Business Process Design

Inventory

Author: Asghar Sharif

Creation Date: 15 Apr 2021
Last Updated: 24 April 2021
Version: 1.0
Status: Final

Approvals:

Client Project Manager

APPSLINK Project Manager

Document Control

Change Record

Date Author Version Change Reference

15-Apr-2021 Asghar Sharif Draft 1.a

24-Apr-2021 Asghar Sharif Final 1.0 Updated after review

Reviewers

Name Position

Tasweer ur Rehman

Distribution

Name Position Location

1 Library Master
2 PMO
3 Financial Team

Note to Holders:
If you receive an electronic copy of this document and print it out, please write your name
on the equivalent of the cover page, for document control purposes.
If you receive a hard copy of this document, please write your name on the front cover, for
document control purposes.

Confidential – prepared by AppsLink for Mawarid Page 2 of 56

 Contents

Purpose....................................................................................................................4
General....................................................................................................................5
Overview..........................................................................................................................5
Inventory Management....................................................................................................7
Item Master............................................................................................................10
Item Master Management..............................................................................................10
Oracle Inventory – Key Concepts..................................................................................17
Oracle Item Master Data Management....................................................................23
Inventory Item Management – Oracle Process Overview.............................................24
Item Planning and Replenishment.................................................................................25
Item Replenishment in Oracle.................................................................................26
Inventory Item Replenishment - Oracle Process Overview..........................................27
Receipts Processing................................................................................................28
Receipts Processing.......................................................................................................28
Receipts Inspection........................................................................................................30
Receiving Goods and Services in Oracle..................................................................32
Item Receipt against Purchase Order – Oracle Process Overview................................33
Services Receipt against Purchase Order – Oracle Process Overview..........................34
Receipts Returns............................................................................................................35
Return PO Receipts.................................................................................................36
Return to Supplier Transaction – Oracle Process Overview.........................................37
Inventory Issuance................................................................................................38
Issuance and Transfers...................................................................................................38
Inventory Transfers and Issuance..........................................................................40
Inventory Issuance Management – Oracle Process Flow..............................................42
Physical Count and Reconciliation...........................................................................43
Physical Count & Reconciliation..................................................................................43
Physical Inventory Count........................................................................................46
Physical Inventory Count – Oracle Process Flow.........................................................47
Costing...................................................................................................................48
Period Processing...................................................................................................48
Costing and Period Close Activities.........................................................................50
Inventory Period Closing – Oracle Process Overview..................................................51
Reporting...............................................................................................................52
Miscellaneous.........................................................................................................52
Application Configuration Questionnaires...............................................................53
Open and Closed Issues..........................................................................................55
Open Points....................................................................................................................55
Closed Points.................................................................................................................55

Confidential – prepared by AppsLink for Mawarid Page 3 of 56

Gap Log.........................................................................................................................55

Confidential – prepared by AppsLink for Mawarid Page 4 of 56

 Purpose
The purpose of this document is to present process flows that will be applicable to the clients' business process in oracle fusion applications.
Information gathered during the user's sessions are also made part of this design document and presented together with the oracle standard
process flows based on modern best practices as applicable to the Client. The structure of the document ensures that information gathered
from the key users is followed by the relevant oracle process flow so that the users are able to relate to the process as per standard features
available in oracle.

This document will become basis for the configuration of the system and for the conference room pilot (CRP) sessions. Detailed training
material will be shared on the basis of approved design.

Confidential – prepared by AppsLink for Mawarid

Page 5 of 56
 No. Questions Answers

1 General
1.1 Overview
1.1.1 Please describe your Inventory processes starting from 1- Order:
receiving to transfers and issuances? We have two types of orders:
- Refill the stock when reach reorder
level (this done by warehouse team)
- For new item (done by the requester)
item code is created and then OQ.
Against both order we create
OQ(Order query) show at
procurement, accordingly they create
purchase order.

2- Receiving:
- According to the LPO we receive the
material matching to DN from
suppliers. DN details to be captured in
the new system. (DN number,
quantity, description)
- Upon receipts of item, first create
temporary receipt voucher (not affect
the stock)
- Then we inform the requester to
inspect the material.
- If the material found okay, then final
receipt voucher will be created, and
material show in stock and ready for
issue or transfer. Inspection report is
- Report is required. Rejection is rare.
- Receiving from manufacturing
(Production)
- Receiving Returned from project or

Confidential – prepared by AppsLink for Mawarid

Page 6 of 56
 No. Questions Answers

department,,,,
- Receipt from warranty

3- Issuance:
- Receive Approved OR from requester
in the system
- Check the stock, if available
- Create issue voucher and gate pass
(Requisition to be blocked for further
issuance from stock)
- Hand over the material
- Get Sign the issue voucher and gate
pass from the receiver.
- Hand over the material along with the
gate pass.

4- Transfers
- Prepare the material need to be
transferred to other BP (Store).
- Create transfer voucher
- Create gate pass
- Send the material to the other BP
- Stock will be deducted from the
transferred store and show in the store
transferred to.

There can be cases where main warehouse holds

goods on behalf of other entities. Goods transfer
can be from one company warehouse to another
company warehouse.

There is total 49 stores for all Mawarid companies.

Some stores are currently not being used.

Confidential – prepared by AppsLink for Mawarid

Page 7 of 56
 No. Questions Answers

1.2 Inventory Management

1.2.1 Is inventory responsibility segmented by inventory Yes
location and entities?

1.2.2 Does each entity have its own warehouse? Please Yes, we have stores branch plants in different Y
provide list entity wise. areas for different entities.

