2 - inventory

INVENTORY

ObjectivesAfter completing this module, you should be able to do the following:Understand the Enterprise Structure in Oracle ApplicationsDefine Inventory Organizations and LocationsDefine Units of MeasureDefine Item Categories and CatalogsDescribe Item Definition, Item Attributes and Attribute ControlsDefine ItemsCreate Item Templates

AgendaDescribe Enterprise StructureDefine LocationsDefine Inventory OrganizationsDefine Units of MeasureDefine Item Categories and CatalogsDefine Items, Item Attributes and Item ControlsCreate Item Templates

What is an Enterprise Structure?

Enterprise Structure Example 1

Enterprise Structure Example 2

Enterprise Structure Considerations

Workday CalendarSpring Holiday - yesCosting MethodStandardPlanningMin-maxAccuracySub-inventoryTransfer between locationsyes

Workday CalendarSpring Holiday - noCosting MethodFIFOPlanningMin-maxAccuracySub-inventoryTransfer between locationsyes

Enterprise Structure in Vision

Defining Locations

Examples of Locations

Locations in Purchasing

Inventory OrganizationsOrganizations include but are not limited to manufacturing facilities, warehouses, distribution centers and branch offices.

Inventory Organization Setup

Setup Considerations for Order Management & PurchasingInventory Organization #1Inventory Organization #2Which organization use to ship item?Which organization use to receive item?

Define Units of Measure

Define Unit of Measure ClassesInventory uses the base UOM to define conversions among units of measure within a class

Examples of Unit of Measure Classes

Unit of Measure Conversion Example

Defining Interclass Conversions

Describing Item Categories

Create Item Categories

Describing and Using Category Sets

Establish the Relationship Between the Category, Category Set and Item

Describing and Using Item Catalogs

Creating Item Catalogs

What is an Item?

Oracle Applications Use Items

Items

How Do Oracle Applications Use Items?

Item Attributes

Items Have Statuses Which Represent the Life Cycle of the Item

Item Attributes Used in Item Status

Item Master Organization and Child Organizations

Creating an Item

Setup, Define and Maintain Items

Describing Attribute Control at Master Level

Describing Attribute Control at Child Level

Describing Item Status Attribute Controls

Describing Status Attribute Dependencies

Describing Item Attributes - Inventory

Describing Item Attributes - Purchasing

Describing Item Attributes - Receiving

Define Item Relationships - Purchasing

Describing Item Templates

Creating Item Templates

Using Item Templates

Example of Using a Template

Additional Setup Considerations

DescriptionCommentsUnits of MeasureDetermine by item before you create; lowest unit you stock, plan and cost.Item FlexfieldHow many segments?Build intelligence?Numbering/Naming ConventionsCreate name or system generated or both?Conversion of Item/Item ImportHow are you going to load items into database?Which items will be converted?Is there going to be an analysis of what is not needed?Ongoing item addition and maintenanceWhat role will do this? Who will have access?

SummaryYou should now be able to do the following:Understand the Enterprise Structure in Oracle ApplicationsDefine Inventory Organizations and LocationsDefine Units of MeasureDescribe Item Definition, Item Attributes and Attribute ControlsDefine ItemsCreate Item TemplatesEnter Item Categories and Catalogs

What is Enterprise Structure?Enterprise Structure encompasses how your company is structured from an operating, legal and reporting perspective. Oracle Applications considers the following in defining Enterprise Structure from an Inventory perspective:Set of BooksLegal EntityOperating UnitInventory OrganizationLocationSet of BooksA financial reporting entity that uses a particular chart of accounts, functional currency, and accounting calendar. The Set of Books is used for reporting, analysis and recording the financial transactions that have occurred for a corporation. A corporation can have more than one set of books. Each Set of Books has the following:Calendar - This is the accounting calendar is separate from the Workday calendar in Manufacturing. Currency - Each Set of Books will have one functional currency although transactions can be entered in multiple currencies and are converted. Chart of Accounts - Each Set of Books will have one Chart of Accounts that serves as a foundation for the accounts that related Applications such as Inventory, Purchasing and Accounts Payable use.Legal EntityA legal company for which you prepare fiscal or tax reports. A set of books can have multiple tax entities.Operating UnitsCan be divisions. For example, a computer manufacturer may have a separate divisions for laptop computers, personal computers and small servers. The laptop computer may represented by one operating unit which have a centralized purchasing and ordering function. The inventory may actually be received or shipped from a specific inventory organization but the purchase order is managed centrally so that the supply chain is optimized. Operating Units affect transaction partitioning in Order Management, Purchasing, Receivables and Payables.Inventory OrganizationsCan be manufacturing facilities, warehouses or any facility where a company stocks and transacts inventory.Subinventoriesrepresent in Oracle Applications the physical locations within a manufacturing facility or warehouse where goods are stocked and where transactions take place. Subinventories are created within Inventory organizations.LocationsRepresent a physical address of a facility, office, warehouse or any place else used by the entity. Inventory organizations use locations to represent the address for the following:Ship toBill toOffice SiteInternal SiteReceiving SiteEnterprise Structure Example 1Consider the following scenario:Facility 1 - located in EuropeFacility 2 - located in FloridaWould this situation be better as one inventory organization or two?Questions to ask:Do the organizations use the same functional currency?Do the organizations use same accounting calendar?Do the organizations use same chart of accounts?

In this example, if the organizations used different functional currencies, they would have to be set up as separate inventory organizations. Inventory organizations inherit their functional currency from the Set of Books. This is not an updateable option. In this example, if the inventory organizations had different functional currencies, there would also need to be a second Set of Books. Even if the chart of accounts were the same and the calendar were the same, the functional currency difference would preclude these two locations from being one inventory organization.Enterprise Structure Example 2Consider a second scenario:Facility 1 - located in FloridaFacility 2 - located in California

Would this situation be better as one inventory organization or two?Assume that the functional currency issue for both organizations is the same and the decision has been made for them to report to the same set of books. The same question has to be asked again, would this be better as one inventory organization or two?

A few questions to ask:Do they use the same costing method?Is the inventory going to be co-mingled within a sub-inventory for both locations? If so, how is the physical quantity going to be controlled? Are there going to be physical shipments from one organization to another? Do they plan to use locator control?

If there are going to be physical shipments from one location to another, these will have to be modeled as sub-inventory transfers or locator to locator transfers within Oracle Inventory. If the physical distance is such that the physical update is not real time, the company may want to consider separate inventory organizations. Sub-inventory and locator to locator transfers update the on hand balances real time and the transaction does not allow for intransit time. If two inventory organizations were created to model the physical locations, then intransit time could be modeled using inter-organization transfers.

Assume the answer to question 1 is no, the two locations want to use different costing methods. In this scenario, the two facilities would have to be separate inventory organizations because there is only one costing method per inventory organization.

