field.
26. Choose find.
27. Choose Yes to view all open cycle count items.
Note: Notice the item amount entered during the mobile counting demonstration does not
appear.
28. Choose Adjustments.

29. Enter the count quantities.
32. (N) Counting > Cycle Counting > Approve Counts
33. Enter FGI Cycle Count in the Cycle Count field.
34. Choose Find.
35. Choose No to view all cycle count items.
Note: Notice the item quantity entered in the mobile counting demonstration appears here.
36. Choose Approved to approve an item adjustment.
37. Select the Approver from the drop down list.
38. (M) File Save.
39. Choose OK.
40. Close the Approvals window.
41. Approve or reject the remaining items.

Practice Overview: Performing Cycle Counts
Practice Overview:
Performing Cycle Counts
In this practice you will learn how to perform a cycle

count.

Practice - Performing a Cycle Count
Overview
In this practice you will perform a cycle count using the ABC compile group you created in a
previous lab.
Assumptions
• You are skilled in Oracle Navigation.
• You completed the Compile an ABC Analysis practice.
• You completed the Define Items practice.
• You have at least 20 items in your ##-FGI subinventory
Tasks
Define a Cycle Count Header
Define a cycle count header using the following information:

− Name: ##-Cycle Count
− Description ##-Team ## Cycle Count
− Late Days: 1
− Unscheduled entries Yes
− Display System qty: Yes
− Count Subinventory: Yes
− Frequency: By Period
− Approval Required: If out of Tolerance
− QTY 3%
− Adjust Value: 50
− Hit/Miss: 10%
− Group: ##-Group
− Option: Reinitialize
− Class A: 150 counts per year
− Class B: 100 counts per year

− Class C: 50 counts per year
Perform a Cycle Count
Use the following parameters to perform a cycle count:

− Name: Gen.AutoSched
− Cycle Name: ##-Cycle Count
− Name: Gen.CycleCountReg
− Cycle Name: ##- Cycle Count
− Name: Cycle Count Listing

− Cycle Name: ##-Cycle Count
Enter Cycle Count Entries
View the system quantities and enter quantities for the cycle count. Have some of the items out
of tolerance, and have at least one item match the system quantity.
Approve, Reject or Recount Cycle Count
Why are some of the items already approved? ________________________________________
Approve, Reject or recount all entries for your cycle count.

Solution – Performing a Cycle Count
Define a Cycle Count Header
1. Navigate to the Cycle Counts Window.
• (N) Counting > Cycle Counting > Cycle Counts
2. Select New.
3. Enter a new cycle count header using the following information:
• (T) Scope and Control

− Name: ##-Cycle Count
− Description ##-Team ## Cycle Count
− Late Days: 1
− Starting Sequence: ##
− Unscheduled entries Yes
− Display System qty: Yes
− Count Subinventory: Yes

• (T) Serial and Schedule
− Count: Not Allowed
− Frequency: By Period
• (T) Adjustments and ABC

− Approval Required: If out of Tolerance
− QTY 3%
− Adjust Value: 50
− Hit/Miss: 10%
− Group: ##-Group
− Option: Reinitialize

• Select Classes
− ## Class A: 150 counts per year
− ## Class B: 100 counts per year
− ## Class C: 50 counts per year

4. (M) File > Save
Perform Cycle Count
5. (M) Tools > Perform Full Cycle Count

6. Enter the following parameters
− Generate automatic schedule: ##- Cycle Count
− Generate cycle count requests: ##-Cycle Count

− Cycle Count Listing: ##-Cycle Count
7. Select Submit
Note: Do not proceed until after your concurrent request completes.
8. Save and Close windows.
• (M) File > Save
Note: Do not proceed until after your concurrent request completes.
Enter Cycle Count Entries
Navigate to the Cycle Count Entries window.
• (N) Counting > Cycle Count Entries
9. Enter ##-Cycle Count in the Cycle Count name field, or select your cycle count from the list
of values.
10. Select find to populate your items.

(T) Adjustments
• Enter Count quantities for your items. Enter a few quantities that are out of tolerance, a
few quantities within tolerance, and at least one that matches the system quantity.

