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R12 Oracle Inventory

Management Fundamentals
Volume I- Student Guide
D49489GC10
Edition 1.0
July 2007
D51692

















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Copyright 2007, Oracle. All rights reserved.

This document contains proprietary information and is protected by copyright and other intellectual property laws. You may copy and
print this document solely for your own use in an Oracle training course. The document may not be modified or altered in any way.
Except where your use constitutes "fair use" under copyright law, you may not use, share, download, upload, copy, print, display,
perform, reproduce, publish, license, post, transmit, or distribute this document in whole or in part without the express authorization
of Oracle.

The information contained in this document is subject to change without notice. If you find any problems in the document, please
report them in writing to: Oracle University, 500 Oracle Parkway, Redwood Shores, California 94065 USA. This document is not
warranted to be error-free.

If this documentation is delivered to the United States Government or anyone using the documentation on behalf of the United
States Government, the following notice is applicable:

U.S. GOVERNMENT RIGHTS
The U.S. Governments rights to use, modify, reproduce, release, perform, display, or disclose these training materials are restricted
by the terms of the applicable Oracle license agreement and/or the applicable U.S. Government contract.

Oracle, JD Edwards, PeopleSoft, and Siebel are registered trademarks of Oracle Corporation and/or its affiliates. Other names may
be trademarks of their respective owners.
Author
Tyra Crockett, Maneesha Nanda
Technical Contributors and Reviewers
Jennifer Sherman, Susan Flierl, Ronald Delong, David Nelson, Jean-Francois Guerrini
This book was published using: oracletutor


















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Copyright Oracle Corporation, 2007. All rights reserved.
R12 Oracle Inventory Management Fundamentals Table of Contents
i
Table of Contents
Overview of Oracle Inventory ........................................................................................................................1-1
R12 Overview of Oracle Inventory ...............................................................................................................1-3
Objectives......................................................................................................................................................1-4
Overview.......................................................................................................................................................1-5
Inventory Capabilities....................................................................................................................................1-6
Inventory Capabilities (Cont) ........................................................................................................................1-7
Receipt to Issue Life Cycle............................................................................................................................1-8
Receiving Inventory ......................................................................................................................................1-9
Transferring Inventory...................................................................................................................................1-12
Issuing Inventory...........................................................................................................................................1-14
Oracle Inventory Application Integration......................................................................................................1-16
Integration of Oracle Inventory to Financial Applications ............................................................................1-18
Summary........................................................................................................................................................1-19
Inventory Structure.........................................................................................................................................2-1
R12 Defining Inventory Organizations..........................................................................................................2-3
Objective........................................................................................................................................................2-4
Inventory Organizations ................................................................................................................................2-5
Inventory Organization Structure ..................................................................................................................2-6
Sample Inventory Organization.....................................................................................................................2-7
Multi-Organization Structure.........................................................................................................................2-8
Setting Up Locations .....................................................................................................................................2-9
Guided Demonstration - Setting up Locations...........................................................................................2-10
Defining Organizations..................................................................................................................................2-11
Inventory Parameters.....................................................................................................................................2-12
Costing Parameters........................................................................................................................................2-13
Revision, Lot, Serial, and License Plate Number (LPN) Parameters ............................................................2-14
ATP, Pick, Item-Sourcing Parameters...........................................................................................................2-15
Interorganization Parameters .........................................................................................................................2-16
Other Account Parameters.............................................................................................................................2-17
Warehouse Management Parameters.............................................................................................................2-18
Guided Demonstration - Setting Up Organizations ...................................................................................2-19
What is a Subinventory?................................................................................................................................2-24
What is a Subinventory (Cont) ......................................................................................................................2-25
Defining Subinventories ................................................................................................................................2-26
Guided Demonstration - Defining Subinventories.....................................................................................2-27
Practice - Creating Subinventories ............................................................................................................2-28
Solution - Creating Subinventories............................................................................................................2-29
Locator Control .............................................................................................................................................2-35
Dynamic and Static Locators.........................................................................................................................2-36
Subinventory-Locator Relationship...............................................................................................................2-37
Locator Flexfield Structure............................................................................................................................2-38
Guided Demonstration - Defining Locators ..............................................................................................2-39
Practice - Defining Locators......................................................................................................................2-40
Solution Setting Up Locator Control ......................................................................................................2-41
Interorganization Shipping Networks............................................................................................................2-43
Shipping Method ...........................................................................................................................................2-45
Additional Set Up Steps ................................................................................................................................2-46
Additional Organizational Setups..................................................................................................................2-47
Copying Inventory Organizations..................................................................................................................2-48
Organization Hierarchy .................................................................................................................................2-50
Organization Reports.....................................................................................................................................2-52
Organization Reports (Cont)..........................................................................................................................2-53
















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Copyright Oracle Corporation, 2007. All rights reserved.
R12 Oracle Inventory Management Fundamentals Table of Contents
ii
Profile Options...............................................................................................................................................2-54
Implementation Considerations .....................................................................................................................2-55
Implementation Considerations (Cont)..........................................................................................................2-56
Summary........................................................................................................................................................2-61
Units of Measure..............................................................................................................................................3-1
R12 Units of Measure....................................................................................................................................3-3
Objectives......................................................................................................................................................3-4
Units of Measure ...........................................................................................................................................3-5
Uses of Units of Measure ..............................................................................................................................3-6
Unit of Measure Class ...................................................................................................................................3-7
Guided Demonstration - Creating Units of Measure .................................................................................3-8
Guided Demonstration - Creating Unit of Measure Classes......................................................................3-9
Unit of Measure Conversions ........................................................................................................................3-10
Guided Demonstration - Defining Unit of Measure Conversions..............................................................3-11
Lot-Level Unit of Measure Conversions .......................................................................................................3-12
Units of Measure Setup .................................................................................................................................3-13
Practice - Defining Units of Measure ........................................................................................................3-14
Solution Defining Units of Measure.......................................................................................................3-16
Unit of Measure Reports................................................................................................................................3-20
Profile Options...............................................................................................................................................3-21
Organization Parameter Setup .......................................................................................................................3-22
Implementation Considerations .....................................................................................................................3-23
Summary........................................................................................................................................................3-24
Defining and Maintaining Items.....................................................................................................................4-1
R12 Defining and Maintaining Items Fundamentals .....................................................................................4-3
Objective........................................................................................................................................................4-4
What is an Item?............................................................................................................................................4-5
Steps to Setup, Define, and Maintain Items...................................................................................................4-6
Defining Items ...............................................................................................................................................4-7
Guided Demonstration - Define Item........................................................................................................4-9
Item Master Organization..............................................................................................................................4-10
Item Master....................................................................................................................................................4-12
Item Attributes...............................................................................................................................................4-13
Item Attribute Groups....................................................................................................................................4-14
Guided Demonstration - Viewing Item Attributes.....................................................................................4-15
Item Status .....................................................................................................................................................4-16
Unit of Measure Attributes ............................................................................................................................4-17
Item Statuses and Attributes ..........................................................................................................................4-19
Status Attributes and Functionality ...............................................................................................................4-20
Status Attribute Interdependencies ................................................................................................................4-23
Item Attribute Relationships..........................................................................................................................4-26
Practice - Viewing Item Attributes ............................................................................................................4-27
Solution Viewing Item Attributes...........................................................................................................4-28
Item Templates ..............................................................................................................................................4-36
Creating Item Templates ...............................................................................................................................4-37
Enabling Attributes in a Template.................................................................................................................4-38
Guided Demonstration - Creating Item Templates ....................................................................................4-39
Organization Assignment and Organization Items ........................................................................................4-40
Control Levels ...............................................................................................................................................4-41
Revision Control............................................................................................................................................4-43
Defining Items ...........................................................................................................................................4-45
Solution - Defining Items ..........................................................................................................................4-46
Restricting Items to Subinventories...............................................................................................................4-59
Guided Demonstration - Restricting Items to Subinventories ...................................................................4-60
Item Relationships .........................................................................................................................................4-61
Guided Demonstration -Establishing Item Relationships..........................................................................4-62
















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Copyright Oracle Corporation, 2007. All rights reserved.
R12 Oracle Inventory Management Fundamentals Table of Contents
iii
Categories and Category Sets ........................................................................................................................4-63
Assigning Items to Categories .......................................................................................................................4-64
Practice - Defining Categories...................................................................................................................4-65
Solution Defining Categories..................................................................................................................4-66
Item Catalogs.................................................................................................................................................4-70
Guided Demonstration - Setting up Catalog Groups .................................................................................4-71
Deletion Constraints and Deletion Groups ....................................................................................................4-74
Deletion Constraints ......................................................................................................................................4-75
Deletion Constraints (Cont)...........................................................................................................................4-76
Item Reports ..................................................................................................................................................4-77
Item Reports (Cont) .......................................................................................................................................4-78
Profile Options...............................................................................................................................................4-80
Profile Options (Cont) ...................................................................................................................................4-81
Implementation Considerations .....................................................................................................................4-86
Implementation Considerations (Cont)..........................................................................................................4-87
Summary........................................................................................................................................................4-88
Lot and Serial Control ....................................................................................................................................5-1
R12 Lot and Serial Control............................................................................................................................5-3
Objective........................................................................................................................................................5-4
Lot Control Overview....................................................................................................................................5-5
Child Lots ......................................................................................................................................................5-6
Setting up Lot Control (Organization Parameters) .......................................................................................5-7
Guided Demonstration - Setting Up Organizations ...................................................................................5-8
Lot Number Uniqueness................................................................................................................................5-12
Setting up Lot Control (Item Attributes) ......................................................................................................5-13
Managing Lots...............................................................................................................................................5-15
Expired Lots ..................................................................................................................................................5-16
Disabled Lots.................................................................................................................................................5-17
Guided Demonstration - Generating Lots..................................................................................................5-18
Guided Demonstration - Maintaining Grades............................................................................................5-21
Guided Demonstration - Maintaining Lot Actions ....................................................................................5-23
Practice - Using the Lot Master .................................................................................................................5-24
Solution Using the Lot Master................................................................................................................5-25
Lot Number Purging......................................................................................................................................5-32
Cycle Counts Under Lot Control ...................................................................................................................5-33
Physical Inventory Under Lot Control...........................................................................................................5-34
Guided Demonstration - Revision, Lot, and Serial Controls .....................................................................5-35
Serial Number Overview...............................................................................................................................5-38
Generating Serial Numbers............................................................................................................................5-39
Serial Uniqueness ..........................................................................................................................................5-40
Maintaining Serial Numbers..........................................................................................................................5-42
Practice - Generating and Maintaining Serial Numbers ............................................................................5-43
Solution Generating and Maintaining Serial Numbers ............................................................................5-44
Lot Genealogy ...............................................................................................................................................5-49
Guided Demonstration - Viewing Lot Genealogy.....................................................................................5-50
Serial Genealogy ...........................................................................................................................................5-51
Lot and Serial Reports ...................................................................................................................................5-52
Lot and Serial Reports (Cont)........................................................................................................................5-53
Profile Options...............................................................................................................................................5-55
Profile Options (Cont) ...................................................................................................................................5-56
Implementation Considerations .....................................................................................................................5-57
Implementation Considerations (Cont)..........................................................................................................5-58
Summary........................................................................................................................................................5-59
Transaction Setup............................................................................................................................................6-1
R12 Transaction Setup...................................................................................................................................6-3
Objectives......................................................................................................................................................6-4
















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Copyright Oracle Corporation, 2007. All rights reserved.
R12 Oracle Inventory Management Fundamentals Table of Contents
iv
Overview.......................................................................................................................................................6-5
Inventory Transactions ..................................................................................................................................6-6
Move Orders..................................................................................................................................................6-7
Transaction Source Types..............................................................................................................................6-8
Transaction Action ........................................................................................................................................6-10
Transaction Reasons ......................................................................................................................................6-12
Transaction Types..........................................................................................................................................6-13
Guided Demonstration - Creating Customized Transactions.....................................................................6-14
Predefined Transaction Types .......................................................................................................................6-16
Transaction Managers....................................................................................................................................6-17
Running Transaction Managers.....................................................................................................................6-18
Creating Picking Rules ..................................................................................................................................6-20
Guided Demonstration - Creating Picking Rules.......................................................................................6-22
Account Aliases.............................................................................................................................................6-23
Accounting Periods........................................................................................................................................6-24
Guided Demonstration - Opening Accounting Periods .............................................................................6-25
Material Shortage Alerts and Notifications ...................................................................................................6-26
Setting Up Shortage Alerts and Notifications................................................................................................6-28
Setting Up for Move Orders ..........................................................................................................................6-29
Setup Steps for Move Orders.........................................................................................................................6-31
Profile Options...............................................................................................................................................6-33
Profile Options (Cont) ...................................................................................................................................6-34
Implementation Considerations for Shortage Checks....................................................................................6-39
Implementation Considerations for Move Orders ........................................................................................6-40
Summary........................................................................................................................................................6-41
Issuing and Transferring Material.................................................................................................................7-1
R12 Issue and Transfer Material....................................................................................................................7-3
Module Objectives.........................................................................................................................................7-4
Overview of Inventory Transactions .............................................................................................................7-5
Inventory Transactions ..................................................................................................................................7-6
Inventory Transactions Without Documents and Requisitions......................................................................7-7
Inventory Transactions with Documents and Requisitions............................................................................7-8
Control Options and Restrictions...................................................................................................................7-9
Miscellaneous Transactions...........................................................................................................................7-10
Practice - Processing Miscellaneous Receipts ...........................................................................................7-12
Solution Processing Miscellaneous Receipts..........................................................................................7-13
Subinventory Transfer ...................................................................................................................................7-24
Guided Demonstration - Performing Subinventory Transfers ...................................................................7-25
Practice - Processing Subinventory Transfers ...........................................................................................7-26
Solution Processing Subinventory Transfers ..........................................................................................7-27
Inter-Organization Direct Shipment ..............................................................................................................7-31
Inter-organization Intransit Shipment ............................................................................................................7-32
Guided Demonstration - Performing Interorganization Transfers .............................................................7-34
Practice - Performing Interorganization Transfers.....................................................................................7-35
Solution Performing Interorganization Transfers ...................................................................................7-36
Managing Receipts ........................................................................................................................................7-41
Express Receipts and Receiving Transactions...............................................................................................7-43
Direct Receipts ..............................................................................................................................................7-44
Standard Receipt............................................................................................................................................7-45
Inspection Receipt .........................................................................................................................................7-46
Guided Demonstration - Receiving Stock into Inventory..........................................................................7-47
Practice - Receiving Material into Inventory.............................................................................................7-49
Solution Receiving Material into Stock..................................................................................................7-50
Move Orders..................................................................................................................................................7-57
Move Orders Process Flow............................................................................................................................7-58
Move Order Requisition Approval Process ...................................................................................................7-59
















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Copyright Oracle Corporation, 2007. All rights reserved.
R12 Oracle Inventory Management Fundamentals Table of Contents
v
Benefits of Managed Material Flow in a Facility ..........................................................................................7-61
Move Order Source Types.............................................................................................................................7-63
Move Order Components ..............................................................................................................................7-65
Generate Move Orders...................................................................................................................................7-67
Move Order Allocating..................................................................................................................................7-69
Item Allocation..............................................................................................................................................7-71
Transact Move Orders ...................................................................................................................................7-72
Practice - Transacting Move Orders ..........................................................................................................7-73
Solution Transacting Move Orders.........................................................................................................7-74
Guided Demonstration - Defining Subinventories.....................................................................................7-80
Mobile Transactions ......................................................................................................................................7-81
Guided Demonstration - Mobile Application Interorganization Transfers................................................7-83
Practice - Performing Mobile Transactions ...............................................................................................7-84
Solution Mobile Transactions.................................................................................................................7-85
Managing Shipments .....................................................................................................................................7-90
Transactions Reports .....................................................................................................................................7-91
Transactions Reports (Cont) ..........................................................................................................................7-92
Summary........................................................................................................................................................7-96
On-hand and Availability................................................................................................................................8-1
R12 On-hand and Availability.......................................................................................................................8-3
Objectives......................................................................................................................................................8-4
Overview of On-hand Quantity .....................................................................................................................8-5
Overview of Reservations..............................................................................................................................8-6
Overview of Availability...............................................................................................................................8-7
Reservation Versus Allocation ......................................................................................................................8-8
Material Workbench......................................................................................................................................8-9
Display Options .............................................................................................................................................8-10
Viewing Available Items ...............................................................................................................................8-12
Material Workbench Transactions.................................................................................................................8-13
Guided Demonstration - Using the Material Workbench ..........................................................................8-14
Practice - Using the Material Workbench..................................................................................................8-15
Solution Using the Material Workbench ................................................................................................8-16
Available to Promise .....................................................................................................................................8-20
What are Supply and Demand? .....................................................................................................................8-21
Uses of ATP in Oracle Inventory ..................................................................................................................8-22
ATP Rules Setup Steps..................................................................................................................................8-23
Defining Computation Options......................................................................................................................8-24
Specifying Supply and Demand Time Fences...............................................................................................8-26
Specifying Demand Sources..........................................................................................................................8-30
Specifying Supply Sources............................................................................................................................8-32
Setting Up Item and Bills for ATP Checking................................................................................................8-33
ATP Checking ...............................................................................................................................................8-34
Guided Demonstration - Creating an ATP Rule ........................................................................................8-35
Reservation Types .........................................................................................................................................8-36
Supply Types .................................................................................................................................................8-37
Demand Types...............................................................................................................................................8-38
Reserving Material ........................................................................................................................................8-39
Reservation Management- Transfer Supply ..................................................................................................8-41
Reservation Management- Transfer Demand................................................................................................8-42
Guided Demonstration - Creating Reservations ........................................................................................8-43
Practice - Creating Reservations................................................................................................................8-45
Solution Creating Reservations ..............................................................................................................8-46
On-hand and Availability Reports .................................................................................................................8-48
Profile Options...............................................................................................................................................8-49
Profile Options (Cont) ...................................................................................................................................8-50
Implementation Considerations .....................................................................................................................8-51
















