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Oracle EBS Training

On
Inventory Module

-Shital Kendre
KTCS,Pune

Agenda







Introduction to Oracle inventory management
Inventory Enterprise Structure
Inventory Setup
Creating and Maintaining Items
Inventory Controls
Inventory Transactions
Inventory Accuracy Control
Inventory Planning

Introduction to Oracle
Inventory management
What is Inventory?
Stocking ,tracking and maintaining the level of different items like Raw
material, Finished Goods, etc in an organization.

Introduction to Oracle inventory management Inventory management Oracle Inventory enables users to satisfy a company’s business needs. area such as:  Defining part numbers  Modeling organization structures  Tracking perpetual inventory  Maintaining accurate on-hand balances  Planning material replenishments  Forecasting anticipated demand .

Inventory Integration with other modules Oracle WIP Oracle Cost Management Oracle Flow Manufacturing Oracle Project Manufacturing External Systems Oracle Purchasing Oracle Inventory Oracle Order Management Oracle Engineering Oracle Master Scheduling/MRP Oracle Shipping Oracle Bills of Material .

Inventory management .

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

A unit of measure conversion is a mathematical relationship between two different units of measure. . gram.  workday exceptions can be assigned to the base calendar to denote holidays.  Inventory automatically generates a workday pattern (the base calendar) that includes all days. available-to-promise analysis or cycle counting. schedule maintenance. and ounce.Inventory management  Unit of Measure    A unit of measure (UOM) is a term used along with a numeric value. A unit of measure class is a group of units of measure with similar characteristics.  Organization Calendar  workday calendar must be defined in Inventory if the following are to be performed : inventory forecasting .reorder-point planning. including non-workdays. pound. “each” is a unit of measure that used to specify the number of units of an item. “weight” can be a unit of measure class with units of measure such as kilogram. or overtime. to specify the quantity of an item. For example. between the start and end dates specified. For example.

.  A category set is a distinct category grouping scheme and consists of categories.Inventory management  Categories and Category Sets  Categories are logical groupings of items that have similar characteristics.

Inventory management Category Grouping Inventory Category Set Finished Good Purchasing Category Set Hardware Craig Category Set PC Other Subassembly Software .

Inventory management .

. Every material movement has a corresponding set of accounting transactions that Oracle Inventory automatically generates. or out of inventory. All transactions validate the various controls (revision. location. locator. within. and serial number) enabled for items. lot number. or cost of an item. Inventory supports a number of predefined and user-defined transaction types. A transaction changes the quantity.Inventory management  Inventory Transaction    A transaction is an item movement into.

Introduction to Oracle inventory Inventory Transaction Business Flow Material Flow Receive Goods WIP Move Goods Ship Goods Purchasing Inventory MRP Order Entry .

Agenda         Introduction to Oracle inventory management Inventory Enterprise Structure Inventory Setup Creating and Maintaining Items Inventory Controls Inventory Transactions Inventory Accuracy Control Inventory Planning .

This organization model serves as the cornerstone for all of the Oracle Applications products. It dictates how transactions flow through different organizations and how those organizations interact with each other.Inventory Enterprise Structure  Inventory Enterprise Structure The Oracle Applications organization models define organizations and the relationships among them in arbitrarily complex enterprises. .

Inventory Enterprise Structure Organization Structure BG Set of Books LE LE LE LE OU OU IO IO IO IO OU OU IO IO IO IO OU OU IO IO IO IO .

Operating Unit is the primary organization unit through which user secures transaction data. An Operating Unit can be used to model an autonomous business unit that performs one or more business activities and creates transactions with financial impact. . but also creates processes and reports on financial applications data.Inventory Enterprise Structure  Multi-org   Multi-Org is a key component that provides secure access to the different organizations of the enterprise supports multiple organizations of the enterprise structure in a single database.

or an operation company and has no accounting impact. a major division. Multiple Legal Entities can relate to a single Business Group. The Business Group partitions Human Resources information and the Purchasing Approval Hierarchy.Inventory Enterprise Structure  Business Group This is an Organization that represents the consolidated enterprise. If you request a list of employees (in any module) you will see only those employees in the Business Group of which your Operating Unit is a part. Business Group Set of Books Legal Entity OU Inventory Organization .