Assume the answers to questions 1 and 2 are no and yes respectively but the answer to question 3 is yes. Although it would not be required, the company may want to consider two inventory organizations in this scenario. If the company were to implement only one inventory organization it would require very strong internal control in order maintain integrity in inventory reporting. Locator control may be an option for two facilities in different locations but the physical difference and the resulting intransit time would make this option more challenging. Again, internal control and process control would have to be very strong in order to make this work.Enterprise Structure Considerations:The Enterprise Structure is one of the most important decisions that a company makes during implementation. Consider the following when determining what the Enterprise Structure will be. This is not meant to be a complete list but thoughts to help you get started.Workday calendarOrganizations may have different holidays based on local custom. For example, one region may give New Years Eve as a holiday whereas another region may not. If the locations are in the same organization they have to have the same workday calendar. The calendar is by organization not sub-inventory.Costing methodCosting method is by organization therefore if two locations want different costing methods, there will have to be two separate organizations.PlanningMin-max is at the sub-inventory/organization level and reorder point is at the organization level. This is a possibility if the organizations use min-max. AccuracyCycle Count and Physical Inventory are at the Organization and Sub-inventory level. Considerations include intransit time of transfers and internal control.TransactionsPhysical location of movement may be hard to control. The inventory may be physically intransit although the transaction has already been updated in the sub-inventory.

Additional considerations:Inventory Organizations must be tied to a set of books and legal entityCosting is done by organization based on the item attributesEven though you have more than one organization, can do movement between organizationsForecasting is at the organization level

Additional questions to ask:What does my company look like in terms of physical layout?How does it look from a reporting and legal standpoint?Do I have many facilities?Where are these facilities physically?Do I have sales offices?Do I have division offices?Do the facilities report to the same reporting entity?Are the facilities part of the same legal entity?Are the facilities part of the same division but maybe different legal entity?Refer to Guided Demonstration Enterprise Structure [LAB0243Y]Defining LocationsPurchasing Responsibility(N) Setup > Organizations > Locations

A location is a physical address. Locations are shared between Inventory, Purchasing and Human Resources. If the location is flagged as Global, the location will be available to all business groups. A location can either be associated with one inventory organization or it may not be associated with any inventory organizations. An Inventory Organization can be associated with zero, one or more than one location. Locations are not only a physical address but also determine whether the following is applicable:Ship to siteOffice siteReceiving siteBill to siteInternal siteExample of Locations A location is an address which may or may not be associated with an inventory organization. Determine where the locations physically are and map the locations in Oracle Applications to those physical addresses.

The marketing office as illustrated above is not an inventory organization. It is an office. However, purchase orders are placed for marketing collateral and giveaways and the supplier needs to know the address where the goods are to be shipped. In this example, the purchase order would have a deliver to address which represents the marketing office. The supplier would know to send the goods to this address. The payables office as illustrated above is not an inventory organization, either. It is an office as well. However, invoices need to be paid and the supplier needs to know where to send the invoices. A bill to site represents the address where the invoices are sent.

The inventory organization as illustrated above is a ship to site, receiving site, bill to site, internal site and office site. This location would do all of the above as well as keep track of inventory balances, plan for inventory and do transactions.Locations in PurchasingOn the location form:Receiving Site enabled means the location is a valid receiving Location when creating a receipt or receiving transaction). Office Site enabled means that this location Name is an office site, such as a field office.Bill-To Site enabled means that the location Name is a valid bill-to site. The Bill-To Site, which is used by Payables, is specified on a purchase order header.Internal Site enabled means that the location is a valid internal ship-to location when creating an internal requisition.Selecting an Inventory Organization will limit the locations in the list of values on a Purchasing document. By not selecting an inventory organization, this location becomes available on Purchasing documents in all operating units.

Tax Name selected means that a tax code has been associated with the ship-to location. If you check the Ship-To Location option in the Purchasing tax default hierarchy, this is the tax code that defaults onto your requisitions and purchase orders, depending on your hierarchy.

EDI Location: The EDI location is used to identify your trading partner when receive Advance Shipment Notices (ASNs) or ASNs with billing information (ASBNs). This location should match the ship-to location specified on an ASN or ASBN. Refer to Guided Demonstration - Create a Location (Optional) [LAB02B8Y]Refer to Practice - Create a Location (Optional) [LAB02B9Y]Inventory OrganizationsPurchasing Responsibility(N) Setup > Organizations > Organizations

An organization for this purpose is an inventory location tied to a set of books, costing method, workday calendar and list of items. Organizations can be classified and connected to model your overall enterprise structure. The classifications include:Business GroupsSet of BooksLegal Entities (LE) / Government Reporting Entities (GRE)Operating UnitsInventory Organizations

The organization must be classified as an inventory organization in order to do transactions that effect inventory, planning and receiving. Parameters for Inventory and Receiving are enabled which give Oracle the capability that Inventory and Receiving transactions can be processed. Additional information about Inventory Organizations:You must choose an inventory organization when you access Inventory. All subsequent activity uses this inventory organization as your current organization.The organization name appears in the title bar of all windows for organization specific entities such as Inventory, Purchasing, Bills of Material and Work in Process.You can change your current organization at any time with the Change Organization window. You can limit inventory organization access by responsibility.Inventory Organization SetupPurchasing Responsibility(N) Setup > Organizations > Organizations

At least one inventory organization must be established, although it is advisable to have more than one. One will be needed to represent the master parts list and one will be needed for execution and reporting. Establishing two inventory organizations when you implement gives you greater flexibility for expansion as time passes. When defining organizations, you will need to identify the type, or classification associated to the organization. This is how you will indicate that the organization is to be used as an inventory organization.

There are additional elements which must be defined that allow the inventory organization to operate within the environment. Some of the elements represent default values that will be used when creating transactions, others are used to establish where an inventory organization resides within the Inventory and Multiple Organizations hierarchies. These elements fall into one of four categories:Accounting InformationCustomer/Supplier Association Inventory InformationReceiving Information

