EDU406EY

Oracle Inventory
Manufacturing Functional Foundation
Copyright © 2007, Oracle. All rights reserved.

Objectives
After completing this lesson, you should be able to do

the following:
• Understand the inventory structure, features, and
transactions
• Identify the major tables used in inventory
transactions
• Discuss the open interfaces and application
program interfaces for Inventory

Agenda
• Inventory Overview
• Inventory Transactions and Entity Relationship
Diagrams
• Inventory Open Interfaces and Application Program
Interfaces

Inventory Features
Oracle Inventory enables you to:

• Define part numbers
• Model organization structures
• Forecast anticipated demand
• Plan material replenishments
• Track perpetual inventory
• Maintain accurate on-hand balances

Overview
Finished goods Services
What is inventory?
Consigned
inventory Raw materials
Spare parts

Inventory Capabilities
AS18947
Define part numbers Define organization

structures
AS18947 = 1000 on-hand
Track on-hand Plan material

inventory replenishment

Inventory Capabilities (Cont)
Issue
material Forecast demand
Reserve Maintain
material inventory
accuracy

Inventory Items
Container
Component Service
Assembly

Inventory Organizations
Distribution
Center
Company Warehouse

Inventory Organization Structure
Organization
Subinventories
Locators

Item Attributes
Item
Attributes
Serviceable Weight
Plan Buy Make

Item Attribute Groups
• Main • General Planning

• Inventory • MPS / MRP
• Bills of Material • Lead Times
• Costing • Work In Process
• Asset Management • Order Management
• Costing • Invoicing
• Purchasing • Process Manufacturing
• Receiving • Service
• Physical • Web Option

Control Levels
Master organization Item status = active
Child organization Item status = active Build in Wip = no
Child organization Item status = active Build in Wip = yes

Item Statuses and Attributes
Item attributes describe an item. Status Attributes are item
attributes that enable key functionality of an item.
Status Attributes
Invoice Enabled =
BOM Allowed = Yes
Item Status Yes
Build in WIP = Yes Transactable = Yes
Customer Orders Active Purchasable = Yes

Enabled = Yes
Internal Orders
Stockable = Yes
Enabled = Yes
Recipe Process Execution

Enabled = Yes Enabled = Yes

Life Cycle of a Part
Ramp Ramp
Prototype Live Obsolete
Up Down
Stock N Y Y Y N
Trans N Y Y Y N
BOM Y Y Y Y Y
WIP N Y Y N N
Pur N Y Y N N
OE N N Y Y N
Intern N N Y Y N
Bill N N Y Y N

Item Control
Subinventory
Revision Control Locator Control
Lot Control Serial Control
Item AS3339 Item AS5222

Lot # C1498.1 Serial # 5847329

Receipt to Issue Life Cycle
Transfer inventory
Receive inventory Issue inventory

Receiving Inventory
Purchasing Work in process
Receiving
Inventory

Receiving Inventory
Types of Inventory Receipts

• Receipt and Deliver (Direct)
• Receipt then Deliver (Standard)
• Inspection
– Receipt
– Inspect
– Deliver

Transferring Inventory
Inventory Shipping
Transfer
Work in Process Order Management

Issuing Inventory
Purchasing Inventory
Issuing
Work in Process Order Management

Transaction Flows
Material Flow Business Flow
Receive Goods
WIP Purchasing
Move Goods
Inventory
Ship Goods Services Order Management

Inventory Transactions
Miscellaneous Miscellaneous
receipt issue
Subinventory 1 Organization Subinventory 2

1
Locator 1 Locator 1
Subinventory
Subinventory transfer
transfer
Locator 2 Locator 2
Direct Interorganization
interorganization intransit transfer
transfer
Organization
2

Availability
Availability = - -
On-hand Reservations Pending
quantity transactions

Inventory Forecasting
Inventory forecasting is the process of extrapolating the

expected demand of an item over a number of periods in
the future.
Historical transactions for item XYZ Forecast for item XYZ

Inventory Planning and Replenishment
• Min-Max planning
• Reorder-point planning
• Kanban replenishment
• Replenishment counting
Time to replenish

Inventory Control and Accuracy
Physical ABC Cycle

Inventory Analysis Counting

Inventory Process
Shipment Transfer
Inventory
Supplier
Receive Deliver
Shop Floor
Order Entry
Internal
Shipment Expense
Inventory Inspect

Agenda
Diagrams
Interfaces

Defining Organizations
The first organization you must set up is the Business

Group, to which all other organizations belong.
Organization
Organization Parameters
Parameters (M1)
(M1)

Organizations
MTL_INTERORG_
MTL_PARAMETERS
PARAMETERS
HR_ORGANIZATION_
GL_SETS_OF_BOOKS
INFORMATION
GL_CODE_ HR_ALL_ORGANIZATION_UNITS
COMBINATIONS