Inventory Enterprise Structure    Set of Books Set of Books is the financial reporting entity that secures financial entries and account balances within the GL application. A Set of Books is associated with a single Business Group. SOB will be based on 3C’s (Currency. Chart of Accounts) A Set of Books is the highest level that impacts accounting. Calendar. but multiple Sets of Books may be associated with a single Business Group Business Group Set of Books Legal Entity OU Inventory Organization .

Inventory Enterprise Structure  GRE/Legal Entity Business Group   The Legal Entity represents a legal company for which the user prepares fiscal or tax reports. Legal Entities are associated with a Set of Books. Set of Books Legal Entity OU Inventory Organization . and multiple Legal Entities may be associated with a single Business Group. One or more Legal Entities may be associated with a single Set of Books.

Inventory Organizations  An inventory organization is a facility in your enterprise where you store and transact your inventory items. semi-finished goods. Information is secured by operating unit for these applications.Inventory Enterprise Structure   Operating Unit  An operating unit represents an organization that uses any Oracle subledger application. Business Group Set of Books Legal Entity OU Inventory Organization . or a department. Payables. It may be a sales office. An operating unit is associated with a legal entity. or finished goods for varying periods of time. Each user sees information only for their operating unit.  Inventory Organizations belong to an Operating Unit. a division. for example. The items in an inventory organization can be in the form of raw materials. Order Management.

Inventory Organization Structure .

Inventory Enterprise Structure Inventory Organization Structure Organization Subinventories Locators .

such as raw material inventory.  A logical entity such as an item master organization.Inventory Enterprise Structure    Organizations – An inventory organization is a facility in your enterprise where you store and transact your inventory items. finished goods inventory. or finished goods for varying periods of time. The item master organization is discussed in detail in the lesson titled “Defining and Maintaining Items Fundamentals. Item quantities can be tracked by locator. In Oracle Inventory. semifinished goods. Therefore.  A physical entity such as a manufacturing facility. all material within an organization is held in a subinventory. Subinventory Subinventories are unique physical or logical separations of material inventory. warehouse. which you can use just to define items but no transactions. Items can also be restricted to specific locators . or a branch office. The items in an inventory organization can be in the form of raw materials. you must define at least one subinventory. or defective goods inventory. Locator You use locators to identify physical areas where you store inventory items. distribution center.

Agenda         Introduction to Oracle inventory management Inventory Enterprise Structure Inventory Setup Creating and Maintaining Items Inventory Controls Inventory Transactions Inventory Accuracy Control Inventory Planning .

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

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

Inventory Setup Organization Setup Inventory Organizations are made up of one or more subinventories which can be made up of one or more locators Organization Subinventory Locator .

A subinventory must be specified for every inventory transaction Subinventories can be further divided into areas designated as locators.Inventory Setup Subinventory set up A subinventory is a physical or logical grouping of inventory. . finished goods. The subinventory is the primary place where items are physically stocked. defective material. such as raw material. or a freezer compartment.

It defines which days are “ON” within an organization and which shifts are available to be worked. The workday calendar is separate from the Oracle General Ledger calendar. The workday calendar is the Oracle term for a manufacturing calendar. Each organization references a workday calendar.Inventory Setup Workday Calendar Workday calendar can be defined both in Inventory and Bills of Material. .

Each transaction performed in Inventory must have a UOM associated with the transaction quantity and a conversion defined back to the primary UOM. A unit of measure (UOM) is a term used along with a numeric value.Inventory Setup Units of Measure Units of measure (UOM) are defined for tracking/moving/storing & counting items. to specify the quantity of an item. Each item defined in Inventory must have a primary UOM. “each” is a unit of measure used to specify the number of units of an item. . For example. Multiple related UOMs are grouped together in a class with a base unit of measure Inventory uses the base UOM to perform conversions between units of measure in each class and between two different unit of measure classes.