List of warehouses per company and branches is

attached.

Get list of active Ship-to locations and warehouses

from Finance.

1.2.3 Do you transfer inventory between warehouses to meet Yes

item requirements? Describe the process. Is it a
manual procedure? As I mentioned above line 1.1.1

1.2.4 Do you have structured locations in warehouse e.g. row, The material is placed in the warehouse shelves, Y
rack, bin to identify where an item is stored? Please serial wise.
provide Warehouse wise listing.

Currently, Location is embedded in the item code.

Inventory team to share item codes data as per

data template provided to them.

1.2.5 Who is responsible for creation and update of the Senior storekeepers (Either of the two staff)
inventory item master?
- To discuss in COA

1.2.6 How do you currently access inventory balance From system itself and supporting DAS (Reporting
information? And how do you measure inventory tool) reports.
accuracy?
The accuracy is fine and for any problem we ask IT

Confidential – prepared by AppsLink for Mawarid

Page 8 of 56
 No. Questions Answers

support.

1.2.7 How do you audit your inventory accuracy data? By monthly cycle count and annual inventory.

1.2.8 How efficient would you rate your inventory It could be better.
management process?

1.2.9 What inventory benefits do you hope to gain with the  Intercompany Transaction (MHI Group)
system? Based on the discussion in GL workshop

 Issuing and transferring material between
companies should be easier. Current
process is as follows:

OQ is raised then an LPO is issued and approved

by multiple people. Goods are shipped by one
entity to the other and receipt is booked in the
other entity. Payable Invoice is issued by the
entity which has received the goods and in other
entity a payment is booked.

This process is taking place because of Finance

team (accounting requirements).

 System should allow grouping of different

OQ under one PO.

 The work order (assets maintenance) is

complicated.

 The current system does not support a lot

of reports.

Confidential – prepared by AppsLink for Mawarid

Page 9 of 56
 No. Questions Answers

 All reports should be generated from the

new system not through supporting report
(like DAS)

 We need friendly smart item codes – the

present item codes are very long and
complicated. There is a need to unify
codes across all companies.

Currently, Item code consists of 14 digits i.e.,

12 17 YAM PSN 0013 (without spaces)

Yamaha motor spare parts. Spare parts are of

three types’ genuine, duplicate & second hand.

YAM S PSN 0013

1) 2 digits item group – Spare part SP

2) 2 digits – category – Branded / Non-

Branded

3) 3 digits – Brand

4) 3 digits – Item name e.g. Seal SEL Bearing

BRG

5) 4 digits – Serial.

Inventory team to provide new item codes and

categories in the templates shared with them.

Confidential – prepared by AppsLink for Mawarid

Page 10 of 56
 No. Questions Answers

(on discussion)

 We need sub. Item codes like:

 Brands 11 01 002 PIP 0008
 Models
 Used (second hand)
 Sub. Unit of measurements
 ……. etc.

 System should accept scanning, signature

pads and other software related.

Mawarid is looking for a bar coding solution.

Gurmeet will discuss integration requirements
if any with Tasweer.

 We need different kind of notifications

from the system:

 Min – Max planning to give notification to

inventory staff – (It was agreed to
schedule it in system every morning).

 Notification to storekeeper, in case of

internal requisition.

 LPO expiry - Notification to be send to

inventory team for inventory related PO’s

13 notifications are required. Inventory team to

share notification layouts. (already shred)

2 Item Master

Confidential – prepared by AppsLink for Mawarid

Page 11 of 56
 No. Questions Answers

2.1 Item Master Management

2.1.1 How often does your Company introduce/ new Daily
products/ item codes?

2.1.2 Do you group and track items by lot? Why and how? In factories only (as of now),Item with expiry date,
Chemical materials and medicines

2.1.3 Do use serial numbers to track items? We use serial item number codes.

2.1.4 If yes, then when are serial numbers assigned (at At the time of receipt.
receipt, at shipment)?

2.1.5 Are you able to view all transactions associated with N/A
a given revision, serial number and/or lot?

2.1.6 Do you reserve inventory for projects? Yes. Currently this is done manually (outside the
system).

2.1.7 If yes, then how do you prevent this inventory from Manually. No system-based control exists as of now.
being consumed elsewhere?

2.1.8 How the appropriate people are informed when For Consumables – Min/max
material shortages occur?
&

Direct order as per request.

2.1.9 How many items do you have and of what types? We have about more than 57000 items.
Raw materials, packaging, intermediates, finished
goods We have all types of materials.

2.1.1 What is your current naming convention for items? Currently, Item code consists of 14 digits i.e.,

Confidential – prepared by AppsLink for Mawarid

Page 12 of 56
 No. Questions Answers

0 Does the current code communicate information 12 17 YAM PSN 0013

about the item?
Yamaha motor spare parts. Spare parts are of
three types’ genuine, duplicate & second hand.

YAM S PSN 0013

1) 2 digits item group – Spare part SP

2) 2 digits – category – Branded / Non-Branded

3) 3 digits – Brand

4) 3 digits – Item name e.g. Seal SEL,

Bearing BRG

5) 4 digits – Serial.

