R12 Oracle Inventory Training

Business Learning Center Satyam Confidential 1

 AGENDA
•Org Structure
•Business Process flow
•Integration with other modules
•Convergence with OPM
•MOAC
•Item Master and Controls
•Major Enhancements in R12
•Inventory Reports and Interfaces

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 Inventory Flow Process

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 Application Integration

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 Organizations

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 Organizations-Definition

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 Organization Parameters

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 Inventory Convergence

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 Inventory… Before (R11i)

Order Management Procurement ASCP

OPM Inventory Discrete Inventory

OPM OPM OPM

WIP Costing Quality
Production Costing Quality

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 Inventory… After (R12)

Order Management Procurement ASCP

Oracle Inventory

OPM OPM OPM

WIP Costing Quality
Production Costing Quality

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 Multi Org Access Control

• Access multiple
Operating units from a
single Application
Responsibility.

• Enable Shared
Services while
maintaining operating
unit security

Benefits:
Streamlined Shared Service Center Operations
Access, Process, and report on data for multiple operating units from within a
single Application Responsibility.
Eliminate the need to switch responsibilities in order to service multiple operating
units.
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 Items

Item Master Org Define Items in the

Item Master

Transact Items in the Inventory Organizations

Manufacturing Assembly Distribution

(Jeddah) (Riyadh) (Dubai)

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 Define Items
An item is a part or service that you purchase, sell, plan, manufacture,
stock, distribute, or prototype. The following Oracle Applications use
items:
Inventory Purchasing
Attributes Attributes

Service Order Management

Attributes Attributes

Work in Process Bills of Material

Attributes Attributes
Items
Receiving Costing
Attributes Attributes

Lead Time MRP/MPS

Attributes Attributes

Planning Invoicing
Attributes Attributes

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 Master Items

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 Item Statuses and Status Attributes
Item Status Attributes enable you to control key functionality of an
item whereas Item Attributes describe an item.

Status Attributes

Invoice Enabled =
BOM Allowed = Yes
Item Status Yes

Build in WIP = Yes Transactable = Yes

Active
Customer Orders
Purchasable = Yes
Enabled = Yes

Internal Orders
Stockable = Yes
Enabled = Yes

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 Items-OPM Convergence

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 Item Assignments

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 Item Controls
Item with locator control
in this Subinventory Lot Controlled Items
Organization

Subinventory
Subinventory

Locator
Item AS3339 Item AS3339
Lot# C1498 Lot# C1498.1

Item without locator control

in this Subinventory

Serial Controlled Items

Revision Control

Item # AS54888 Item # AS54888

Item AS5222 Item AS5222 Revision A Revision B
Serial #5847329 Serial #3798490

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 Control through Item Categories

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 Dual UOM Control
•Dual Unit of Measure Control
•Track, Transact, view on hand and availability by multiple UOMs
•Planning and Costing still use Primary UOM
•Transactions posted via 3rd party interface without Dual UOM Uses
Default Conversion

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 Material Status
•Material Status Control
•Assigned on Receipt Updatable later on
•Allowed/Disallowed
•Status Change History Report

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 Serial Genealogy

Consisting of

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 Vis a Vis 11i-Whats New in R12

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 Inventory Transactions

Subinventory Subinventory
Organization
Locator Locator
Sub inventory
Sub inventory
Transfer
Transfer
Locator Locator

Direct Inter- Interorganization

organization Transfer by Way
Transfer of in transit

Subinventory Organization Subinventory

Organization
Locator Locator
Subinventory
Sub inventory Transfer
Transfer
Locator Locator

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 Enhanced Lot Transactions
•Enhanced Lot Transactions (Through Backend APIs)
•Lot Merge
• Lot Split
• Lot Translate
•Available while using Material Transaction Open Interface

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 Move Orders

 A move order is a request for a subinventory transfer or

account issue (also called an account transfer). When using
an account transfer, the actual movement is an issue, not a
transfer from subinventory to subinventory.
 Using move orders, you can manage all material
requisitions and request processes within an organization by
manually or automatically creating, approving, and
transacting a move order.