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Copyright Oracle Corporation, 2007. All rights reserved.
R12 Oracle Inventory Management Fundamentals Table of Contents
vi
Summary........................................................................................................................................................8-52
Material Status Control ..................................................................................................................................9-1
R12 Material Status .......................................................................................................................................9-3
Objectives......................................................................................................................................................9-4
Material Status...............................................................................................................................................9-5
Material Status Control Levels ......................................................................................................................9-6
Material Status Transactions..........................................................................................................................9-7
Cumulative Effective Status ..........................................................................................................................9-8
Material Status Examples ..............................................................................................................................9-9
Setting Up......................................................................................................................................................9-10
Defining Item Material Status Control ..........................................................................................................9-11
Assigning Material Status Control to Subinventories and Locators ..............................................................9-12
Assigning Planning Statuses..........................................................................................................................9-13
Disabling Material Statuses ...........................................................................................................................9-14
Practice - Setting up Material Status Control ............................................................................................9-15
Solution Setting up Material Status Control ...........................................................................................9-16
Material Status Reports .................................................................................................................................9-24
Profile Option ................................................................................................................................................9-25
Implementation Considerations .....................................................................................................................9-26
Summary........................................................................................................................................................9-27
Inventory Replenishment................................................................................................................................10-1
R12 Replenishment Fundamentals ...............................................................................................................10-3
Objectives......................................................................................................................................................10-4
Overview of Inventory Planning ...................................................................................................................10-5
Order Planning...............................................................................................................................................10-6
How Much to Order.......................................................................................................................................10-7
Replenishment Process for Intra-Org Supply Sources...................................................................................10-8
Replenishment Process for Supplier Supply Sources ....................................................................................10-9
Replenishment Process for Inter-Org Supply Sources...................................................................................10-10
Replenishment Process for Product Supply Sources .....................................................................................10-11
Replenishment Methods ................................................................................................................................10-12
Overview of Inventory Forecasting...............................................................................................................10-13
Forecast Types...............................................................................................................................................10-15
Forecast Setup and Maintenance ...................................................................................................................10-16
Guided Demonstration - Creating a Manual Forecast ...............................................................................10-17
Oracle Inventory Replenishment Methods ....................................................................................................10-19
Replenishment Methods Levels.....................................................................................................................10-20
Safety Stock...................................................................................................................................................10-21
Economic Order Quantity..............................................................................................................................10-22
Overview of Reorder-Point Planning ............................................................................................................10-23
Uses of Reorder-Point Planning ....................................................................................................................10-24
Reorder-Point Planning Steps........................................................................................................................10-25
Performing Reorder-Point Planning ..............................................................................................................10-26
Guided Demonstration - Setting up Reorder Point Planning.....................................................................10-28
Overview of Min-Max Planning....................................................................................................................10-30
Uses of Min-Max Planning............................................................................................................................10-31
Min-Max Planning.........................................................................................................................................10-32
Min-Max Planning: How Much to Order? ....................................................................................................10-33
Min-Max Planning Steps ...............................................................................................................................10-34
Item Planning Attributes................................................................................................................................10-35
Min-Max Planning Setup Procedure..............................................................................................................10-36
Selecting a Planning Level ............................................................................................................................10-37
Entering Planning Attributes .........................................................................................................................10-38
Submitting the Min-Max Planning Requests.................................................................................................10-39
Guided Demonstration - Setting up Min-Max Planning............................................................................10-41
Practice - Performing Min-Max Planning..................................................................................................10-43
















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Copyright Oracle Corporation, 2007. All rights reserved.
R12 Oracle Inventory Management Fundamentals Table of Contents
vii
Solution Performing Min-max Planning.................................................................................................10-44
Overview of Replenishment Counting ..........................................................................................................10-50
Uses of Replenishment Counting ..................................................................................................................10-51
Replenishment Planning Steps ......................................................................................................................10-52
Subinventories Window ................................................................................................................................10-54
Item Subinventories Window........................................................................................................................10-55
Item Subinventories: Order Modifier Tab .....................................................................................................10-56
Replenishment Count Headers ......................................................................................................................10-57
Replenishment Count Lines...........................................................................................................................10-58
Processing Replenishment Counts.................................................................................................................10-60
Mobile Replenishment Count Overview.......................................................................................................10-62
Practice - Performing a Replenishment Count Using Forms .....................................................................10-63
Solution - Performing a Replenishment Count Using Forms ....................................................................10-65
Practice - Performing a Replenishment Count Using the Mobile Application..........................................10-72
Solution - Performing a Replenishment Count Using the Mobile Application .........................................10-74
Overview of PAR Counting...........................................................................................................................10-82
Processing PAR Counts.................................................................................................................................10-83
Reorder Quantity for PAR Count ..................................................................................................................10-84
Overview of Kanban Replenishment .............................................................................................................10-86
Kanban Cards ................................................................................................................................................10-88
Kanban Planned Items ...................................................................................................................................10-89
Kanban Cards ................................................................................................................................................10-91
Kanban Supply Status....................................................................................................................................10-93
Kanban Replenishment Sources ....................................................................................................................10-94
Kanban Card Printing ....................................................................................................................................10-95
Guided Demonstration - Performing Kanban Replenishment ...................................................................10-96
Practice - Performing Kanban Replenishment...........................................................................................10-97
Solution Performing Kanban Replenishment .........................................................................................10-98
Planning and Replenishment Reports............................................................................................................10-101
Planning and Replenishment Reports (Cont).................................................................................................10-102
Profile Options...............................................................................................................................................10-103
Profile Options (Cont) ...................................................................................................................................10-104
Implementation Considerations .....................................................................................................................10-105
Implementation Considerations (Cont)..........................................................................................................10-108
Summary........................................................................................................................................................10-109
Inventory Accuracy.........................................................................................................................................11-1
R12 Inventory Accuracy Fundamentals ........................................................................................................11-3
Objectives......................................................................................................................................................11-4
Overview of Inventory Accuracy ..................................................................................................................11-5
ABC Analysis Overview...............................................................................................................................11-6
Defining an ABC Analysis ............................................................................................................................11-7
Define and Run an ABC Compilation...........................................................................................................11-8
ABC Compilation Criteria.............................................................................................................................11-9
ABC Valuation Scope ...................................................................................................................................11-11
Defining ABC Groups ...................................................................................................................................11-12
Defining ABC Classes...................................................................................................................................11-13
ABC Item Assignments .................................................................................................................................11-14
Guided Demonstration - Compiling an ABC Analysis..............................................................................11-16
Practice - Compiling an ABC Analysis .....................................................................................................11-18
Solution Compiling an ABC Analysis....................................................................................................11-20
Cycle Counting Overview.............................................................................................................................11-26
Defining and Maintaining a Cycle Count ......................................................................................................11-27
Cycle Count Approval Tolerance ..................................................................................................................11-28
Approval Tolerances......................................................................................................................................11-29
Hit/Miss Tolerance ........................................................................................................................................11-31
Measurement Errors ......................................................................................................................................11-32
















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Copyright Oracle Corporation, 2007. All rights reserved.
R12 Oracle Inventory Management Fundamentals Table of Contents
viii
Cycle Count Items .........................................................................................................................................11-33
Automatic Scheduling ...................................................................................................................................11-35
Manual Scheduling........................................................................................................................................11-36
Count Requests..............................................................................................................................................11-37
Entering Cycle Counts...................................................................................................................................11-39
Cycle Count Open Interface ..........................................................................................................................11-40
Count Adjustments and Approvals................................................................................................................11-41
Automatic Recounts ......................................................................................................................................11-42
Approving Cycle Counts and Adjustments ...................................................................................................11-43
Guided Demonstration - Performing a Cycle Count..................................................................................11-45
Practice - Performing a Cycle Count .........................................................................................................11-48
Solution Performing a Cycle Count........................................................................................................11-50
Mobile Inventory Accuracy Overview..........................................................................................................11-60
Practice - Mobile Counting........................................................................................................................11-61
Solution Mobile Counting ......................................................................................................................11-62
Physical Inventory Overview ........................................................................................................................11-67
Why Perform Physical Inventories? ..............................................................................................................11-68
Defining Physical Inventories........................................................................................................................11-69
Physical Inventory Tags ................................................................................................................................11-70
Inventory Snapshots ......................................................................................................................................11-72
Entering Physical Inventory Counts ..............................................................................................................11-74
Voiding Tags .................................................................................................................................................11-76
Approval Tolerances......................................................................................................................................11-77
Physical Inventory Adjustments ....................................................................................................................11-78
Accuracy Reports ..........................................................................................................................................11-79
Accuracy Reports (Cont) ...............................................................................................................................11-80
Profile Options...............................................................................................................................................11-85
Implementation Considerations .....................................................................................................................11-86
Implementation Considerations (Cont)..........................................................................................................11-87
Summary........................................................................................................................................................11-89
Table Information............................................................................................................................................12-1
R12 Table Information ..................................................................................................................................12-3
Objective........................................................................................................................................................12-4
Organization Tables.......................................................................................................................................12-5
Subinventories and Locator Tables................................................................................................................12-7
Item Master Tables ........................................................................................................................................12-9
Item Status Tables .........................................................................................................................................12-11
Item Categories Tables ..................................................................................................................................12-13
Item Reservation Tables ................................................................................................................................12-15
Inventory Transaction Tables ........................................................................................................................12-17
Guided Demonstration - Accessing eTRM................................................................................................12-19
Summary........................................................................................................................................................12-20


















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Copyright Oracle Corporation, 2007. All rights reserved.
R12 Oracle Inventory Management Fundamentals Table of Contents
ix
Preface
Profile
Before You Begin This Course
Working experience with Oracle Applications
Prerequisites
There are no prerequisites for this course.
How This Course Is Organized
R12 Oracle Inventory Management Fundamentals is an instructor-led course featuring lecture
and hands-on exercises. Online demonstrations and written practice sessions reinforce the
concepts and skills introduced.
















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R12 Oracle Inventory Management Fundamentals Table of Contents
x
Related Publications
Oracle Publications
Title Part Number
Oracle Inventory Users Guide B31547-02
Additional Publications
System release bulletins
Installation and users guides
Read-me files
International Oracle Users Group (IOUG) articles
Oracle Magazine

















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R12 Oracle Inventory Management Fundamentals Table of Contents
xi
Typographic Conventions
Typographic Conventions in Text

Convention Element Example
Bold italic Glossary term (if
there is a glossary)
The algorithminserts the new key.
Caps and
lowercase
Buttons,
check boxes,
triggers,
windows
Click the Executable button.
Select the Cant Delete Card check box.
Assign a When-Validate-Item trigger to the ORD block.
Open the Master Schedule window.
Courier new,
case sensitive
(default is
lowercase)
Code output,
directory names,
filenames,
passwords,
pathnames,
URLs,
user input,
usernames
Code output: debug.set (I, 300);
Directory: bin (DOS), $FMHOME (UNIX)
Filename: Locate the init.ora file.
Password: User tiger as your password.
Pathname: Open c:\my_docs\projects
URL: Go to http://www.oracle.com
User input: Enter 300
Username: Log on as scott
Initial cap Graphics labels
(unless the term is a
proper noun)
Customer address (but Oracle Payables)
Italic Emphasized words
and phrases,
titles of books and
courses,
variables
Do not save changes to the database.
For further information, see Oracle7 Server SQL Language
Reference Manual.
Enter user_id@us.oracle.com, where user_id is the
name of the user.
Quotation
marks
Interface elements
with long names
that have only
initial caps;
lesson and chapter
titles in cross-
references
Select Include a reusable module component and click Finish.

This subject is covered in Unit II, Lesson 3, Working with
Objects.
Uppercase SQL column
names, commands,
functions, schemas,
table names
Use the SELECT command to view information stored in the
LAST_NAME
column of the EMP table.
Arrow Menu paths Select File > Save.
Brackets Key names Press [Enter].
Commas Key sequences Press and release keys one at a time:
[Alternate], [F], [D]
Plus signs Key combinations Press and hold these keys simultaneously: [Ctrl]+[Alt]+[Del]


















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Copyright Oracle Corporation, 2007. All rights reserved.
R12 Oracle Inventory Management Fundamentals Table of Contents
xii
Typographic Conventions in Code

Convention Element Example
Caps and
lowercase
Oracle Forms
triggers
When-Validate-Item

Lowercase Column names,
table names
SELECT last_name
FROM s_emp;

Passwords DROP USER scott
IDENTIFIED BY tiger;
PL/SQL objects OG_ACTIVATE_LAYER
(OG_GET_LAYER (prod_pie_layer))


Lowercase
italic
Syntax variables CREATE ROLE role
Uppercase SQL commands and
functions
SELECT userid
FROM emp;
Typographic Conventions in Oracle Application Navigation Paths
This course uses simplified navigation paths, such as the following example, to direct you
through Oracle Applications.
(N) Invoice > Entry > Invoice Batches Summary (M) Query > Find (B) Approve
This simplified path translates to the following:
1. (N) From the Navigator window, select Invoice then Entry then Invoice Batches
Summary.
2. (M) From the menu, select Query then Find.
3. (B) Click the Approve button.
Notations:
(N) = Navigator
(M) = Menu
(T) = Tab
(B) = Button
(I) = Icon
(H) = Hyperlink
(ST) = Sub Tab
















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Copyright Oracle Corporation, 2007. All rights reserved.
R12 Oracle Inventory Management Fundamentals Table of Contents
xiii
Typographical Conventions in Oracle Application Help System Paths
This course uses a navigation path convention to represent actions you perform to find
pertinent information in the Oracle Applications Help System.
The following help navigation path, for example
(Help) General Ledger > Journals > Enter Journals
represents the following sequence of actions:
1. In the navigation frame of the help system window, expand the General Ledger entry.
2. Under the General Ledger entry, expand Journals.
3. Under Journals, select Enter Journals.
4. Review the Enter Journals topic that appears in the document frame of the help system
window.
















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Copyright Oracle Corporation, 2007. All rights reserved.
R12 Oracle Inventory Management Fundamentals Table of Contents
xiv

















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Copyright Oracle Corporation, 2007. All rights reserved.
Overview of Oracle Inventory
Chapter 1 - Page 1
Overview of Oracle Inventory
Chapter 1
















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Copyright Oracle Corporation, 2007. All rights reserved.
Overview of Oracle Inventory
Chapter 1 - Page 2

















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Copyright Oracle Corporation, 2007. All rights reserved.
Overview of Oracle Inventory
Chapter 1 - Page 3
R12 Overview of Oracle Inventory

















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Copyright Oracle Corporation, 2007. All rights reserved.
Overview of Oracle Inventory
Chapter 1 - Page 4
Objectives

















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Copyright Oracle Corporation, 2007. All rights reserved.
Overview of Oracle Inventory
Chapter 1 - Page 5
Overview

Overview
Oracle Inventory treats many different types of things as inventory. Inventory can be:
Finished goods that you sell to customers
Services that you sell to customers
Spare parts for maintenance
Raw materials for manufacturing processes
Inventory you purchase from a supplier on consignment
















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Copyright Oracle Corporation, 2007. All rights reserved.
Overview of Oracle Inventory
Chapter 1 - Page 6
Inventory Capabilities

















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Copyright Oracle Corporation, 2007. All rights reserved.
Overview of Oracle Inventory
Chapter 1 - Page 7
Inventory Capabilities (Cont)

















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Copyright Oracle Corporation, 2007. All rights reserved.
Overview of Oracle Inventory
Chapter 1 - Page 8
Receipt to Issue Life Cycle

Receipt to Issue
Oracle Inventory uses the receipt to issue process to manage your inventory. When inventory
arrives in your warehouse you receive it. After you receive inventory, you can transfer it
within your organization or to another organization. Finally, you can issue material out of
Oracle Inventory.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Overview of Oracle Inventory
Chapter 1 - Page 9
Receiving Inventory

Receiving Inventory
There are different ways you can receive material into your organization.
Purchasing
You can use Oracle Purchasing to receive material from outside of your organization. You can
receive:
Purchase order receipts
Internal requisitions
In-transit receipts
Return material authorizations
Unexpected receipts
Work in Process
You can use Oracle Work in Process to receive material from the manufacturing floor. You can
receive:
Component returns
Negative component issues
















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Copyright Oracle Corporation, 2007. All rights reserved.
Overview of Oracle Inventory
Chapter 1 - Page 10
Assembly returns
Inventory
You can use Oracle Inventory to receive material in to your warehouse. You can receive:
Miscellaneous account receipts
Receipt from projects
User-defined receipts
Interorganization transfers
















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Copyright Oracle Corporation, 2007. All rights reserved.
Overview of Oracle Inventory
Chapter 1 - Page 11
Receiving Inventory

















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Copyright Oracle Corporation, 2007. All rights reserved.
Overview of Oracle Inventory
Chapter 1 - Page 12
Transferring Inventory

Transferring Inventory
Different applications can generate requests to transfer inventory.
Shipping
You can use Oracle Shipping Execution to generate a transfer to move material from a storage
area to a staging to for shipping.
Order Management
You can use Oracle Order Management to generate a transfer to move material from a storage
area to a staging area for shipping.
Work in Process
You can use Oracle Work in Process to generate a transfer to acquire components for a project.
Inventory
You can use Oracle Inventory to:
Transfer material between organizations
Transfer material within an organization
Replenish materials
















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Copyright Oracle Corporation, 2007. All rights reserved.
Overview of Oracle Inventory
Chapter 1 - Page 13
Request transfers
















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Copyright Oracle Corporation, 2007. All rights reserved.
Overview of Oracle Inventory
Chapter 1 - Page 14
Issuing Inventory

Issuing Inventory
You can use the following applications to issue material:
Order Management
Oracle Order Management can generate an inventory issue through:
Sales orders
Internal orders
Purchasing
Oracle Purchasing can generate an inventory issue for:
Return to vendor materials
Work in Process
Oracle Work in Process can generate an inventory issue through:
Component issues
Assembly returns
Inventory
Oracle Inventory can issue stock through:
















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Copyright Oracle Corporation, 2007. All rights reserved.
Overview of Oracle Inventory
Chapter 1 - Page 15
User-defined material issues
Interorganization transfers
Cycle count negative issue
Issue requests
















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Copyright Oracle Corporation, 2007. All rights reserved.
Overview of Oracle Inventory
Chapter 1 - Page 16
Oracle Inventory Application Integration

Integration of Oracle Inventory to Manufacturing Applications
Oracle Inventory interacts with the following applications:
Oracle Cost Management receives cost information and transaction rates from Oracle
Inventory. Oracle Inventory integrates to Oracle General ledger via Oracle Cost
Management
Oracle Work in Process provides work in process (WIP) activity and available to promise
(ATP) supply information to Oracle Inventory and receives item and on-hand quantity
information from Oracle Inventory.
Oracle Advanced Supply Chain Planning and Oracle Global Order Promising provide
ATP supply information and receive on-hand quantity and forecast information from
Oracle Inventory.
Oracle Bill of Materials receives item information from Oracle Inventory.
Oracle Engineering provides engineering item information and receives item information
from Oracle Inventory.
Oracle Order Management provides shipping, reservations, and demand information and
receives item, ATP, and on-hand quantity information from Oracle Inventory.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Overview of Oracle Inventory
Chapter 1 - Page 17
Oracle Purchasing provides receipt, delivery, ATP supply, and planning supply
information and receives item requisition, and interorganization shipment information
from Oracle Inventory.















