How Physical Inventory 11i Works

An Oracle Technical White Paper

June 2006 Revision 1

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How Physical Inventory 11i Works INTRODUCTION Oracle Inventory provides several tools to aid users in controlling and improving the accuracy of inventory records. a. ABC Analysis b. Cycle Counting c. Physical Inventory This white paper will give an overview of Physical Inventory, various steps involved, associated tables, forms, packages, concurrent programs and report. EXECUTIVE SUMMARY Physical Inventory is a periodic reconcilation of system on-hand balances with physical counts in inventory. Performed to verify the accuracy of system on-hand quantities, for the entire organization or for particular subinventories within an organization. Physical Inventory is a process designed to count all the inventory of all items at one time. Adjustments are then reviewed and posted to the general ledger. Performed to ensure accuracy for tax, audit, and effective planning purposes. Primary purpose is to verify the financial value of the inventory for financial auditors, and to verify the item detail for planners. Physical Inventory – performed periodically (also known as Periodic (annual) Inventory) Cycle Counting – performed every period (ABC Analysis is a method of Cycle Counting) INITIAL PREPARARION FOR PHYSICAL INVENTORY STEPS 1. Housekeeping – Keep inventory presorted into homogenous groups for counting ease 2. Identification – Parts are clearly identified and tagged with Part Numbers 3. Training – Instruct floor staff

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PHYSICAL INVENTORY PROCESS 1. Define physical inventory – assign a name(s) to specific subinventory(ies) portions (Refer to “Oracle Inventory User’s Guide Release 11i”, page 13-3) 2. Take snapshots of on-hand quantities – how much does Oracle say that you have ? (Refer to “Oracle Inventory User’s Guide Release 11i”, page 13-5) 3a. Generate tags – slips of paper to put with specific subinventory groups (Refer to “Oracle Inventory User’s Guide Release 11i”, page 13-7) Tags are alphanumericially-labeled slips of paper posted at an item’s location to record on-hand quantity at that location. Tags are created by either by Oracle auto-generated or manually entered. Oracle Physical Inventory is used to reconcile system-maintained items on-hand balances with actual counts of inventory. (Refer to “Oracle Inventory User’s Guide Release 11i”, page 13-7) 3b. Physically Printing the Tags 4. Count items – Count items, record count on the tag, verify by recounting or sampling 5. Enter counts – input total number of items from each tag for each group into system (Refer to “Oracle Inventory User’s Guide Release 11i”, page 13-11) 6. Void tags – complete for all groups and check off as completed (Refer to “Oracle Inventory User’s Guide Release 11i”, page 13-11) 7. Approve counts – compare and reconcile tag counts against system totals (Refer to “Oracle Inventory User’s Guide Release 11i”, page 13-15) 8. Run adjustments – investigate major discrepencies before authorizing adjustments (Refer to “Oracle Inventory User’s Guide Release 11i”, page 13-18) 9. Purge physical inventory – new, accurate totals reflected in system, posted to GL (Refer to “Oracle Inventory User’s Guide Release 11i”, page 13-20)

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RESOURCES USED • ARU (Automated Release Updates) Patches derived from Specific searches by

each module (form, concurrent process, report, java file) by each 11i version (11.5.1 through 11.5.10; but including non-versions 11.5.0, and 11.5 for completeness)

• MetaLink Doc IDs derived from: 1) Specific searches by each module (form,

concurrent process, report, java file) by each 11i version (11.5.1 through 11.5.10; but including non-versions 11.5.0, and 11.5 for completeness); and also 2) General searches on ‘physical inventory’.

• Web IV Bugs, Notes, and Technical Bullitens derived from: 1) Specific searches

by each module (form, concurrent process, report, java file) by each 11i version (11.5.1 through 11.5.10; but including non-versions 11.5.0, and 11.5 for completeness); and also 2) General searches on ‘physical inventory’

• TAR Database Find Page APPS / CRM TARs derived from: 1) Specific searches

by each module (form, concurrent process, report, java file) by each 11i version (11.5.1 through 11.5.10; but including non-versions 11.5.0, and 11.5 for completeness); and also 2) General searches on ‘physical inventory’

• TAR Database Find Page Mailing List Archives email (including Development

Meeting Minutes emails and attachments) and their corresponding attachments derived from: 1) Specific searches by each module (form, concurrent process, report, java file) by each 11i version (11.5.1 through 11.5.10; but including non-versions 11.5.0, and 11.5 for completeness); and also 2) General searches on ‘physical inventory’

• Secondary search of all current and archived email and their corresponding

attachments derived from General searches on ‘physical inventory’

• Secondary search on personal file system of all Phyical Inventory TARs personally worked and captured in personal file system archive.

• AOL Instant Messenger logs of all dialog captured pertaining to Physical

Inventory.

• Reproduction of all Physical Inventory functionality on internal Oracle 11i application via test cases and free form in conjunction with “Oracle Inventory User’s Guide” and “Understanding Physical Inventory”, (May 2003), An Oracle White Paper.

• “Oracle Inventory User’s Guide Release 11i”, (September 2002), Oracle

Corporation, Chapter 13.