Agenda         Introduction to Oracle inventory management Inventory Enterprise Structure Inventory Setup Creating and Maintaining Items Inventory Controls Inventory Transactions Inventory Accuracy Control Inventory Planning .

Creating and Maintaining Items Setting up item Definition 1 Choose Item Attribute Control Levels 2 Define UOMs Define Status Control Levels Define Categories and Category Sets Define Statuses 3 Define Items Create Templates Define Catalogs .

 Inventory reflects your changes in all organizations that carry the item. unit of measure. defaults for organization-level attributes can be specified. such as item status. revision control.These can be controlled at either the master or the organization level. When defining items in the item master. etc. . Master-level attributes can be only updated by using the Master Item window. Values of organization-level attributes can be updated only by using the Organization Item form in each organization that carries the item. Attributes Controlled at the Organization Level An item may have different values for such attributes in each organization in which it is defined. Attributes Controlled at the Master Level An item has the same value for such attributes in all organizations in which it is defined.Creating and Maintaining Items Item Attributes Item attributes are fields in the item table used to store specific characteristics of an item.

Creating and Maintaining Items Status Attributes and Functionality Status Attribute Stockable Functional Area Inventory Functionality Allows to store the item in an asset subinventory Transactable Inventory. Purchasing. OM. PO and WIP . Order Management. WIP Purchasable Purchasing Allows to place the item on a purchase order Build in WIP Work in Process Allows to build the item on a discrete job and/or a repetitive schedule Allows to transact the item Inventory.

Creating and Maintaining Items Status Attributes and Functionality Status Attribute Functional Area Functionality Allows to place the item on a sales order Customer Orders Enabled Order Management Internal Orders Enabled Inventory. Order Management. Purchasing Allows to create an internal sales order for the item BOM Allowed Bills of Material Allows to create a bill of material for the item Invoice Enabled Receivables Allows to create an invoice for the item .

When the item is ready the Item Status attribute is set to Active to allow all functions for the item. The values are applied to the status attributes when an item status code is chosen when defining an item. For example. . in the beginning of a product development cycle Item Status attribute is set to Prototype with all of the status attributes defaulted to yes except for Customer Orders Enabled. The Item Status attribute has a user defined set of yes/no values for the status attributes. status must be given by using the Item Status attribute.Creating and Maintaining Items Item Status When defining an item.

One or more of these status codes can be assigned to an Item for implementation on a future date. The status codes then automatically change on their user specified effectivity dates.Creating and Maintaining Items Item Attributes Status Control An unlimited number of status codes can be defined by the user. .

Multiple templates can be applied to a single item. If a partial set. Templates can hold a complete set of attributes or a partial set. then only values stored in the template overwrite those on the item .Creating and Maintaining Items Item Templates Templates are defined sets of attributes that can be used over and over to create many similar items. Templates can be applied at any time after the item is created. Templates make initial item definition easier and more consistent.

Creating and Maintaining Items Item Templates Users can define their own templates or predefined templates include: ATO Model ATO Item ATO Option Class PTO Model Phantom Item PTO Option Class Subassembly Freight Supply Item Finished Good Outside Processing Item Planning Item Reference Item Product Family Purchased .

Categories and category sets are used to group items for various reports and programs. Inventory . Some application modules.Creating and Maintaining Items Item Categories A category is a logical classification of items that have similar characteristics. for example require that all items are assigned to a category. A category set is a distinct grouping scheme and consists of multiple categories. The user specifies a default category for this purpose in each of these modules. .

Only the information needed to maintain the item are defined. unit of measure or lot control) can be defined and updated.Creating and Maintaining Items Defining Items With the Master Item window. items and the attributes associated with them (such as description. . An item cannot be defined at the Organizational level. Much of the information for an item is optional. Oracle will automatically switch to the Master Item window when defining a new item.