Defining Subinventories
Subinventories are unique physical or logical separations

of material inventory, such as raw inventory, finished
goods, or defective material.
Subinventories
Subinventories (M1)
(M1)

Defining Locators
Use locators to identify physical areas where you store

inventory items.
Stock
Stock Locators
Locators (M1)
(M1)

Subinventories and Locators
GL_CODE_COMBINATIONS
MTL_SYSTEM_ITEMS_B
MTL_SYSTEM_ITEMS_TL
MTL_SECONDARY_INVENTORIES
MTL_ITEM_SUB_INVENTORIES
MTL_ITEM_LOCATIONS
MTL_SECONDARY_LOCATORS
MTL_PARAMETERS

Defining Items
You can define and control items that you stock in

inventory.
Item
Item Master
Master (M1)
(M1)

Item Master
MTL_ITEM_ATTRIBUTES
MTL_SYSTEM_ITEMS_B
MTL_ITEM_TEMPL_ATTRIBUTES
MTL_ITEM_STATUS
MTL_ITEM_TEMPLATES
MTL_STATUS_ATTRIBUTE_VALUES
MTL_PARAMETERS

Defining Item Controls
You can choose between centralized and decentralized

control of item attributes. Defining attribute controls does
not determine the value of an attribute, only the level at
which it is controlled.
Item
Item Attribute
Attribute Controls
Controls

Item Controls
MTL_SYSTEM_ITEMS_B
MTL_LOT_NUMBERS MTL_SERIAL_NUMBERS MTL_ITEM_REVISIONS

Defining Item Status Codes
Use statuses to provide default values for certain item

attributes to control the functionality of an item.
Item
Item Status
Status

Item Status
MTL_PENDING_ITEM_STATUS
MTL_SYSTEM_ITEMS_B MTL_ITEM_STATUS
MTL_STATUS_ATTRIBUTE_VALUES
MTL_ITEM_ATTRIBUTES

Defining Item Categories
You can define an unlimited number of categories and

group subsets of your categories into category sets.
Categories
Category Sets

Item Categories
MTL_ITEM_CATEGORIES MTL_SYSTEM_ITEMS_B
MTL_CATEGORY_
SET_VALID_CATS
MTL_CATEGORIES_B MTL_CATEGORY_
SETS_B
FND_ID_FLEX_
STRUCTURES
MTL_CATEGORIES_TL MTL_CATEGORY_SETS_TL
MTL_DEFAULT_
CATEGORY_SETS

Defining Item Catalog Groups
Use item cataloging to add descriptive information to items

and to partition your Item Master into groups of items that
share common characteristics.
Item
Item Catalog
Catalog Groups
Groups

Item Catalogs
MTL_SYSTEM_ITEMS_B
MTL_DESCR_ELEMENT_VALUES
MTL_DESCRIPTIVE_ELEMENTS
MTL_ITEM_CATALOG_GROUPS

Defining an ABC Compile
You can define and compile an ABC analysis for your

entire organization or for a specific subinventory within
your organization.
Define ABC Compile (M1)

ABC Analysis
MTL_SYSTEM_ITEMS_B MTL_SECONDARY INVENTORIES
MTL_ABC_COMPILES
MTL_ABC_ MTL_ABC_COMPILE_
ASSIGNMENTS HEADERS
MTL_ABC_
MTL_ABC_ MTL_ABC_ASSGN_ ASSIGNMENT_
CLASSES GROUP_CLASSES GROUPS

Defining Physical Inventory
You can define and maintain an unlimited number of

physical inventories in Oracle Inventory.
Define
Define Physical
Physical Inventory
Inventory (M1)
(M1)

Physical Inventory
MTL_MATERIAL_
MTL_SYSTEM_ITEMS_B
TRANSACTIONS
MTL_PHYSICAL_
INVENTORIES
MTL_ MTL_PHYSICAL_
MTL_
PHYSICAL_ SUBINVENTORIES
PHYSICAL_
INVENTORY_
ADJUSTMENTS
TAGS
MTL_
SECONDARY_
INVENTORIES

Defining a Cycle Count
Cycle counting is the periodic counting of individual items

throughout the course of the year to ensure the accuracy
of inventory quantities and values.
Cycle
Cycle Counts
Counts (M1)
(M1)

Cycle Count
MTL_CC_ MTL_
SCHED_COUNT SYSTEM_ITEMS_B
XREFS
MTL_CC_
SCHEDULE_
MTL_CYCLE_ REQUESTS
COUNT_ MTL_CYCLE_
ENTRIES COUNT_ITEMS
MTL_
MTL_CYCLE_ MTL_CYCLE_
MATERIAL_
COUNT_HEADERS COUNT_
TRANSACTIONS
CLASSES

Viewing Item Supply and Demand
You can view supply/demand information, and the current

and projected available quantities of an item.
Supply
Supply // Demand
Demand Detail
Detail (M1)
(M1)

