cycle counting final

Agenda Introduction Functional Flow Setup Demonstration Troubleshooting Diagnostic Scripts Q & A

1

Business ConceptIntroduction To Cycle Counting

Cycle counting is the periodic counting of individual items throughout the course of the year to ensure the accuracy of inventory quantities and values.

Accurate system on-hand quantities are essential for managing supply and demand, maintaining high service levels, and planning production.

Oracle Inventory is capable of managing the stock taking (counting) in two ways.

The two ways are 1. Cycle counting2. Physical Inventory

You can perform cycle counting instead of taking complete physical inventories.

Cycle Counting Will be performed on regular

intervals Ability to classify items into

ABC ranks Counting By internal Team No Tags Automates periodic cycle

counting Allows approval control

Difference between Cycle counting and Physical Inventory

3

Physical Inventory• Will be performed once in 6 months or

Year end• For all Items in the Organization• Counting By an External Team• Tags will be generated • Manual and Year end Process• No Approval Control

ABC Analysis Functional Flow

4

Assign items to ABC classes

Define ABC compile (One Time)

Define ABC group(One Time)

INVINV

INV

Update class assignments/Assign new partINV

Run ABC compile

INV

Run ABC Descending Value Report & ReviewINV

Assign compile and classes to Assignment Group (One Time)INV

Cost Accountant

Manufacturing

Start

End

Cycle Counting Functional Flow

5

5

Perform a Physical Count

Manual

Define CountParameters(One Time)

INV

Inventory Adjustment made

INV

ABC Classification Process(One Time + Maintenance)INV

Enter thePhysical Count

INV/WMS

Run cycle Counting Listing Report

INV

Cost Accountant Manufacturing

Is Discrepancy within specified tolerances

Refresh cycle count items from ABC group(Maintenance)

INV

Yes

Approve Adjustments

INV

NoPerform a Recount

Manual

Is Discrepancy within specified tolerances

Enter thePhysical Count

INV/WMS NoYes

Reconciliation clears discrepancy

No

Yes

RejectAdjustments

INV

No Inventory Adjustment made

INVSystem

Start

End

ABC Analysis Define Items Define ABC Compile Define ABC Classes Define ABC Group and assign compile, Classes and assign Items to ABC Classes

Cycle Counting Define Cycle Counting Associate ABC Group to Cycle Count Load ABC Items

Setup & Configuration

6

Inventory > Items > Master Items Define ItemSetup

7

ABC Compile Define ABC CompileSetup (Continued...)

8

Define ABC Assignment Group and Assign Compile Name Setup (Continued...)

9

ABC Assignment Group

Define ABC Classes and Assignment Items to ClassesSetup (Continued...)

10

ABC Classes

Assign Items to ABC Assignment Group

Cycle Count Setup (Continued...)

11

Cycle Count Setup (Continued...)

12

Cycle Count Setup (Continued...)

13

Entering count frequencies in Cycle Count

Setup (Continued...)

14

Perform Full Cycle Count• Generate Automatic Schedule Requests• Generate Cycle Count Requests• Cycle Count Listing

Count items• Record physical quantity

Approve & Update• Approve cycle counts • Request recount • Save & Update inventory

Count process

15

Tables AffectedTroubleshooting Diagnostic Scripts

16

Name UsageMTL_ABC_COMPILE_HEADERS, MTL_ABC_COMPILES

Contains ABC Compile information

MTL_ABC_ASSIGNMENT_GROUPS Contains the ABC Assignment Group informationMTL_ABC_ASSGN_GROUP_CLASSES Contains the ABC Classes information which are assigned to

the ABC GroupMTL_CYCLE_COUNT_HEADERS When Cycle count is created it will have Header InformationMTL_CYCLE_COUNT_CLASSES It will contain the Cycle count Classes InformationMTL_CYCLE_COUNT_ITEMS It will contain the Items which are assigned to Cycle countMTL_CYCLE_COUNT_ENTRIES It will contain the information when an item is picked for

counting

MTL_CC_SCHEDULE_REQUESTS It will contain the Cycle Count scheduled request date for the Items which are assigned to the Cycle Count

Note: For Cycle count task, there wont be any record in MMTT, because this is not allocating material.