Item Setup & Controls Overview

Created 3/21/00

Overview

Oracle Inventory provides options to help you manage your item definition and maintenance
processes. As Oracle Applications are designed to support multiple organizations, features are
provided to assist in maintaining and managing items and their attributes across multiple
organizations. In addition, status codes are available to provide one stop control of an item’s function
defining attributes. To speed the item definition process, Item templates are available for the mass
assignment of item attribute values. Finally, user defined codes are used for selected item attributes,
such as User Item Type and Container Type. These codes help you classify your items based on your
processes and requirements.

Items in Multiple Organizations

Items in Oracle Inventory are defined and controlled in a master inventory organization, and
then enabled and updated in the inventory execution organizations (these organizations are
referred to as inventory organizations). Generally, the master organization exists simply to
support item definition and to serve as the validation organization for Purchasing and Order
Entry. The master organization is not used for transacting and managing inventory. The
master organization serves as a central repository for items and related entities. Attribute
values defined in the master organization are shared by all the item organizations, so definition
and maintenance can take place at a single point.

Oracle Inventory also recognizes that although items may be common to multiple operating
entities, factors such as lead time, costs, planning methodology and so on may vary from site to
site. Therefore, most of the item attributes may be set to indicate that the attribute value is
defined in the master organization, and thus applicable to all users or the item, or in each
inventory organization using the item. The user may set the item attribute control level at time
of system implementation. R2i has predefined these settings for the user.

When new items are created, item definition takes place in the master organization. Items are
then enabled in item organizations as necessary. Item attributes controlled at the master
organization cannot be updated in the other organizations. Attributes controlled at the
individual organization level will default from the master, from organization parameters or
some other source, depending on Oracle Inventory’s defaulting rules.

Base R2i includes a master organization called GLOBAL and an item organization called
COMPANY. It is recommended that GLOBAL not be updated. Normally, the client’s name
will be substituted for COMPANY. Most of the item attribute controls are set to Master
Organization in base R2i. These values should be reviewed with client but only updated if the
client anticipates using multiple inventory organizations and has a requirement to define the
attribute value independently by organization.

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 Item Setup & Controls Overview
Created 3/21/00

In addition to item attribute values, other Oracle Inventory entities may be at the master
organization level. These include:

 Category Sets: Category sets may be defined as master organization level or item
organization level.
 Manufacturer’s Part Numbers: Cross references from inventory items to manufacturer’s
part numbers are applicable to all organizations.
 Item Relationships: Item relationships are applicable to all organizations and may not be
limited to a specific organization.
 Customer Items: Customer items are applicable to all organizations and may not be limited
to a specific organization.
 Item Status Codes: Status codes are global to all organizations.
 Item Templates: Item definition templates may be used in the master organization or
inventory organization.

For more information in Item Definition, see the Item Definition Process document and the
Item Definition Training document.

Item Attribute Controls

Item attributes are used to define and control the characteristics of an item, such as make or
buy, shippable, invoiceable, order cost, lead time, and revision control. These attributes would
determine how the item would behave during various processes in order entry, purchasing,
planning, etc. There are over 150 item attributes in Oracle and they are classified under the
following groups:
Main
Inventory
Bills of Material
Costing
Purchasing
Receiving
Physical Attributes
General Planning
MPS/MRP Planning
Lead Times
Work in Process
Order Entry
Invoicing
Service

The control level for each of these item attributes can be set at the Master level (centralized) Vs
the Organization level (decentralized). Attributes maintained at the Master level are set once
for the Master or Global organization and have the same attribute values in each organization
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 Item Setup & Controls Overview
Created 3/21/00

in which an item is assigned, whereas attributes maintained at the Organization level may have
different attribute values in each organization where it is assigned. For example, an item may
be min-max planned in a distribution organization but MRP planned in a production
organization. Typically the control level set up by R2i for the item attributes does not need to
be changed during an implementation.

