Oracle Process Manufacturing R12 Inventory Transactions 101

Robert Smith ABeam Consulting, USA

Who am I?
Robert Smith is a CPA who is currently a Senior Manager with ABeam Consulting, USA Spent the last 15 years in the process manufacturing industry as a user and consultant. Speaks frequently on the capabilities of OPM and its integration with Oracle Applications

Presentation Agenda
Rules of the Game Common Inventory Overview System Setup Considerations Inventory Transaction Process Month End Closing Process Reporting Transaction Accounting Q&A

Rules of the Game

There is no such thing as a dumb question Ask questions when you think of them, but they may not be answered until the end Be respectful Have fun!

Common Inventory Overview

Its finally here

Central Item Master OPM Attributes

Central Item Master OPM Attributes

Central Item Master OPM Attributes

Setup Considerations
Oracle Inventory setup steps are all valid and should be reviewed Item Setup Organization Setup Transaction Setup System Profile Options

Item Setup Item Attribute Control

Different orgs can have different values

Item Setup Item Categories

Similar to OPM Classes Used for better reporting

Item Setup Item Categories

Assign General Ledger Class Good time to review current setup

Item Setup Process Manufacturing Tab

Used to identify which Costing and Quality being used Defines production defaults

Organization Setup

Organization Setup
Define Org as Process Enabled Once defined cant change

Organization Setup Considerations

11i
Costing and Planning:
OPM is at Warehouse level Discrete is at Inventory Org level

R12.1
Costing and Planning is done at Inventory Org level

Resource Costs are defined at the OPM Organization level

OPM Resource Costs are defined at the Inventory Org level

All documents are defined at OPM Org (Plant) level

All OPM document are defined at Inventory Org level

Inventory Balances at a Warehouse Level

Inventory Balances at a Inventory Org or SubInventory Level

Organization R12 Mapping

Transaction Setup Transaction Types/Reasons

Used to identify purpose of transaction Used for transaction accounting Transaction Reason can also be defined (These are like OPM reason codes)

System Profile Options

GMI: Allow Negative Inventory Replaced with flag on inventory organization parameters GMI: Retain Shipped Lot Status Replaced with flag on inventory organization parameters GMI: RMA Lot Restriction Replaced in Receiving Options setup in Purchasing

Inventory Transaction Process

OPM Inventory
Inventory Adjustments/ Create Immediate

Oracle Inventory
Miscellaneous Transaction

Transact Process Move

Move Order

Move or Transfer

Move Orders, Interorg Transfers or Internal Orders

Inquiries and Summary Views

Material Workbench

Inventory Super User Menu

Transactions Perform transactions

Transaction Queries Transaction details

Inventory Super User Menu

On-hand Quantity
Material Workbench View item quantities and details

Miscellaneous Transaction
Old inventory adjustment and create immediate

InterOrg Transfers
Transfer between organizations

Subinventory Transfer
Transfer within organization Similar to move immediate

Inventory Queries

Material Workbench Query based on tree structure User keeps drilling down

Transaction Queries
Transaction Summaries

Transaction Queries
Transaction Summaries Pending transactions accessed from Pending Transaction Form

Month End Closing Process

Complete transactions Preliminary Inventory Close

Month End Closing Process

Transfer to GL
OPM Accounting Pre-Processor This gets transactions ready to post

Month End Closing Process

Transfer to GL
Create Accounting in Draft Mode (Old Test Subledger) Create Accounting in Final Mode (Old Final Subledger

Reports
Inventory Valuation Report

Transaction Accounting
SLA replaces MAC SLA presentations Based on MAC style logic

Conclusion
R12 major release, even bigger than GEMMS to 11i R12.1.1 is stable and worth looking into Additional benefits require re-learning in many areas. Oracle User Guides are valuable reading SLA concept what we know (MAC), dont be afraid Very important to do assessment for existing OPM users to review and also consider upgrade vs reimplementation End user training should not be overlooked or under estimated

Thank You! Robert Smith rsmith@abeam.com (859) 421-2202