Spare parts must be branded. For other items, the brand

name is currently not captured.
2.1.1 What are the units of measure you use when you Cod
Description
1 order items? e
BD BUNDLE
BE Bale
BG Bag
BK Bucket
BL Barrels
BO Blocks
BT Bottles
BX Box
CA Case
CC Cubic Centimeter
CF Cubic Feet
CI Cubic Inches
CL Centiliters
CM Centimeters

Confidential – prepared by AppsLink for Mawarid

Page 13 of 56
 No. Questions Answers

CN CAN
CR Carton
CT Carat
CU Cubic Meter
CY Cubic Yard
DC Decimeters
DL Deciliter
DR drums
DZ Dozen
EA Each
FC Cubic Feet
FT Feet
GL Gallon
GM Grams
HL Hectoliter
IC Cubic Inches
IG Imperial Gallons
IH INCH
IN Inches
KG Kilograms
KT KIT
LB Pounds
LC Cubic Liters
LP Potent Liters
LS Lump Sum
LT Liters
M2 Meter Square
M3 Cubic Meters
MG Milligrams
MK Micrograms
ML Milliliter
MM Millimeters .
MT Meters
NS NOS

Confidential – prepared by AppsLink for Mawarid

Page 14 of 56
 No. Questions Answers

OZ Ounces
PA PAIL
PC PACKAGE
PK PKT
PL Pallet
PR Pair
PT Pint
QT Quart
RL Roll
SC Square Centimeters
SE Seconds
SF Square Feet
SI Square Inches
SM Square Meters
ST SET
SY Square Yard
TB TUBE
TI TIN
TK Tank
TN Ton
UT UNIT
VL VIAL
YD Yards

Inventory team to share conversion details in UOM

template shared for master data.

Confidential – prepared by AppsLink for Mawarid

Page 15 of 56
Confidential – prepared by AppsLink for Mawarid
Page 16 of 56
Confidential – prepared by AppsLink for Mawarid
Page 17 of 56
 Oracle Inventory – Key Concepts

Item Master Organization

An item master organization lists and describes items that are shared across several "inventory organizations" or" item organizations".
The following example shows the choice between inventory organizations that track inventory transactions, stored in two warehouses, and
item organizations that just track items, listed in two sales catalogs.

For the most efficient processing, you should:

 Have a single item master.

 Include an item and its definition of form, fit, and function only once in the item master.
 Separate the item master organization from organizations that store and transact items.

Confidential – prepared by AppsLink for Mawarid

Page 18 of 56
 Inventory Organization
Inventory Organization is where you perform actual inventory transactions, procurement and many other transaction (usually this is the one
that you define according to your business requirement), you can have multiple inventory org also. Inventory organization in Oracle are
assigned to cost organization where costing will take place. Inventory transactions are controlled at Inventory Organization level. In Mawarid
each company will have one Inventory Organization.

Sub Inventory
Sub-inventories are unique physical or logical separations of material inventory, such as raw inventory, finished goods, or defective material.
Sub-stores within an organization are also defined as the sub inventories. Listing of the sub-inventories at Mawarid is presented in the below
table. All material within an organization resides in a sub-inventory. You can create following types of sub-inventories:
 Receiving Sub-inventories
 Sub-inventories

Stock Locators
Stock locators are used to identify physical areas where you store inventory items. Item quantities can be tracked by locator. Items can also
be restricted to specific locators. Typical example of stock locators are Row, Rack, Bin etc. Locator will be defined to maintain stock locations
in Mawarid.

Costing method
Oracle Fusion support Actual cost, Average Cost and Standard Cost Methods. For Mawarid Average cost will be used as the costing method to
be configured.

Confidential – prepared by AppsLink for Mawarid

Page 19 of 56
 Following is the list of Inventory organization and sub-inventories that will be created for Mawarid:

Inventory Organizations

Sr. Inventory Org Name Type Legal Entity Business Unit

1 Mawarid Item Organization Item Not Applicable Not Applicable
2 Mawarid Holding Investment Inventory Mawarid Holding Investment Mawarid Holding Investment
3 Barari Natural Resources LLC Inventory Barari Natural Resources LLC Barari Natural Resources LLC
4 Barari Nurseries Inventory Barari Nurseries Barari Nurseries
Organic Recycling - Abu Dhabi Organic Recycling - Abu Dhabi Organic Recycling - Abu Dhabi
5 Compost Plants Inventory Compost Plants Compost Plants
6 Mawarid Services LLC Inventory Mawarid Services LLC Mawarid Services LLC
7 Aqua Power Technology LLC Inventory Aqua Power Technology LLC Aqua Power Technology LLC
Mawarid International Mawarid International Mawarid International
8 Development Company LLC Inventory Development Company LLC Development Company LLC
9 Dicon Investment LLC Inventory Dicon Investment LLC Dicon Investment LLC
10 Telal Resort LLC Inventory Telal Resort LLC Telal Resort LLC
11 Mawarid Security Services LLC Inventory Mawarid Security Services LLC Mawarid Security Services LLC
12 Mawarid Nurseries LLC Inventory Mawarid Nurseries LLC Mawarid Nurseries LLC
Emirates Safety Laboratory
13 Emirates Safety Laboratory LLC Inventory LLC Emirates Safety Laboratory LLC
Mawarid Hotels & Hospitality Mawarid Hotels & Hospitality Mawarid Hotels & Hospitality
14 LLC Inventory LLC LLC
Campaign Facilities Campaign Facilities
15 Management Inventory Management Campaign Facilities Management
16 Al Ain Fodder Factory Inventory Al Ain Fodder Factory Al Ain Fodder Factory