Reference the separate document ‘INV Item Attributes-Templates-Status Control

Values.xls’(Item Attributes worksheet) for a comprehensive list of Item Attributes and their
possible values.

Item Status Control

Oracle Inventory uses a few select Item attributes as function defining attributes. A “Yes”
value for a function-defining attribute will indicate that the item is used by the owning
function. In addition, if the owning function has a default category set, the item is
automatically assigned to that category set.

Function defining attribute values may be set with an Item Status Code. Using Status Codes
provides a single point to control the use of an item. As an item evolves through its product
life cycle, Status Codes can be used to update the function defining attributes to accurately
reflect how an item may be used.

The following item attributes are function defining attributes and therefore may be controlled
with Item Status Codes:

 BOM Allowed: This attribute indicates if the Bills of Material module use the item. Set
to “Yes”, the item may then have a bill and/or may be a component in a bill.
 Build in WIP: This attribute indicates if the Work in Process module may support a job,
repetitive schedule, or flow schedule for the item.
 Customer Orders Enabled: This attribute indicates if the Order Entry module uses the
item. Set to “Yes”, the item may be entered on a sales order line and sold to customers.
 Internal Orders Enabled: This attribute indicates if the item may be entered on an
internal sales order, for sale to another inventory organization.
 Invoice Enabled: This attribute indicates if the Accounts Receivable module may
generate an invoice for the sale of this item.
 Transactable: This attribute indicates if the item may be transacted in Inventory. Note
that this attribute is for inventory transactions only, such as Miscellaneous Transactions,
Subinventory Transfer, and Inter-organization Transfer. It does not prevent receiving
and shipping transactions.
 Purchasable: This attribute indicates if the Purchasing module uses the item. Set to
“Yes”, the item may be purchased on a purchase order.
 Stockable: This attribute indicates if the Inventory module may maintain an on-hand
balance for the item.
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Item Setup & Controls Overview
Created 3/21/00

You can turn on status control for each of these attributes. Each attribute may be set as:

 Under Status Control: The attribute value is set by the Item Status Code and cannot be
overridden by the user.
 Default Control: The Item Status Codes sets the attribute value, but only as a default.
The user may override the Status Control value.
 Not Under Status Control: The user must set the attribute value, as it is not controlled
by the Item Status Code.

Base R2i assumes that Status Codes are used to maintain or default all function defining
attributes. Four Item Status Codes are included in R2i:

 Active: All attribute values are turned on. The item is in the middle of its product life
cycle, and is purchased, built, and/or sold.
 Active-NS: Only the order entry and purchasing function defining attributes are turned
on. The item is purchased and/or sold, but it is not stocked or built. Usually, these
items are services, such as a consulting service that may be purchased or a training class
that may be sold.
 Inactive: All functions are turned off. This item is likely at the end of its life cycle and
is obsolete. It is not currently purchased, stocked, built or sold.
 Prerelease: Only the Bills of Material function defining attribute is turned on. The
item is likely still controlled by engineering and has not been approved for purchasing
or sales.

Item statuses are assigned to items at time of item definition. Item status codes may also be
updated on a scheduled basis. You may create a pending status for an item and assign it an
effectivity date. If pending statuses are used, a concurrent process must be scheduled to run
nightly to review and update pending statuses. When the pending status’ effectivity date is
reached, the concurrent process will update the item’s status code and the applicable item
attributes will be updated as well.

Item Status Control provides a useful tool for managing items through their product life cycle.
By setting an item defining attribute to Under Status Control, the attribute cannot be
mistakenly updated by the user, but will be set based on Item Status. Note, however, that
Status Control cannot override item attribute dependencies. For example, the attribute
“stockable” can only be set to “yes” if Inventory Item is set to “yes”. If Inventory Item is set to
“no” for an item, Stockable will also be set to “No”, regardless of the Status Control value.

Reference the separate document ‘INV Item Attributes-Templates-Status Control

Values.xls’(Templates worksheet) for a matrix of R2i templates and their attributes settings.