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Copyright Oracle Corporation, 2007. All rights reserved.
Overview of Oracle Inventory
Chapter 1 - Page 18
Integration of Oracle Inventory to Financial Applications

Integration of Oracle Inventory to Financial Applications
Oracle General Ledger provides ledger and currency exchange rates and receives
transaction accounting summary detail via Oracle Cost Management.
Oracle Payables receives Item information from Oracle Inventory.
Oracle Receivables provides intercompany invoice information and receives item
information from Oracle Inventory.
Oracle Assets receives item information from Oracle Inventory.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Overview of Oracle Inventory
Chapter 1 - Page 19
Summary

















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Copyright Oracle Corporation, 2007. All rights reserved.
Overview of Oracle Inventory
Chapter 1 - Page 20

















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 1
Inventory Structure
Chapter 2
















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 2

















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 3
R12 Defining Inventory Organizations

















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 4
Objective

















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 5
Inventory Organizations

Inventory Organizations
An inventory organization is a facility where you store and transact items. Before you can use
Oracle Inventory, you must define one or more inventory organizations. Inventory
organizations represent distinct entities in your enterprise and can be one of the following:
A physical entity such as a manufacturing facility, warehouse, or distribution center.
A logical entity such as an item master organization, which you use to define items.
An inventory organization may have the following attributes:
An inventory organization can have its own location, ledger, costing method, workday
calendar, and items.
An inventory organization can share one or more of these characteristics with other
organizations.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 6
Inventory Organization Structure

Inventory Organization Structure
An inventory organization, where you store and transact items can have one or more
subinventories. Subinventories are unique physical or logical separations of material inventory,
such as raw material inventory, finished goods inventory, or defective goods inventory. In
Oracle Inventory, all material within an organization is held in a subinventory. You must
define at least one subinventory for every organization. You can track item quantities by
subinventory as well as restrict items to specific subinventories.
The subinventories in an inventory organization may be made up of one or more locators. You
use locators to identify physical areas where you store inventory items. You can track items by
locator and restrict items to a specific locator. Locator control is optional in Oracle Inventory.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 7
Sample Inventory Organization

















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 8
Multi-Organization Structure

Multi-Organization Structure
Multi-Organization structure enables you to model multiple business units in an enterprise
using a single installation of Oracle applications. In a multi-organization architecture you can
keep data secure and separate from each business unit.
The following are the benefits of multi-organization structure:
You can use a single installation of any Oracle Applications product to support any
number of business units, even if those business units use a different ledger.
Secure access to data so users can access only relevant information.
You can define a organizational model that best suits your business requirements.
In Inventory, you can fulfill any Sales Order or Purchase Order regardless of them being
booked from any Inventory organization. You can also determine if any inter-company
invoicing needs to occur based on if the Sales Order or Purchase Order was booked in a
different Operating Unit other than the one to which the Inventory organization is
assigned.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 9
Setting Up Locations

Setting Up Locations
Define information describing the physical locations of employees and organizations.
Locations are shared between Oracle Inventory, Oracle Purchasing, and Oracle Human
Resource Management Systems. Locations flagged as global locations are available to all
business groups. You can associate each organization with only one location; however,
you can associate more than one organization with the same location.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 10
Guided Demonstration - Setting up Locations
Responsibility = Inventory, Vision Operations USA
1. Navigate to the Locations window.
(N) > Setup > Organizations > Locations.
2. Define a Location using the following information:
Name: M12 Orlando
Description: Orlando Manufacturing
3. (T) Address Details
Address Style: United States
4. Enter the following address information:
Address Line 1: 100 Buena Vista Drive
City: Orlando
State: FL
Zip Code: 32803
County: Orange
Country: United States
Telephone: (407) 828-5000
5. Select the following Timezone from the list of values:
Eastern
6. (T) Shipping Details
Ship-To Location: M12 Orlando
7. Verify the following boxes are checked
Ship-To Site
Receiving Site
Office Site
Bill-To Site
Internal Site
8. Save and Close form.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 11
Defining Organizations

Defining Organizations
Classify the Organization
Choose an organization classification to describe the general purpose of your organization.
Examples of organization classifications are inventory organization, legal company, and
HR organization.
Choose inventory organization as your organization classification to use your organization
for inventory management.
Ledger
Tie each inventory organization to an operating unit. Each operating unit is associated to a
legal entity and a primary ledger.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 12
Inventory Parameters

Inventory Parameters
Organization Features
You must enter organization information such as the organization code, and the item master
organization. The system defaults this field to the current organization. You must change this
for any organization that is not an item master organization. The item master organization
should be the first inventory organization you create.
Note- The Manufacturing Partner Organization functionality is only available in Japan, Taiwan
and Korea.

Products and Features
You can enable specific products on the Inventory Parameters tab. These include Oracle
Warehouse Management, Oracle Process Execution, and Oracle Enterprise Asset Management.
If you have Oracle Warehouse Management installed, then you can enable the Warehouse
Control System.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 13
Costing Parameters

LIFO costing-Costing method where it is assumed that items that were received most recently
are
transacted first.
FIFO Costing-Costing method where it is assumed that items that were received earliest are
transacted first.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 14
Revision, Lot, Serial, and License Plate Number (LPN)
Parameters

Revision, Lot, Serial, and LPN Parameters
You determine the starting revision for all items in the organization when you define your
inventory organization. You can also choose to set lot control and serial control parameters at
the organization level. Revision control is discussed in the Defining and Maintaining Items
module. Lot control and serial control is discussed in the Lot and Serial Control module.
LPN Generation Options
If you have Oracle Warehouse Management installed, and you are working with a Warehouse
Management enabled organization, you can define License Plate Number (LPN) Generating
Options. LPNs must be unique across organizations. Setting the parameters on the Revision,
Lot, Serial, And LPN tab enables the system to generate LPNs on demand, or through a
concurrent request. As long as the number is unique, Oracle Warehouse Management also
enables you to generate your own LPNs.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 15
ATP, Pick, Item-Sourcing Parameters

















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 16
Interorganization Parameters

















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 17
Other Account Parameters

















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 18
Warehouse Management Parameters

Warehouse Management Parameters
For more information about Oracle Warehouse Management Organization Parameters see the
Oracle Warehouse Management Implementation Guide.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 19
Guided Demonstration - Setting Up Organizations
Responsibility: Inventory, Vision Operations USA
1. Navigate to the Organizations window.
(N) > Setup > Organizations > Organizations.
2. (B) New in Find window
3. Set up a new organization using the following information:
Name: M12 Orlando MFG
Type: Plant
Location: M12 Orlando MFG
4. Save your work.
5. In the Organization Classification alternative region, select the following information:
Name: Inventory Organization
Enabled: Selected
6. Save your work.
Define Accounting Information
7. (B) Others > Accounting Information.
8. Enter the following accounting information:
Primary Ledger: Vision Operations
Legal Entity: Vision Operations
Operating Unit: Vision Operations
9. Save your work.
Define Inventory Parameters
10. (B) Others > Inventory Information > (T) Inventory Parameters
11. Enter the following inventory parameters:
Organization Code: M12
Item Master Organization: Vision Operations
Calendar: Vision01
Demand Class: Blank
Move Order Timeout Period: 60 Days
Mover Order Timeout Action: Approve automatically
Locator Control: Determined at Subinventory Level
Allow Negative Balances: Selected
















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 20
Auto Delete Allocations at Move Order Cancel: Selected



12. (T) Costing Information
13. Enter the following costing parameters:
Costing Method: Standard
Transfer to GL: Yes
Reverse Encumbrance: No
Project Cost Collect Enabled: No
Defer Logical Transactions: No
Cost Cutoff Date: Blank
Default Material Sub-Element: Blank
Material Overhead Sub-Element: Blank
14. Enter the following valuation accounts:

Account Type Account
Material 01-000-1410-0000-000
Outside Processing 01-000-1450-0000-000
Material Overhead 01-000-1420-0000-000
Overhead 01-000-1430-0000-000
Resource 01-000-1440-0000-000
Expense 01-520-7530-0000-000

15. (T) Other Accounts
16. Enter the following other account information:
Account Type Account
Purchase Price Variance 01-520-5210-0000-000
Invoice Price Variance 01-520-5220-0000-000
Inventory AP Accrual 01-000-2220-0000-000
Sales 01-520-4110-0000-000
Cost of Goods Sold Account 01-450-5110-0000-000
Deferred COGS Account 01-450-5110-0000-000

17. (T) Revision, Lot, Serial And LPN
















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 21
18. Enter A in the Starting Revision field.
19. Enter the following Lot Control parameters:
Uniqueness: Across Items
Generation: At Item Level
Total Length: 30
Generation: At item level
Auto Create Lot UOM Conversion: Blank
Allow Different Lot Status: With exception
20. Enter the following Serial Control parameters:
Uniqueness: Within organization
Generation: At Item level
Prefix SER
Starting Serial Number: 0000000001
21. (T) ATP, Pick, Item-Sourcing
22. Enter the following information:
ATP Defaults Rule: Total ATP, No DC (select second)
Picking Defaults: Rule: Default Picking Rule PR1
Subinventory Order: Blank
Locator Order: Blank
Pick Confirmation Required: Blank
Over Picking for Manufacturing: Blank
Over Picking for Transfer Orders: Selected
Enable Rules Override for Lot-Level Res.: Selected
Item Sourcing Detail: Type: Supplier
Item Sourcing Detail: Organization: Blank
Item Sourcing Detail: Subinventory: Blank
23. (T) Inter-org Information
24. Enter the following information:
Inter-organization Transfer Charge: Predefined percent
Predefined Percent: 10%
Transfer Credit: 01-520-5290-0000-000
Purchase Price Variance: 01-520-5210-0000-000
Receivable: 01-000-1810-0000-000
Payable: 01-000-2370-0000-000
Intransit Inventory 01-000-1460-0000-000
25. (M) File > Close Form
Define Receiving Information
26. (B) Others > Receiving Information
















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 22
27. Enter the following Receiving Information:
Enforce Ship-To: None
ASN Control Action: None
Receipt Days Early and Late: 5
Receipt Days Exceed-Action Warning
Over Receipt Tolerance (%) 5%
Over Receipt Action Warning
RMA Receipt Routing: Standard
Receipt Routing: Standard
Allow Substitute Receipts: Selected
Allow Unordered Receipts: Selected
Allow Express Transactions: Selected
Allow Cascade Transactions: Selected
Validate Serial Numbers on RMA Receipts: Selected
Receipt Number Generation: Automatic
Receipt Number Type: Alphanumeric
Next Receipt Number: 1
Validate Lots on RMA Receipts: Restricted
Receiving Inventory Account: 01-000-1410-0000-000
Clearing Account: 01-000-1410-0000-000
28. (B) Save
29. Click Close Window.
30. Save your work.
31. Close the Organizations window.
Link the Location to the Inventory Organization
32. Navigate to the Location window.
(N) Setup > Organizations > Location
33. Find M12 Orlando.
(M) > View > Query By Example > Enter
34. Enter %M12% in the Name field.
(M) > View > Query By Example > Run
35. (T) Other Details
36. Enter the following information:
Inventory Organization: M12 Orlando MFG
















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 23
37. Save your work and close the window.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 24
What is a Subinventory?

What Is a Subinventory?
A subinventory is a physical or logical grouping of inventory such as raw material, finished
goods, defective material, or a freezer compartment. A subinventory can be the primary place
where items are physically stocked. You must specify a subinventory for every inventory
transaction.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 25
What is a Subinventory (Cont)

What is a Subinventory (Cont)
For more information about subinventories, Defining Subinventories, Oracle Inventory Users
Guide.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 26
Defining Subinventories

Defining Subinventories
You define subinventories by organization. Each subinventory must contain the following
information:
Unique alphanumeric name
Status
Cost Group (if you have Oracle Warehouse Management installed)
Parameters
Lead times
Sourcing information
Account information
For more information about subinventories see Defining Subinventories, Oracle Inventory
Users Guide
















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 27
Guided Demonstration - Defining Subinventories
Responsibility: Inventory, Vision Operations USA
1. (N) Setup > Organizations > Subinventories
2. (M) File > New
3. Enter the following subinventory information:
Name: Raw
Description: Raw Materials
Locator Control: Item Level

4. (B) Open.
5. Select Receiving as the subinventory Type.
6. (M) File > Save.
7. (M) File > Close Form.
8. (M) File > Close Form.
Verifying Subinventories
9. (N) Change Organization.
10. Select M2 Boston Manufacturing.
11. (N) Setup > Organizations > Subinventories
12. (M) View > Find.
13. Enter Raw in the Find Field.
14. Click OK.
15. Note that subinventory Raw is not available in M2.
16. (M) File > Close Form.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 28
Practice - Creating Subinventories
Overview
In this practice you will learn how to create two subinventories.
Assumptions
You are skilled in Oracle navigation.
Responsibility > Inventory, Vision Operations USA
You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.

Tasks
If necessary, change your Organization to Seattle (M1).
Create four subinventories for your team. Create one subinventory for your finished goods (FGI)
stock, a Main Stores (MAIN) subinventory, a Raw Materials (RM) subinventory, and Low Value
(LV) items subinventory. Your Low Value subinventory must be a non-tracked subinventory.
Use the following naming convention to differentiate your team from other teams (##FGI) where
the pound sign represents your team number.
After completing the lab, answer the following questions.
1. In which organization are your new subinventories?
2. Determine if ##FGI exists in M2- Boston Manufacturing and why.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 29
Solution - Creating Subinventories
Responsibility = Inventory, Vision Operations USA
1. Change Organization to M1 Seattle.
(N) Change Organization
Choose Seattle Manufacturing
Select OK
2. Navigate to the Sub-inventories window.
(N) Setup > Organizations > Subinventories
3. (B) New
Name: ##FGI
Description: Finished Goods Inventory
Status: Active
Type: Storage
Locator Control: Item Level
















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 30

4. (M) File > Save
5. (M) File > New.
Name: ##Main
Description: Main Stores
Type: Storage
Status: Active
Locator Control: Dynamic Entry
















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 31

6. (M) File > Save
7. (M) File > New
Name: ##RM
Description: Raw Materials
Status: Active
Type: Storage
Locator Control: None
















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 32

8. (M) File > Save
9. (M) File > New
Name: ##LV
Description: Low Value Inventory
Status: Unserviceable: Not Available for Netting, ATP and Reservations
Type: Storage
Locator Control: None
Quantity Tracked: Deselected
















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 33

10. Save and Close window.
(M) File > Save
(M) File > Close Form
11. In which organization are your new subinventories? M1 Seattle Manufacturing
Verifying Subinventories
12. Does a subinventory called ##FGI exist in M2 Boston Manufacturing? No, you created your
subinventories in M1 Seattle Manufacturing.
13. (N) Change Organization.
Select M2 Boston Manufacturing.
14. (N) Setup > Organizations > Subinventories.
15. (M) View > Find.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 34


16. (M) File > Close Form.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 35
Locator Control

Locator Control
Locators are structures within subinventories. Locators are the third level in the enterprise
structuring scheme of Oracle Inventory. Locators may represent rows, aisles, or bins in
warehouses. You can transact items into and out of locators. You can restrict the life of
locators as well as define locator dimensions.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 36
Dynamic and Static Locators

















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 37
Subinventory-Locator Relationship

Subinventory-Locator Relationship
You can structure Oracle Inventory in such a way that some of the subinventories and items
have locator control while others do not. If locator control is turned on at the item level, you
must specify a locator when transacting the item into or out of a subinventory. If locator
control is turned on at the subinventory level, you must specify a locator when transacting any
item into or out of that subinventory. Each stock locator you define must belong to a
subinventory, and each subinventory can have multiple stock locators. The possible locator
control types are:
None
Prespecified
Dynamic entry
Item Level
You cannot use the same locator names within any two subinventories within the same
organization.
For more information about setting up locator control see Defining Stock Locators, Oracle
Inventory Users Guide.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 38
Locator Flexfield Structure

Locator Flexfield Structure
Locator flexfield structure is common across all organizations. For Example if you set up Row
1A Rack 1A and Bin 1A in M1 Seattle, you cannot use Aisle 1A Rack 1A and Bay1A structure
in M2 Boston.
For more information see the Oracle Applications Flexfields Guide.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 39
Guided Demonstration - Defining Locators
Responsibility: Inventory, Vision Operations USA
Setting Up Stock Locators
1. (N) Setup > Organizations > Stock Locators.
2. Click New.
3. Enter a new Row Rack and Bin.
Note: Locators must be unique across an organization.
4. Enter a Description.
5. Enter the Subinventory.
6. (M) File > Save.
7. (M) File > Close Form.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 40
Practice - Defining Locators
Overview
In this lab you will learn how to set up locator control for subinventories and items.
Assumptions
You are skilled in Oracle Navigation
You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.
Tasks
Defining Stock Locators
1. Define some storage locators for your ##FGI subinventory and your ##Main subinventory.
For this exercise use the following convention:
Row: (your team #) ## ##
Rack: 01 01
Bin: 01 02
Subinventory: ##FGI

Row: ## ##
Rack: 02 02
Bin: 01 02
Subinventory: ##Main
















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 41
Solution Setting Up Locator Control
Defining Stock Locators
1. Navigate to the Stock Locators window.
(N) Setup > Organizations > Stock Locators
(B) New
2. Enter the following new locators using the following information:
Row: (your team #) ##
Rack: 1
Bin: 01
Description: Anything you want
Type: Storage Locator
Subinventory: ##FGI
Locator Status: Active



Row: ##
Rack: 1
Bin: 02
Description: Anything you want
Type: Storage Locator
Subinventory: ##FGI
Locator Status: Active : Not Available for Netting, ATP and Reservations

Row: ##
Rack: 2
Bin: 01
Description: Anything you want
Subinventory ##Main
Locator Status: Active

Row: ##
Rack: 2
Bin: 02
Description: Anything you want
Subinventory ##Main
Locator Status: Active : Available for ATP and Reservations

















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 42

3. Select (M) File > Save
4. Select (M) File > Close
















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 43
Interorganization Shipping Networks

Interorganization Shipping Networks
An interorganization shipping network describes the relationships and accounting information
between a shipping organization and a destination organization. You must define a shipping
network between two organizations before you can transfer material between organizations.
When you setup a shipping network you must select a transfer type. The choices are intransit
or direct. If you choose intransit, Oracle Inventory moves material to an intermediary state
before it reaches the destination organization, and a receipt transaction is required in the
destination organization once the material arrives in order to retrieve it. If you choose direct,
Oracle Inventory moves the material directly to the destination organization. However, for
both, you can determine default receipt routing and whether internal orders are required to
transfer material.
If you choose intransit as the transfer type you can determine:
Shipping methods
GL accounts to use in transit
Material ownership during transfers
Planning lead-times
Transfer charges
















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 44
For more information see Interorganization Shipping Network, Oracle Inventory Users Guide.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 45
Shipping Method

Shipping Method
Shipping methods are the way you ship material. When you create a shipping method, you
must enable it before you can use it in a shipping network. If you disable a shipping method
you cannot use it in a shipping network.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 46
Additional Set Up Steps

Additional Set Up Steps
Entering Employees
Employees who perform cycle and physical inventory counts.
Defining Planners
Identify persons responsible for planning items or groups of items.
Defining Freight Carriers
Enables assignment of a general ledger account to one or more carriers to collect costs
associated with their use. You can assign a carrier to each interorganization transfer.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 47
Additional Organizational Setups

Material Shortage Parameters
Define the parameters for the system to determine when unsatisfied demand exceeds available
quantity of incoming supply. This condition can be used by the system to trigger shortage
alerts and notifications.
Organization Access
This controls access to organizations based on the user responsibility assigned to a user by the
system administrator.
When implemented for one user responsibility, it is then required for all other user
responsibilities accessing the same organization.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 48
Copying Inventory Organizations

Copying Inventory Organizations
You can create new inventory organizations or copy an existing organization. You must
establish a model organization to use as a baseline for new organizations. This model
organization must be a transactional organization and not an item master organization. You can
copy only organizations within the same operating unit. The system creates the new
organizations under the same business group to which the model organization belongs, and
assigns the new organizations to the same operating unit, legal entity, and ledger as the model
organization.
When you copy organizations you specify which information to copy from the model
organization. You can choose to copy the following information from the model organization:
Organization definition
Shipping networks
Hierarchy assignments
Bills of material and bills of material parameters
Departments, resources, and routings
Item information
















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 49
When you copy a model organization the system automatically copies the following
information:
Subinventories
Locators
Work in Process parameters
Work in Process accounting classes
Planning parameters
Shipping parameters

Note: The system does not copy organization-specific data including: cost type, cost sub-
element, Process Manufacturing Enabled, Oracle Warehouse Management enabled, and cost-
sharing entities.