Accounting InformationThis is how you identify where this Inventory Organization sits within the Multiple Organizations hierarchy. Each Inventory Organization is tied to a Set of Books, a Legal Entity and an Operating UnitCustomer/Supplier AssociationThis relationship is used for Internal Orders. For more information on this topic, please refer to the Advanced Topic: Internal OrdersInventory InformationInventory Information includes parameters that control how this organization behaves relating to Inventory transactions. These parameters identify a number of elements including, but not limited to:Identifying the Master Inventory Organization for this organizationCosting informationRules regarding Available to Promise, Picking, Revision, Lot and Serial control dataDefault General Ledger accountsReceiving InformationEach Inventory Organization also has the ability to define parameters for how receiving activities will default for that organization. Additional question to ask:What does your physical structure look like? Inventory organizations should mirror what is physically happening.Copying organizationsIt is possible to copy setup data from one organization to another if creating multiple organizations. This will copy items you select, sub-inventories, departments, resources, Bills of Material (BOM), routings, WIP Parameters and other setups. This is done via a concurrent request.Setup Considerations for Order ManagementOrder Management Super User, Vision Operations (USA)(N) Setup > ParametersThe setup of Order Management (OM) requires the identification of a logical entity listing all the items you sell to your customers. This is known as an Item Validation Organization. Item Validation Organizations are Inventory Organizations by definition within Oracle. OM requires a minimum assignment of one Item Validation organizations per Set of Books. If your setup requires more flexibility, a maximum of one Item Validation Organization per Operating Unit is can be assigned. When using multiple Item Validation Organizations, all of the organizations can share the same Item Master Organization.Define Units of MeasurePurchasing Responsibility(N) Setup > Units of Measure > Units of MeasureDefining Units of Measure encompasses three distinct areas:Unit of MeasureUnit of Measure ClassesUnit of Measure ConversionsUnit of MeasureA Unit of Measure (UOM) is a term that you must use, along with a numeric value, to specify the quantity of an item. For example, each is a unit of measure that you would use to specify the number of units of an item. Units of Measure are used to define the quantity of an item in Inventory when defining, stocking, planning, transacting, shipping and counting items. A primary UOM is defined for each item in Inventory. Once the primary UOM is saved to the item record, it can not be updated.Unit of Measure ClassesA Unit of Measure Class (UOM Class) is a group of units of measure with similar characteristics. Weight can be a UOM Class with UOMs such as kilogram, gram, pound, and ounce. Each UOM Class must have a base unit of measure assigned to it. The base unit of measure should be the lowest level in the organization for stocking, costing and planning.Unit of Measure ConversionsAn item may be transacted, ordered, and shipped in an UOM other than the primary UOM. This is accomplished through conversion of an unit of measure either within an UOM Class or across UOM Classes.ConsiderationsThere is not a limit on the number of units of measure than an organization can have, however, each unit of measure that is to be used must be attached to a unit of measure class and a base unit of measure. Units of Measure are defined once when setting up Oracle Applications. You can however, add additional Units of Measure if needed.

Factors to consider when defining Units of Measure for your items:What is the lowest Unit of Measure that you stock, cost and plan?What conversions do you want to use for transaction purposes?Are you going to define a default UOM for the primary unit of measure for an item?What is the process to determine the primary UOM?Do you need to define interclass conversions?Define Unit of Measure ClassesPurchasing Responsibility(N) Setup > Units of Measure > Classes

The Unit of Measure Class name is user defined and should be meaningful to the organization. The Unit of Measure class represents a grouping that share a common starting point. For example, if the Unit of Measure class is length, the units of measure in this class could be inch, foot, and yard. The base unit of measure should be smallest unit of measure that is used for costing, stocking and planning and is used when converting transaction quantities. The UOM column is user defined and is used when doing transactions, ordering or shipping. Each UOM class must have a base UOM. Inventory uses the base UOM to define conversions among UOMs in the class.Examples of Unit of Measure ClassesUnit of Measure classes are user defined. What is meaningful to you?

Note: Units of Measure are not organization specific to a particular Inventory Organization. The Unit of Measure is set up one time per installation.Unit of Measure Conversion ExamplePurchasing Responsibility(N) Setup > 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.Units of Measure can be converted for transaction, ordering and shipping once the conversions have been defined.

Transactions execution defaults to the primary unit of measure for an item unless otherwise specified. If an alternate UOM is specified, the conversion for purposes of quantity and costing is based on the conversions defined. The transaction is actually completed in the UOM specified but is translated for costing and quantity purposes.

There are three types of conversions within Oracle:StandardInter-Class (item specific)Intra-Class (item specific)Standard ConversionsConversions that occur within the same class, without regard to the item being transacted are known as Standard conversions. An example of a Standard conversion is one within length, the conversion centimeters into meters.Intra-class ConversionsA conversion within the same class, that is specific to the item being converted is known as an Intra-class conversion. An example of an Intra-class conversion within the UOM Class of Quantity: The Base UOM for Quantity is Ea. There are two UOMs in the Quantity Class, Each and Case. The Standard conversion for Case to Each is 1 Case = 24 Each. Item A has a mapping of 1 Case = 19 Each. All other items transacted by Case will use the 1:24 ratio, but if Item A is transacted it will use the 1:19 ratio.Inter-class conversionsConversions that occur across classes between UOM are known as Inter-class conversions. Inter-class conversions are item specific. For example, an inter-class conversion would be pounds to gallons and requires the identification of which items will use this mapping.Defining Interclass ConversionsInterclass conversions enable you to define conversions between UOMs in different classes. All interclass conversions are item-specific relationships and are from one base unit to another base unit. Oracle derives conversions between two non-base units. The source base unit is the base UOM of the class that contains the primary UOM for the item. The destination base UOM is the UOM to which you convert a UOM.

In the example above, the following relationship would exist:Base UOM - weight = poundBase UOM - liquid = ounce1 pound = 1 ounce

If you were transacting on 1 ton and the base UOM was ounce the following calculation would be completed:1 ton = 2000 pounds2000 pounds = 2000 liquid ouncesDescribing Item CategoriesUse item categories to group items that have similar characteristics. For example, desktop computers may be one category and laptop computers may be another category. Many of the reports in Oracle use categories as a way to report on information. You could use categories to analyze the categories that had the highest volume or value of transactions. Optionally, use categories as a way to do product line reporting and see what product lines are the most profitable.

Create Item CategoriesPurchasing Responsibility(N) Setup > Items > Categories > Category Codes

Structure the Category Key flexfield to meet business needs. An example would be to have two segments in the flexfield. One segment might be product line and the second segment might be product class. In the example above, product line would be computers and product class would be desktop and laptop. This can be structured to be as meaningful to the customer as needed. The structure of this flexfield needs to be considered before the implementation starts and should not be changed. Each item is assigned to a default category and category set when defined.Determine how you want the structure to look and define the item flexfield. You can define as many structures as you need for your business.Create category names based on this structure.

Note: By default when you create an item, it will be assigned to the default category for the Inventory category set. You can change this as you define the item or at a later time.Describing and Using Category SetsPurchasing Responsibility(N) Setup > Item > Categories > Category Set

Category sets allow the customer to use specific categories within functional areas. There are seven item attributes which are used to define functional areas for purposes of creating category sets. Each functional area determines what categories they want assigned to their category set. This provides the opportunity to reduce unnecessary data. Categories can be used when running reports and queries in the particular application. For example, a cost accountant may want to analyze by category the dollar value of transactions in a particular product line. The cost accountant creates a category set called CA1 and then assigns all the categories of a particular product line to this category set. When the cost accountant runs a report, only data that is applicable to the categories in the category set, CA1 will be displayed. You can create an unlimited number of category sets for a functional area so that each employee could have their own category set. This action will reduce the amount of data that they have to sift through in a given day.

