INVENTORY

Objectives

After completing this module, you should be able to do the following: Understand the Enterprise Structure in Oracle Applications Define Inventory Organizations and Locations Define Units of Measure Define Item Categories and Catalogs Describe Item Definition, Item Attributes and Attribute Controls Define Items Create Item Templates

Define Organizations & Sub inventories

Re-order Rules - Min-max - Reorder Point - Subinventory replenishment

Automatic Requisitions (to Purchasing)

Internally Sourced From Vendors

Receipt

Inspection Forecasting & Reorder Management Delivery Transfer

Returns

Define Business Rules

Model Enterprise

Define Items

Plan and Control

Transact Items

Costs Generate Tags Statuses Catalog Categories Templates Enter Count Cycle Counting - Auto Scheduled - Manually Scheduled Physical Inventory Issues & Returns

Fulfill Customer Orders Check Availability to Promise Schedule & Reserve Inventory Pick Ship Accounting: GL Update

ABC Analysis

Approve Adjustments

Update Balances

Valuation Report

Accounting: Posting Update

Oracle Purchasing

Oracle General Ledger

Oracle Cost Management

Oracle Work in Process

Oracle Accounts Payable

COGS Inventory Activity WIP Activity

Units of measure Item information Units of measure Item information

Oracle Inventory

Item Transaction s Demand

Projects/ External Systems

Oracle Receivables

Oracle Fixed Assets Oracle Order Entry

Engineering item information

Oracle Engineering

Oracle Bills of Material

Oracle Master Scheduling/ MRP

Agenda

Describe Enterprise Structure Define Locations Define Inventory Organizations Define Units of Measure Define Item Categories and Catalogs Define Items, Item Attributes and Item Controls Create Item Templates

What is an Enterprise Structure?

Set of Books 2 Organization A Location B Location A Set of Books 1 Organization B

Subinventory

Subinventory

Subinventory Subinventory

Locator

Locator

Locator

Locator

Locator

Enterprise Structure Example 1

SOB (Functional Currency) SOB 1 (USD) SOB 2 (EURO)

Physical Location

Florida

France

Name of SubInventory

FGI

FGI

Costing Method

Standard

Average

Enterprise Structure Example 2

Functional Currency (SOB) SOB 1 SOB 1

Physical Location

Florida

California

Sub-inventory

Finished Goods

Finished Goods

Locator Control

No

No

Costing Method

Standard

FIFO

Enterprise Structure Considerations

Set of Books 2 Organization A Location B Location A Set of Books 1 Workday Calendar Costing Method Planning Accuracy Transfer between locations Spring Holiday yes Standard Workday Calendar One Organization or Two ? Costing Method Planning Accuracy Transfer between locations Spring Holiday no FIFO Organization B

Min-max
Subinventory yes

Min-max
Subinventory yes

Enterprise Structure in Vision

Legal Entity

Vision Ops

Set of Books

Operating Unit

Vision Ops

D2
Inventory Organizations

M1

M2

V1 V1 Vision Ops

Agenda

Describe Enterprise Structure Define Locations Define Inventory Organizations Define Units of Measure Define Item Categories and Catalogs Define Items, Item Attributes and Item Controls Create Item Templates

Defining Locations
Organization #1 Organization #2 Organization #3

Factory, Inc. 500 Oracle Parkway Redwood Shores, CA 94065

Factory Outlet, Inc. 100 Outlet Lane Outletville, CA 94065

Examples of Locations

Marketing Office

Inventory Organization

Payables Office

Office Site Ship to Site Receiving Site

Ship to Site Receiving Site Bill to Site Internal Site Office Site

Office Site Bill to Site

Locations in Purchasing

Waiting for Receipt

Receipt

Delivery into Inventory

Agenda

Describe Enterprise Structure Define Locations Define Inventory Organizations Define Units of Measure Define Item Categories and Catalogs Define Items, Item Attributes and Item Controls Create Item Templates

Inventory Organizations

Organizations include but are not limited to manufacturing facilities, warehouses, distribution centers and branch offices.