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• “Oracle Inventory User’s Guide Release 11”, (March 1998), Oracle Corporation, Chapter 13.

• “Oracle Inventory Technical Reference Manual”, (December 1999), Oracle

Corporation.

• “R11i Implement and Use Oracle Inventory student guide”, (2002), Oracle University, pages 1-80, 3-106; 11-1 through 11-82

• “Understanding Physical Inventory”, (May 2003), An Oracle White Paper

• Arnold, J.R. Tony, and Stephen N. Chapman, “Introduction to Materials

Management”, (2004), Pearson Prentice Hall, page 324. SCOPE

• This Technical White Paper pertains to Oracle Inventory (Product 508 within the Manufacturing suite of products) in Oracle Applications 11i only; previous versions of Oracle Applications, including 11.0.3, 10.7, 10.7SC are out of scope of this document.

• The following report modules pertain to Oracle Assets (Product 503 within Oracle

Financials suite of products) and are out of scope of this document:

FARXPIC - RXi: Physical Inventory Comparison Report FARXPIM - RXi: Physical Inventory Missing Assets Report RXFAPIC - RX-only: Physical Inventory Comparison Report RXFAPIM - RX-only: Physical Inventory Missing Assets Report

• This Technical White paper pertains to Discrete Inventory; OPM (Product 733 within Oracle Process Manufacturing) is out of scope of this document. The following modules pertain to OPM (Product 733 within Oracle Process Manufacturing) and and are out of scope of this document:

PIR041 - Physical Count Entries PIR051 - Physical Count Forms PIDEFED - Physical Inventory PIPCNTED - Physical Count Entry FAXPIDEF - Enter Physical Inventory

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FORMS USED BY PHYSICAL INVENTORY INVADPAP - Approve Physical Inventory Adjustments INVADPPI - Define Physical Inventory INVADPTE - Enter Physical Inventory Counts INVADPVT - Void Physical Inventory Tags INVARPGT - Generate Physical Inventory Tags CONCURRENT PROCESSES USED BY PHYSICAL INVENTORY INCAPA - Perform physical inventory Adjustments INCAPF - Freeze physical inventory INCAPP - Purge physical inventory information INCAPT - Generate physical inventory tags REPORTS USED BY PHYSICAL INVENTORY INVARPAR - Physical inventory adjustments report INVARPIA - Physical inventory accuracy analysis INVARPMT - Physical inventory missing tag listing INVARPSL - Physical inventory counts report INVARPTG - Physical inventory tag listing INVARPTP - Physical Inventory Tags INVARPTS - Physical inventory trend and summary analysis JAVA FILES USED BY PHYSICAL INVENTORY PhyInvButton.java PhyInvCreateLPNFListener.java PhyInvCreateLPNPage.java PhyInvFListener.java PhyInvFunction.java PhyInvPage.java (all java files reside at java/count/server/ )

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ERROR MESSAGES GENERATED BY PHYSICAL INVENTORY APP-INV-05003: You cannot use this form to delete a physical inventory APP-INV-05109: You must select a physical inventory before continuing APP-INV-05135: Prior physical inventory snapshot failed or incomplete APP-INV-05168: You cannot dynamically create tags for this physical inventory APP-INV-05189: You cannot delete a tag -- void it instead Action: Go to Void Physical Inventory Tags form and void tags. APP-INV-05288: You must select a physical inventory before continuing APP-INV-05289: You must choose a physical inventory name APP-INV-05433: Dynamic tag entry is not enabled for this physical inventory APP-INV-05473: The physical inventory you selected does not require approvals APP-INV-05499: This physical inventory generated adjustments and cannot be updated APP-INV-05503: Purge tags only (alternatively, purge the entire physical inventory)? APP-INV-05565: You cannot generate tags for this physical inventory APP-BOM-20441: Physical Inventory Adjustments exist for this item (MTL_PHYSICAL_ADJUSTMENTS) APP-BOM-20444: Physical Inventory Tags exist for this item (MTL_PHYSICAL_INVENTORY_TAGS) DATABASE TABLES DIRECTLY AFFECTED BY PHYSICAL INVENTORY MTL_PHYSICAL_INVENTORIES MTL_PHYSICAL_SUBINVENTORIES MTL_PHYSICAL_INVENTORY_TAGS MTL_PHYSICAL_ADJUSTMENTS MTL_MATERIAL_TRANSACTIONS PHYSICAL INVENTORY DATABASE PACKAGE MODULES INVPINLS.pls INVPINLB.pls INVITPSS.pls INVITPSB.pls INVADPTB.pls INVADPTS.pls INVCGUGB.pls INVCGUGS.pls INVITMLS.pls INVITMLB.pls INVINVLS.pls INVINVLB.pls INVITATS.pls INVITATB.pls

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PHYSICAL INVENTORY DATABASE PACKAGES INV_PHY_INV_LOVS INV_UI_ITEM_SUB_LOC_LOVS INVADPT1 INV_CG_UPGRADE INV_UI_ITEM_LOVS INV_INV_LOVS INV_UI_ITEM_ATT_LOVS