Confidential – prepared by AppsLink for Mawarid

Page 20 of 56
 Sub Inventories

Sr. No. Sub-Inventory Inventory Organization

1 ESL - General Store Emirates Safety Laboratory
2 TR - General Store Telal resort LLC
3 MN - FG Fujairah Mawarid Nurseries LLC
4 MN - FG Alwathba Mawarid Nurseries LLC
5 MN - RM Fujairah Mawarid Nurseries LLC
6 MN - RM Alwathba Mawarid Nurseries LLC
7 CFM - General Store Campaign Facilities Management
8 MN - FG Al Foah Mawarid Nurseries LLC
9 MN - FG Al Kuwaitat Mawarid Nurseries LLC
10 General Store-200 Mawarid Holding
11 General Store Barari Natural Resources LLC
12 Remah Store 1 Barari Natural Resources LLC
13 Remah Store 2 Barari Natural Resources LLC
14 Remah Store 3 Barari Natural Resources LLC
15 Remah Store 4 Barari Natural Resources LLC
16 Remah Fuel Store Barari Natural Resources LLC
17 Auto Workshop  Store - Remah Barari Natural Resources LLC
18 Lubricant Store - Remah Barari Natural Resources LLC
19 Khalifa Park Store Barari Natural Resources LLC
20 MTC Store Barari Natural Resources LLC
21 Bainoona Store 1 Barari Natural Resources LLC
22 Bainoona Store 2 Barari Natural Resources LLC
23 Bainoona Store 3 Barari Natural Resources LLC
24 Bainoona Fuel Store Barari Natural Resources LLC

Confidential – prepared by AppsLink for Mawarid

Page 21 of 56
 Sr. No. Sub-Inventory Inventory Organization
25 Lubricant Store - Bainoona Barari Natural Resources LLC
26 Badaa Zayed Store 1 Barari Natural Resources LLC
27 Badaa Zayed Fuel Store Barari Natural Resources LLC
28 Lubricant Store - Badaa Zayed Barari Natural Resources LLC
29 Sir Bani Yas Store 1 Barari Natural Resources LLC
30 TDIC Store 1 Barari Natural Resources LLC
31 Al Salamat Nurseries FG -Store Barari Natural Resources LLC
32 MN - Salamat Store RM Mawarid Nurseries LLC
33 MN-Salamat Native Plant FG Mawarid Nurseries LLC
34 MN–Bada Al Dhawaher FG Mawarid Nurseries LLC
35 Al Foah Raw Material Store Barari Nurseries
36 Al Foah Finished Goods Store Barari Nurseries
37 Al Foah Plant Store Barari Nurseries
38 AUH CP - Store - Al Mafraq Abu Dhabi Compost Plants
39 AUH CP - Store - Fuel Abu Dhabi Compost Plants
40 Lubricants Store-ADC-Ramah Abu Dhabi Compost Plants
41 AUH CP - Prod FG - Al Mafraq Abu Dhabi Compost Plants
42 AUH CP - Sales Stores Abu Dhabi Compost Plants
43 Kwaitat Raw Material Store Barari Nurseries
44 Kwaitat Finished Good Store Barari Nurseries
45 Mawarid Remah Gen. Warehouse Mawarid Services Company LLC
46 Mawarid Remah Warehouse 2 Mawarid Services Company LLC
47 Mawarid Remah Warehouse 1 Mawarid Services Company LLC
48 Mawarid Remah Warehouse 3 Mawarid Services Company LLC
49 Mawarid Remah Warehouse 4 Mawarid Services Company LLC
50 Mawarid Fuel Store Mawarid Services Company LLC

Confidential – prepared by AppsLink for Mawarid

Page 22 of 56
 Sr. No. Sub-Inventory Inventory Organization
51 Mawarid Seah Sharqya Store Mawarid Services Company LLC
52 MSC Lubricant Store - Bainoona Mawarid Services Company LLC
53 MSC Lubricant Stor-Badaa Zayed Mawarid Services Company LLC
54 Mawarid Baynoona Warehouse Mawarid Services Company LLC
55 Mawarid Baynoona Fuel Store Mawarid Services Company LLC
56 Mawarid Bedaa Zayed Store Mawarid Services Company LLC
57 Mawarid Bedaa Zayed Fuel Store Mawarid Services Company LLC
58 MSC Plants Store Mawarid Services Company LLC
59 Al Ain FM Raw Material Store Al Ain Feed Mill
60 Al Ain FM Finished Goods Store Al Ain Feed Mill
61 Al Ain FM Spare Parts Store Al Ain Feed Mill
62 Al Ain FM New Plant Al Ain Feed Mill
63 Al Ain FM Old Plant Al Ain Feed Mill
64 Virtual - Mawarid Seah Sharqya Mawarid Services Company LLC
65 Virtual MSC workshop Bida Zaye Mawarid Services Company LLC
66 Virtual MSC Workshop Bainoona Mawarid Services Company LLC
67 MSC Lubricant Store - Bainoona Mawarid Services Company LLC
68 MSC Lubricant Stor-Badaa Zayed Mawarid Services Company LLC

Confidential – prepared by AppsLink for Mawarid

Page 23 of 56
 Oracle Item Master Data Management
Oracle Inventory Module will be used to track inventory balances and costs at various inventory locations of Mawarid. Seeded security will
ensure that only designated user has the access to the inventory data relating to a particular location.
The following framework represents the Inventory management processes.