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Item Setup & Controls Overview
Created 3/21/00

Defining Items with Templates

Oracle Inventory has over 150 item attributes. Reviewing and updating each of these attributes
for each new item would be an overwhelming task. Fortunately, a shortcut is available with
the use of Item Templates.

Item templates let you predefine attribute values. When defining or updating items, you can
‘overlay’ the item templates on the new items and apply the attribute values in the template to
the item. You can overlay multiple templates if you wish, each time updating the attribute
values with the latest template.

R2i included predefined templates based on the item types. In fact, the templates and User Item
Type code (discussed below) share definitions and names. For each R2i template, there is a
User Item Type with the same name, and the template sets the User item Type attribute value
to the analogous code.

R2i includes the following item attribute templates. You should review each of these templates
for their predefined values and update as necessary:

 R2I-FG-DIST: For stocked, finished goods type items.

 R2I-NSFG-DIST: For non-stocked saleable items, such as training or a warranty
charge.
 R2I-PO-CAP: For items created for capital expenditure purchases.
 R2I-PO-EXP: For expensed items, such as office supplies or maintenance items.
 R2I-STK-BUY: For stocked, purchased items, such as components used in the
manufacture of sub-assemblies and assemblies.
 R2I-STK-MAKE: Sub-assemblies and assemblies generally built in WIP.
 R2I-SVCPRM: Service program items. Non-physical items that are used on
service contracts, such as charges for repair or installation work.

All R2i templates may be used at both the master organization and item organization. If you
have some attributes that you want to control at the item organization level, you may want to
define organization specific templates within each organization. These templates would
include values for organization specific attributes, such as account numbers, planner codes and
other attributes that you want defined as item organization level controlled.

Reference the separate document ‘INV Item Attributes-Templates-Status Control

Values.xls’(Item Attributes worksheet) for a comprehensive list of Item Attributes and their
possible values.

User Item Type codes.

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Item Setup & Controls Overview
Created 3/21/00

User item type codes are an Oracle ‘Quickcode’ that you may use for grouping items. The
code is assigned to items as an item attribute, and is a user tool for grouping or identifying
items. These codes are user defined and have no controlling meaning within the applications.
A standard practice, followed by R2i and recommended by Oracle, is to define Item Type codes
to match Item Templates names. This is often a logical grouping of items, as templates are
often defined for a purchase item, a make item, an expense item, etc. just as user item types are
defined for the same item groupings.

By using the User Item Type this way, you can quickly see the last template that was applied to
an item. If problems with attribute values are discovered, the User Item Type attribute will tell
you the last template applied to the item. This can help to quickly identify problems with
template attributes, or let you know if attributes are being overridden after the template has
been applied.

R2i includes User Item Type codes to match the R2i templates:

 R2I-FG-DIST: For stocked, finished goods type items.

 R2I-NSFG-DIST: For non-stocked saleable items, such as training or a warranty
charge.
 R2I-PO-CAP: For items created for capital expenditure purchases.
 R2I-PO-EXP: For expensed items, such as office supplies or maintenance items.
 R2I-STK-BUY: For stocked, purchased items, such as components used in the
manufacture of sub-assemblies and assemblies.
 R2I-STK-MAKE: Sub-assemblies and assemblies generally built in WIP.
 R2I-SVCPRM: Service program items. Non-physical items that are used on
service contracts, such as charges for repair or installation work.

If you create new templates or other than minor or minimum attribute updates, you may want
to also create a corresponding User Item Type so you can continue to identify the last template
applied to an item.

Container Type codes.

If you set the Item Attribute “Container” to “Yes”, the item is identified as a container used for
shipping goods to customers. If the item is a container, it may also have a Container Type
assigned to it. Container Types are user defined codes for grouping together container items.

Base R2i does not include any container types. There is currently little functionality for
container types, and only limited functionality for container items. As Oracle expands the use
of containers and container types in future releases, R2i will incorporate best practices use of
container types.

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