Each functional area will determine how many category sets they need. The default category set will need to be determined for each functional area. You are not not required to create a separate category set for each functional area but this is an option. The seven item attributes and their functional areas are listed below:

Functional Area Attribute InventorInventory Item PurchasingPurchased Item, Internal ordered ItemMaterial PlanningMRP Planning MethodServiceService ItemCost ManagementCosting EnabledEngineeringEngineering ItemOrder ManagementCustomer Ordered ItemEstablishing the Relationship Between the Category, Category Set and ItemItems can be in multiple categories, however, they can only be in one category in a category set. When deciding how to classify the data, a decision will need to be made as to what items will be in what categories within a category set.Refer to Guided Demonstration - Create a Purchasing Category (Required) [LAB02BCY]Refer to Practice - Create a Purchasing Category (Required) [LAB02BDY]Describing and Using Item CatalogsPurchasing Responsibility(N) Setup > Items > Catalog Groups

The use of catalog groups provides a standard language for referring to items. Companies in the same industry can communicate effectively without being forced to name their items identically.

You can update a detailed description of what an item is without having to embed that meaning into the item number. You can update the item description with a concatenated value for the item catalog group and descriptive element values. You can use descriptive elements as search criteria for items. Item catalogs can also be used to group items. This is helpful to an engineer who is looking for items that already exist and may be similar in some regards to what is being designed. By using catalogs, the engineer can search on a descriptive element that is important to the new design and see what has already been developed and perhaps leverage anothers work.

A descriptive element describes a classification within a catalog so that information can be sorted and retrieved in different ways. For example, a mail order catalog for clothing could have descriptive elements such as type of clothing, color, and size.

Additionally, consider a catalog sales person. A customer calls in and wants to place an order for a pair of shoes. If the descriptive elements were created to reflect types of shoes, color, sizes and style, the catalog sales person could use catalogs to search for that item based on one or more descriptive elements and see if any were in stock. A buyer could also use this functionality to search on descriptive elements and see what is in stock that could be substituted if a there were a shortage of a particular component.Creating Item CatalogsYou can have as many descriptive elements as you desire. Descriptive elements are for searching and have no reporting capability. You can see what the on-hand balance is for an item based on the search through the catalog. The catalog is attached to the item in the item definition window using the tools menu. It is not required to update the description for the descriptive elements, that is optional. Once the process is complete, the search is based on descriptive elements.

Setup considerations: What groups would use catalogs and what are meaningful descriptive elements?Put a process in place to update the catalog information.What is an Item?An Item is defined as anything you make, purchase, or sell, including components, subassemblies, finished products, or supplies. Manufacturing also uses items to represent planning items that you can forecast, standard lines that you can include on invoices, and option classes you can use to group options in model and option class bills.

Oracle Applications Use ItemsThe applications in the tables above are not all inclusive but this is meant to give an understanding that the item definition is used in many different places in Oracle. Oracle Applications use a common data model and the item definition is an example of the a common data element that is used in many applications. It is the common data element that makes the integration across e-Business suite seamless. Each of the applications use the item in different ways. This will be described on the next page.

How do Oracle Applications Use Items?This list is not all inclusive, but gives a general idea of how important the item is in Oracle Applications. Inventory - the item is used to stock, plan, cost and transactEngineering and Bill of Material - the item is used to create a bill of materials and routing as well as a component on a bill of materials. Material Planning - The planning engine makes suggestions as to discrete jobs and purchase requisitions based on supply and demand. The suggestions are for an item.Quality - collect quality data on a item as you do move transactions in Work in Process, complete assemblies in Work in Process, receiving and inspection transactions in PurchasingCost - establishes a cost for the item based on one of the four perpetual costing methods (standard, average, FIFO and LIFO) and uses this as a foundation for valuing transactions.Purchasing - item is used on purchase order, requisition, request for quote, quotations and receiptsWork in Process - create work orders for itemsReceivables - customers can be billed for an item shipped to themOrder Management - place Sales Orders for an itemShipping Execution - ships an item to a customer or to another organizationAdvanced Supply Chain Planning and Scheduling - plans and schedules an item based on criteria suppliedProject Manufacturing - transacts on a item that is linked to a project and task through purchase order receipts, work order transactions, and inventory transactionsSales - create quotes for an itemDepot Repair - create non-standard work orders for an itemManufacturing Scheduling - schedules a work order or job for an item based on material and resource constraints; resource instances are created as itemsEnterprise Asset Management - create asset activities, asset groups and re-buildables using the item definition in InventoryItem AttributesPurchasing Responsibility(N) Items > Master Items

Items have attributes which represent characteristics of an item. Items can be inventory items, they can be stockable, orderable, shippable, planned, have a lead time, purchased, and costed as well as many other attributes. Additionally, an item can be a piece of equipment or a vehicle. There are tabbed regions on the item master which divide the attributes into functional areas.

Those tabs with a few examples are as follows:Main - attributes such as unit of measure, type of itemInventory - inventory item, stockable and transactable, item controlsBill of Material - BOM typeCosting - is the item costed?Purchasing - purchased, purchasable, list price Receiving - receipt routing, over receipt tolerancePhysical Attributes - size, weight, truck, collateralGeneral Planning - make or buy, inventory planningMRP/MPS Planning - MRP vs. MPS planned, order modifiers, time fencesLead Time - processing, variable, fixedWork in Process - build in WIP, supply type, over completion toleranceOrder Management - ordered, orderable, ATPInvoicing - invoiced, invoiceableService - support service, serviceable productWeb Option - orderable on the web

All the attributes used together tell Oracle how the item can be used to execute business processes. Deciding on how to set item attributes is very important when implementing Oracle Applications. Companies need to think carefully about how their items are used and how they want to use them in Oracle before they start the implementation.Items Have Statuses Which Represent the Life Cycle of the ItemPurchasing Responsibility(N) Setup > Item > Status

Item statuses represent the life cycle of the item. The only statuses that come seeded with Oracle are Active and Inactive. Any other statuses that represent the life cycle of an item in your business will be user defined. By giving an item status, you can control key functionality of an item. The status of the item should represent where the item is in its life cycle. Changing the status of an item can be done by way of a concurrent request or manually. This is a customer decision as to how they want to handle. Status attributes enable and disable the functionality of an item over time. Each status attribute allows you to enable the item for a particular use. For example if you set the status attribute Purchasing to yes then you can place the item on a purchase order.

The Item Status has a user defined set of Yes/No values for the status attributes. The values are applied to the status attributes when you choose an item status code when defining an item. For example, in the beginning of a product development cycle you can set the Item Status attribute to Prototype with all of the status attributes defaulted to Yes except for Customer Orders Enabled. As an example, when the item is ready for production you can change the Item Status attribute to Active to allow all functions for the item. When defining an item you must set the item status by using the Item Status attribute.

Status attributes are related to the item defining attributes. You cannot enable a status attribute if you do not set the corresponding item defining attribute to Yes. The item defining attribute determines whether the item could be assigned to the default category of the default category set of a specific functional area. The inventory item attribute controls whether the item would be assigned to the default category of the default category for inventory. The following are item defining attributes:Inventory ItemPurchased itemInternal Ordered ItemMRP/MPS Planning MethodService ItemCosting EnabledEngineering ItemCustomer Ordered Item

If any of the above item defining attributes is set to Yes, then the item is automatically assigned to the default category set for the functional area. Category Sets will be discussed in a later section.Item Attributes Used in Item StatusesThe item attributes above should be used together to represent the part as it goes through its life cycle. The two item statuses that come seeded with Oracle are Active and Inactive. The attribute settings for each of the status attributes with the two seeded statuses is given above. There is not a requirement to add additional statuses. The table above shows the item attribute settings for each status attribute for the respective status.