Inventory Organization Setup

PO and Receiving

Set of Books
AR and AP

Inventory Organization
Shipping Legal Entity Operating Unit

Setup Considerations for Order Management & Purchasing

Which organization use to ship item?

Which organization use to receive item?

Inventory Organization #1

Inventory Organization #2

Agenda

Describe Enterprise Structure Define Locations Define Inventory Organizations Define Units of Measure Define Item Categories and Catalogs Define Items, Item Attributes and Item Controls Create Item Templates

Define Units of Measure

Each

Box

Dozen

Define Unit of Measure Classes

Inventory uses the base UOM to define conversions among units of measure within a class
Name Base Unit UOM

Area

Square Foot

FT2

Fluid

Ounce

OU

Length

Inch

IN

Examples of Unit of Measure Classes

UOM Class

Base UOM

Other UOMs in the same class

Quantity

Each

Dozen, Box

Weight

Ounce

Pound, Ton

Unit of Measure Conversion Example

1 box = 4 each

1 dozen = 12 each

Defining Interclass Conversions

=
1 ton
Base UOM = pound

1 gallon
Base UOM = liquid ounce

1 pound = 1 liquid ounce

Agenda

Describe Enterprise Structure Define Locations Define Inventory Organizations Define Units of Measure Define Item Categories and Catalogs Define Items, Item Attributes and Item Controls Create Item Templates

Describing Item Categories

Desktop

Laptop

Create Item Categories

Item Flexfield Structure Name Product Family Product Class Product Family Product Class Product Family Product Class Category Name Item Name

Computers Desktops Computers Laptop

Desktop 1 Desktop 2 Laptop 1 Laptop 2 Video card Modem

Computers Accessories

Describing and Using Category Sets

Cost What was the margin?

Inventory How many transactions?

Planning Number of Discrete Jobs this month?

Establish the Relationship Between the Category, Category Set and Item
Category Set

Category

Items

Laptop 1

Cost
Computers.Laptop

Laptop 2

Inventory

Describing and Using Item Catalogs

Descriptive Element

Catalog Group - Computers

Processor Speed

Hard drive

Memory

Creating Item Catalogs

Process to create Item catalog Create a catalog group Define descriptive elements within each catalog group

Example
Accessories

Type, Style, Size, Color

Assign items to catalog group

Tennis Shoe 1, Ballet Flat 1, Ballet Flat 2

Enter descriptive element Tennis Shoe 1 = values for items shoe.tennis shoe, 6, green Update item descriptions for descriptive elements if appropriate

Shoe.tennis shoe.6.green

Agenda

Describe Enterprise Structure Define Locations Define Inventory Organizations Define Units of Measure Define Item Categories and Catalogs Define Items, Item Attributes and Item Controls Create Item Templates

What is an Item?

Components

Assembly

Supplies

Option Classes

Oracle Applications Use Items

Inventory BOM/ENG Material Planning Advanced Supply Chain Planning Work in Process Depot Repair Accounts Receviable Accounts Payable

Items

Manufacturing Scheduling
Project Manufacturing Purchasing Sales Enterprise Asset Managemet

Cost Management Quality

Order Management

How Do Oracle Applications Use Items?

Production

Receiving

Invoices to Customer Invoices from Suppliers

Shipments

Item Attributes
Enterprise Asset Management

Main

Inventory

Bill of Material

Costing

Purchasing

Receiving

Physical Attributes Work in Process

General Planning

MRP/MPS Planning

Lead Time

Order Management

Invoicing

Service

Web Option

Items Have Statuses Which Represent the Life Cycle of the Item
Engineering Purchased only Active Stockable, orderable, invoiceable Inactive Cannot do anything

Prototype Purchased or built in WIP

Phase Out Orderable Invoiceable Transactable

Item Attributes Used in Item Status

Yes Yes
Active Stockable Transactable Build in WIP Purchasable Customer Orders Enabled Internal Orders Enabled BOM Allowed Invoicable No No No No No No No No Inactive