Creating and Maintaining Items
Defining Items
An item is a part or service that is purchased, sold, planned, manufactured, stocked, distributed, or
prototyped. The following Modules use items:

Inventory

Purchasing

Attributes

Attributes

Service

Order Management

Attributes

Attributes

Work in Process

Bills of Material

Attributes

Attributes

Receiving

Items

Costing

Attributes

Attributes

Lead Time

MRP/MPS

Attributes

Attributes

Planning

Invoicing

Attributes

Attributes

Creating and Maintaining Items
Master Item vs. Organizational Item
 Whether an item attribute is defined/maintained at the Master level or the Organization level can be
designated.
 Attributes at the Master level are the same across all organizations that the item is assigned to.
 If an attribute is maintained at the Organization level, it can have different values in each
organization the item is assigned.
 Some attributes can be maintained at only the Master level or the Organizational Level. Unit of
Measure should be maintained at the Master level. Min-Max should be maintained at the
organizational level if multiple organizations are used.

Creating and Maintaining Items
Defining Items
(N) Inventory>Items>Master Items

Creating and Maintaining Items Defining Items Organization Assignment .

Agenda         Introduction to Oracle inventory management Inventory Enterprise Structure Inventory Setup Creating and Maintaining Items Inventory Controls Inventory Transactions Inventory Accuracy Control Inventory Planning .

revision.any combination of the four controls (locator. .Inventory Controls Overview With Inventory locator.Inventory controls are optional for all items. revision. lot and serial number) for each item can be implemented. lot and serial number control can be implemented Flexibility: . .

Inventory Controls Locator setup Locators are optional structures within subinventories. aisles. Items can be received directly into and shipped items directly from locators. Locators are the third level in the enterprise structuring scheme of Oracle Inventory . Locators may represent rows. or bins in warehouses. .

revision 10 cannot be used after revision 9 because. etc can be used. Each revision must be greater than the previous revision. A1.Inventory Controls Revision Control A revision is a particular version of an item. To do so a revision is a must for each material transaction. .  Revision Control item attribute cannot be changed when an item has quantity on hand. By using the ‘Revision control’ option while defining items item quantities can be tracked by item revision. numbers and characters such as A. Letters are always in upper case and numbers may include decimals. bill of material. To ensure that revisions sort properly. or routing. 10 precedes 9. 2B. Revision control is enabled for items for which version changes or changes that are significant enough to track but are not affecting the function and feature of the item are tracked . When defining Revision numbers letters. according to ASCII sorting. Revisions are sorted according to ASCII rules. For example. decimals should always be followed by a number.

Inventory will generate default lot numbers by using the default lot number generation method which is configured in the Organization Parameters window during setup.Inventory Controls Lot Control  Inventory provides complete lot number support for inventory transactions. An inventory receipt can be split in to several lots. Quantities can be added to existing lot numbers. If Lot Control is turned on for an item. thus enabling the tracking of batches of items throughout their movement in and out of inventory. A lot identifies a specific batch of an item that is received and stored in an organization. lot numbers must be assigned whenever items under lot control are received into inventory. as necessary. . Lot control is a technique for enforcing the use of lot numbers during material transactions. the lot number must be indicated to perform a transaction. Lot Control must be turned on at the item level.

Inventory Controls Lot Control Lot can have an expiration date by assigning a number of lot control shelf life days or by entering a lot expiration date. The expiration date controls the availability of the lot for transacting and planning purposes. .

.Inventory Controls Lot Control Disabled Lots: Disabling a lot only prevents it from appearing in a list of values when performing receipt transactions.