 Item Master Data Management

 Receipt Creation against Purchase Orders
 Returns to Supplier
 Sub inventory Transfers
 Inter Organization Transfers
 Issuance of Technical Inventory to Sites
 Use Min Max Planning for stock replenishment
 Costing and Period Close Activities

Oracle Item Master allows you to define and control items that you stock in inventory. At Mawarid, designated person will be responsible for
new item creation. Requests for creation of new Items will be received in a standard template. Items can be opened individually in Oracle.
Once items have been created in item master organization, inventory items will be assigned with same codes to the respective inventory
organization in order to allow seamless integration of all transactions. Oracle Inventory Management allows creation of Item classes in order
to allow default specification based on the nature to Items and to allow automatic item code creation.

Confidential – prepared by AppsLink for Mawarid

Page 24 of 56
 Inventory Item Management – Oracle Process Overview

Confidential – prepared by AppsLink for Mawarid

Page 25 of 56
 2.2 Item Planning and Replenishment
2.2.1 When supplier inventory fails inspection, what
process is followed for further review?
2.2.2 Do you use safety stock or reorder points?
2.2.3 How do you source product? Do you perform a make
vs. buy analysis? If so, who is involved? Is the
procedure documented? May we have a copy?
2.2.4 What are the methods of replenishment used in your
Warehouse?
2.2.5 Do you use MIN-MAX to trigger material
replenishment? If yes, describe the replenishment
process.
2.2.6 Do you use Reorder Point to trigger material
replenishment?
Confidential – prepared by AppsLink for Mawarid
A rejection report created by the requester explaining
the reason of rejection will be sent to the
Procurement department to do the needful with the
supplier. Rejection document is signed by the
requester + store manager + store keeper.
Reorder Point.
Usually from Suppliers but in some cases we
manufacture and consume goods e.g. Hose factory is
making hoses for internal consumption. Also, feed
mill & compost factory are preparing finished goods
to be used internally.
By using reorder level and creating store order
accordingly OQ created and sent to procurement to
issue PO.
Yes
We are creating MIN-MAX as per consumptions, when
we reach the reorder level then we order qty. not
exceeding the MAX quantity.
For MIN-MAX consumption changes are updated
manually (This is not supported by the current
system.)
Yes
Page 26 of 56
 Item Replenishment in Oracle
Min – Max planning enables an organization to maintain inventory levels for all of items or selected items. In order to use min-max planning
for items planning parameters must be selected at item code level.

Min-max planning requires specification of minimum quantity and maximum quantity inventory levels for your items. When you print the Min-
Max Planning report, the inventory level for an item, on-hand quantities plus on-order quantities, is considered. If the inventory level is below
the minimum quantity defined for the item, min-max planning suggests a new purchase requisition or movement request to bring the
inventory level back up to the maximum quantity. You perform min-max planning at the inventory organization level or at the sub location
level.

At Mawarid, Min-Max functionality will be used optionally to maintain item inventory levels.

Confidential – prepared by AppsLink for Mawarid

Page 27 of 56
 Inventory Item Replenishment - Oracle Process Overview

Confidential – prepared by AppsLink for Mawarid

Page 28 of 56
 3 Receipts Processing
3.1 Receipts Processing
3.1.1 How are items (e.g. expense, project, materials) Pre-ordered items (for the stock or project) are
received? How do you perform the receiving function? received under purchase orders issued to suppliers
Describe the process. from procurement.

Receiving:

 A DN, invoice or both must be submitted

by the supplier along with the materials
corresponding to the supplied quantities
on DN or invoice from purchase order.
 Temporary receipt voucher (not affect the
stock) should be created by the
storekeeper matching quantities received.
 Inform the requester to visit the store to
inspect the material (technically)
 If the material Conforming to the required
specifications a final receipt voucher
should be created (affect the stock)
 Then the material shows in the stock,
ready for issue and transfer.
 If material not Conforming to the required
specifications, then a rejection report
should be prepared by the requester (with
the reason of rejection) and to be send to
procurement to deal with supplier.
 Company policy if available

3.1.2 Are all items received against PO's? If not, what items The following items are not received against an
are not and why? open PO:

 Returned material
 New production
 Sometime receiving is done without PO

Confidential – prepared by AppsLink for Mawarid

Page 29 of 56
 especially in case of projects and feed
mills.
 Receipt from warranty

3.1.3 Do you order and receive items from other We are issuing and receiving to related companies
organizations/businesses (Inter-Company)? with very long and complicated process.

As per Finance: in some cases, goods can be

transferred on cost, sometimes may be on margin.
In some cases, invoice print out will be required
for ICV purpose.

3.1.4 How do you manage items received that are rejected? Goods are kept separately

(to be replaced or returned to supplier)

3.1.5 Do you require lot traceability? How do you currently Lots used for manufactured items only.
assign lot numbers? Do you tie back to vendor lot
number?

3.1.6 Do you accrue your expense receipts to the General Account department responsibility Y
Ledger at the time of receiving or period end?

3.1.7 Do you perform (virtual) receipts of Drop Ship items? Yes. In such cases, a virtual receipt and issuance
is booked at the main warehouse.

3.1.8 If yes, then what document or event drives the receiving Receipt and issuance
transaction?

3.1.9 How many sites perform receiving? Can you provide a Finance team to share list of active Ship-To stores. Y
list of Ship-To locations?

3.1.1 What are your Receiving reporting requirements with If U mean the final receipt voucher, it is sent to
0 respect to summary or detail formats? Obtain a report document control for payment process.
listing. Who receives copies of the Receiving reports?
Kindly share formats.