Examples of additional statuses are:PrototypePhase out

For example, in the prototype phase, the customer orders enabled and invoiceable attributes may be set to no and changed to yes when the status is changed to active. A prototype item may not be ready to ship to a customer. The company may need to be able to build it in WIP or purchase it. They may need to create a bill of material for the item or put the item on a bill of material but not sell the item at this point. Additionally, as a product is being phased out, the attributes purchasable and build in WIP may be set to no so that existing stock is depleted. The company wants to get rid of existing stock.

Users may define as many statuses as necessary to represent their business. The attributes and what they mean are given below so that the customer can decide how they want to use this functionality. The definitions of the status attributes above are given below:Stockable - Allows you to store the item in an asset subinventoryTransactable - Allows you to transact the item in Inventory, Order Management, Purchasing and WIPBuild in WIP - Allows you to build the item on a discrete job and/or a repetitive schedulePurchasable - Allows you to place the item on a purchase orderCustomer Orders Enabled - Allows you to place the item on a sales orderInternal Orders Enabled - Allows you to create an internal sales order for the itemBOM Allowed - Allows you to create a bill of material for the itemInvoice Enabled - Allows you to create an invoice for the itemItem Master Organization and Child Inventory OrganizationsItem Master OrganizationUsually the first inventory organization that is set up. Its single purpose is for entering items. It has no subinventories and is not used for inventory transactions. The item master can be thought of as a parts list. Oracle suggests that a customer create at least two inventory organizations, an item master and an inventory organization. If you only create one organization and ever decide to expand to more than one organization, the initial decisions made at implementation may restrict what you can do. For example, during implementation you will decide where to control item attributes. Are they controlled at the item master or at the individual organization level. A company with only one organization is not impacted by this but if you ever add an additional organization later, the attribute controls will be harder to change. It is not a requirement to have more than one inventory organization but is suggested.Child OrganizationsAn inventory organization with at least one subinventory that is set up for processing inventory transactions. It is not used to enter items. It gets a list of items from the master. Create as many inventory organizations as you need to meet business requirements. Items are created in the item master and assigned to the child organization(s).Items are entered in an item master organization and then assigned to be used in child organizations.

Note: One item master is recommended and can cover multiple sets of books. It is much easier to add an inventory organization and assign items to the new organization than it is to copy from one item master to another once the data has been entered. Carefully consider the business reasons why you need two item masters.Creating an ItemPurchasing Responsibility(N) Items > Master Items

An item is created by either importing the it through an open interface or navigating to the master item form. The process is as follows:Give the item a name and description.Establish the attributes by copying an existing item, template or enabling each attribute individually. Make changes to the Primary unit of measure if necessary and any other attributes.Save your work.Assign the item to the appropriate organization(s).Make changes to attributes at the organization level if appropriate.Save your work.Setup, Define and Maintain ItemsThe UOM will be determined as part of Enterprise Structure creation and already be in place when this process begins. Determine what the item attribute controls will be. Are you going to control each attribute at the master level or the organization level? Are you going to have centralized control (master) or decentralized control (org)? This is determined by attribute. Determine how you are going to use statuses. Are you going to add additional statuses to active and inactive? If so, what are the statuses? The new statuses need to be defined. Create at least one category and category set, all items are assigned to a category set and category when they are defined. Define as many categories as necessary to meet your needs. Review the seeded templates and determine whether to create the item templates or use the seeded templates. Determine whether you want to copy items to create new items. Use the templates and existing items to define items.

Enter values for additional item attributes or make changes to the attributes seeded on the templates.Assign a status to the item.Assign categories to the item.Assign the item to a catalogEnable the item in other organizations.Update the organizational-level attribute values.Define the item relationships.Search for items.Define item costs.Describing Attribute Control at Master LevelItem attributesSpecific characteristics of an item, such as order cost, item status, revision control, Cost of Goods Sold account, etc. Each item attribute is controlled at the master level organization or the child organization. Item attribute control level To maintain item attributes at the item master attribute level or the organization specific level by defining item attribute control consistent with your company policies. For example, if your company determines serial number control at headquarters regardless of where items are used, you define and maintain serial number attribute control at the item master level. If each organization maintains serial number control locally, they maintain those attributes at the organization specific level.Attributes Controlled at the Master LevelAn item has the same value for such attributes in all organizations in which it is defined. You can enter and update the values of Master-level attributes only by using the Master Item window. Inventory reflects your changes in all organizations that carry the item. Attributes Controlled at the Organization LevelAn item may have different values for such attributes in each organization in which it is defined. When you define your items in the item master, you can specify defaults for organization-level attributes. You can update the values of organization-level attributes only by using the Organization Item window in each organization that carries the item.Describing Attribute Controls at Child LevelChanges to attributes If the attribute is controlled at the master level, then any change to the attribute at the master will be populated to the child organizations. Child organizations will not be able to change attributes that are controlled at the master level. If the attribute is controlled at the child level, then any change to the attribute at the master will not be populated to the child organizations. If one or more child organizations are impacted, each one will have to be changed separately.

In the example above, if you change the Make/Buy flag to Make in Organization #1, this will not change the attribute at the master level or in any other organization. If the attribute control was at the master level, then changing the make/buy flag to buy at the master level would change each child organization.

If you have BOM installed, then the following attributes will need to set at the child level. This is because Oracle does not share resources across organizations.Costing enabled Inventory Asset Value

Note: The customer will determine what their item validation organization is for products that are at the operating unit level. This is because the product can cover multiple inventory organizations. For example, the buyers may buy for many inventory organizations so there is one central spot which is set in the purchasing setups that tells Oracle this is a valid item to be purchased. The same is true for Order Management. Order Management validates against an item validation organization to see whether an item is valid for a sales order and shipment. Therefore, the item master generally serves this purpose as all the items are in the master item organization. This includes but is not limited to Order Management, Purchasing, Accounts Receivable, and Accounts Payable. Consider how attributes such as Purchasable, Customer Orders Enabled, Customer Ordered, Purchased, Invoice Enabled, Invoiceable are set at the master level.Describing Item Status Attribute ControlsIn addition to deciding whether the item attribute will be controlled at the master or the child level, each of the status attributes also has a status attribute control. The status setting level determines whether you can update the value of each status attribute within an item status.

There are three status attribute controls and they are as follows:Sets Value - The status that you assign to the item loads a non-updateable value into the status attribute. You can update the status attribute by changing the status that you assigned to your item.Defaults value - The status that you assign to the item loads a default value into the status attribute. You can update the status attribute as you define your item.Not Used - The status that you assign to the item does not determine the value of the status attribute. You can enable or disable the status attribute as you define your item.

