Overview of Oracle Inventory

Chapter 1

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R12 Overview of Oracle Inventory

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Objectives

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Overview

Overview
Oracle Inventory treats many different types of things as inventory. Inventory can be:
• Finished goods that you sell to customers
• Services that you sell to customers
• Spare parts for maintenance
• Raw materials for manufacturing processes
• Inventory you purchase from a supplier on consignment

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Inventory Capabilities

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Inventory Capabilities (Cont)

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Receipt to Issue Life Cycle

Receipt to Issue
Oracle Inventory uses the receipt to issue process to manage your inventory. When inventory
arrives in your warehouse you receive it. After you receive inventory, you can transfer it
within your organization or to another organization. Finally, you can issue material out of
Oracle Inventory.

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Receiving Inventory

Receiving Inventory
There are different ways you can receive material into your organization.
Purchasing
You can use Oracle Purchasing to receive material from outside of your organization. You can
receive:
• Purchase order receipts
• Internal requisitions
• In-transit receipts
• Return material authorizations
• Unexpected receipts
Work in Process
You can use Oracle Work in Process to receive material from the manufacturing floor. You can
receive:
• Component returns
• Negative component issues
• Assembly returns
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 Inventory
You can use Oracle Inventory to receive material in to your warehouse. You can receive:
• Miscellaneous account receipts
• Receipt from projects
• User-defined receipts
• Interorganization transfers

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Receiving Inventory

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Transferring Inventory

Transferring Inventory
Different applications can generate requests to transfer inventory.
Shipping
You can use Oracle Shipping Execution to generate a transfer to move material from a storage
area to a staging to for shipping.
Order Management
You can use Oracle Order Management to generate a transfer to move material from a storage
area to a staging area for shipping.
Work in Process
You can use Oracle Work in Process to generate a transfer to acquire components for a project.
Inventory
You can use Oracle Inventory to:
• Transfer material between organizations
• Transfer material within an organization
• Replenish materials
• Request transfers
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Issuing Inventory

Issuing Inventory
You can use the following applications to issue material:
Order Management
Oracle Order Management can generate an inventory issue through:
• Sales orders
• Internal orders
Purchasing
Oracle Purchasing can generate an inventory issue for:
• Return to vendor materials
Work in Process
Oracle Work in Process can generate an inventory issue through:
• Component issues
• Assembly returns
Inventory
Oracle Inventory can issue stock through:

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 • User-defined material issues
• Interorganization transfers
• Cycle count negative issue
• Issue requests

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Oracle Inventory Application Integration

Integration of Oracle Inventory to Manufacturing Applications

Oracle Inventory interacts with the following applications:
• Oracle Cost Management receives cost information and transaction rates from Oracle
Inventory. Oracle Inventory integrates to Oracle General ledger via Oracle Cost
Management
• Oracle Work in Process provides work in process (WIP) activity and available to promise
(ATP) supply information to Oracle Inventory and receives item and on-hand quantity
information from Oracle Inventory.
• Oracle Advanced Supply Chain Planning and Oracle Global Order Promising provide
ATP supply information and receive on-hand quantity and forecast information from
Oracle Inventory.
• Oracle Bill of Materials receives item information from Oracle Inventory.
• Oracle Engineering provides engineering item information and receives item information
from Oracle Inventory.
• Oracle Order Management provides shipping, reservations, and demand information and
receives item, ATP, and on-hand quantity information from Oracle Inventory.

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 • Oracle Purchasing provides receipt, delivery, ATP supply, and planning supply
information and receives item requisition, and interorganization shipment information
from Oracle Inventory.

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Integration of Oracle Inventory to Financial Applications

Integration of Oracle Inventory to Financial Applications

• Oracle General Ledger provides ledger and currency exchange rates and receives
transaction accounting summary detail via Oracle Cost Management.
• Oracle Payables receives Item information from Oracle Inventory.
• Oracle Receivables provides intercompany invoice information and receives item
information from Oracle Inventory.
• Oracle Assets receives item information from Oracle Inventory.

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Summary

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