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 Move Orders Process Flow
Move order locates
material sources

Approve
Move order move
order
requisition
created Pick
Ticket

In case of shortage
move order
can be re-planned

Put away Picking

Destination
Source
location
location

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 Cycle Counting
– Cycle counting is the periodic counting of individual items
throughout the year. Count items of higher value more frequently
than items of lower value.
– Perform cycle counting instead of performing physical inventory.
You can use both techniques to verify the accuracy of on-hand
quantities and values.
Day 1 of Cycle Count

High-Value Item to Count

Low-Value Item to Count

Day 2 of Cycle Count
High-Value Item to Count

Low-Value Item to Count

Day 3 of Cycle Count

High-Value Item to Count

Low-Value Item to Count

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 Cycle Counting ABC Analysis
 ABC analysis is a method of determining the
relative value of items in your inventory sites.
 An ABC analysis involves ranking your items
according to a criterion and then grouping items
into classes. ABC refers to the rankings you
assign your items as a result of this analysis,
where A items are more valuable than B items,
and so on.

Computer Printer Mouse

Item A Item B Item C

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 Physical Inventory

 A physical inventory is a periodic reconciliation

of system on-hand balances with physical counts
in inventory.
 You can perform a physical inventory whenever
you choose to verify the accuracy of your system
on-hand quantities.
 You can perform a physical inventory for the
entire organization or for particular
subinventories within an organization.

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 Inventory Planning and Replenishment

 Planning methods
 Performing reorder-point planning
 Performing Min-Max planning
 Subinventory replenishment planning
 Creating and executing Kanban cards

 Replenishment source
 Suppliers
 Inventory organizations
 Sub inventories
 Manufacturing

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 Inventory Planning and Replenishment

WIP Issues Sales Order

Shipments

Statistical and
Focus Forecasts

Inter-Org Miscellaneous
Shipments Issues

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 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 Quantity

 Replenishment lead time

 Item demand
 Order cost
 Carrying cost
Reorder Point

Safety Stock

Tim
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 Min-Max Planning
Determine minimum
and maximum Enter minimum quantity
quantities

Enter maximum quantity

Yes
Do you want
specific lot Enter fixed lot increments
increments?

No
Enter minimum order quantity

Run min-max report Enter maximum order quantity

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 Kanban Management
 Techniques used
 Define pull sequences
 Calculate number of cards and Kanban size
 Kanban requirements simulation
 Generate non-replenishable Kanbans
 Automate transactions; generate requisitions

Kanban Cards Replenish From Doc. Created

Supplier Supplier Purchase Req.
Inter-org Inventory Org Internal Req.
Intra-org Subinventory Move order
Production Manufacturing Work order/ Flow
schedule

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 Kanban Execution
Kanban
Quantity
Calculation

Pull Signal
Card
Sequence Card Printing Replenishment
Creation
(Batch or (Scan Card or
(Automatic
Sourcing individual) Manually
Rules or Manual)
Signal)
PO
Creation
Source Card
Internal Aggregation
Order Type ? Status ?
Creation reqd ?

Work Order
Creation
Wait Error
Move Order
Creation Material
Receipt

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 Other Major Enhancements

• Material Aging Workflow

• Support for Indivisible Lots
• Advanced Lot Controls
• Grade, Expiration Action Code, Expiration Action Date etc.

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 Inventory-Reports

• Expired Lots Report

• Item Statuses Report
• Item Definition Summary/Detail
• Item-Subinventory Report
• Lot Transaction Register
• Physical Inventory Counts Report
• Cycle Count Entries and Adjustment Report
• Transaction Register
• Transaction by CC and Account
• Transaction Historical Summary
• Inventory Value Report
– Can now be run by Subinventory

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 Inventory-Interfaces

• Import Cycle Count entries from Open Interface

• Material Transaction Open Interface
• Import Customer Items
• Import Item Category Assignments
• Import Cycle Count entries from Open interface

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 Q&
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