Yes Yes Yes Yes Yes

Yes

Item Master Organization and Child Organizations

Item Master Inventory Organization 1

Parts Listing - no Transactions

Transactions

Inventory Organization 2

Items are created in the Master Org and assigned to the Child Orgs All of the above are Inventory Organizations

Creating an Item
Apply template, copy from an existing item, or create the item manually Modify Attributes if necessary Enter Item Name Save to the database

V1

M1

M3

Assign to Inventory Organization

Setup, Define and Maintain Items

Choose Item Attribute Control Levels Define UOMs Define Status Control Levels Define Statuses

Define Create Categories Templates

Define Category Sets Define Default Category Sets 1

Define Catalogs

Setup, Define and Maintain Items

1

Copy templates
Copy items Enter attribute values

Enable in child organizations

Update organization level attributes Define item costs

Describing Attribute Control at Master Level

Inventory Item - Yes Item Master Inventory Organization 1 Inventory Organization 2

Inventory Item - Yes

Inventory Item - Yes

Describing Attribute Control at Child Level

Make/Buy = Make Item Master Inventory Organization 1 Make/Buy = Buy Inventory Organization 2 Make/Buy = Make

Describing Item Status Attribute Controls

Attribute
Stockable Transactable BOM Allowed Purchasable Build in WIP Customer Orders Enabled Internal Orders Enabled Invoice enabled

Attribute Value
Yes Yes No Yes Yes No Yes No

Status Setting
Sets Value Sets Value Sets Value Not Used Defaults Value Sets Value Defaults Value Not Used

Can I change?
No No No Yes Yes No Yes Yes

Describing Status Attribute Dependencies

Attribute Stockable Transactable BOM Allowed Purchasable Build in WIP Customer Orders Enabled Internal Orders Enabled Invoice Enabled Must set to No No No No No Dependency1 If Inventory item is set to No Stockable is set to No Inventory Item is set to No Purchased is set to No Inventory item is set to No or BOM item Type is NOT set to Standard Customer Ordered Item is set to No Internal Ordered Item is set to No Invoicable Item is set to No

No No No

Describing Item Attributes - Inventory

Inventory item

Stockable

Transactable

Describing Item Attributes - Purchasing

Purchased

Invoice Matching

List Price

Default Buyer

Describing Item Attributes - Receiving

Receipt Date Controls

Overreceipt Quantity Control

Valid Transactions

Receipt Routing

Define Item Relationships - Purchasing

Types of item relationships

Manufacturer Part Numbers - Supplier Item Number

Related items
Substitute Items

Agenda

Describe Enterprise Structure Define Locations Define Inventory Organizations Define Units of Measure Define Item Categories and Catalogs Define Items, Item Attributes and Item Controls Create Item Templates

Describing Item Templates

What attributes are being enabled each time an item is created?

Use a template to enable those attributes with one keystroke as opposed to many

The result: only the item attributes in your template applied to new item

Creating Item Templates

Copy from an existing or predefined template; make changes as necessary to meet your business needs

Start from Scratch and create a template that is meaningful to you

Using Item Templates

Apply the template to a new item being created

Make changes and deletions as necessary

Verify you have the attributes you want on the item!

Example of Using a Template

Value of attribute on template Buy Enabled on template Value after template applied Buy Change Value Value on item

Attribute

Make/Buy

Yes

Make

Make

Standard Lot Size Revision Control

10

No

Null

15

15

Yes

No

No

Yes

Yes

Additional Setup Considerations

Description
Units of Measure

Comments
Determine by item before you create; lowest unit you stock, plan and cost. How many segments? Build intelligence? Create name or system generated or both? How are you going to load items into database? Is there going to be an analysis of what is not needed? What role will do this? Who will have access?

Item Flexfield Numbering/Naming Conventions Conversion of Item/Item Import Which items will be converted?

Ongoing item addition and maintenance

Summary

You should now be able to do the following: Understand the Enterprise Structure in Oracle Applications Define Inventory Organizations and Locations Define Units of Measure Describe Item Definition, Item Attributes and Attribute Controls Define Items Create Item Templates Enter Item Categories and Catalogs