For more information about copying inventory organizations see Copy Inventory Organization
Implementation Guide.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 50
Organization Hierarchy

Organization Hierarchy
Organization hierarchies enable you to group together organizations and perform operations
across all organizations within a hierarchy. You can perform the following operations across
all organizations within an organization hierarchy:
Assign items to organizations: You can assign an item to any organization that belongs to
the same master organization within the same hierarchy. You can also assign a range of
items or item categories to a single organization, as well as a range of items or categories
to multiple organizations.
Copy item attributes: You can manage item attributes for many organizations in one place.
You can verify that an item or group of items were set up correctly, copy organization-
level item attributes from one item to other organizations that use the item, and copy item
attributes from one item to another within an organization.
View item information: You can view on-hand quantity information as well as item where
used information for organizations.
Open and close accounting periods: You can open and close accounting periods.
Purge transactions: You can purge transactions.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 51
Process transactions with the Inventory Transaction Open Interface: You can use the
Inventory Transaction Open Interface to review, submit, or cancel transactions.
Manage bills of materials: You can create common bills of material for organizations as
well as delete items, bills, components, routings, and operations.
Manage engineering change orders You can automatically implement as well as make
changes to engineering change orders.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 52
Organization Reports

















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 53
Organization Reports (Cont)

















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 54
Profile Options

















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 55
Implementation Considerations

Implementation Considerations
When you set up your organizations you need to determine the organization type. For
example, you need to determine if the organization is a process or a discrete organization and if
you are using Oracle Warehouse Management. You can use Oracle Warehouse Management
and Oracle Process Management in the same organization. You should not however, use
Oracle Asset Management with Oracle Warehouse Management or Oracle Process Execution.
If you plan on using Oracle Warehouse Management you need to determine if you are going to
use the Warehouse Control system. If this organization transacts business with Japan, Taiwan,
or Korea you can enable Chargeable Subcontracting for the organization. You must consider
all of this information before you create items or process transactions.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 56
Implementation Considerations (Cont)

















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 57
Implementation Considerations (Cont)

















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 58
Implementation Considerations (Cont)

















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 59
Implementation Considerations (Cont)

















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 60
Implementation Considerations (Cont)

















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 61
Summary

















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Copyright Oracle Corporation, 2007. All rights reserved.
Inventory Structure
Chapter 2 - Page 62

















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Copyright Oracle Corporation, 2007. All rights reserved.
Units of Measure
Chapter 3 - Page 1
Units of Measure
Chapter 3
















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Copyright Oracle Corporation, 2007. All rights reserved.
Units of Measure
Chapter 3 - Page 2

















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Copyright Oracle Corporation, 2007. All rights reserved.
Units of Measure
Chapter 3 - Page 3
R12 Units of Measure

















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Copyright Oracle Corporation, 2007. All rights reserved.
Units of Measure
Chapter 3 - Page 4
Objectives

















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Copyright Oracle Corporation, 2007. All rights reserved.
Units of Measure
Chapter 3 - Page 5
Units of Measure

Unit of Measure
You define units of measure for tracking, moving, storing, and counting items.
Primary Unit of Measure
When you define an item you establish a primary unit of measure. The system tracks on-hand
quantity and calculates transactions based on the primary unit of measure.
Secondary Unit of Measure
You can optionally establish a secondary unit of measure (dual unit of measure control) for an
item. Secondary unit of measure can be used for cases where you need to track in two units of
measure and there is no constant conversion between the two unit of measures (UOMs). For
example, chickens can be tracked in pounds and eaches.
If an item is under dual unit of measure control the system tracks on-hand quantity based on
both the primary and secondary units of measure. For example, you can track an item in both
eaches and liters.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Units of Measure
Chapter 3 - Page 6
Uses of Units of Measure

Uses of Units of Measure
Planning Products
- Forecasting and consumption
- Master scheduling
- Material requirements planning
Work in Process
- Shop floor moves
- Resource transaction
- Completion and return transactions
- Inquiries and reports
Bills of Material and Engineering
- Defining bills of material
- Defining engineering items
















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Copyright Oracle Corporation, 2007. All rights reserved.
Units of Measure
Chapter 3 - Page 7
Unit of Measure Class

Unit of Measure Class
Unit of measure classes represent groups of units of measure with similar characteristics. A
unit of measure class contains a base unit of measure. You use the base unit of measure to
perform conversions between units of measure in the class. For this reason, the base unit of
measure should represent the other units of measure in the class, and be one of the smaller
units. For example, quantity is a unit of measure class and each, dozen, and gross are examples
of units of measure within the class. The unit of measure each is the base unit of measure for
this class.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Units of Measure
Chapter 3 - Page 8
Guided Demonstration - Creating Units of Measure
Responsibility: Inventory, Vision Operations USA
1. (N) > Setup > Units of Measure > Units of Measure.
2. (M) File > New.
3. Use the following information to create two new units of measure:

Name UOM Description Class
00-Centimeter 00C 00 Centimeter 00-Metric
00-Kilometer 00K 00 Kilometer 00-Metric
4. (M) File > Save.
5. (M) File > Close Form.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Units of Measure
Chapter 3 - Page 9
Guided Demonstration - Creating Unit of Measure Classes
Responsibility: Inventory, Vision Operations USA
1. (N) > Setup > Units of Measure > Classes.
2. (M) File > New.
3. Enter the following unit of measure information:
Name: 00-Metric
Description: 00-Metric Class
Base Unit 00-Meter
UOM: 00M
4. (M) File > Save.
5. (M) File > Close Form.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Units of Measure
Chapter 3 - Page 10
Unit of Measure Conversions

Units of Measure Conversions
A unit of measure conversion is a mathematical relationship between two different units of
measure. For example, 16 ounces = 1 pound, or 2.2 pounds = 1 kilogram. If you want to
transact items in units of measure belonging to classes other than their primary UOM class,
you must define conversions between the base units of measure in different UOM classes.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Units of Measure
Chapter 3 - Page 11
Guided Demonstration - Defining Unit of Measure Conversions
Responsibility: Inventory, Vision Operations USA
1. (N) Setup > Units of Measure > Conversions
2. (M) File > New.
3. Enter 00-Centimeter in the Unit field.
4. Enter 0.01 in the Conversion field.
5. (M) File > New.
6. Enter 00-Kilometer in the Unit field.
7. Enter 1000 in the Conversion field.
8. (M) File > Save.
9. (M) File > Close Form.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Units of Measure
Chapter 3 - Page 12
Lot-Level Unit of Measure Conversions

Lot-Level Unit of Measure Conversions
Lot specific conversions enable you to perform a specific inter-class conversion for a given lot.
This enables you to establish more granular control over the transactional quantities of a lot.
For example, the standard inter-class conversion for a lot controlled item is one gallon equals
15 pounds; however, when you receive a particular lot of the item, 1 gallon equals 16 pounds.
You can create a lot specific unit of measure for this instance.
You can create lot-specific unit of measure conversions for on-hand lots or lots with a zero
balance. If you create a lot-specific conversion for a lot with on-hand quantities, you can
automatically update the quantities in the system to more accurately reflect the on-hand
quantity.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Units of Measure
Chapter 3 - Page 13
Units of Measure Setup

















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Copyright Oracle Corporation, 2007. All rights reserved.
Units of Measure
Chapter 3 - Page 14
Practice - Defining Units of Measure
Overview
In this lab you will be doing the following:
Defining Unit of Measure Classes
Defining Units of Measure
Setting up Unit of Measure Conversions
Setting up Lot-Level Units of Measure Conversions
Assumptions
You are skilled in Oracle Navigation
You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.
Tasks
Defining Unit of Measure Classes
Define the unit of measure class, Quantity Class with the base unit of measure Each. Use your
team number (##) to uniquely identify your unit of measure class.
Defining Units of Measure
Define the following units of measure for your class. Use your team number (##) to uniquely
identify your units of measure.
Dozen
Gross
Case
Setting up UOM Conversions
Set up Standard conversion for your units of measure. Use your team number to uniquely
identify your class from the other teams in the classroom.
Note: A Gross = 144 each, and a case = 24 each.
Setting up Lot-Level Unit of Measure Conversions
Create a lot-level unit of measure conversion for item CM20001. Use your new base unit of
measure as the destination base unit of measure.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Units of Measure
Chapter 3 - Page 15
What types of updates can you perform on the Update Quantities window?
















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Copyright Oracle Corporation, 2007. All rights reserved.
Units of Measure
Chapter 3 - Page 16
Solution Defining Units of Measure
Responsibility = Inventory, Vision Operations USA
Defining Unit of Measure Classes
1. Navigate to the UOM Classes window.
(N) Setup > Units of Measure > Classes
2. The application prompts you to select an organization if it is a first-time access to the
database. Select M1 Seattle Manufacturing from the list of values.
3. (M) File > New
Name ##-QTY
Description ##-Quantity Class
Base Unit ##-Each
UOM (abbreviation) ##E
4. (M) File > Save.

Defining Units of Measure
5. Navigate to the Units of Measure window.
(B) Units of Measure
6. (M) File > New
















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Units of Measure
Chapter 3 - Page 17
7. Enter the units of measure information according to the following table:
Name UOM Description
##-Dozen ##D ## Dozen UOM
## Gross ##G ## Gross UOM
## Case ##C ## Case UOM
Note: Select (M) File > New between each new unit of measure.

8. (M) File > Save.
9. (M) File > Close form
Setting up Unit of Measure Conversions
10. Navigate to the Unit of Measure Conversions window.
(B) Setup > Units of Measure > Conversions
11. (M) File > New
12. Enter the unit of measure conversion information according to the following table:
Unit Class Conversion Base Unit
##-Dozen ##-Qty 12 ##-Each
















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Units of Measure
Chapter 3 - Page 18
##-Gross ##-Qty 144 ##-Each
##-Case ##-Qty 24 ##-Each
Note: Select (M) File > New between each new unit of measure conversion.
Note: Verify that you are creating a standard unit of measure conversion.

13. (M) File > Save.
14. (M) File >Close Form.
Setting up Lot-Level Unit of Measure Conversions
Navigate to the Lot Inter-Class Unit of Measure Conversions window.
(N) Setup > Units of Measure > Lot Specific Conversions
15. Enter the following information:
Item: CM20001
Lot: BC2500
Base Unit 00-Each
Conversion: 1
16. (B) On-hand Quantities
















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Units of Measure
Chapter 3 - Page 19
17. Enter a value in the New Primary quantity field (for example, 480).


18. (M) File > Save.
19. (M) File >Close Form.
20. What types of updates can you perform on the Update Quantities window?
__________________________________________________________________________
__________________________________________________________________________

















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Units of Measure
Chapter 3 - Page 20
Unit of Measure Reports

















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Units of Measure
Chapter 3 - Page 21
Profile Options

















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Units of Measure
Chapter 3 - Page 22
Organization Parameter Setup

Organization Parameter Setup
If you set the Auto Create Lot UOM Conversion parameter to Yes or User confirmation, then
the system automatically creates lot-specific unit of measure conversions for items under dual
unit of measure control across the organization. The system bases the conversion on lot
quantities that you receive in the transactional unit of measure, and creates a conversion
between the transactional unit of measure and the secondary unit of measure.
















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Units of Measure
Chapter 3 - Page 23
Implementation Considerations

Implementation Considerations
You can use a maximum of five decimal places for an individual unit of measure within
Oracle Inventory.
Note- Inventory transactions and on hand balance supports decimal precision to 5 digits
after the decimal point. Oracle Work in Process supports decimal precision to 6
digits. Other Oracle Applications support different decimal precision. As a result of
the decimal precision mismatch, transactions another Oracle Application passes may
be rounded when processed by Inventory. If the transaction quantity is rounded to
zero, Inventory does not process the transaction. It is therefore suggested that the base
unit of measure for an item is set up such that transaction quantities in the base unit of
measure not require greater than 5 digits of decimal precision. For example, in some
industries such as the gold jewellery industry, you may need a more granular level of
control than 5 decimal places. You need to carefully determine the base unit of
measure for each unit of measure class.
Primary units of measure cannot be changed on items after they are saved.
















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Units of Measure
Chapter 3 - Page 24
Summary

















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Copyright Oracle Corporation, 2007. All rights reserved.
Defining and Maintaining Items
Chapter 4 - Page 1
Defining and Maintaining
Items
Chapter 4
















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Defining and Maintaining Items
Chapter 4 - Page 2

















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Defining and Maintaining Items
Chapter 4 - Page 3
R12 Defining and Maintaining Items Fundamentals

















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Defining and Maintaining Items
Chapter 4 - Page 4
Objective

















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Defining and Maintaining Items
Chapter 4 - Page 5
What is an Item?

What Is an Item?
An item is a part or service you:
Purchase
Sell
Plan
Manufacture
Stock
Distribute
Prototype
Items can also be containers for items as well as components you build into other items.
















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Defining and Maintaining Items
Chapter 4 - Page 6
Steps to Setup, Define, and Maintain Items

Steps to Define and Maintain Items
The following are the steps for creating and maintaining items:
Define Inventory organization.
Create the item templates.
Use the templates or existing items to define items.
Enter values for additional item attributes.
Assign a status to the item.
Enable the item in organizations.
Update the organizational-level attributes values.
Assign categories to the item (optional)
Assign items to catalog groups (optional)
Define item relationships (optional)
Delete items (optional)
















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Defining and Maintaining Items
Chapter 4 - Page 7
Defining Items

Defining Items
Define only the information you need to maintain the item. You cannot define an item at the
organization level. Oracle Inventory automatically switches to the Master Item window when
you define a new item.

















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Defining and Maintaining Items
Chapter 4 - Page 8
Defining Items

















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Defining and Maintaining Items
Chapter 4 - Page 9
Guided Demonstration - Define Item
Responsibility: Inventory, Vision Operations USA
1. (N) > Items > Master Items.
2. Define an item using the following information.
Item: AS18456
Description: Lap Top Assembly
3. (M) Tools > Copy From.
4. Select Finished Good template from LOV.
5. Select Apply.
6. Select Done.
7. (M) File > Save.
8. (M) Tools > Organization Assignment.
9. Enable the Item in M1 Seattle.
10. (M) File > Save.
11. (M) File > Close Form.


















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Copyright Oracle Corporation, 2007. All rights reserved.
Defining and Maintaining Items
Chapter 4 - Page 10
Item Master Organization

Item Master Organization
An item master organization is a logical entity that you use to define items. You use the other
organizations to store and transact inventory. After you define an item in the item master, you
can assign it to any number of other organizations.
There is no functional or technical difference between the item master organization and other
organizations; however, it is recommended that you limit the item master to an item definition
organization.
You should also define one item master organization per implementation. You can use the
same item master for child organizations across different ledgers. Item masters are distinct
entities with no relationship to each other. You cannot associate items in one item master
organization with another item master organization. You cannot copy items across item master
organizations.
Defining the Item Master Organization
You create the item master organization in the same way that you create other inventory
organizations.
You use the Organization window to create the item master organization
Use the Organization Parameters window to specify the organization as the Item Master.
















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Defining and Maintaining Items
Chapter 4 - Page 11
You assign child organizations to the item master organization.
- Note that the item master uses itself as its item master.















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Defining and Maintaining Items
Chapter 4 - Page 12
Item Master

Item Master
Always define items in the master organization. When you define an item, Oracle
automatically changes your current organization to the master organization. You may enable
your new items in as many child organizations as needed.
















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Defining and Maintaining Items
Chapter 4 - Page 13
Item Attributes

Item Attributes
Item attributes are the collection of information about an item.
