Consider the following example:Item Attribute SettingStatus setting Attribute control levelBOM Allowed YesSets ValueMasterPurchasableNoDefaults valueMasterStockableNoNot usedChild

In the above example, when you define the item, use a status with the above attributes. If you want to make changes to those attributes at the Master level, you would be able to change Purchasable and Stockable but not BOM Allowed. The reason is that BOM Allowed has a value of Sets Value. If you wanted to change purchasable at the child level, you would be unable to even though the status setting is Defaults Value because the attribute control level is Master.

Setup considerations for status attribute settings:You have the flexibility to change individual status attribute settings. Using meaningful status codes gives you control over item usage. In other words, using a status other than active and inactive may help you to run a business more smoothly.Describing Status Attribute DependenciesEach status attribute is dependent on at least one other attribute. For example you cannot have Stockable set to yes if you have Inventory Item set to No. These dependencies are enforced when the item attributes are set. You will not be able to go any further if the dependencies are not satisfied. The table above explains the dependencies.Describing Item Attributes - InventoryItem attributes are the collection of information about an item. For example, if an item is sold to a customer and if one is a distribution facility an item may have the following attributes: Inventory Item - enabled Costing Enabled - enabled Inventory Asset Value - enabled Purchased - enabled Purchasable - enabled Customer Orders Enabled - enabled Customer Ordered - enabled Invoice Enabled - enabled Invoiceable - enabled Shippable - enabled Make/Buy - buy MRP Planning - MRP Planning

However, another similar item may have different characteristics. The item attributes should reflect how the company uses the item. In the first example, even though the items were similar, the company has found it more effective to buy the first item and make the second item.Inventory Asset Value - enabledPurchased - enabledPurchasable - enabledCustomer Orders Enabled - enabledCustomer Ordered - enabledInvoice Enabled - enabledInvoiceable - enabledShippable - enabledMake/Buy - makeMRP Planning - MPS Planning

When you define an item, Inventory enforces particular relationships between some of the item attributes: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.Note: The list above is not all inclusive of the inventory attributes as there are additional attributes for Warehouse Management System and the CRM products. This list gives the most used attributes for a manufacturing or distribution facility. Below are the definitions of each of the above attributes:Inventory Item - Indicate whether the item is a valid item in Inventory. You must turn this option on if you want to enable the following item attributes: Stockable, BOM Allowed, Transactable, and Build in WIP. Stockable - Indicate whether to stock this item in Inventory. You can set this attribute only when you turn on the Inventory Item option. Turning this option on enables you to set the Transactable item attribute. This attribute is optionally set by the Item Status codeTransactable - Indicate whether to allow Inventory transactions. You can set this attribute only when you turn on the Stockable option. This attribute is optionally set by the Item Status.Check material shortage - Indicate whether the system will check this item for material shortages. Turn this option on to trigger a material shortage alert and shortage notification during transactions of this item. Revision control - Indicate whether to track inventory balances by revision. If you turn this option on you must specify an existing revision number for issues and receipts.Attention - You cannot change revision control 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 quantities in all child organizations.Serial Generation - At inventory receipt - Create and assign serial numbers when you receive the item. Thereafter, for any material transaction, you must provide a serial number for each unit. At sales order issue - Create and assign serial numbers when you issue (ship) the item against a customer sales order. (Internal requisition orders do not require a serial number when you ship the item.) If you receive an item on an RMA (return material authorization), you must specify the same serial numbers you created at sales order issue. All other material transactions for this item bypass serial number information. No control - Serial number control not established for this item. All material transactions involving this item bypass serial number information. Predefined - Assign predefined serial numbers when you receive the item. Thereafter, for any material transaction, you must provide a serial number for each unit. Cycle Count Enabled - Cycle Count Enabled.Reservable - Indicate whether you can create material reservations. You can reserve an item only when you have sufficient inventory.

Notes: Reservation control for a subinventory overrides reservation control for an item. In other words, if an item is reservable but a subinventory is not, the item quantity in that subinventory is not reservable. If the reservable attribute is checked, Order Management allows reservation of the item during order entry. If material hasn't been reserved prior to pick release, pick release creates reservations for material when the pick wave move order is detailed.Locator Control - Dynamic entry - Define locators when you use them, either as you receive or ship items. No control - Locator control not established. Prespecified - Define locators before you use them.

For Order Management, if an item is Reservable, you can manually reserve a specific locator at order entry or let pick release use Inventory picking rules to suggest the locator when the order is picked. If the item is not Reservable, Inventory picking rules will suggest the locator when the order is picked.

Locator control for an organization or for a subinventory overrides locator control for an item. You cannot change locator control when an item has quantity on hand.Lot Control - No control, do not establish lot control for the item. Full control - Track inventory balances by lot number. You must specify a lot number for issues and receipts.