Defining Item Reservations
Use the Item Reservation window to create, view, update,

transfer, and delete reservation requests.
Item
Item Reservation
Reservation

Demand and Reservation Information
MTL_SYSTEM_ITEMS_B
OE_ORDER_HEADERS_ALL
OE_ORDER_LINES_ALL
MTL_SALES_ORDERS
MTL_
GL_CODE_COMBINATIONS DEMAND_
INTERFACE
MTL_
MATERIAL_
TRANSACTIONS MTL_GENERIC_
DISPOSITIONS
MTL_DEMAND

Oracle Inventory Transaction Flow
Inventory
Order Entry Receiving
WIP
RCV_
RCV
TRANSACTIONS_
Processor INTERFACE
MTL_ MTL_MATERIAL_ MTL_ MTL_

TRANSACTIONS_ TRANSACTIONS_ MATERIAL_ TRANSACTION_
INTERFACE TEMP TRANSACTIONS ACCOUNTS
TXN TXN Cost

Processor Worker Processor

Agenda
Diagrams
Interfaces

Inventory Open Interfaces
• Open Transaction Interface

• Open Replenishment Interface
• Open Item Interface
• Customer Item and Customer Item Cross Reference
Open Interfaces
• Cycle Count Entries Interface

Inventory Application Program Interfaces
• Cycle Count API

• Kanban API
• Lot API
• Material Reservation API
• Reservations Manager API
• Sales Order API
• Move Order API
• Pick Confirm API

Inventory Application Program Interfaces
• Transaction Flow API

• Move Order Admin API
• Line_Details_pub
• Quantity Tree API
• Material Transaction API
• Inter-Company Transaction Flow API
• Category API
• Item Category Assignment API

Summary
In this lesson, you should have learned how to:

• Understand the inventory structure, features, and
transactions
• Identify the major tables used in inventory
transactions
• Discuss the open interfaces and application
program interfaces for Inventory

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Oracle Inventory

Manufacturing Functional Foundation

Copyright © 2007, Oracle. All rights reserved.

After completing this lesson, you should be able to do

Copyright © 2007, Oracle. All rights reserved.

Copyright © 2007, Oracle. All rights reserved.

Oracle Inventory enables you to:

Copyright © 2007, Oracle. All rights reserved.

Finished goods Services

Copyright © 2007, Oracle. All rights reserved.

Define part numbers Define organization

AS18947 = 1000 on-hand

Track on-hand Plan material

Copyright © 2007, Oracle. All rights reserved.

Copyright © 2007, Oracle. All rights reserved.

Copyright © 2007, Oracle. All rights reserved.

Copyright © 2007, Oracle. All rights reserved.

Copyright © 2007, Oracle. All rights reserved.

Plan Buy Make

Copyright © 2007, Oracle. All rights reserved.

• Main • General Planning

Copyright © 2007, Oracle. All rights reserved.

Master organization Item status = active

Child organization Item status = active Build in Wip = no

Child organization Item status = active Build in Wip = yes

Copyright © 2007, Oracle. All rights reserved.

Build in WIP = Yes Transactable = Yes

Customer Orders Active Purchasable = Yes

Recipe Process Execution

Copyright © 2007, Oracle. All rights reserved.

Copyright © 2007, Oracle. All rights reserved.

Revision Control Locator Control

Lot Control Serial Control

Item AS3339 Item AS5222

Copyright © 2007, Oracle. All rights reserved.

Receive inventory Issue inventory

Copyright © 2007, Oracle. All rights reserved.

Purchasing Work in process

Copyright © 2007, Oracle. All rights reserved.

Types of Inventory Receipts

Copyright © 2007, Oracle. All rights reserved.

Work in Process Order Management

Copyright © 2007, Oracle. All rights reserved.

Work in Process Order Management

Copyright © 2007, Oracle. All rights reserved.

Material Flow Business Flow

Ship Goods Services Order Management

Copyright © 2007, Oracle. All rights reserved.

Subinventory 1 Organization Subinventory 2

Copyright © 2007, Oracle. All rights reserved.

Copyright © 2007, Oracle. All rights reserved.

Inventory forecasting is the process of extrapolating the

Historical transactions for item XYZ Forecast for item XYZ

Copyright © 2007, Oracle. All rights reserved.

Copyright © 2007, Oracle. All rights reserved.

Physical ABC Cycle

Copyright © 2007, Oracle. All rights reserved.

Copyright © 2007, Oracle. All rights reserved.

Copyright © 2007, Oracle. All rights reserved.

The first organization you must set up is the Business

Copyright © 2007, Oracle. All rights reserved.

Copyright © 2007, Oracle. All rights reserved.

Subinventories are unique physical or logical separations

Copyright © 2007, Oracle. All rights reserved.