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Defining and Maintaining Items
Chapter 4 - Page 14
Item Attribute Groups

















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Defining and Maintaining Items
Chapter 4 - Page 15
Guided Demonstration - Viewing Item Attributes
Responsibility: Oracle Inventory, Vision Operations USA
1. (N) Items > Master Items.
2. (M) View > Query by Example > Enter.
3. Enter item %AS20000.
4. (M) View > Query by Example > Run.
5. (T) Inventory.
6. Select the Master radio button from the Display Attributes zone.
7. Select the Org radio button from the Display Attributes zone.
8. (T) Purchasing
9. (T) Receiving
10. (T) Order Management
11. (M) File > Close Form.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Defining and Maintaining Items
Chapter 4 - Page 16
Item Status

Item Status
You can use statuses to provide default values for certain item attributes to control the
functionality of an item. The Item Status attribute has a defined set of yes or no values for the
status attributes. You apply the values to the status attributes when you choose an item status
code when you define an item. For example, in the beginning of a product development cycle
you set the Item Status attribute to Prototype with all of the status attributes defaulted to yes
except for Customer Orders Enabled. When the item is ready, you change the Item Status
attribute to Active to enable all item functions.
You can assign one or more pending statuses for an item, to be implemented on future dates.
These statuses become effective on their assigned effective dates. You can view the status
history of an item if needed.

















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Copyright Oracle Corporation, 2007. All rights reserved.
Defining and Maintaining Items
Chapter 4 - Page 17
Unit of Measure Attributes

Unit of Measure Attributes
You use the units of measure attributes to track your items in the warehouse. The following are
the unit of measure attributes and their definitions:
Primary Unit of Measure: This is the stocking and selling unit of measure. Any
necessary conversions are based on this unit of measure. The primary unit of measure is
the default for invoices and credit memos entered in Oracle Receivables.
Tracking: The system can track the item in either the primary only or the primary and
secondary unit of measure. If the system tracks the item by the primary and secondary unit
of measure this is called dual unit of measure control.
Pricing: This attribute controls if pricing is based on the primary or secondary unit of
measure
Defaulting: This attribute controls the behavior of dual unit of measure controlled items.
- Fixed: The system stores inventory in both the primary and secondary units of
measure. You can enter an item quantity in one unit of measure, and the system
converts the quantity to the secondary unit of measure and displays both quantities
- Default: The system stores inventory in both the primary and secondary units of
measure. You can enter an item quantity in one unit of measure, and the system
















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Defining and Maintaining Items
Chapter 4 - Page 18
converts the quantity to the second unit of measure and displays both quantities. You
can change the quantity in the secondary unit of measure, without changing the
quantity in the primary unit of measure.
- No Default: The system stores inventory in both the primary and secondary units of
measure. Use this option when the default conversion between the two units of
measure is usually not the same. The system does not automatically display in the
secondary unit of measure when you specify the quantity for the primary unit of
measure. You manually enter the quantity of the secondary unit of measure before
you process a transaction. The secondary quantity can fluctuate from the default
conversion by the factors that you specify in the Deviation + and Deviation -
attributes.
















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Defining and Maintaining Items
Chapter 4 - Page 19
Item Statuses and Attributes

Item Statuses and Attributes
You define an item status by selecting the value check boxes for the status attribute. You can
control status attributes and item status at the item level or organization level.
















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Defining and Maintaining Items
Chapter 4 - Page 20
Status Attributes and Functionality

















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Defining and Maintaining Items
Chapter 4 - Page 21
Status Attributes and Functionality

















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Defining and Maintaining Items
Chapter 4 - Page 22
Status Attributes and Functionality

















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Defining and Maintaining Items
Chapter 4 - Page 23
Status Attribute Interdependencies

















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Defining and Maintaining Items
Chapter 4 - Page 24
Status Attribute Interdependencies

















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Defining and Maintaining Items
Chapter 4 - Page 25
Status Attribute Interdependencies

















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Defining and Maintaining Items
Chapter 4 - Page 26
Item Attribute Relationships

Item Attribute Relationships
Required Attributes
You must enter a value for the attribute based on the settings for other related attributes.
Interdependent Attributes
You can only enter certain values depending on other attribute values.
Updateable Attributes
You can update values under certain conditions.
Control Level Dependencies
You can update the control level of some attributes only under special conditions and with
certain consequences.
















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Defining and Maintaining Items
Chapter 4 - Page 27
Practice - Viewing Item Attributes
Overview
In this lab you will learn how to view item attributes.
Assumptions
You are skilled at Oracle navigation.
Responsibility: Inventory, Vision Operations USA.
You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.
Tasks
Viewing Item Attributes
1. Find item # AS20000 and answer the following questions
What is the BOM Item Type for the part? _______What is the control level? ______
Is this item Recipe Enabled? _____ What is the control level? ____
2. Find item # AS54888 and answer the following questions about the item's attributes.
What is the Item Status? _______________ What is the control level? ______
Is a Bill of Material allowed for this item? ______ What is the control level? ______
Can I build this item in WIP? ________________ What is the control level? _____
Are customer orders enabled for this item? _________What is the control level? _____
Is Invoicing Enabled for this item? ______________ What is the control level? _____
Are Internal Orders enabled for this item? _______ What is the control level? ______
Is this item transactable in Inventory? ____________ What is the control level? ______
Is this item purchasable from a Vendor? ___________ What is the control level? _____
Is this item stockable in Inventory? _______________ What is the control level? _____
In how many Organizations can this part be used?
















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Defining and Maintaining Items
Chapter 4 - Page 28
Solution Viewing Item Attributes
Viewing Item Attributes
Responsibility = Inventory, Vision Operations USA
1. Navigate to the Master Items Window.
(N) Items > Master Items
2. Query Item # AS20000.
(M) View > Query by Example > Enter
Enter AS20000% in the Item field.
(M) View > Query by Example > Run

3. (T) Bills of Material
A BOM is allowed for item for AS20000. This attribute is controlled at the master level.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Defining and Maintaining Items
Chapter 4 - Page 29

4. (T) Process Manufacturing
Item AS20000 is recipe enabled. This attribute is controlled at the organization level.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Defining and Maintaining Items
Chapter 4 - Page 30

5. Find Item AS54888.
(M) View > Find
















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Defining and Maintaining Items
Chapter 4 - Page 31

Click Find.
6. (T) Main
Item AS5488 Item Status is active, and master controlled.
















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Defining and Maintaining Items
Chapter 4 - Page 32

7. (T) Bills of Material
A Bill of Material is allowed for this item, and the attribute is master controlled.
8. (T) Order Management
Customer orders are enabled for this item, and the attribute is master controlled.
















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Defining and Maintaining Items
Chapter 4 - Page 33

9. (T) Invoicing
Invoicing is enabled for this item, and the attribute is master controlled.
















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Defining and Maintaining Items
Chapter 4 - Page 34

10. (T) Inventory
This item is transactable, and stockable. These attributes are master controlled.
















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Defining and Maintaining Items
Chapter 4 - Page 35

11. In how many Organizations can this part be used?

















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Defining and Maintaining Items
Chapter 4 - Page 36
Item Templates

Item Templates
Oracle Inventory has several predefined templates that you can use to define and update items
or you can create your own templates.
If you regularly define many items that share the same values for a number of attributes, you
may want to define item templates. You can only use copy once when you define an item. You
can predefine templates with relatively few attributes enabled because you can apply more than
one template to define one item.
Attributes in Templates
You can enable attributes and assign them values in each template that you create. When you
apply a template to an item, Oracle Inventory updates only the attributes that are enabled for
the template. The order in which templates are applied is extremely important.
Further Item Templates Help
For more information about item templates see Item Templates, Oracle Inventory Users
Guide.
















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Defining and Maintaining Items
Chapter 4 - Page 37
Creating Item Templates

















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Defining and Maintaining Items
Chapter 4 - Page 38
Enabling Attributes in a Template

















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Defining and Maintaining Items
Chapter 4 - Page 39
Guided Demonstration - Creating Item Templates
Responsibility: inventory, Vision Operations (USA)
1. Navigate to the Item Templates window.
(N) Setup > Items > Templates
2. (B) New
3. Use the following information to create an item template:
Template: 00-Leadtime
Description: Standard lead times for new parts
Organization: M1
4. Save your work.
(M) File > Save
5. Select Lead Times from the show drop-down menu.
6. Enable the following item attributes in the following table:

Attribute Name Value
Prepocessing Lead Time 5
Processing lead Time 44
Post Processing Lead Time 1
7. Save your work.
(M) File > Save
8. Close the window.
(M) File > Close Form
















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Defining and Maintaining Items
Chapter 4 - Page 40
Organization Assignment and Organization Items

Organization Assignment and Organization Items
You can enable an item in all child organizations under your master organization or choose
child organizations where you use the item. Oracle Inventory propagates the item to all
organizations in which you want to enable it. You can enter or change organization-controlled
item attributes. For example, you can choose reorder point planning in one organization and
min-max planning in another organization for the same item.
















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Defining and Maintaining Items
Chapter 4 - Page 41
Control Levels

Master-Level Control
An attribute you maintain at the master level has identical values across all organizations that
use the item.
Organization-Level Control
An attribute you maintain at the organization level may have different values for each
organization that uses it.
Attribute Control
Some attributes can be maintained at only the master level or the organizational Level. Units of
measure are controlled at the master level. If you are using multiple organizations, then you
should maintain min-max planning at the organization level.
Technical Note
Master-Level Control
For example, suppose you want to ensure that items defined in two organizations are
transactable at the same time in both organizations. If you make the item not transactable in
one organization, you want the same item to become not transactable in the other organization.
Organization-Level Control
















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Defining and Maintaining Items
Chapter 4 - Page 42
Suppose only one of the two organizations in your Oracle Inventory implementation performs
manufacturing operations, while the other organization is strictly a distribution warehouse.
For a finished good item used in both organizations, you would want the flexibility to select the
Build in WIP status attribute check box in the manufacturing organization, and clear the Build
in WIP status attribute check box in the distribution organization.
















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Defining and Maintaining Items
Chapter 4 - Page 43
Revision Control

Revision Control
A revision is a particular version of an item, bill of material, or routing. Use the revision
control to track item quantities by item revision and specify a revision for each material
transaction.
Enable revision control for items you must track version changes or changes that are
significant enough to track but do not affect the function and feature of the item.
You cannot change the revision control item attribute when an item has quantity on hand. If
revision control is controlled at the Master Item level, the check for on-hand quantity is against
the sum of on-hand quantity in all child organizations. If revision control is controlled at the
organizational level, the check for on-hand quantity is against the sum of on-hand quantity in
that organization.
Use letters, numbers, and characters such as A, A1, 2B, and so on to define revision numbers.
Letters are always in upper case and numbers may include decimals. To ensure revisions sort
properly, decimals should always be followed by a number. Revisions are sorted according to
ASCII rules, therefore each revision must be greater than the previous revision. For example,
you cannot use revision 10 after revision 9 because, according to ASCII sorting, 10 precedes 9.
















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Defining and Maintaining Items
Chapter 4 - Page 44
For more information about setting up Revision Control, see Defining Item Revisions, Oracle
Inventory Users Guide















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Copyright Oracle Corporation, 2007. All rights reserved.
Defining and Maintaining Items
Chapter 4 - Page 45
Defining Items
Overview
In this practice you will learn how to define items, assign item attributes, and enabled items in
organizations.
Assumptions
You are skilled in Oracle navigation.
Responsibility: Inventory, Vision Operations USA.
You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.
Tasks
Create Items
Create an item using the template you created in the previous task. Create eight items using the
Finished Goods template with the following descriptions:
No Inventory Controls
Locator Control ON
Revision Control ON
Lot Control ON
Parent and Child Lot Control ON
Grade Control ON
Serial Number Control ON
Dual Unit of Measure Control and Lot Expiration Control ON
What item attribute do you have to disable if an item if you create an item under dual unit of
measure control? _________________________________________________
Note: Use the following naming convention for your items, ##-Item##, and be sure to
enable your items in M1 Seattle and M2 Boston.

















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Defining and Maintaining Items
Chapter 4 - Page 46
Solution - Defining Items
Responsibility, Inventory, Vision Operations USA
Create Items
1. Navigate to the Master Items window
(N) Items > Master Items
2. Create the no inventory controls item:
Name: ##-Item01
Description Team ## No Inventory Controls
3. (M) Tools > Copy From
4. Enter Finished Goods in the Template field
5. (B) Apply.
6. (B) Done

















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Defining and Maintaining Items
Chapter 4 - Page 47

7. (M) File > Save
8. (M) Tools > Organization Assignment
9. Assign the item to the following inventory organizations:
Org: M1 Seattle Manufacturing
Org: M2 Boston Manufacturing
















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Defining and Maintaining Items
Chapter 4 - Page 48

10. (M) File > Save
11. Click the Attribute Groups tab.
12. File > New
13. (T) Inventory
14. Create your locator-controlled item. Enter the item name and description. Repeat steps 2-6
to copy the finished good template. Enable the following additional item attributes for your
locator-controlled item:
Name: ##-Item02
Description Team ## Locator Controlled Item
Locator Control: Prespecified
















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Defining and Maintaining Items
Chapter 4 - Page 49

15. (M) File > Save
16. Repeat steps 8-10 to enable the item both M1 Seattle Manufacturing, and M2 Boston
Manufacturing.
17. Click the Attribute Groups tab.
18. (M) File > New
19. (T) Inventory
20. Create your revision-controlled item. Enter the item name and description. Repeat steps 2-6
to copy the finished good template. Enable the following additional item attributes for your
revision-controlled item:
Name: ##-Item03
Description Team ## Revision Controlled Item
Revision Control: Selected
















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Defining and Maintaining Items
Chapter 4 - Page 50


21. (M) File > Save
22. Repeat steps 8-10 to enable the item both M1 Seattle Manufacturing, and M2 Boston
Manufacturing.
23. Click the Attribute Groups tab.
24. (M) File > New
25. (T) Inventory
26. Create your lot-controlled item. Enter the item name and description. Repeat steps 2-6 to
copy the finished good template. Enable the following additional item attributes for your lot-
controlled item:
Name: ##-Item04
Description Team ## Lot Controlled Item
Lot Control: Full Control
Starting Prefix: A
Starting Number: 001
Maturity Days: 10
Hold Days: 5
















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Defining and Maintaining Items
Chapter 4 - Page 51

27. (M) File > Save
28. Repeat steps 8-10 to enable the item both M1 Seattle Manufacturing, and M2 Boston
Manufacturing.
29. Click the Attribute Groups tab.
30. (M) File > New
31. (T) Inventory
32. Create your parent and child lot-controlled item. Enter the item name and description.
Repeat steps 2-6 to copy the finished good template. Enable the following additional item
attributes for your parent and child-lot-controlled item:
Name: ##-Item05
Description Team ## Child and Parent Lot Item
Lot Control: Full Control
Maturity Days: 10
Hold Days: 5
Child Lot Enabled: Selected
Child Generation: Parent+Child
Prefix: A
Starting Number: 001
















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Defining and Maintaining Items
Chapter 4 - Page 52

33. (M) File > Save
34. Repeat steps 8-10 to enable the item both M1 Seattle Manufacturing, and M2 Boston
Manufacturing.
35. Click the Attribute Groups tab.
36. (M) File > New
37. (T) Inventory
38. Create your grade-controlled item. Enter the item name and description. Repeat steps 2-6 to
copy the finished good template. Enable the following additional item attributes for your
grade-controlled item:
Name: ##-Item06
Description Team ## Grade controlled item
Lot Control: Full Control
Starting Prefix: A
Starting Number: 001
Maturity Days: 10
Hold Days: 5
Grade Controlled: Selected
Default Grade: A
















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Defining and Maintaining Items
Chapter 4 - Page 53

39. (M) File > Save
40. Repeat steps 8-10 to enable the item both M1 Seattle Manufacturing, and M2 Boston
Manufacturing.
41. Click the Attribute Groups tab.
42. (M) File > New
43. (T) Inventory
44. Create your serial-controlled item. Enter the item name and description. Repeat steps 2-6 to
copy the finished good template. Enable the following additional item attributes for your
serial-controlled item:
Name: ##-Item07
Description Team ## Serial Controlled Item
Generation: Predefined
Starting Prefix: A
Starting Number: 0000001
















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Defining and Maintaining Items
Chapter 4 - Page 54

45. (M) File > Save
46. Repeat steps 8-10 to enable the item both M1 Seattle Manufacturing, and M2 Boston
Manufacturing.
47. Click the Attribute Groups tab.
48. (M) File > New
49. (T) Main
50. Create your dual unit of measure and lot expiration-controlled item. Enter the item name and
description. Repeat steps 2-6 to copy the finished good template. Enable the following
additional item attributes to enable dual unit of measure control:
Primary: 00-Each
Tracking: Primary and Secondary
Pricing: Primary
Secondary: 00-Meter
Defaulting: No Default
Deviation + 0
Deviation - 0
















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Defining and Maintaining Items
Chapter 4 - Page 55

51. (T) Inventory
52. Enter the following lot control parameters:
Name: ##-Item08
Description Team ## Dual UOM and Lot expiration controlled tiem
Lot Expiration (Shelf Life Control) Full Control
Shelf Life Days: 30
Retest Interval: 10
Expiration Action Interval: 5
Expiration Action: Dispose
Lot Control: Full Control
Starting Prefix: A
Starting Number: 001
Maturity Days: 10
Hold Days: 5
















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Defining and Maintaining Items
Chapter 4 - Page 56

53. (M) File > Save
54. Repeat steps 8-10 to enable the item both M1 Seattle Manufacturing, and M2 Boston
Manufacturing.
55. (M) File > Save
56. (M) File > Close Form
Create a Unit of Measure Conversion for your Dual UOM controlled item
57. Navigate to the Unit of Measure Conversions window
58. (N) Setup > Units of Measure > Conversions
59. (T) Inter-Class
60. Enter the following information
Item: ##-Item-08
Destination: ##-Meter
Conversion: .05
















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Defining and Maintaining Items
Chapter 4 - Page 57

61. (M) File > Save
62. (M) File > Close Form.
















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Defining and Maintaining Items
Chapter 4 - Page 58


















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Defining and Maintaining Items
Chapter 4 - Page 59
Restricting Items to Subinventories

Restricting Items to Subinventories
You can assign items to a given subinventory. Assigning items to a subinventory does not
restrict the subinventory to that list of items. Rather, the items are restricted to that
subinventory. Thus, you can always issue and receive unrestricted items to any subinventory,
but you can only issue and receive restricted items to those particular subinventories. You
activate the list of subinventories for a restricted item when you set the Restrict Subinventories
attribute. You also use the item-subinventory relationship to specify valid subinventories for
zero quantity cycle counts for an item, and to specify items for an ABC analysis performed at
the subinventory level. In these cases you do not have to set the Restrict Subinventories
attribute, only establish the relationship between the item and subinventory.
















