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Level 1 - Basic Points

Multi-Org : Multi-Org is a key component that provides secure access to the different organizations of the enterprise and supports multiple organizations of the enterprise structure in a single database Operating Unit :- Operating Unit is the primary organization unit through which transaction data is secured. Financial applications data also can be created, processed, and reported. An Operating Unit can be used to model an autonomous business unit that performs business activities and creates transactions with financial impact. Organizations :- An organization is an inventory location with its own set of books, costing method, workday calendar, and list of items. An organization can be a company, subsidiary, or warehouse. Set of Books:- Set of Books is the financial reporting entity that secures journal entries and account balances within the Oracle General Ledger application. Unit of Measure :- A unit of measure (UOM) is a term used along with a numeric value, to specify the quantity of an item. For example, each is a unit of measure that used to specify the number of units of an item. 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. A unit of measure conversion is a mathematical relationship between two different units of measure. Organization Calendar :-workday calendar must be defined in Inventory if the following are to be performed : inventory forecasting ,reorder-point planning, available-

to-promise analysis or cycle counting.Inventory automatically generates a workday pattern (the base calendar) that includes all days, including non-workdays, between the start and end dates specified.

Level 2 Item

Item:-An item is a part or service that are purchased, sold, planned, manufactured, stocked, distributed, or prototyped Item Statuses and Attributes :-Status attributes are item attributes that enable key functionality for each item. An item status is defined by selecting the value check boxes for the status attributes. Both status attributes and item status can be controlled at the item level or organization levels.

Categories and Category Sets


Categories are logical groupings of items that have similar characteristics.

A category set is a distinct category grouping scheme and consists of categories.

Inventory Controls
With Oracle Inventory locator, revision, lot, and serial number control can be implemented. Any combination of the four controls (locator, revision, lot, and serial number) can be implemented for each item. Inventory controls are optional for all items.

Inventory Transactions
A transaction is an item movement into, within, or out of inventory. A transaction changes the quantity, location, or

cost of an item. 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) enabled for items.

Material Flow

Business Flow

Business Group The purpose of the Business Group is to partition human resource information. A Business Group is the highest level of the structure and has no accounting impact. Legal Entities, Operating Units and Inventory Organizations all belong to a single Business Group. The Business Group also determines which employees will be available to the Sets of Books and Operating Units related to that Business Group Set of Books

Set of Books is the financial reporting entity that secures journal entries and account balances within the GL application. It is neither an organization nor an organization classification in Multi-Org. A Set of Books is the highest level that impacts accounting. A Set of Books is associated with a single Business Group, but multiple Sets of Books may be associated with a single Business Group Operating Unit

Operating Units belong to a Legal Entity. One or more Operating Units may be associated with a single Legal Entity. Inventory Organizations

Inventory Organizations belong to an Operating Unit. An Inventory Organization can serve multiple Operating Units within the same Set of Books. The relationship between Inventory Organizations and a Set of Books is financial.

Profile -> MO: Operating Unit This profile is used to link each Operating Unit to a Responsibility. The default Operating Unit is defined by setting the profile option at the site level in the system profile option hierarchy. Sets of Books Oracle General Ledger set of books can be tied to each inventory Organization Costing Methods costing method can be chosen only at the organizational level. Costing organization is determined by the item attribute control level. Item Costs Oracle Inventory keeps one standard cost per item per inventory organization.

Movement Between Inventory Organizations :In-transit inventory can be used for Inter-org transfers

Planning Method reorder point planning can be done at the organization level & min-max planning is done at both the organization and the subinventory levels.

Forecasting : Oracle Inventory forecasts item usage at the organization level only. Accuracy Analysis : physical inventory at both the organization and the Sub inventory levels. ABC : classifications at both the organization and the subinventory levels. cycle counting : at both the organization and the subinventory levels.

Organization Setup
Before using Oracle Inventory, one or more organizations need to be defined. Organizations represent distinct entities in a company and can include separate manufacturing facilities, warehouses, distribution centers, and branch offices. Organizations can be classified and connected to model the overall enterprise structure. The classifications include: Business Groups Legal Entities (LE) / Government Reporting Entities (GRE) Operating Units Inventory Organizations

Using an Item Master Organization


Item Master Organization is usually the first Inventory organization that is set up. Its single purpose is for entering items. It has no subinventories and is not used for inventory transactions. Items are entered in an item master organization and then assigned to be used in child organizations. Child Organization is an inventory organization with at least one subinventory that is set up for processing inventory transactions. It is not used to enter items. It gets a list of items from the master.