Confidential – prepared by AppsLink for Mawarid

Page 30 of 56
 3.1.1 Are Receiving reports standard across multiple Sets of Some are different.
1 Books, for example, subsidiaries?
Inventory team to share one example.

3.1.1 Do you receive substitute items? No – Not allowed.

2

3.1.1 Do you use a receipt amount or AED amount tolerance? Account department responsibility
3 How do you close a Purchase Order for receiving?

3.1.1 How are expensed items delivered to the requester?  Approved requisition to be submitted to
4 Describe the process. store.
 Confirm stock availability
 Create issue voucher and gate pass
(accordingly material deducted from the
stock)
 Issue the material

3.1.1 Do you receive free of cost items? Yes but currently they are not entered in the
5 system.

3.1.1 Do you accept unordered receipts where purchase order Yes, sometimes.
6 is yet to be raised?

3.2 Receipts Inspection

3.2.1 Do you perform inspection on the Items being The requester inspects the items.
purchased?

3.2.2 Please share detailed inspection criteria. As per policy, goods should be inspected by the
requester within 72 hours.

3.2.3 When supplier inventory fails inspection, who initiates If procurement decided to cancel the purchase
the Return to Vendor transaction? order and inform warehouse, then the storekeeper
will return the rejected material to the supplier.

Confidential – prepared by AppsLink for Mawarid

Page 31 of 56
 3.2.4 Where is material received into the warehouse? Is it Not really.
held in a particular location? (Locators)

3.2.5 Are any items received directly into inventory (without No material is added to the stock without
inspection)? inspection. If any goods are received directly, then
the requester should approve the inspection also.

3.2.6 Do you have predefined specifications for quality Yes, but not for all items.
inspection? Do you maintain inspection results in
inventory management system? Inspection results are not maintained in the
system.

Confidential – prepared by AppsLink for Mawarid

Page 32 of 56
 Receiving Goods and Services in Oracle
Oracle facilitates the receipt processing of both Inventory Items and Non-stock able expenses items and services. At Mawarid, once the
inventory item is received it will increase the inventory on hand quantity and the average cost will be updated accordingly. As for the non-
inventory or expense items, the receipt in Oracle will serve as the acknowledgment of the receipt of goods or services. For Non-stock able
expense receiving it needs to be delivered to appropriate location. All services related POs would be treated as expense POs. In this activity,
the requestor can create receipt against requisition and purchase order.

The receiving steps depend upon the receipt routing method of the purchase order. The available methods are:

 Direct delivery;
 Standard receipt; and
 Receipt with inspection required.

With the direct delivery routing the shipments will be received and delivered in one go while with standard receipt process the receiving and
delivery (put away) will happen in two different transaction and in case of inspection required routing the receiving, inspection and put away
is done with separate transactions. At Mawarid Receipts with Inspection will be used.

Fusion receiving process allows correcting the receiving transactions for which receiving process is completed it also supports to perform
return materials to vendor transactions for any justifiable business reason.

Confidential – prepared by AppsLink for Mawarid

Page 33 of 56
 Item Receipt against Purchase Order – Oracle Process Overview

Confidential – prepared by AppsLink for Mawarid

Page 34 of 56
 Services Receipt against Purchase Order – Oracle Process Overview

Confidential – prepared by AppsLink for Mawarid

Page 35 of 56
 3.3 Receipts Returns
3.3.1 What information do you maintain for return Gate pass - For Supplier return.
transactions?
Reverse Voucher - For Material Issuance reversal.

Both are booked in the system.

Inventory team to share one sample for both

Already shared

3.3.2 How do you handle vendor returns? Describe the If procurement decided to cancel the purchase
process. Who initiates the Return to Vendor order and inform warehouse, then the storekeeper
transaction? should return the rejected material to the supplier
by official gate pass.

Supplier can also ship replacement, in that case

PO is not cancelled.

Confidential – prepared by AppsLink for Mawarid

Page 36 of 56
 Return PO Receipts
Return can be processed both prior to delivery of the goods to inventory where average cost will be update or after the delivery to the
inventory where on hand balance and average cost has been updated. Oracle Inventory allows creation of PO Returns to reflect stock returns
to suppliers. User must select the receipt number in Oracle from which the stock is being returned to supplier. Oracle inventory automatically
adjusts average cost of inventory by the purchase price of returned items.

To return items to the supplier, enter the return quantity. Purchasing provides the source supplier for the items. For Inventory (but not
Expense) deliveries, you can update the return from sub inventory. Optionally, you can specify additional return information such as reason
code. When you return items to the supplier, purchasing creates both a “Return To Receiving” and a “Return To Supplier” transaction.
Purchasing also reopens the associated purchase order for the return quantity by reducing the original receipt quantity.

Return functionality can also be used to return expense items or services received where the intention is to build back the amount/ quantity
back to the Purchase Order.

Confidential – prepared by AppsLink for Mawarid

Page 37 of 56
 Return to Supplier Transaction – Oracle Process Overview

Confidential – prepared by AppsLink for Mawarid

Page 38 of 56
 4 Inventory Issuance
4.1 Issuance and Transfers
4.1.1 How is inventory issuance recorded? Based on approved requisition, material will be
issued. After issuance the store keeper will issue
voucher and gate pass and they are signed by the
receiver.

All documents of issuance are kept in the files.

During discussion with Finance, it was highlighted

that as for request relating to the vehicle
maintenance vehicle number & job number is to
be recorded on the request against which material
is issued

4.1.2 How do you handle movement activities? Do you On-line.

provide paperwork between locations? On-line
transactions? Who does this function? The paperwork only for the documents need
signature e.g. gate passes, issue voucher and
inspections.