You can establish lot number control only for an item that has no quantity on hand. If Lot Control is controlled at the Master Item level, the check for on-hand quantity is against the sum of on-hand quantities in all child organizations. For Order Management, if an item is Reservable, you can manually reserve a specific lot at order entry or let pick release use Inventory picking rules to suggest the lot when the order is picked. If the item is not Reservable, Inventory picking rules will suggest the lot when the order is picked. Describing Item Attributes - PurchasingBelow are the purchasing attributes and a description of how they are used.PurchasedORACLE PURCHASING ONLYIndicate whether to purchase and receive an item. Turning this option on allows you to set the Purchasable attribute. This is an item defining attribute. If you turn this option on, the item is automatically assigned to the default category set for the Purchasing functional area. PurchasableORACLE PURCHASING ONLYIndicate whether to order an item on a purchase order. You can set this only when Purchased is turned on. Turning Purchasable off allows you to temporarily restrict the ability to buy.This attribute is optionally set by the Item Status codeUse Approved SupplierORACLE PURCHASING ONLYIndicate whether to use only approved suppliers. If you turn this option on, Purchasing prevents you from approving a purchase order for an item if you do not use an approved supplier. Allow Description UpdateORACLE PURCHASING ONLYIndicate whether to allow updates to the item description on a purchasing document line for an item.RFQ RequiredORACLE PURCHASING ONLYIndicate whether to require an item quotation when requesting an item. Purchasing defaults this value on requisition lines for this item. Leave this field blank if you want Inventory to use the value defined in the Purchasing Options window for transactions involving this item. Outside Processing ItemORACLE PURCHASING ONLYIndicate whether you can add the item to an outside processing purchase order line. You can turn this option on only if Purchased is also on. In addition, this option controls whether you can attach an item to a resource in the Resource window. Outside Processing Unit TypeORACLE PURCHASING ONLYSelect an option to determine the quantity of an outside processing item you requisition, purchase and receive:Assembly - You purchase an outside processing item based on the number of assemblies you ship to the supplier. Resource - You purchase an outside processing item based on the number of assemblies times the resource usage rate or amount. TaxableORACLE PURCHASING ONLYIndicate whether the supplier charges a tax. Purchasing uses the taxable status together with the tax code you associate with a location to determine whether a purchase order shipment is taxable, and what the tax code that applies to this shipment. Leave this field blank if you want Inventory to use the value defined in the Purchasing Options window for transactions involving this item.Receipt RequiredORACLE PURCHASING ONLYIndicate whether you must receive an item before you can pay the invoice. Leave this field blank if you want Inventory to use the value defined in the Purchasing Options window for transactions involving this item. Although a receipt is required to pay the invoice, This is not the same as 3-way matching.Inspection RequiredORACLE PURCHASING ONLYIndicate whether to inspect an item upon receipt from the supplier before paying the corresponding invoice. Leave this field blank if you want Inventory to use the value defined in the Purchasing Options window for transactions involving this item. Although inspection is required to pay the invoice, this is not the same as 4-way matching.Default BuyerORACLE PURCHASING ONLYEnter the buyer assigned to purchase an item. Purchasing displays the buyer you enter here as the suggested buyer for a requisition..Unit of IssueORACLE PURCHASING ONLYEnter the unit of measure you typically use to issue the item from inventory. Purchasing uses this as the default for internal requisition lines sourced from inventory. You use units of issue to round order quantities, minimizing shipping, warehousing, and handling costs. The unit of issue must be the same for all units of measure belonging to the same unit of measure class as the primary unit of measure. Receipt Close ToleranceORACLE PURCHASING ONLYEnter the percentage tolerance Purchasing uses to automatically close purchase order shipments. Purchasing automatically closes a shipment when your unreceived quantity is within the quantity tolerance percentage of the shipment. For example, if the original shipment quantity is 50, and you enter 10 here (10%), Purchasing automatically closes the shipment for receiving when you receive 45 or more. Closed for Receiving is a status change only. You can receive additional items against the shipment later.Invoice Close ToleranceORACLE PURCHASING ONLYEnter the percentage tolerance Purchasing uses to automatically close purchase order shipments. Purchasing automatically closes a shipment when your uninvoiced quantity is within the quantity tolerance percentage of the shipment. For example, if the original shipment quantity is 50, and you enter 10 here (10%), Purchasing automatically closes the shipment for invoicing when you invoice match 45 or more. Closed for Invoicing is a status change only. You can invoice match additional items against the shipment later.UN NumberORACLE PURCHASING ONLYEnter the United Nations identification number. Purchasing uses UN numbers to identify specific materials (hazardous materials, for example) for international trade purposes. Hazard ClassORACLE PURCHASING ONLYPurchasing uses hazard classes to identify categories of hazardous materials for international trade purposes. List PriceORACLE PURCHASING ONLYEnter the value that Purchasing uses as the default price on a purchase order, requisition, RFQ, or quotation. Receivables uses this value as the default unit selling price on a transaction. Note that this is the original inventory item price used by Purchasing and therefore should be used as a guide only.Market PriceORACLE PURCHASING ONLYEnter the market value for an item. Purchasing copies the market price to the purchase order lines you create.Price ToleranceORACLE PURCHASING ONLYEnter the price tolerance percent, the maximum price percentage over the normal price range for an item. For example, if the tolerance percent is 5, the maximum acceptable price on a purchase order is 5% over the requisition price. Any purchase order price 5% above the requisition price is unacceptable, and you cannot approve the purchase order. Rounding FactorORACLE PURCHASING ONLYEnter a number between 0 and 1. This factor determines how to round the quantity on an internal requisition that results from conversions between the requisition line unit of measure and the item's Unit of Issue. This factor insures that the unit of issue resolves to an integer, rather than a fractional amount. For example, suppose the requisition line unit of measure is each, and the unit of issue is dozen. For an internal requisition of 20 each, Purchasing converts the order quantity to 1.75 dozen. With a rounding factor of 0.6, Purchasing rounds up the order quantity to 2 dozen. (Rounding factor of 0.75 also rounds up to 2 dozen.) With a rounding factor of 0.8, Purchasing rounds down to 1 dozen. Purchasing either performs rounding automatically or advises you of the suggested quantity depending how you set your purchasing options. This attribute is controlled at the Organization level only.Expense AccountThis attribute is controlled at the Organization level only. Enter the default inventory account for expense items. This attribute is used only when Inventory Asset Value is turned off. Purchasing debits this account when you receive an item into inventory only if the item is being expensed. If you receive into an expense subinventory, Purchasing uses this account first; if you do not define the account here, Purchasing uses the expense account you assigned to the subinventory.Asset CategoryORACLE PURCHASING ONLYEnter the asset category to which the item belongs. Assets uses this to classify your fixed assets. All assets in a category share default information, such as the accounts used when you post to the general ledger. You can enter this field only if you use Assets.Internal OrderedORACLE PURCHASING ONLYIndicate whether to allow an item to be ordered on an internal requisition. If you turn this attribute on, you can temporarily exclude an item from being ordered on an internal requisition by turning Internal Orders Enabled off. This is an item defining attribute. If you turn this attribute on, the item is automatically assigned to the default category set for the Purchasing functional area. Internal Orders EnabledORACLE PURCHASING ONLYIndicate whether you can currently order an item internally. If you turn this attribute on, you can specify the item on an internal requisition if Internal Ordered Item is also on. If you turn Internal Ordered Item on, you can temporarily exclude an item from being ordered on an internal requisition by turning this attribute off. This attribute is optionally set by the Item Status code. Describing Item Attributes - ReceivingReceipt Date ActionORACLE PURCHASING ONLYNone - No receipt date exception enforced. Reject - Reject receipts when the receive date is outside the range defined by Days Early Receipt Allowed or Days Late Receipt Allowed. Warning - Display a warning message if you attempt to receive an item outside the range defined by Days Early Receipt Allowed or Days Late Receipt Allowed, but perform the receipt, anyway. Receipt Days EarlyORACLE PURCHASING ONLYEnter the number of days before the promise date you can receive an item without warning or rejection. For example, if you enter 3 and the promise date is a Friday, you can receive the item on Tuesday without receiving a warning message. Note that Purchasing uses regular calendar days (including weekends and holidays) in this calculation. If the promise date does not exist, Purchasing uses the need by date.Receipt Days LateORACLE PURCHASING ONLYEnter the number of days after the promise date you can receive an item without warning or rejection. For example, if you enter 2 and the promise date is a Monday, you can receive the item on Wednesday without receiving a warning message. Note that Purchasing uses regular calendar days (including weekends and holidays) in this calculation. If the promise date does not exist, Purchasing uses the need by date.Overreceipt Quantity Control ActionORACLE PURCHASING ONLYNone - No over tolerance enforced. Reject - Reject receipts over the tolerance quantity. You receive an error message and are prevented from receiving quantities exceeding the order quantity by more than the Quantity Received Tolerance percent. Warning - A warning message displays if you accept receipts over the quantity determined by the Overreceipt Quantity Control Tolerance percent, but does perform the receipt. Overreceipt Quantity Control ToleranceORACLE PURCHASING ONLYEnter the quantity received tolerance percent, the maximum acceptable over-receipt percentage, used by the Overreceipt Quantity Control Action attribute. For example, if the tolerance percent is 5, then the acceptable quantity on a receipt transaction is within 5% of the quantity you order on a purchase order line. Any quantity more than 5% over the order quantity is unacceptable.Allow Substitute ReceiptsORACLE PURCHASING ONLYIndicate whether to allow receipt of defined substitutes in place of this item. You define valid substitutes with the Item Relationships window. Leave this field blank if you want Inventory to use the value defined in the Receiving Options window for transactions involving this item.Allow Unordered ReceiptsORACLE PURCHASING ONLYIndicate whether you can receive an item without a purchase order. If this option is on, you can later match the receipt to the appropriate purchase order. If this option is off, all receipts for an item must have a corresponding purchase order. Leave this field blank if you want Inventory to use the value defined in the Receiving Options window for transactions involving this item.Express TransactionsORACLE PURCHASING ONLYIndicate whether you can deliver all distributions for this item with one data entry transaction if the quantity to deliver equals the purchase order line balance. If this option is turned off, you must deliver individual distributions separately. Leave this field blank if you want Inventory to use the value defined in the Receiving Options window for transactions involving this item.Receipt RoutingORACLE PURCHASING ONLYDirect - At receipt, deliver an item directly to its location. Inspection - Receive an item first, inspect it, then deliver. Standard - Receive an item first, then deliver without inspection. Enforce Ship-ToORACLE PURCHASING ONLYSelect an option to control whether the supplier can deliver to a location that differs from the ship-to location defined on the purchase order:None - No ship-to location enforced. Reject - Prevent receipt of items not received to their purchase order ship-to location. Warning - Display a warning message if you attempt to receive an item to a location that differs from the purchase order ship-to location, but perform the receipt, anyway.Refer to Guided Demonstration - Create an Expense Item (Required) [LAB02BEY]Refer to Guided Demonstration - Create an Inventory Item (Required) [LAB02BFY]Refer to Guided Demonstration - Create an Item for a Routinely Purchased Asset (Required) [LAB02C0Y]Refer to Practice - Create an Item for a Routinely Purchased Asset (Required) [LAB02C1Y]Define Item Relationships - PurchasingPurchasing Responsibility(N) Items > Item Relationships