Serial numbers can be used to track items over which a very tight control is to be maintained. Serial number control is a system technique for enforcing the use of serial numbers during a material transaction. One serial number per unit of an item can be assigned .Inventory Controls Serial Control A serial number is an alphanumeric piece of information assigned to an individual unit of an item. Individual units of items can be tracked by using serial numbers. A serialized unit is a combination of an item number and a serial number.

it simply reserves serial numbers for an item. If Predefined is specified as the serial number control type. Inventory uses the starting serial number prefix and the starting serial number specified in the Item screen . If control At inventory receipt or At sales order issue. optionally serial numbers for the item can be predefined.Inventory Controls Serial Control Generating Serial Numbers Depending on how Serial Number Control is set at the Master Item level will determine how serial numbers are generated. The process of generating serial numbers is done through a concurrent report. This does not assign numbers to units in inventory. If No Control is specified as the serial number control type. for later use. . no serial number control will be enforced. serial numbers for that item must be predefined.

Agenda         Introduction to Oracle inventory management Inventory Enterprise Structure Inventory Setup Creating and Maintaining Items Inventory Controls Inventory Transactions Inventory Accuracy Control Inventory Planning .

Inventory Transactions Overview  Understanding of Transaction Types  Overview of Inventory Transactions  Miscellaneous Transactions  Subinventory Transfer  Inter Organization Transfer  Receipts  Move Orders .

Transaction Source Type Transaction Action Transaction Type .Inventory Transactions Inventory Transactions  A transaction type is the combination of a transaction source type and a transaction action. It is used to classify a particular transaction for reporting and querying purposes.

 WIP Issue.This transaction is used to move goods from pick subinventory to staged subinventory.This transaction is used to do adjustments in stock due to damage. .This transaction is used to transfer goods from one stockroom to another with in the same inventory organization.  Receiving Transactions.Inventory Transactions Types of Inventory Transactions  Miscellaneous Transactions.  Sales Issue.This transaction is used to move goods from receiving dock to specified subinventory and locator. issuing items for R & D or issuing track able expense items.  Subinventory Transfer.This transaction is used to issue materials against production orders. obsolescence.This transaction is used to transfer goods from one inventory organization to another.  Inter ORG Transfers.

Inventory Transactions Miscellaneous Issue Miscellaneous Receipt Subinventory Organization Locator Subinventory Locator Subinventory Transfer Locator Subinventory Transfer Locator Direct Interorganization Transfer Interorganization Transfer by Way of Intransit Organization .

Inventory Transactions Miscellaneous Transactions Select the transaction type Account for passing adjustment transactions If you want to enter transaction line by serial number for serialized item check this box .

Transaction Lines Enter the quantity to be adjusted Lot or serial number can be entered if item is a serial controlled or Lot Controlled .Inventory Transactions Miscellaneous Transactions .

or between two locators within the same subinventory .Inventory Transactions Subinventory transfer  Use the Subinventory transfer window to: Transfer material within your current organization between subinventories.

Inventory Transactions Inventory Transactions Subinventory Transfer The type can be Subinventory transfer to transfer from one subinventory to another or any of the user defined transaction type for source inventory & action subinventory transfer .

Inventory Transactions Inventory Transactions Subinventory Transfer Transaction Lines Enter source subinventory Enter destination subinventory Saving the record will complete the transaction. Enter Quantity .

Inventory Transactions Inter Org Transfer You need to define shipping network before doing inter organization transfer Pune Mumbai Organization Organization Use Intransit Inventory (FOB = Receiving) Use Intransit Inventory (FOB = Shipping) Austin Organization Delhi Organization Require Internal Order to Ship Direct Transfer Pune Organization .

Inter–Organization Transfers via Intransit Inventory We usually transfer material to intransit inventory when transportation time is significant. we do not need to specify the delivery location. a shipment number. the freight information. We only need to enter the subinventory we are shipping from. a percentage of the transaction value or a discrete amount that Oracle Inventory uses to compute transfer charges. depending on the inter–organization transfer charge that applies between the organizations.Inventory Transactions Inter Org Transfer Direct Inter–organization Transfers We can use a direct inter–organization transfer to move inventory directly from a shipping organization to a destination organization. and. When we perform the transfer transaction.  The validity of a transfer transaction depends on the controls we have defined in both the shipping and destination organizations for the items we want to transfer. .