We are planning to use the signature pad for the

issue voucher and inspection signatures.

4.1.3 How long does it take on average to move inventory One day.
between warehouses? Do you keep track of in-transit
inventory? The tracking is done by transport department.

Currently there is no booking of in-transit

inventory.

4.1.4 Do you track item issuance to projects? Yes.

4.1.5 How do you perform inventory transfers? Describe the  Create the transfer voucher for the
steps.

Confidential – prepared by AppsLink for Mawarid

Page 39 of 56
 material needed to be transferred.
 Create gate pass
 Load the material
 Send the material to the specific store.
 Then the stock will be deducted from the
transferred store and added to the store
transferred to.

Confidential – prepared by AppsLink for Mawarid

Page 40 of 56
 Inventory Transfers and Issuance
Oracle provides the flexibility to transfer material across inventory organizations including transfers from one entity to another and sub-
locations within an inventory organization. It also enables users to issue stock to projects / departments. Following are the type of transfers
that can be booked in Oracle fusion applications:

a. Movement Requests

Movement requests are requests for the movement of material within an inventory organization such as a warehouse or facility.
Following Movement Request exist;

 Requisition Movement Request; and

 Replenishment Movement Request

Some examples where Movement Issue Requests will be used in Mawarid includes spare parts being requested for vehicle
maintenance. Additional information such as vehicle number etc. will be entered by the requestor. So that later report can be
generated vehicle wise. Similarly other material being requested from the warehouse for various projects and contracts will be
requested in the same manner where user will be required to entered the desired information.

b. Sub Inventory Transfers

Use a sub inventory transfer to transfer material within your current organization between sub-inventories including sub stores, or
between two locators within the same sub-inventory or store.

c. Account Alias Transactions

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.

d. Inter Organization Transfers

Inter-organizational transfers enable you to transfer material between inventory organizations. You can create following types of inter
organization transfers:

 Direct Inter-organization Transfers

 In-Transit Inter-organization Transfers

Confidential – prepared by AppsLink for Mawarid

Page 41 of 56
Confidential – prepared by AppsLink for Mawarid
Page 42 of 56
 Inventory Issuance Management – Oracle Process Flow

Confidential – prepared by AppsLink for Mawarid

Page 43 of 56
 5 Physical Count and Reconciliation
5.1 Physical Count & Reconciliation
5.1.1 Do you use ABC Classifications? What criteria do you Not in the system.
use to derive ABC values?
Currently being done manually using DAS reports
to check stock for high value items.

5.1.2 Who is responsible for Cycle Counts? For the annual inventory, dates and inventory
committee names are decided by the CEO office.

Committee consists of min. 3 people i.e One Store

keeper,1 accountant and 1
technician/mechanic/engineer.

5.1.3 How often do you count all your items in any given Once a year.
inventory location?
Internal counting is done outside the system on
monthly basis. Adjustments, if any are done as
part of annual cycle.

5.1.4 How do you group material to count? Do you group by By store branch plant at the specific location.
inventory location?
5.1.5 Do you do automatic cycle counts for items that show Yes, we are getting cycle count list from accounts
"zero" on hand? department. Accounts department only have
access to generate the list from the system. This is
send to inventory committee who fills in the
quantity after physical counting.

5.1.6 Once inventory accuracy problems are identified, how do Adjustment is passed by Accounts department on
you modify procedures that caused the inaccuracy? annual basis.

5.1.7 Do you allow inventory adjustments independent of No

cycle counts and physicals?

Confidential – prepared by AppsLink for Mawarid

Page 44 of 56
 5.1.8 Who is allowed to do inventory adjustments? Accountant department only.

5.1.9 Do you need management sign-off for adjustments All adjustments are approved by the inventory
beyond a certain amount? steering committee on physical documents
(outside the system).

5.1.1 Is there a tolerance level for physical inventory? No. Y

0
Finance team to check this.

5.1.1 What are your Inventory tolerances? We do not have inventory tolerances. Y
1
Procurement team to check this.

5.1.1 Do you reconcile inventory balances on a regular basis? Yes, through accountant. (yearly)
2

Confidential – prepared by AppsLink for Mawarid

Page 45 of 56
Confidential – prepared by AppsLink for Mawarid
Page 46 of 56
 Physical Inventory Count
Oracle physical inventory count enables organization to maintain accurate quantitative inventory information. It is used to verify the On-hand
quantity and actual quantity of the item in the system based on sub-inventory or organization, and perform necessary adjustments, if
required. Oracle provides the flexibility to count inventory for all or group of sub inventories.

Physical inventory counting process starts with generating physical inventory snapshot. A snapshot represents the on-hand quantity of items
in all sub-inventories of a physical inventory at a specific time. Item counts captured in a snapshot are the basis for all physical inventory
adjustments. After generating physical inventory snapshot, physical inventory tags are generated. Oracle Fusion Inventory Management
generates one tag for every unique combination of item, sub-inventory, locator, lot, serial, and revision for which the application has on-hand
quantity not equal to zero. The tag generation process does not print physical tags. It generates electronic records of tags. You can run the
“Physical Inventory Tags” report to print physical inventory tags. For a specified physical inventory, you can print all tags or ranges of tags for
a single sub-inventory or all sub-inventories. You use physical inventory tags to record the physical counts of inventory items. Although you
can record only one item on a tag, multiple tags can reference the same item, with each tag referring to a unique physical location for an
item. In case of any discrepancies between the on-hand stock in the system and actual on-hand stock, adjustments are created in the
system. These adjustments are subject to approvals if result are out of tolerances.