All of the options aid in helping to search for items. Use the item relationships forms to establish the following:Cross-References types - For example, if you renamed your items, you might want to establish a cross reference between the old item number and the new item number. In this example, you would need to establish the type of cross reference such as old number. After the relationship is established, the user would assign the items to the type. Related and Substitute Items - use the item relationships form to establish substitute and related item relationships. The substitute items are used by purchasing when the allow substitute item functionality is needed in receiving. If the supplier ships a part that is not on the purchase order, if Allow Substitutes is valid for that item, and if the substitute relationship is established, the receiving group can receive the substitute part.

Additionally, for each part, you will need to determine whether this is a reciprocal relationship for the item. Manufacturers Part NumberYou can establish suppliers and their part numbers on the Manufacturer Part Numbers form and link them to your item numbers. This will aid in item search.Describing Item TemplatesItem templates are used to make your work easier. There are over 190 attributes. It can take time to go through more than 190 attributes and determine which ones should be enabled especially if the same type of item is entered repetitively. Item Templates are designed to meet that need. An item template contains values for any number of item attributes. When an item is created and a template applied, the values on the template are copied to the item so that each attribute does not have be addressed individually.

Note: The item status and primary unit of measure are item attributes and are on the templates. If you want to use the life cycle approach to parts, you may want to consider leaving these fields blank and forcing the user to enter the value when the item is created. Additionally, the item status and primary unit of measure can also be defaulted via profile option. You may want to consider leaving this null as well.

Creating Item TemplatesPurchasing Responsibility(N) Setup > Item > Templates

There are several options with respect to creating item templates:Use Predefined Templates - there are templates that come pre-defined with Oracle. Examples include Finished Good, Planning Item, Purchased Item and Kit.Create your own template. This can be done in one of two ways.Use an existing template and copy to a new template. Give the template a new name.Create a template from scratch.

No matter which option you choose in defining templates, Inventory will apply only those attributes to an item which are enabled. If the attribute is not enabled, then the attribute will not be applied to the item.

Note: It is advisable to keep the predefined templates intact and not make changes to what comes with Oracle. It is better to create your own template by copying a predefined template and giving a name that is meaningful to your organization. This is because if you ever need the original template for reference, you will have it. If you make changes to a template, the changes will be effective the next time you use the template. Changes are not applied retroactively.Using Item TemplatesUse Item templates to quickly apply attributes to an item. Templates can hold a complete set of attributes or a partial set. If a partial set, then only values stored in the template overwrite those on the item. More than one template can be applied, however, if more than template is applied, the last template applied is the one whose attributes will be enabled for that item. After the template(s) is used, make changes as necessary to a particular item. An item template can be changed, however, the changes are prospective and do not affect any items already created using that template. If you are changing an attribute more than 50% when using the same template, it might be better to change the attribute on the template.Example of Using a TemplateIn the example above, a template was created but not all the attributes were enabled. The table shows that those attributes were not applied and had to be enabled manually. Additionally, even if an attribute is enabled, you can still change the value once the template is applied as long as it does not violate any of the dependencies.

Additional Setup ConsiderationsUnit of MeasureThis has to be determined before the first item can be created and is part of enterprise structure setup. This is also an item attribute and is the only one that can not be changed once the item has been saved to the database. The only option is to delete the item and start again. This can be defaulted from a profile option but if your organization does not use the same primary unit of measure for every item, then a decision should be made as to whether to create multiple templates for parts using different primary units of measure. If the primary unit of measure is allowed to default from a profile option and multiple primary units of measure are used, there is a risk that the wrong one would be applied to the item if there was not a process in place to review the UOM before saving the item to the database.Item flexfield:This is a key flexfield and also has to be determined before the first item can be created. How many segments? Are you going to try and build intelligence into the part number? Is there going to be validation of values as they are entered? Is there going to be a limit to the number of characters used? Are you gong to use all capitals or small letters or perhaps both? Are you going to let the system generate the parts?Sales Order FlexfieldThis is another key flexfield in the Inventory application. It is used to capture information from Order Management when the Inventory interface is ran. Examples of the type of information that may be collected from Order Management are the sales order number, order source and order type. The information in this flexfield is populated in the transaction record. Some questions to ask:How many segments?What will they represent?Numbering/Naming conventionsAre you going to let the system generate the item numbers or are you going to define them yourself? If you are going to define them yourself then are you going to have some type of naming convention so that the item number has meaning. Are you going to use capitals, small letter or both? The query capability in the item form is case sensitive so this is something to consider.Conversion of item/item importHow are you going to get your existing items into Oracle? Are you going to enter each item manually? Are you going to import the items through the open interface? Who will verify that the item attributes are correct upon import? Will a reconciliation be done between what was in the legacy system vs. what has been brought into Oracle?

2 - inventory

Documents

item attributesitems

catalogsdefine items

enterprise structure

itemitem attributes

category setsestablish

child organizations

classexamples of unit

branch offices