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Defining and Maintaining Items
Chapter 4 - Page 60
Guided Demonstration - Restricting Items to Subinventories
Responsibility: Inventory, Vision Operations USA
1. Navigate to the Organization Items window.
(N) Items > Organization Items
2. Enter Item AS18546 in the Item field.
3. (B) Find
4. (M) Tools > Item Subinventories
5. Enter the following information on the Item Subinventories window:
Subinventory: Stores
Subinventory FGI
6. (M) File > Save
7. (M) File > Close Form

















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Defining and Maintaining Items
Chapter 4 - Page 61
Item Relationships

Item Relationships
You can define relationships between items. This allows you to search for items through these
relationships. Except in Oracle Purchasing, these relationships are for inquiry and reporting
purposes only. For example, you can create an item relationship for substitute items or items
for which you can up-sell.
















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Defining and Maintaining Items
Chapter 4 - Page 62
Guided Demonstration -Establishing Item Relationships
Responsibility: Inventory, Vision Operations USA
1. Navigate to the Item Relationships window.
(N) Items > Item Relationships
2. Select To from the Direction drop down list.
3. (B) New.
4. Enter the following item relationship information:
From Item To Item Relationship Reciprocal
AS18947 AS54888 Substitute Selected
AS18947 AS44400 Upsell Deselected

5. (M) File > Save
6. (M) File > Close Form

















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Defining and Maintaining Items
Chapter 4 - Page 63
Categories and Category Sets

Categories and Category Sets
A category is a logical classification of items that have similar characteristics. A category set
is a distinct grouping scheme and consists of categories. You can define an unlimited number
of categories and group subsets of your categories into category sets. A category can belong to
multiple category sets. You can assign a category to a category set either at the time you
define a category set or at the time you assign an item to the category.
Default Category Sets
When you install Oracle Inventory, you must assign a default category set to each of the
following functional areas functional areas: Inventory, Purchasing, Order Management,
Costing, Engineering, and Planning. Product Line Accounting is seeded with the Inventory
category set. Oracle Inventory makes the default category set mandatory for all items defined
for use by a functional area. If your item is enabled for a particular functional area you cannot
delete the item's corresponding default category set assignment. Default category sets are
required so that each functional area has at least one category set that contains all items in that
functional area.
















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Defining and Maintaining Items
Chapter 4 - Page 64
Assigning Items to Categories

Assigning Items to Categories
When you enable an item in a functional area, the item is assigned to the default (mandatory)
category set and default category of the functional area. You can override the category set's
default category. In addition, you can manually assign your item to an unlimited number of
category sets. You may optionally assign an item to more than one category within a category
set based on the category set definition.
















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Defining and Maintaining Items
Chapter 4 - Page 65
Practice - Defining Categories
Overview
In this practice you will set up item categories and add your items to these categories
Assumptions
Replace ## with your terminal number.
You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.
Tasks
Create Item Categories
1. Create the following item categories: ##No Controls and ##Controls.
Create a Category Set
2. Create a category set called ##Category set
Assign Categories to Your Items
3. Assign the following items your categories:
Item Category
AS18947 ##No Controls
AS54888 ##No Controls
##Item01 ##No Controls
##Item02 ##Controls
##Item03 ##Controls
##Item04 ##Controls
##Item05 ##Controls
##Item06 ##Controls
##Item07 ##Controls
##Item08 ##Controls
















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Copyright Oracle Corporation, 2007. All rights reserved.
Defining and Maintaining Items
Chapter 4 - Page 66
Solution Defining Categories
Create Item Categories
Responsibility: Inventory, Vision Operations USA
1. Navigate to Categories window.
(N) Setup > Items > Categories > Category Codes
2. (B) New
3. Enter the following information:

Structure Name Category Description Enabled
Product Family ##No Controls Team ## Items with No
Controls
Selected
Product Family ##Controls Team #3 Items with
Inventory Controls
Selected


4. (M) File > Save
5. (M) File > Close Form
Create a Category Set
6. Navigate to the Category Sets window.
















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Defining and Maintaining Items
Chapter 4 - Page 67
(N) Setup > Items > Categories > Category Sets
7. Enter the following information:
Name: ##Category Set
Description: Team ## Category Set
Flex Structure: Product Family
Controlled At: Master Level
Default Category: 00No Controls
Category: 00Controls

8. (M) File > Save
9. (M) File > Close Form
Assign Categories to Your Items
10. Navigate to the Master Items window.
(N) Items > Master Items
















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Defining and Maintaining Items
Chapter 4 - Page 68
11. Query your items and assign them to your Category Set and the appropriate categories.
(M) View > Query By Example
Enter your item in the Item field.
(M) View > Query By Example Run
(M) Tools > Categories

Item Category Set Category
AS18947 ## Category Set ##No Controls
AS54888 ## Category Set ##No Controls
##Item01 ## Category Set ##No Controls
##Item02 ## Category Set ##Controls
##Item03 ## Category Set ##Controls
##Item04 ## Category Set ##Controls
##Item05 ## Category Set ##Controls
##Item06 ## Category Set ##Controls
##Item07 ## Category Set ##Controls
##Item08 ## Category Set ##Controls

















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Defining and Maintaining Items
Chapter 4 - Page 69

12. (M) File >Save
13. (M) File > Close Form
















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Copyright Oracle Corporation, 2007. All rights reserved.
Defining and Maintaining Items
Chapter 4 - Page 70
Item Catalogs

Item Catalogs
To define your catalog, you set up as many distinct item catalog groups as you need to partition
your Item Master. Each group has unique characteristics (called a descriptive element) that
completely describe items belonging to the group. When you assign an item to an item catalog
group, you define values for the descriptive elements that apply to your item. For example, an
item catalog group called mug could have a descriptive element called material. Possible
values for material might be glass or ceramic.
Descriptive Elements
You can define any number of descriptive elements for an item catalog group. You can also
describe whether the descriptive element is required at item definition, and whether the
descriptive element value is included by default in the item catalog description. Descriptive
element values can be concatenated and used to create an item's description. You turn this
feature off or on for each descriptive element in a catalog group. Turn Description Default on
for any element you want included in a concatenated description. You create a concatenated
description when assign an item to an item catalog group.
















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Defining and Maintaining Items
Chapter 4 - Page 71
Guided Demonstration - Setting up Catalog Groups
Responsibility: Inventory, Vision Operations USA
Create an Item Catalog Group
1. (N) Navigate to the Item Catalogs window.
(N) Setup > Items > Catalog Groups
2. Create a new catalog group
(M) File > New
3. Enter the following information:
Name: ## Mugs
Description: Kinds of Mugs:
4. (M) File > Save
5. (B) Details
6. Enter the details according to the following table:

Seq Name Description Required Des. Default
1 Country Country of origin Deselected Selected
2 Style Style of mug Selected Selected
3 Capacity Number of ounces Selected Selected
4 Material What is it made
of?
Selected Deselected
7. (M) File > Save
8. (M) File > Close Form
9. Navigate to the

Create Items
10. Navigate to the Master Items window.
(N) Items > Master Items
11. Create items according to the following table:
















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Defining and Maintaining Items
Chapter 4 - Page 72
Note: Use the Finished Goods template and enable all parts in M1 Seattle Manufacturing
and M2 Boston Manufacturing.
Item Description
## Mug 1 Mug 1
## Mug 2 Mug 2
## Mug 3 Mug 3
## Mug 4 Mug 4
Update Items with Catalog Information
Update the above items with item catalog descriptive elements. If you used the save and proceed
option when you created your mugs you will not have to re-query them for the following steps.
12. Navigate to the Master Items window
13. (N) Items > Master Items
14. Find your first item
(M) View > Find
Enter ## Mug 1 in to the item field
(B) Find
15. (M) Tools > Catalog
16. Enter the following information:
Catalog Group: ## Mugs
Country: US
Capacity: 12 oz
Style Covered
Material: Pewter
17. (B) Update Description
18. (M) File > Save
19. Repeat Steps 14-17 for the rest of your items according to the following table:

Item Country Capacity Style Material
## Mug 2 US 12 oz Uncovered Copper
## Mug 3 US 16 oz Covered Plastic
## Mug 4 US 16 oz Uncovered Glass

















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Defining and Maintaining Items
Chapter 4 - Page 73
20. (M) File > Close Form
Search for items Using Catalog Attributes
Navigate to the Item Search window.
(N) Items > Item Search
21. Enter the following information:
Show: Item Catalog
Catalog Group: ## Mugs
Capacity: 16 oz
















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Defining and Maintaining Items
Chapter 4 - Page 74
Deletion Constraints and Deletion Groups

Deletions Constraints and Deletion Groups
You cannot delete an item if you have on-hand quantity or have performed any type of action
on the item.
















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Defining and Maintaining Items
Chapter 4 - Page 75
Deletion Constraints

















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Defining and Maintaining Items
Chapter 4 - Page 76
Deletion Constraints (Cont)

















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Defining and Maintaining Items
Chapter 4 - Page 77
Item Reports

















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Defining and Maintaining Items
Chapter 4 - Page 78
Item Reports (Cont)

















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Defining and Maintaining Items
Chapter 4 - Page 79
Item Reports (Cont)

















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Copyright Oracle Corporation, 2007. All rights reserved.
Defining and Maintaining Items
Chapter 4 - Page 80
Profile Options

















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Defining and Maintaining Items
Chapter 4 - Page 81
Profile Options (Cont)

















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Defining and Maintaining Items
Chapter 4 - Page 82
Profile Options (Cont)

















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Defining and Maintaining Items
Chapter 4 - Page 83
Profile Options (Cont)

















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Defining and Maintaining Items
Chapter 4 - Page 84
Profile Options (Cont)

















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Defining and Maintaining Items
Chapter 4 - Page 85
Profile Options (Cont)

















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Copyright Oracle Corporation, 2007. All rights reserved.
Defining and Maintaining Items
Chapter 4 - Page 86
Implementation Considerations

Implementation Considerations
You should set all costing attributes at the organizational level because costing is most
commonly done at organizational level. WIP requires costing at org level to set up WIP
accounting classes. Costing of individual items is specific to individual organizations because
of location and other considerations.
Costing Method
Costing method is chosen and set at the inventory organization level. Within a set of books, an
enterprise can have multiple cost methods specified at each organization level. For example, a
company may have one average cost org and one standard cost org. Available costing methods
are as follows:
Standard
Weighted
Average
FIFO
LIFO
















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Defining and Maintaining Items
Chapter 4 - Page 87
Implementation Considerations (Cont)

















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Defining and Maintaining Items
Chapter 4 - Page 88
Summary

















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Copyright Oracle Corporation, 2007. All rights reserved.
Lot and Serial Control
Chapter 5 - Page 1
Lot and Serial Control
Chapter 5
















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Lot and Serial Control
Chapter 5 - Page 2

















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Lot and Serial Control
Chapter 5 - Page 3
R12 Lot and Serial Control

















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Lot and Serial Control
Chapter 5 - Page 4
Objective

















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Copyright Oracle Corporation, 2007. All rights reserved.
Lot and Serial Control
Chapter 5 - Page 5
Lot Control Overview

Lot Control Overview
A lot can represent a quantity of an item that shares the same specifications, one or more
receipts from the same vendor, or whatever you choose. You can divide each lot into child lots
that can reflect whatever characteristics you choose for items within the lot. For example, you
may divide a lot of items from a supplier into child lots to reflect differences in quality
specifications. When you allocate stock for production, you can allocate specific lots to a
production batch based on the potency, age, or other item characteristics. Oracle Inventory
provides complete lot number support for inventory transactions. You can enable lot control
for specific items in your inventory. For items under lot control, you assign lot numbers to each
receipt, and thereafter reference the same lots each time you perform material transactions.
This enables you to have tight control over lot controlled items in your inventory.
All of the material produced in a manufacturing batch may be assigned a lot number. For
example, you can create a manufacturing batch of penicillin and assign it parent lot number
A100. You can then use parent lot A100 to create child lot A100_01 to make pills, child lot
A100_02 to create emulsion, and child lot A100_03 to create capsules. Each child lot has the
same ingredients as the original parent lot A100, but they are in a different format.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Lot and Serial Control
Chapter 5 - Page 6
Child Lots

Child Lots
A child lot is a subdivision of a lot that you can use if you produce a lot over a period of time,
but still want to group the material as a single lot. Using a child lot maintains the integrity of
the lot, but enables you to consume it in manageable pieces. When you process transactions for
material under child lot control, you enter the child lot as the lot number. The system also
maintains a genealogy relationship between the parent lot and the child lot.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Lot and Serial Control
Chapter 5 - Page 7
Setting up Lot Control (Organization Parameters)

Setting up Lot Control
Organization Parameters
You use the Organization Parameters window to specify whether lot numbers should be
unique for an item. If you do not establish lot number uniqueness, you can assign the same lot
number to multiple items in the same organization and across organizations. If you control lot
number uniqueness at the item level, you can assign a specific lot number only to one item in
the same organization and across organizations. When you perform transactions, Oracle
Inventory checks the lot number uniqueness control to generate lot number defaults.
You use the Organization Parameters window to specify how to generate lot number defaults.
You can generate sequential lot numbers based on an alphanumeric prefix that you specify
when you define an item. Oracle Inventory can also generate lot number defaults for the entire
organization. In this case, you must define a lot number prefix at the Organization level in the
Organization Parameters window.
If you do not want Oracle Inventory to automatically generate lot number defaults for you, you
can enter your own lot numbers when you receive items. You can always override lot number
defaults. For more information See Defining Organization Parameters, Oracle Inventory User's
Guide.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Lot and Serial Control
Chapter 5 - Page 8
Guided Demonstration - Setting Up Organizations
Responsibility: Inventory, Vision Operations USA
1. Navigate to the Organizations window.
(N) > Setup > Organizations > Organizations.
2. (B) New in Find window
3. Set up a new organization using the following information:
Name: M12 Orlando MFG
Type: Plant
Location: M12 Orlando MFG
4. Save your work.
5. In the Organization Classification alternative region, select the following information:
Name: Inventory Organization
Enabled: Selected
6. Save your work.
Define Accounting Information
7. (B) Others > Accounting Information.
8. Enter the following accounting information:
Primary Ledger: Vision Operations
Legal Entity: Vision Operations
Operating Unit: Vision Operations
9. Save your work.
Define Inventory Parameters
10. (B) Others > Inventory Information > (T) Inventory Parameters
11. Enter the following inventory parameters:
Organization Code: M12
Item Master Organization: Vision Operations
Calendar: Vision01
Demand Class: Blank
Move Order Timeout Period: 60 Days
Mover Order Timeout Action: Approve automatically
Locator Control: Determined at Subinventory Level
Allow Negative Balances: Selected
















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Copyright Oracle Corporation, 2007. All rights reserved.
Lot and Serial Control
Chapter 5 - Page 9
Auto Delete Allocations at Move Order Cancel: Selected



12. (T) Costing Information
13. Enter the following costing parameters:
Costing Method: Standard
Transfer to GL: Yes
Reverse Encumbrance: No
Project Cost Collect Enabled: No
Defer Logical Transactions: No
Cost Cutoff Date: Blank
Default Material Sub-Element: Blank
Material Overhead Sub-Element: Blank
14. Enter the following valuation accounts:

Account Type Account
Material 01-000-1410-0000-000
Outside Processing 01-000-1450-0000-000
Material Overhead 01-000-1420-0000-000
Overhead 01-000-1430-0000-000
Resource 01-000-1440-0000-000
Expense 01-520-7530-0000-000
15. Other Accounts
16. Enter the following other account information:

Account Type Account
Purchase Price Variance 01-520-5210-0000-000
Invoice Price Variance 01-520-5220-0000-000
Inventory AP Accrual 01-000-2220-0000-000
Sales 01-520-4110-0000-000
Cost of Goods Sold Account 01-450-5110-0000-000

17. (T) Revision, Lot, Serial And LPN
18. Enter A in the Starting Revision field.
















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Lot and Serial Control
Chapter 5 - Page 10
19. Enter the following Lot Control parameters:
Uniqueness: Across Items
Generation: At Item Level
Total Length: 30
Generation: At item level
Auto Create Lot UOM Conversion: Blank
Allow Different Lot Status: With exception
20. Enter the following Serial Control parameters:
Uniqueness: Within organization
Generation: At organization level
Prefix SER
Starting Serial Number: 0000000001
21. ATP, Pick, Item-Sourcing
22. Enter the following information:
ATP Defaults Rule: Total ATP, No DC (select second)
Picking Defaults: Rule: Default Picking Rule PR1
Subinventory Order: Blank
Locator Order: Blank
Pick Confirmation Required: Blank
Over Picking for Manufacturing: Blank
Over Picking for Transfer Orders: Selected
Enable Rules Override for Lot-Level Res.: Selected
Item Sourcing Detail: Type: Supplier
Item Sourcing Detail: Organization: Blank
Item Sourcing Detail: Subinventory: Blank
23. (T) Inter-org Information
24. Enter the following information:
Inter-organization Transfer Charge: Predefined percent
Predefined Percent: 10%
Transfer Credit: 01-520-5290-0000-000
Purchase Price Variance: 01-520-5210-0000-000
Receivable: 01-000-1810-0000-000
Payable: 01-000-2370-0000-000
Intransit Inventory 01-000-1460-0000-000
25. (M) File > Close Form
Define Receiving Information
26. (B) Others > Receiving Information
27. Enter the following Receiving Information:
















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Lot and Serial Control
Chapter 5 - Page 11
Enforce Ship-To: None
ASN Control Action: None
Receipt Days Early and Late: 5
Receipt Days Exceed-Action Warning
Over Receipt Tolerance (%) 5%
Over Receipt Action Warning
RMA Receipt Routing: Standard
Receipt Routing: Standard
Allow Substitute Receipts: Selected
Allow Unordered Receipts: Selected
Allow Express Transactions: Selected
Allow Cascade Transactions: Selected
Validate Serial Numbers on RMA Receipts: Selected
Receipt Number Generation: Automatic
Receipt Number Type: Alphanumeric
Next Receipt Number: 1
Validate Lots on RMA Receipts: Restricted
Receiving Inventory Account: 01-000-1410-0000-000
Clearing Account: 01-000-1410-0000-000
28. (B) Save
29. Click Close Window.
30. Save your work.
31. Close the Organizations window.
Link the Location to the Inventory Organization
32. Navigate to the Location window.
(N) Setup > Organizations > Location
33. Find M12 Orlando.
(M) > View > Query By Example > Enter
34. Enter %M12% in the Name field.
(M) > View > Query By Example > Run
35. (T) Other Details
36. Enter the following information:
Inventory Organization: M12 Orlando MFG
37. Save your work and close the window.
