Confidential – prepared by AppsLink for Mawarid

Page 47 of 56
 Physical Inventory Count – Oracle Process Flow

Confidential – prepared by AppsLink for Mawarid

Page 48 of 56
 6 Costing
6.1 Inventory Costing

6.1.1 What costing method is used in your organization? The costing done by Accounts department. Y
Average, Actual or Standard costing? Finance mentioned average costing for inventory
warehouse in Finance sessions.

6.1.2 What are the different components of the cost of an Done by Accounts department. Y
item? Finance team mentioned in the finance sessions
that cost components include purchase price and
other costs like clearing charges, freight etc. that
becomes part of the landed cost.
6.1.3 No action taken as of now. Variance details, if any
How variances are handled at period closure? are shared with Finance at year-end.
6.1.4 Account's responsibility. Y
How often do you update product costs?
Finance team to confirm.

7 Period Processing 
7.1 Open/Close Periods

7.1.1 Accounts responsibility. Y

How often do you "post" information to your General As per Finance sessions: JDE generates accounting
Ledger? entries for inventory transactions that are posted
to GL.

7.1.2 Accounts responsibility. Y

How long does it take to close your accounting period?
7.1.3
Do you have any documentation on your Inventory
close? Please provide.
As per sessions with Finance they do reporting 10 th
of each month which is required to be reduced.
From account department. Y

Confidential – prepared by AppsLink for Mawarid

Page 49 of 56
 Costing and Period Close Activities
Oracle Cost Management will be configured to calculate inventory transaction costs, maintain inventory valuation, generate accounting
distributions for inventory transactions, analyze product costs, and analyze gross margins.

At the end of each period, cost accountant at Mawraid will perform period close activities and review and manage costing of inventory items.

Following processes are required to be run before a period is closed;

 Transfer Cost to Cost Management (From Payables)

 Transfer Transactions from Receiving to Cost Management
 Transfer Transactions from Inventory to Cost Management

Confidential – prepared by AppsLink for Mawarid

Page 50 of 56
 Inventory Period Closing – Oracle Process Overview

Confidential – prepared by AppsLink for Mawarid

Page 51 of 56
 Reporting
8

8.1 Reporting

8.1.1 What types of reports are currently used to manage the Many reports in system and DAS report.
inventory function? Kindly share report formats.
9 Miscellaneous
9.1 What else needs to be discussed?

9.1.1 Any other pain areas or information not provided as part New system should address our following
of above details? concerns:

1) Requisition should be closed after

issuance.
2) OQ to be closed after PO is issued.
3) PO quantity should not exceed PR
quantity.
4) BU should be visible to the person at the
time of issuance voucher.
Account used for issuance is BU specific.
5) Notification for contract PO expiry to be
send to inventory team for inventory
related blanket PO’s

Currently, promised date is not captured on the

PO.

6) LPO Expiry date is required in the new

system.
7) New system should have the ability to
differentiate between “Direct” vs “Foreign
sourced LPO.”

Confidential – prepared by AppsLink for Mawarid

Page 52 of 56
 Application Configuration Questionnaires

Note: This section to be filled by the consultant in coordination with the client.

S.NO Internal Question Answer Status

Reference

How many inventory Organizations you Locator Control: Yes

AC:1 INV: 1.1 have? Please provide the value for specified Allow negative balances: No
fields. Allow negative on-hand transactions: No
Lot Control: Yes (for Manufacturing linked entities)
Lot Control Number Generation:
What is your locator structure? How many
AC:2 INV: 1.2 segments you want to have? To be provided by inventory team as part of master
data.

How many sub-inventories you have in each

AC:3 INV: 1.4 Inventory Organization? Please enlist? To be provided by inventory team as part of master
data.

How many different costing methods you Finance team to confirm.

AC:4 INV: 1.6 have? Please share for each inventory
organization.
Do you want to have cost organization wise To be provided by inventory team as part of master
AC:5 INV: 1.7 access control, if yes please provide the list data.
of users along with cost organization?
What is the relationship among different To be provided by inventory team as part of master
AC:6 INV: 1.10 inventory, cost organization and sub- data.
inventories, identified above?
What are the different elements in your Finance team to confirm.
AC:7 INV: 1.11 inventory cost? Please enlist?
Based on cost elements how many different Finance team to confirm.
AC:8 INV: 1.12 cost component groups you want to have?

Confidential – prepared by AppsLink for Mawarid

Page 53 of 56
 Note: This section to be filled by the consultant in coordination with the client.

S.NO Internal Question Answer Status

Reference

How many costing methods you have for Finance team to confirm.
AC:9 INV: 1.13 each inventory Org (standard, actual,
average etc.)
How many item classes, item templates you To be provided by inventory team as part of master
AC:10 INV: 1.16 have, based on unique grouping? data.

Confidential – prepared by AppsLink for Mawarid

Page 54 of 56
 Open and Closed Issues

Open Points
ID Description Status Responsibility Target Date Closure Date

Closed Points
ID Description Status Responsibility Target Date Closure Date

Gap Log
ID Gap Description Provided Solution Response Status

Confidential – prepared by AppsLink for Mawarid

Page 55 of 56
Confidential – prepared by AppsLink for Mawarid
Page 56 of 56