Inventory Transactions Receipts Type of Receipt Transactions  Receive both internally and externally sourced shipments  Process unordered receipts  Receive substitute items  Inspect items for quality control and invoice matching needs  Correct transaction errors  Receive returned items into inventory  Return delivered items to receiving Note: As part of inventory training only standard receiving transaction will be covered with receipt routing as Direct Delivery .

Use the Supplier and Internal tabbed region to search for Purchasing documents. .Inventory Transactions Receipts Use the Find Expected Receipts window to: Find source documents for which you can enter receipts.

and transacting a move order.Inventory Transactions Inventory Transactions Move Orders Overview Of Move Orders •Move orders are requests for the movement of material within a single organization. material storage relocations. • Manage all material requisition and request processes within an organization by manually or automatically creating. • Used for movement of material within a warehouse or facility for purposes like replenishment. and quality handling. approving. .

Inventory Transactions Inventory Transactions Move Orders Move Order Type Move Order Requisition Replenishment Move Orders Pick Wave Move Orders Transaction Type Generation & Approval • Account Transfer • Subinventory Transfer • Manually Generated • Optional Approval Processing • • • • Kanban Min Max Replenishment Count • Automatically Generated • Pre-approved • Ready for Transaction Sales Order Pick Internal Order Pick • Pre approved • Print Pick Slip .

Inventory Transactions Inventory Transactions Move Order Process Flow Approve move Move order requisition created order Move order locates material sources Pick Ticket In case of shortage move order can be re-planned Put away Destination location Picking Source location .

Agenda         Introduction to Oracle inventory management Inventory Enterprise Structure Inventory Setup Creating and Maintaining Items Inventory Controls Inventory Transactions Inventory Accuracy Control Inventory Planning .

 Physical inventory A physical inventory is a periodic reconciliation of system on-hand balances with physical counts in inventory. Count items of higher value more frequently than items of lower value. .Inventory Accuracy Control Inventory Accuracy Control  Cycle Counting Cycle counting is the periodic counting of individual items throughout the year. The differences between the system quantity and counted quantity are adjusted to correct the system quantity and inventory value in the system. Production is stopped at the time of carrying out this activity. It is normally done once in a year as a part of financial auditing requirement to verify inventory assets on balance sheet.

Inventory Accuracy Control Cycle Counting ABC Classification of items Define cycle count header Update cycle-count items Schedule items to count Generate count requests Enter cycle counts Approve cycle counts .

• An ABC analysis involves ranking your items according to a criterion and then grouping items into classes. .Inventory Accuracy Control Inventory Accuracy Control ABC Classification ABC Analysis •ABC analysis is a method of determining the relative value of items in your inventory sites.

Inventory Accuracy Control Inventory Accuracy Control ABC Classification ABC Analysis Define ABC compilation Define ABC classes Define ABC group Assign items to ABC classes Update class assignments Purge ABC information .

It can be based on current value or historical usage value Cost type to pick up the unit cost of items in compile set .Inventory Accuracy Control Inventory Accuracy Control ABC Classification ABC Compilation Press Compile to generate compile results Criterion for categorizing your items in Organization.

 Define these classes using own terminology. you might define classes High value. Low value.  Assign items of highest rank to the High class.Inventory Accuracy Control Inventory Accuracy Control ABC Classification Use ABC classes to identify the value groupings to which items belong. Medium value. For example. those of lower rank to the Medium class and those of lowest rank to the Low class.  Can use ABC classes to group items for a cycle count where you count “A” items more frequently than “B” items. .