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Lot and Serial Control
Chapter 5 - Page 12
Lot Number Uniqueness

Lot Number Uniqueness
You use the Organization Parameters window to specify whether lot numbers should be unique
for an item. If you do not establish lot number uniqueness, you can assign the same lot number
to multiple items in the same organization and across organizations. If you set lot number
uniqueness to Across Items, you can assign a specific lot number only to a single item. When
you perform transactions, Oracle Inventory checks the lot number uniqueness control to
generate lot number defaults.
















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Lot and Serial Control
Chapter 5 - Page 13
Setting up Lot Control (Item Attributes)

Setting up Lot Control
Item Attributes
You can establish lot control for an item when you define it. You can select either No control
or Full control. If you choose Full Control, then you must assign lot numbers when you
receive the item into inventory. Thereafter, when you transact the item, you must provide a lot
number that you specified when you received the item.
You can update lot control options for an item if it has zero on hand quantity. In addition, you
cannot change lot control when open internal orders or inter-org intransit shipments exist. A
lot number is a combination of an alphanumeric prefix and a numeric suffix. When you define
an item, you can specify the starting lot prefix and the starting lot number. Oracle Inventory
uses this information to generate defaults during transaction entry.
Shelf Life Days
Shelf life is the amount of time that an item can reside in inventory before it expires. When
defining items under lot control, you can choose no control, a certain number of item shelf life
days from the date that you receive the item, or a user-defined expiration date for each lot. The
system does not consider the expired lot as on-hand supply when it performs min-max, reorder
















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Lot and Serial Control
Chapter 5 - Page 14
point, or MRP planning calculations. You also cannot reserve an expired lot. See Oracle
Inventory User's Guide Inventory Attribute Group control.
Grade Control
A grade is a rating that you assign to an item lot for quality control purposes. Grades are
usually based on criteria such as color, size, or quality of the lot. For example, the grade of a
lot of paint could be excellent, average, or poor. A grade is a characteristic of an item lot, and
never a lot location.

















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Copyright Oracle Corporation, 2007. All rights reserved.
Lot and Serial Control
Chapter 5 - Page 15
Managing Lots

Assigning Lot Numbers
You must assign lot numbers when you receive items under lot control. You can also add
quantities to existing lot numbers and split an inventory receipt into several lots, if necessary.
Oracle Inventory uses the default lot number generation method that you entered in the
Organization Parameters window to determine lot numbers. You also enter the lot prefix and
starting lot number in the Item Master window when you create an item. If the item is under
user-defined expiration date Lot Expiration (shelf life) Control, you must specify the expiration
date for the lot.
You can either use the lot master to generate new lot numbers or assign lot numbers when you
perform transactions. When you create the lot, the system determines the lot origination type.
If you create the lot on the lot master, the origination type is lot master. If you generate the lot
while performing a transaction, the origination type is Inventory. See Item Lots and Assigning
Lots Within Transactions, Oracle Inventory Users Guide for more information.
Maintaining Lot Information
You can update the expiration date of lots for items under lot expiration (shelflife) control.
You can view all lots that you created in your current organization and the supplier lot
information that is associated with the lots.
















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Lot and Serial Control
Chapter 5 - Page 16
Expired Lots

Expired Lots
You can assign lot control shelf life days, or enter a lot expiration date to determine when a lot
expires. The expiration date controls the availability of the lot for transacting and planning
purposes. An expired lot:
Is not considered as on-hand supply when you are performing min-max, reorder point, or
MRP planning calculations.
Cannot be reserved for a date beyond the expiration date.
Can be transacted and is included in on-hand quantities.
Is included in all inquiries and reports, including inventory valuation reports
Is included in a cycle count and count entry and adjustments are allowed
Is included in a physical inventory and tag entry and adjustments are allowed
Lot Expiration Action
A lot expiration action is the action that you perform on a lot when it expires. You can assign a
default lot expiration to an item on the Item Master or when you generate a lot. To associate a
lot expiration action with a lot, you must define shelf life days for the item.

















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Lot and Serial Control
Chapter 5 - Page 17
Disabled Lots

Disabled Lots
Disabling a lot only prevents it from appearing in a list of values when you are performing
receipt transactions. If you type in the lot number, it is valid and accepted even though it was
not in the list of values. Disabling is used only for tailoring this specific instance of the list of
values for lot numbers. A disabled lot:
Is included in available to transact, available to promise, and available to reserve
calculations
Is included as on-hand supply when you are performing min-max, reorder point or MRP
planning calculations
Is included as on-hand in all inquiries and reports, including inventory valuation report
Can be transacted with Inventory functions and the Transaction Open Interface
Can be reserved
















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Lot and Serial Control
Chapter 5 - Page 18
Guided Demonstration - Generating Lots















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Lot and Serial Control
Chapter 5 - Page 19
Guided Demonstration - Generating Lots
Responsibility: Inventory, Vision Operations
1. Navigate to the Master Items window.
(N) Items > Master Items
2. Create an item with the following information
Item: lot_control_item
Description: Lot control item
3. (N) Tools > Copy From
Template: Finished Good
4. (B) Apply
5. (B) Done
6. (T) Inventory
7. Enable the following Item Attributes:
Lot Control: Full Control
Maturity Days: 15
Hold Days: 5
Lot Expiration (Shelf Life): Shelf Life Days
Shelf Life Days: 60
Retest Interval: 30
Expiration Action Interval: 10
Expiration Action: Dispose
Grade Controlled: Enabled
Default Grade: A
8. (M) File > Save
9. (T) Organization Assignment
10. Enable the item in the following organizations:
M1 Seattle Manufacturing
M2 Boston Manufacturing
11. (M) File > Save
12. (M) File > Close Form
13. Navigate to the Lots window.
















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Lot and Serial Control
Chapter 5 - Page 20
(N) On-hand, Availability > Lots
14. (B) New
15. Enter lot_control_item in the Item field.
16. (B) Generate Lot

















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Lot and Serial Control
Chapter 5 - Page 21
Guided Demonstration - Maintaining Grades















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Lot and Serial Control
Chapter 5 - Page 22
Guided Demonstration - Maintaining Grades
Responsibility: Inventory, Vision Operations USA
1. Navigate to the Maintain Grades window.
(N) Setup > Maintain Grades
2. (M) File > New
3. Enter the following grade information.
Grade: AVG
Description: Average grade
4. (M) File > Save
5. (M) File > Close Form.
















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Lot and Serial Control
Chapter 5 - Page 23
Guided Demonstration - Maintaining Lot Actions
Responsibility: Inventory, Vision Operations
1. Navigate to the Action Codes window.
(N) Setup > Action Codes
2. (M) File > New
3. Enter the following lot action information:
Action: DEST
Description: Destroy Item
4. (M) File > Save
5. (M) Close > Close Form
















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Copyright Oracle Corporation, 2007. All rights reserved.
Lot and Serial Control
Chapter 5 - Page 24
Practice - Using the Lot Master
Overview
In this practice you will use the lot master to generate lots.
Use List Bullet Format to list practice items here, if needed
Use List Bullet Format to list practice items here, if needed
Assumptions
You created lot control, parent and child lot control, grade control, and lot expiration
controlled items in the previous practice.
Responsibility, Inventory, Vision Operations USA
You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.
Tasks
Generating Lots
Generate a lot for the following items:
## - Item04
##- Item05
## - Item06
## - Item 08
1. What is the origination type? _____________________________
2. What field
















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Copyright Oracle Corporation, 2007. All rights reserved.
Lot and Serial Control
Chapter 5 - Page 25
Solution Using the Lot Master
Generating Lots
Responsibility, Inventory, Vision Operations USA
1. Navigate to the Item Lots window.
(N) On-hand, Availability > Lots
2. (B) New
3. Enter Item ##-Item04 in the Item field where ## represents your team number.
4. Press Enter.

5. (B) Generate Lot
6. (M) File > Save
















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Lot and Serial Control
Chapter 5 - Page 26

7. (M) > New
8. Enter item ##-Item05 in the Item field where ## represents your team number.
9. Press Enter.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Lot and Serial Control
Chapter 5 - Page 27


10. (B) Generate Parent Lot
11. (B) Generate Lot
12. (M) File > Save
















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Lot and Serial Control
Chapter 5 - Page 28

13. (M) File > New
14. Enter item ##-Item06 in the Item field where ## represents your team number.
















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Lot and Serial Control
Chapter 5 - Page 29

15. (B) Generate Lot
16. Where does the Grade field default from? ______________
17. (M) File > Save
18. (M) File > New
19. Enter item ##-Item08 in the Item field where ## represents your team number.
















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Lot and Serial Control
Chapter 5 - Page 30

20. (B) Generate Lot
21. Enter the current date in the Origination Date field.


















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Lot and Serial Control
Chapter 5 - Page 31


22. Enter date information in the following fields:
Expiration Date
Expiration Action Date
Expiration Retest Date
Note: The dates do not appear in these fields
23. (M) File > Save
24. (M ) File > Close Form
















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Lot and Serial Control
Chapter 5 - Page 32
Lot Number Purging

















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Lot and Serial Control
Chapter 5 - Page 33
Cycle Counts Under Lot Control

















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Lot and Serial Control
Chapter 5 - Page 34
Physical Inventory Under Lot Control

















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Copyright Oracle Corporation, 2007. All rights reserved.
Lot and Serial Control
Chapter 5 - Page 35
Guided Demonstration - Revision, Lot, and Serial Controls
Responsibility: Inventory, Vision Operations USA
Creating New Revisions
1. If you are not in M1 organization, change your organization to M1.
(N) Change Organization.
Select M1 Seattle Manufacturing from the organization list.
2. (N) Items > Organization Items.
3. Find Item AS18456.
4. (T) Inventory.
5. Select the Revision Control check box.
6. (M) Tools > Revisions.
7. (M) File > New.
8. Enter the following revision information:
Revision: B
Revision Label: B
Description: Lap Top Assembly Revision
Effective Date: Today's Date.
9. (M) File > Save.
10. (M) File > Close Form.
Enabling Lot Control
11. (N) Items > Organization Items.
12. Find item AS18456.
13. (T) Inventory.
14. Select Full Control in the Lot alternative region.
15. Enter the starting lot prefix.
16. Enter the lot starting number.
















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Lot and Serial Control
Chapter 5 - Page 36
17. (M) File > Save.
18. (M) File > Close Form.
Enabling Serial Control
19. (N) Items > Organization Items.
20. Find Item AS42001.
21. (T) Inventory.
22. Select Predefined from the Serial alternative region:
Starting Prefix: AS
Starting Number: 000001
23. (M) File > Save.
24. (M) File > Close Form.
Generating Serial Numbers
25. (N) On-hand, Availability > Generate Serial Numbers.
26. Enter the following information to generate serial numbers:
Item: AS42001
Quantity: 1000
27. Choose Submit.
Transacting Locator Controlled Items.
28. (N) Transactions > Miscellaneous Transactions.
29. Enter the following transaction information:
Type: Miscellaneous receipt
Account: Miscellaneous
30. Choose Transaction Lines.
31. Enter the following receipt information:
Item: AS18456
Revision: B
Subinventory: FGI
Quantity: 10
32. Choose Lot /Serial.
33. Choose Generate.
















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Lot and Serial Control
Chapter 5 - Page 37
Lot Quantity: 10
34. Choose Done.
35. (M) File > New.
36. Enter the following receipt information:
Item: AS42001
Subinventory: FGI
Quantity: 15
37. Choose Lot /Serial.
38. Select the first available serial number from the list of values.
Note: The End Serial Number field populates automatically according to the transaction
quantity.
39. Choose Done.
40. (M) File > Save.
41. (M) File > Close Form.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Lot and Serial Control
Chapter 5 - Page 38
Serial Number Overview

Serial Numbers Overview
A serial number is an alphanumeric piece of information you assign to an individual unit of an
item. You use serial numbers to track individual item units. Serial number control is a system
technique for enforcing the use of serial numbers during a material transaction. You can use
serial numbers to track items over which you want to maintain very tight control. One serial
number is assigned to per unit of an item.
For more information on setting up serial number control, refer to the online help:
(Help) Oracle Manufacturing Applications > Oracle Inventory > Items > Lot and Serial
Number Control > Setting Up Serial Number Control
















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Copyright Oracle Corporation, 2007. All rights reserved.
Lot and Serial Control
Chapter 5 - Page 39
Generating Serial Numbers

Serial Number Generation
How you set up serial number control at the master item level determines serial number
generation. If you specify No Control as the serial number control type, then the system does
not enforce serial number control. If you specify Predefined as the serial number control type,
then you must predefine serial numbers for that item. If you select At inventory receipt or At
sales order issue, then you can optionally predefine serial numbers for the item.
Oracle Inventory uses the starting serial number prefix and the starting serial number you
specify in the Item window to load the number of predefined serial numbers you request. You
can load as many serial numbers as you want for any item under serial number control.
The process of generating serial numbers is done through a concurrent report. This process
does not assign numbers to units in inventory, it simply reserves specific serial numbers for an
item for later use.
For more information on setting up serial number control, refer to the online help:
(Help) Oracle Manufacturing Applications > Oracle Inventory > Items > Lot and Serial
Number Control > Setting Up Serial Number Control
















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Lot and Serial Control
Chapter 5 - Page 40
Serial Uniqueness

Serial Uniqueness
You use the Organization Parameters window to choose a type of serial number uniqueness for
your organization. You can choose to enforce uniqueness Within inventory items, Within an
organization, or Across organizations. The three levels for serial uniqueness are cumulative,
and the definitions are as follows:
Within Inventory Items: Once you assign a serial number to a particular item you cannot
assign the same serial number to the same item regardless of the organization. For
example if you assign serial number SN100 to item A, you cannot assign serial number
SN100 to any other instance of item A in any organization. This also includes CTO items
derived from base model A. However you could receive item B with serial number
SN100 in any organization.
Within an Organization: In addition to the Within Inventory Items restrictions, the same
serial number cannot exist twice within the same organization. For example, if you assign
SN100 to item A, you cannot receive item B with the serial number SN100 in the same
organization. You can, however, receive item B with the serial number SN100 in any
other organization.
















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Lot and Serial Control
Chapter 5 - Page 41
Across Organizations: In addition to the Within an Organization restrictions, you cannot
assign the same serial number to any other item regardless of the organization. For
example if you assign SN100 to item A you cannot receive item B with the serial number
SN100 in any organization. In this example SN101 and SN100 belong to different
organizations. If you assign Across Organizations uniqueness to any organization it
restricts the serial generation in all other organizations. If one organization dictates
Across Organizations, all other organizations must do so.
















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Lot and Serial Control
Chapter 5 - Page 42
Maintaining Serial Numbers

















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Copyright Oracle Corporation, 2007. All rights reserved.
Lot and Serial Control
Chapter 5 - Page 43
Practice - Generating and Maintaining Serial Numbers
Overview
In this lab you will learn how to update your revision, lot, and serial control for your items. You
will also learn how to receive items into stock that have revision, lot, and serial control. You will
use the items you created in the defining items lab.
Assumptions
You are skilled in Oracle Navigation.
You have completed the Define Items Lab.
You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.
Tasks
Generate Serial Numbers
1. Predefine a range of serial numbers using the following information:
Item: ##-Item07
Quantity to define: 10000
Note: ## represents your team number.
Find Serial Numbers
2. Find the serial numbers you generated. What state are the serial numbers in?
_______________________________________________________
















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Copyright Oracle Corporation, 2007. All rights reserved.
Lot and Serial Control
Chapter 5 - Page 44
Solution Generating and Maintaining Serial Numbers
Responsibility: Inventory, Vision Operations USA
Generate Serial Numbers
1. Navigate to the Generate Serial Numbers window.
(N) On-hand, Availability > Generate Serial Numbers.
2. Enter the following information:
Item: ##- Item-07
Quantity: 10000

3. (B) OK.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Lot and Serial Control
Chapter 5 - Page 45

4. (B) Submit
5. (B) Yes

6. (M) File > Save
7. (M) File > Close Form
Find Serial Numbers
8. Navigate to the Serial Numbers window.
















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Lot and Serial Control
Chapter 5 - Page 46
(N) On-hand, Availability > Serial Numbers
9. Enter the following information:
Item: ##-Item07
If you place your cursor in the item field then you can enter information in that field.