Save and Close window.
• (M) File > Save
Approve, Reject or Recount Cycle Count
Navigate to the cycle count approvals window.
• (N) Counting > Cycle Counting > Approve Counts
Select your cycle count from the LOVs in the Cycle Count field.
Select Find to open your cycle count items.
Select No to view all items.

Why are some of the items approved? They fall within set approval limits.
Approve, reject or recount your items.
Save and Close window.
• (M) File > Save

Practice Overview: Mobile Counting
Practice Overview:
Mobile Counting
In this practice you will learn how to enter cycle count

values using a mobile device.

Practice - Mobile Counting

Practice - Mobile Counting
Overview
Use the mobile device to perform a cycle count for your 00-FGI subinventory.
Assumptions
• You have completed the ABC Analysis Lab.
• You have completed part one of the Cycle Counting lab.
Tasks
Entering Item Quantities Using the Mobile.
Enter cycle count quantities for an item.

Solution – Mobile Counting
Entering Item Quantities Using the Mobile
Responsibility = (Mobile) Inventory, Vision Operations
1. Select Inventory from the Main Menu.
2. Select Counting from the Inventory Menu.
3. Select Cycle Count from the Counting Menu.

4. Select Normal from the Cycle Count menu.
5. Enter the following information when prompted.
Note: The mobile application screen is case sensitive.

− Name: your cycle count name
− Sub: ##-FGI
− Item: Enter an item in your ##-FGI subinventory
− Qty: Enter a quantity
6. Select Done to apply your cycle count.

7. Select Logout to exit the Mobile.

Agenda
Agenda
• Summary

Agenda
Agenda
• Summary

Summary
Summary

• Create an ABC Compile
• Define and Maintain a Cycle Count
• Demonstrate Count Adjustments and Approvals
• Discuss Inventory Accuracy Implementation
concerns


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Inventory Management Fundamentals D16356GC10

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11i Inventory Management

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Technical Contributors and Reviewers

Jennifer Sherman, Paul Scott, Paul Roy, Jeff Hopp

This book was published using: oracletutor

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Copyright © Oracle Corporation, 2002. All rights reserved.

11i Inventory Management Fundamentals Table of Contents

Copyright © Oracle Corporation, 2002. All rights reserved.

11i Inventory Management Fundamentals Table of Contents

Copyright © Oracle Corporation, 2002. All rights reserved.

11i Inventory Management Fundamentals Table of Contents

Copyright © Oracle Corporation, 2002. All rights reserved.

11i Inventory Management Fundamentals Table of Contents

Copyright © Oracle Corporation, 2002. All rights reserved.

11i Inventory Management Fundamentals Table of Contents

Copyright © Oracle Corporation, 2002. All rights reserved.

11i Inventory Management Fundamentals Table of Contents

Copyright © Oracle Corporation, 2002. All rights reserved.

11i Inventory Management Fundamentals Table of Contents

Copyright © Oracle Corporation, 2002. All rights reserved.

11i Inventory Management Fundamentals Table of Contents

Copyright © Oracle Corporation, 2002. All rights reserved.

11i Inventory Management Fundamentals Table of Contents

• Working experience with Oracle Applications

• There are no prerequisites for this course.

How This Course Is Organized

Copyright © Oracle Corporation, 2002. All rights reserved.

11i Inventory Management Fundamentals Table of Contents

Copyright © Oracle Corporation, 2002. All rights reserved.

11i Inventory Management Fundamentals Table of Contents

Copyright © Oracle Corporation, 2002. All rights reserved.

11i Inventory Management Fundamentals Table of Contents

Passwords DROP USER scott

Lowercase Syntax variables CREATE ROLE role

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

Copyright © Oracle Corporation, 2002. All rights reserved.

11i Inventory Management Fundamentals Table of Contents

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.

3. Under Journals, select Enter Journals.

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11i Inventory Management Fundamentals Table of Contents

11i Inventory Management Fundamentals Table of Contents

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After completing this module, you should be able to

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Oracle Inventory enables you to:

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