Inventory Accuracy Control Inventory Accuracy Control ABC Classification ABC Classes Define class names for your ABC Classification purpose .

the frequency of each class.  Manual Scheduling You can manually schedule counts in addition to or instead of those generated with automatic scheduling. and the workday calendar of your organization to determine how many and which items you need to count during the scheduling frequency.Inventory Accuracy Control Inventory Accuracy Control Cycle Counting Schedule Cycle Count Automatic Scheduling Oracle inventory uses the number of items in each cycle count class. .

Inventory Accuracy Control Inventory Accuracy Control Cycle Counting Generate Cycle Count Request Cycle count Scheduler for automatic scheduling Generate Cycle count request to generate cycle count entries .

. and planning production. A physical inventory is identified by a unique name you assign. You can: A physical inventory is done once a year to check and correct the accuracy of your inventory. such as adjustments. You can then perform your physical inventory of the first stockroom. Often used by banks to audit their investment into your company or to simply reset your stock levels so that inventory is correct and customer service is not impacted by wrong information. you can define two physical inventories. You can define and maintain an unlimited number of physical inventories in Oracle Inventory. Accurate system on-hand quantities are essential for managing supply and demand. if your warehouse has two large stockrooms. one for each subinventory. For example. You can define multiple physical inventories to count selected portions of your inventory.Inventory Accuracy Control Physical Inventory • • • • Oracle Inventory provides a fully automated physical inventory feature that you can use to reconcile system-maintained item on-hand balances with actual counts of inventory. or you can count your total inventory. You use this name to identify any activity. independent of the second. maintaining high service levels. each represented by a subinventory. pertaining to this physical inventory.

Inventory Accuracy Control Physical Inventory Define physical inventory Take snapshot of on-hand quantities Generate tags Count items Enter counts Void tags Approve counts Run adjustment program Purge physical inventory .

quantity of the adjustment. adjustment quantities. Tag quantities. You must approve or reject all adjustments or the system will not run the adjustments program. and adjustment values can be reported before performing the adjustments. . You can use the adjustment report to authorize approvals or request recounts of items with large pending adjustments.  Once adjustment program is run the system does not allow a new tag generation or any further updates to the tag counts.Inventory Accuracy Control Inventory Accuracy Control Perform Physical Inventory Adjustments The system performs adjustments by creating a material transaction for the +/.

tags and count quantities. If irreversible mistakes are made in the count-entry phase. frozen quantities. . Purging All Information You can purge the physical inventory definition. This purge deletes adjustments but not the adjustment material transactions. you can start over without refreezing your inventory.Inventory Accuracy Control Inventory Accuracy Control Purge Physical Inventory Purging tags only: You can purge all tags associated with a physical inventory definition.

Agenda         Introduction to Oracle inventory management Inventory Enterprise Structure Inventory Setup Creating and Maintaining Items Inventory Controls Inventory Transactions Inventory Accuracy Control Inventory Planning .

Inventory Planning Planning methods: • Performing Min-Max planning • Performing reorder-point planning • Subinventory replenishment planning • Creating and executing Kanban cards .

Inventory Planning Inventory Planning MIN MAX Planning Min-max planning is a method of determining when and how much to order based on user-defined minimum and maximum inventory levels. In Oracle Inventory you can perform min-max planning at two levels: Organization: To perform organization-level min-max planning for an item. . you must specify organization-level minimum and maximum quantities. Subinventory: To perform subinventory-level min-max planning for an item. you must specify subinventory-level minimum and maximum quantities.

Inventory Planning MIN MAX Planning Determine minimum and maximum quantities Enter minimum quantity Enter maximum quantity Do you want specific lot increments? Yes Enter fixed lot increments No Enter minimum order quantity Run min-max report Enter maximum order quantity .

[(on-hand quantity) + (quantity on order) ] You can constrain the order quantity by specifying the following order modifiers for an item:  Fixed lot multiplier  Minimum order quantity  Maximum order quantity .on hand quantity + quantity on order If Quantity Available is>0.Inventory Planning Inventory Planning MIN MAX Planning The following equation represents when you should order: Quantity Available= Min QTY. the order should be placed Order quantity = (maximum quantity) .