10. (B) Find
















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Lot and Serial Control
Chapter 5 - Page 47

11. (B) Serial Info
















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Lot and Serial Control
Chapter 5 - Page 48

The serials are in the Defined but not used state.
12. (M) File > Close Form
















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Copyright Oracle Corporation, 2007. All rights reserved.
Lot and Serial Control
Chapter 5 - Page 49
Lot Genealogy

Lot Genealogy
Lot genealogy tracks the relationship between lots and provides lot traceability that results
from inventory transactions. This includes all lot splits, merges, and translations. Lot
genealogy also enables you to view where a particular lot is used. For example, one of your
suppliers informs you that they supplied you with contaminated sugar, which needs to be
recalled, and you used this sugar as an ingredient in the production of orange juice. You can
use lot genealogy to find each lot of orange juice that contain the contaminated lots of sugar.
You can use lot genealogy to view the work order details for a WIP job, material and pending
transactions, and quality results for both WIP jobs and process batches. Oracle Process
Manufacturing does not support serial numbers or serial genealogy.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Lot and Serial Control
Chapter 5 - Page 50
Guided Demonstration - Viewing Lot Genealogy
Responsibility: Inventory, Vision Operations USA
1. (N) On-hand, Availability > Lots
2. Select an item
3. (B)View Genealogy
4. (T) Lot Attributes
5. (T) Material Transactions
6. (T) Pending Txns and Allocations
7. (T) Products or Components
8. (T) Quality Collections or Quality Samples
9. (T) Lot Based Jobs






















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Copyright Oracle Corporation, 2007. All rights reserved.
Lot and Serial Control
Chapter 5 - Page 51
Serial Genealogy

Serial Genealogy
Serial genealogy tracks the transaction and multilevel composition history of any serial-
controlled item from receipt to customer sale. The composition genealogy is captured through
material transactions in Oracle Work in Process and Oracle Process Manufacturing. The serial
genealogy appears in a graphical display, and you can trace an assembly down through all of
its components or from the component to an assembly. This genealogy tracing enables you to
expedite problem isolation and improve customer response times. Serial genealogy also helps
you to track and regulate supplier performance and quality.
You can view the transaction history of the serial across all organizations within an operating
unit and view the current organization where the serial resides. When issuing serialized
components to serial controlled assemblies, you must associate the component serial number
with the assembly serial number. If the component has a supply type of Push, the association
occurs at WIP Issue. If the component has a supply type of Operation Pull, the association
occurs at WIP Move. If the component has a supply type of Assembly Pull, the association
occurs at WIP Completion. If the item is under lot control, then you can also view the lot
genealogy for the same item. When you view the genealogy of the item, the system lists the
item number, followed by the lot number, and finally the serial number.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Lot and Serial Control
Chapter 5 - Page 52
Lot and Serial Reports

















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Lot and Serial Control
Chapter 5 - Page 53
Lot and Serial Reports (Cont)

















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Lot and Serial Control
Chapter 5 - Page 54
Lot and Serial Reports (Cont)

















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Copyright Oracle Corporation, 2007. All rights reserved.
Lot and Serial Control
Chapter 5 - Page 55
Profile Options

















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Lot and Serial Control
Chapter 5 - Page 56
Profile Options (Cont)

















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Copyright Oracle Corporation, 2007. All rights reserved.
Lot and Serial Control
Chapter 5 - Page 57
Implementation Considerations

















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Lot and Serial Control
Chapter 5 - Page 58
Implementation Considerations (Cont)

















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Lot and Serial Control
Chapter 5 - Page 59
Summary

















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Copyright Oracle Corporation, 2007. All rights reserved.
Lot and Serial Control
Chapter 5 - Page 60

















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Copyright Oracle Corporation, 2007. All rights reserved.
Transaction Setup
Chapter 6 - Page 1
Transaction Setup
Chapter 6
















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Copyright Oracle Corporation, 2007. All rights reserved.
Transaction Setup
Chapter 6 - Page 2

















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Copyright Oracle Corporation, 2007. All rights reserved.
Transaction Setup
Chapter 6 - Page 3
R12 Transaction Setup

















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Copyright Oracle Corporation, 2007. All rights reserved.
Transaction Setup
Chapter 6 - Page 4
Objectives

















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Copyright Oracle Corporation, 2007. All rights reserved.
Transaction Setup
Chapter 6 - Page 5
Overview

Transactions
A transaction is an item movement into, within, or out of inventory. A transaction changes the
quantity, location, planning responsibility, or cost of an item. Oracle Inventory supports a
number of predefined and user-defined transaction types. Every material movement has a
corresponding set of accounting transactions that Oracle Inventory automatically generates. All
transactions validate the various controls (revision, locator, lot, dual unit of measure, and serial
number) you enable for your items.
For more information about transaction see Overview of Inventory Transactions, Oracle
Inventory Users Guide.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Transaction Setup
Chapter 6 - Page 6
Inventory Transactions

Inventory Transactions
Inventory transactions enable you to:
Receive items into your organization.
Issue items out of your organization.
Transfer items from one subinventory in your organization to another subinventory in the
same organization
Transfer items between organizations
















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Copyright Oracle Corporation, 2007. All rights reserved.
Transaction Setup
Chapter 6 - Page 7
Move Orders

Move Orders
Move orders are requests for the movement of material within a single organization. They
formalize the process to request the movement of material within a warehouse or facility for
purposes like replenishment, material storage relocations, and quality handling. Move orders
are generated manually or automatically depending on the source type. To request a material
transfer between organizations requires an internal requisition.
Move Order Requisitions
A move order requisition is a manually generated request for a move order. It is available for
subinventory transfers and account transfers. Once a requisition has been approved, it becomes
a move order. These requests can optionally go through a workflow-based approval process
before becoming move orders. For more information about move order requisitions see
Generating Move Order Requisitions, Oracle Inventory Users Guide.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Transaction Setup
Chapter 6 - Page 8
Transaction Source Types

Transaction Source Type
Oracle Inventory uses a transaction source type with a transaction action to uniquely identify
the type of transaction performed. You can define additional source types. Predefined
transaction types are as follows:
Purchase Order
Account Alias
Account
Move Order
Internal Order
Standard Cost Update
Internal Requisition
Sales Order
Cycle Count
Periodic Cost Update
Physical Inventory
















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Copyright Oracle Corporation, 2007. All rights reserved.
Transaction Setup
Chapter 6 - Page 9
RMA (Return Material Authorization)
Inventory
Job or Schedule
External Requisition
Layer Cost Update
Project Contract
When you perform a transaction, you specify a transaction type and a source. For example, for
a PO receipt transaction, the transaction source type is Purchase Order and the actual PO
number is the source.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Transaction Setup
Chapter 6 - Page 10
Transaction Action

Transaction Action
You use transaction actions with a source type. A transaction action identifies a transaction
type. Oracle Inventory provides the following transaction actions:
Issue from stores
Subinventory transfer
Direct organization transfer
Cycle count adjustment
Physical inventory adjustment
Intransit receipt
Intransit shipment
Cost update
Receipt into stores
Delivery adjustments
WIP scrap
Assembly completion
















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Copyright Oracle Corporation, 2007. All rights reserved.
Transaction Setup
Chapter 6 - Page 11
Assembly return
Negative component issue
Negative component return
Staging Transfer
Ownership Transfer
Logical Issue
Logical Delivery Adjustment
Retroactive Price Adjustment
Logical Receipt
Delivery Adjustment
Lot Split
Lot Merge
Lot Translate
Lot Update Quantity
Logical Expense Requisition Receipt
Planning Transfer
Ownership Transfer
Logical Intercompany Sales
Logical Intercompany Receipt
Logical Intercompany Receipt Return
Logical Intercompany Sales Return
Container Pack
Container Unpack
Container Split
Cost Group Transfer
Logical Intransit Receipt
Logical Intransit Shipment
Retroactive Price Update
Container Transaction
COGS Recognition
Residual Quantity Issue
Residual Quantity Return
















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Copyright Oracle Corporation, 2007. All rights reserved.
Transaction Setup
Chapter 6 - Page 12
Transaction Reasons

















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Copyright Oracle Corporation, 2007. All rights reserved.
Transaction Setup
Chapter 6 - Page 13
Transaction Types

Transaction Types
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. Oracle Inventory
also uses transaction types to identify certain transactions to include in historical usage
calculations for ABC analysis or forecasting. A number of transaction types are predefined in
Oracle Inventory. You can also create custom transaction types.
You use the Transaction Types window to define additional transaction types to customize
transaction entry. A user-defined transaction type is a combination of a user-defined
transaction source type and a predefined transaction action. For example, if you frequently
donate items to charity, you might want to define a transaction source type called charity and a
transaction type called Issue to Charity. In this case, the transaction action would be Issue
from Stores. You would then use the Miscellaneous Transactions window to actually issue an
item to charity, using the Issue to Charity transaction type. You would also specify the actual
charity to which you are issuing, such as Goodwill, and the expense account that specifies the
source Goodwill. For more information about transaction types see Transaction Types, Oracle
Inventory Users Guide.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Transaction Setup
Chapter 6 - Page 14
Guided Demonstration - Creating Customized Transactions
Responsibility: Inventory, Vision Operations USA
Setting Up Source Types
1. (N) Setup > Transactions > Source Types
2. Select the User tab.
3. (M) File > New.
4. Use the following information to define a source type.
Name: Charitable Donation
Description: Charitable Donation
5. (M) File > Save.
6. (M) File > Close Form.
Setting Up Transaction Types
7. (N) Setup > Transactions > Types.
8. Select the User tab.
9. (M) File > New.
10. Use the following information to define a transaction type.
Name: Goodwill Donation
Description: Goodwill Donation
Source Type: Charitable Donation
Action: Issue from Stores
11. (M) File > Save.
12. (M) File > Close Form.
Setting Up Transaction Reasons
13. (N) Setup > Transactions > Reasons
14. (M) File > New.
15. Use the following information to define a transaction reason.
Name: Goodwill
Description: Charitable donation to Goodwill
















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Transaction Setup
Chapter 6 - Page 15
16. (M) File > Save.
17. (M) File > Close Form.















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Copyright Oracle Corporation, 2007. All rights reserved.
Transaction Setup
Chapter 6 - Page 16
Predefined Transaction Types

Predefined Transaction Types
Oracle predefines transaction types in the system. The table in the slide contains a few
examples of predefined transaction types. For more information on Predefined Transaction
types see Transaction Types, Oracle Inventory Users Guide.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Transaction Setup
Chapter 6 - Page 17
Transaction Managers

















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Copyright Oracle Corporation, 2007. All rights reserved.
Transaction Setup
Chapter 6 - Page 18
Running Transaction Managers

Running Transaction Managers
Cost Transaction Manager
The material cost transaction manager costs material transactions in Oracle Inventory and
Oracle Work in Process in the background.
Lot Move Transaction Manager
The resource cost transaction manager processes resource transactions in Oracle Work in
Process and resource transactions you import from barcode readers, payroll systems, time
cards, routing sheets, and custom data entry forms using the Open Resource Transaction
Interface.
Material Transaction Manager
The material transaction manager immediately executes a material transaction after you save
your changes in a transaction window. By starting the transaction manager, you can determine
how to execute transactions: immediately through immediate concurrent request submissions,
or through periodic concurrent request submissions. You define this transaction mode for
individual transaction windows in the Personal Profile Values window.
Move Transaction Manager
















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Transaction Setup
Chapter 6 - Page 19
The move transaction manager processes move transactions in Oracle Work in Process and
move transactions you import from devices such as portable bar code readers or your custom
data entry forms using the Open Move Transaction Interface.















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Transaction Setup
Chapter 6 - Page 20
Creating Picking Rules

Creating Picking Rules
You can create picking rules that enable you determine which material to pick and the order in
which material is picked for sales orders, process manufacturing batches, or work in process
jobs. Oracle Inventory reviews the picking criteria order and the options for each criterion.
You can create rules based on the following restrictions:
Lot shelf life days
Single lot - controls whether the system can allocate multiple lots for a particular demand
Partial lot controls whether the system can allocate quantities of a lot less than the total
lot quantity available
Customer specification matching to require quality specification matching
You can also create sort criteria which determines which material is picked first:
Lot
Revision
Subinventory
Locator
















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Transaction Setup
Chapter 6 - Page 21
After you create a rule you assign it in the rules workbench. The rule that you created on the
Inventory Picking Rules page appears on the Rules Workbench. The system automatically
assigns a sequence number and return type to the rule. You can modify the sequence number,
but you cannot modify the return type. The return type is a strategy, rule, or value.
You can assign your rule to any combination of criteria the Rules Workbench displays. For
example, if you create a picking rule that allocates material by lot number in ascending order
followed by locator in ascending order, you can assign it to an item in the Rules Workbench.
This means for picking, the system allocates the lowest lot number of the item in the lowest
locator number where the item resides.
















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Transaction Setup
Chapter 6 - Page 22
Guided Demonstration - Creating Picking Rules
Responsibility: Inventory, Vision Operations USA
1. Navigate to the Inventory Picking Rules window.
(N) Setup > Rules > Picking
2. Enter the following information:
Name: Sales_Order_Partial_Lot_Subinventry
Description: Sales order partial lot allocation allowed
Partial Allocation Allowed: Enabled
Subinventory: RECEIPT DATE DESC
Rank: 1
3. (M) File > Save
4. Select the Enabled check box.
5. (M) File > Save
6. (B) Assignment
7. Assign the rule to the following item:
Item: AS18947
8. (M) File > Save
9. (M) File > Close Form
10. (M) File > Close Form


















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Transaction Setup
Chapter 6 - Page 23
Account Aliases

Aliases
An account alias is an easily recognized name or label representing a general ledger account
number. You can view, report, and reserve against an account alias. During a transaction, you
can use the account alias instead of an account number to refer to the account.
You must create an inventory account alias for each GL account if you wish to use an alias for
that GL account in inventory transactions. Oracle Inventory does not honor GL account aliases.
















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Transaction Setup
Chapter 6 - Page 24
Accounting Periods

Accounting Periods
Oracle Inventory uses accounting periods to group material and work in process transactions
for accounting purposes. An accounting period must be open for you to complete a transaction;
that is, the transaction date you enter must fall within the beginning and ending dates you
define for the period.
Closing Accounting Periods
You can close the earliest accounting period with a status of Open or Error. An automatic
general ledger transfer is processed when you close an accounting period.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Transaction Setup
Chapter 6 - Page 25
Guided Demonstration - Opening Accounting Periods
Responsibility: Inventory, Vision Operations USA
1. Navigate to the Inventory Accounting Periods window.
(N) Accounting Close Cycle > Inventory Accounting Periods
2. Select a Future accounting period.
3. (B) Change Status.
4. (B) OK
5. (M) File > Close Form


















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Copyright Oracle Corporation, 2007. All rights reserved.
Transaction Setup
Chapter 6 - Page 26
Material Shortage Alerts and Notifications

Material Shortage Alerts and Notifications
A material shortage occurs whenever outstanding demand exceeds the available quantity for
incoming supply. During a receipt transaction, Oracle Inventory checks to see if the material
received is needed elsewhere in the organization. If a shortage exists, the system notifies you
either by a realtime material shortage alert or a workflowbased notification. Set up shortage
parameters to enable the system to send material shortage alerts and notifications. For more
information see Defining Shortage Parameters, Oracle Inventory Users Guide.
The following receipt transaction windows can generate shortage alerts and notifications.
Receipts
Receiving Transactions
Miscellaneous Transactions
WIP Material Transactions
WIP Completions
WorkOrderless Completions - This occurs only if you have used workflow notification
for the transaction.
Shortage Alerts
















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Transaction Setup
Chapter 6 - Page 27
The shortage alert appears in the window during the transaction with the option to go to the
View Potential Shortages form, showing where the shortage exists. Alerts are automatic once
they are set up. Notifications are optional and can be sent to a prespecified list of individuals.
Sources of Demand
When generating shortage alerts and notifications, the system considers one or more of the
following to be sources of demand:
WIP jobs
WIP schedules
Sales order lines that have been pick released and detailed but for which adequate quantity
was not sourced
Supply Types
The system considers the transaction types you select as supply for the unsatisfied demand.
Shortage alerts and notifications are triggered for system or user defined transaction types with
transaction actions of:
Receipt into stores
Intransit receipt
Direct organization transfer
Assembly completion
Negative component issue
















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Transaction Setup
Chapter 6 - Page 28
Setting Up Shortage Alerts and Notifications

Setting Up Shortage Alerts and Notifications
Define the shortage parameters the system will use to detect material shortages.
Define the transaction types that will trigger shortage alerts and notifications.
Define which items in the system will trigger a shortage alert or notification when they are
in demand.
Define the individuals to be notified.
















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Copyright Oracle Corporation, 2007. All rights reserved.
Transaction Setup
Chapter 6 - Page 29
Setting Up for Move Orders

Setting Up Move Orders
Subinventory Source Type
For Oracle Inventory to automatically create move orders when using minmax planning or
replenishment counting, you must define the subinventory source type at one of the following
levels:
Subinventory
Item
To automatically create move orders when using the kanban system, you must define the
subinventory source type at the pull sequence level.
Approval Process Parameters
Approval is required only for requisition move orders. Other move orders created by shipping
or replenishment processes are approved automatically. To require planner approval, you
define two parameters at the organization level:
Move Order Timeout Period
Move Order Timeout Action
















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Transaction Setup
Chapter 6 - Page 30
You can also specify individuals to be notified if a shortage occurs. To bypass the approval
process and automatically approve move order requisitions, enter 0 days for the Move Order
Timeout Period and select Automatically Approve for the Move Order Timeout Action. The
approval process is also not enabled for organization items without an assigned planner.
Item Transaction Defaults
You can define the item transaction defaults to automatically populate the destination locator
on the move order line from an organization item.
Move Order Time-Out
Use move order time-out if you want to require approvals for the move orders in your
organization.
Time-out Period
The length of time, in days, you will let your move orders sit in a pending-approval queuing
status.
The following rules apply when you set up time-outs:
After one time-out period, a reminder is sent to the approver.
After two time-out periods, the move order time-out action is performed.
The time-out action is either approved or rejected.
If the time-out period is 0, all move orders are automatically approved.
If the time-out period is left blank, the setting defaults to 0.
















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Transaction Setup
Chapter 6 - Page 31
Setup Steps for Move Orders

Setup Steps for Move Orders
Set Up Planner
Define a planner for the item in the General Planning tabbed region of the Items window.
Designate a Planner
You designate a planner in the Master Item window when you define an item. If you do not
designate a planner, the move order is automatically approved.
Notification List
When you approve or reject the move order, the system sends a courtesy e-mail to the
Engineering Change Order (ECO) approval list (which is used here as a notification list). It is
attached to the move order source and destination subinventory. You do not need to have
Oracle Engineering to use this feature.
Define Picking Rules
Move orders use the standard picking rules of Oracle Inventory to source material. In a WMS
organization, move orders use Oracle Warehouse Management picking rules.
Locator Defaults
















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Copyright Oracle Corporation, 2007. All rights reserved.
Transaction Setup
Chapter 6 - Page 32
If a subinventory or item is locator controlled, when you create the move order receipts,
specify a destination locator. If you do not specify a destination locator, the allocating process
uses the item transaction default.
For more information see:
(Help) Oracle Manufacturing Applications > Oracle Inventory > Transactions > Overview of
Move Orders > Setting Up Move Orders
















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Transaction Setup
Chapter 6 - Page 33
Profile Options

















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Transaction Setup
Chapter 6 - Page 34
Profile Options (Cont)

















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Transaction Setup
Chapter 6 - Page 35
Profile Options (Cont)

















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Transaction Setup
Chapter 6 - Page 36
Profile Options (Cont)

















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Transaction Setup
Chapter 6 - Page 37
Profile Options (Cont)

















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Transaction Setup
Chapter 6 - Page 38
Profile Options (Cont)

















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Copyright Oracle Corporation, 2007. All rights reserved.
Transaction Setup
Chapter 6 - Page 39
Implementation Considerations for Shortage Checks

Implementation Considerations
Answer the following questions to determine which of the following demand sources should be
considered potential shortages.
Which inventory organizations should be checked for shortages?
Which type and statuses of WIP jobs/schedules should be checked for shortages?
Answer the following questions to determine the individuals and the method for delivering
shortage messages.
Should workflow alerts and notifications be generated when actual shortages exist?
Who should be notified?
How frequently should notifications be sent?
















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Copyright Oracle Corporation, 2007. All rights reserved.
Transaction Setup
Chapter 6 - Page 40
Implementation Considerations for Move Orders

















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Transaction Setup
Chapter 6 - Page 41
Summary

















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