. Run the Min-max report.Inventory Planning MIN MAX Planning Enter item planning attributes. Define subinventory-level minmax information (optional).

Select an Inventory Planning method. Enter the following: • Min-max minimum quantity • Min-max maximum quantity • Fixed-lot-size multiplier • Minimum order quantity • Maximum order quantity . Specify a planning level (either Organization or Subinventory).Inventory Planning Inventory Planning MIN MAX Planning Set up the appropriate profile value for requisition approval.

Inventory Planning
Inventory Planning
MIN MAX Planning

Enter the
minimum and
maximum
quantity

Enter the source type as
supplier if you want to
generate purchase
requisitions. Enter
subinventory or organization
if you want to generate move
orders

Enter the planning
method as Min
Max Planning

Inventory Planning
Inventory Planning
Min Max Report

Planning level can be
organization or
subinventory. If it is
subinventory the min
max quantity should
have been maintained
at subinventory level

Demand cut off
date for demand
calculation

Inventory Planning
Inventory Planning
MIN MAX Planning

If you don’t want to
generate orders keep the
option as No. it will print
report for all those items
where quantity available is
less than Min Quantity
What are the different
sources of supply to be
considered for calculation of
quantity available

The program includes
nettable subinventory
as supply. In order to
include non nettable
subinventory make it
yes

Inventory Planning Oracle Inventory Processes Reorder-Point Min-Max Planning Planning Subinventory Replenishment Kanban Populate Requisition Interface Oracle Purchasing Processes Run Req. Import Create Purchase Requisition Create Internal Requisition Create Purchase Order Create Internal Order Oracle Order Entry Processes Run Order Import .

Inventory Planning Inventory Planning Reorder-point planning  Reorder-point planning is a method of determining the size and timing of item replenishment orders.  Reorder-point planning uses the following pieces of information: Safety stock Replenishment lead time item demand Order cost Carrying cost .

Inventory Planning Reorder-point planning Quantity Reorder Point Safety Stock Time .

 You can use Reorder-point planning for items that you do not need to control very tightly and that are not very expensive to carry in inventory.  You can specify Reorder-point planning as the inventory planning method when you define an item.Inventory Planning Inventory Planning Reorder-point planning  You can perform-reorder point planning for the entire organization.  You can use Reorder-point planning for items under independent demand. .

Forecast item demand Forecast Item Demand Run Reorder-point report. .Inventory Planning Reorder Point Planning Steps Enter item planning attributes. Define safety stocks.

Specify a minimum-order quantity. Specify a fixed-lot size multiplier. Enter a carrying cost percent. Specify a maximum-order quantity. Enter an order cost.Inventory Planning Inventory Planning Reorder-point planning Item Planning Attributes Select Reorder-point as the inventory planning method. .

Enter processing lead time.Inventory Planning Inventory Planning Reorder-point planning Enter Lead Times Enter preprocessing lead time. . Enter postprocessing lead time.

Inventory Planning Inventory Planning Reorder-point planning Item Planning Attributes Set your planning method Safety Stock method Set your lead times on the lead time tab .

corresponding to the service level. The mean absolute deviation is a measure of how the forecast demand deviates form the actual demand.Inventory Planning Inventory Planning Reorder-point planning Entering Safety Stock You can select one of the following three safety stock calculation methods for each item:  User-defined quantity You can enter safety stock quantities and the date for which each quantity is effective. You can update safety stock quantities that you previously entered or that Oracle Inventory calculated for you. User-defined percentage To use the user-defined percentage method. In this window. .25 × (mean absolute deviation) where Z is the appropriate value from a table of standard normal distribution. you must use the Reload Safety Stock window and specify the following information for the item: A forecast A safety stock percent You can select one of the following three safety stock calculation methods for each item: Mean absolute deviation To calculate safety stock using this method. you submit a concurrent request using the Reload Safety Stock window. you must specify the following information: A forecast A service level percent safety stock = Z × 1.

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