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PHYSICAL INVENTORY PROCESS DETAILS 1. Define physical inventory – assign a name(s) to specific subinventory(ies) portions (Refer to “Oracle Inventory User’s Guide Release 11i”, page 13-3) Business: The context, scope of specific subinventory, business rules, of the Physical Inventory are defined is named. Functional: Inventory > Counting > Physical Inventory

Inventory > Counting > Physical Inventory > Physical Inventories /u01/applmgr/apsappl/inv/11.5.0/forms/US/INVADPPI.fmx

Click on the New button

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Inventory > Counting > Physical Inventory > Physical Inventories > New /u01/applmgr/apsappl/inv/11.5.0/forms/US/INVADPPI.fmx

Enter a unique physical inventory name in the name field. Enter a description in the description field (optional). Functional and Technical: Name field in the GUI corresponds to MTL_PHYSICAL_INVENTORIES.PHYSICAL_INVENTORY_NAME Description field in the GUI corresponds to MTL_PHYSICAL_INVENTORIES.DESCRIPTION Date filed in the GUI corresponds to MTL_PHYSICAL_INVENTORIES.PHYSICAL_INVENTORY_DATE Primary Key MTL_PHYSICAL_INVENTORIES.PHYSICAL_INVENTORY_ID is automatically generated set based on SEQuence built into the source code which returns NEXTVAL based on sequence.

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Primary Key MTL_PHYSICAL_INVENTORIES.ORGANIZATION_ID was determined when selecting the organization in the application:

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Functional: Select approval requirements for the adjustments:

Available options in the List Of Values are: Always: Business: Requires approval for all Physical Inventory adjustments. Adjustment program canot be run until all the adjustments are approved. Functional: This functionality will cause the Qty% + / - and Value + / - fields to be greyed out. Technical: MTL_PHYSICAL_INVENTORIES.APPROVAL_REQUIRED is set to 1 If out of tolerance: Business: Quantity and / or Value adjustment tolerances can be entered. Adjustments exceeding tolerances must be approved before running the adjustment program. Adjustment value = (Actual count – System count) x Item cost Functional: This functionality allows the Qty% + / - and Value + / - fields to be enterable. Technical: MTL_PHYSICAL_INVENTORIES.APPROVAL_REQUIRED is set to 3 Never: Business: Allow all adjustments to post without approval Functional: This functionality will cause the Qty% + / - and Value + / - fields to be greyed out. Technical: MTL_PHYSICAL_INVENTORIES.APPROVAL_REQUIRED is set to 2

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Functional: If selecting If out of tolerance approval option, then enter positive and negative approval tolerances.

Tolerances are set by: Quantity: Business: Denotes an acceptable +/ - percentage limit between actual counted quantity versus system on-hand quantity stored in the application before approval is required. Functional: Expressed in numeric quantities. Application will force + and – to match. Technical: (example) MTL_PHYSICAL_INVENTORIES.APPROVAL_TOLERANCE_POS is set to 2 MTL_PHYSICAL_INVENTORIES.APPROVAL_TOLERANCE_NEG is set to 2 Value: Business: Denotes an acceptable + / - total value difference between actual count an system count. Funcational: Expressed in currency amounts. Application will force + and – to match. Technical: (example) MTL_PHYSICAL_INVENTORIES.COST_VARIANCE_POS is set to 10000 MTL_PHYSICAL_INVENTORIES.COST_VARIANCE_POS is set to 10000

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Functional: Select the scope of the Physical Inventory

Available options between the radio buttons are: All: Business: Used to perform Physical Inventory on all Subinventories for the Organization. Functional: This functionality will cause the Specific fields to be greyed out. Technical: MTL_PHYSICAL_INVENTORIES.ALL_SUBINVENTORIES_FLAG is set to 1 Specific: Business: Used to denote specific Subinventories within the Organization for performing Physical Inventory.

Functional: This functionality allows the Specific fields to be selected from the List Of Values. Technical: MTL_PHYSICAL_INVENTORIES.ALL_SUBINVENTORIES_FLAG is set to 2 Primary Key MTL_PHYSICAL_SUBINVENTORIES.SUBINVENTORY is set to the varchar2 value determined when specifying the subinventory in the application:

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Technical: Primary Key MTL_PHYSICAL_SUBINVENTORIES.PHYSICAL_INVENTORY_ID is set to match existing value in Primary Key MTL_PHYSICAL_INVENTORIES.PHYSICAL_INVENTORY_ID to form future equijoin. Primary Key MTL_PHYSICAL_SUBINVENTORIES.ORGANIZATION_ID is set to match existing value in Primary Key MTL_PHYSICAL_INVENTORIES.ORGANIZATION_ID to form future equijoin.

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Functional: Indicate whether to allow dynamic entry of tags.

Business: Tags are alphanumericially-labeled slips of paper posted at an item’s location to record on-hand quantity at that location. Tags are created by either by Oracle auto-generated or manually entered. Oracle Physical Inventory is used to reconcile system-maintained items on-hand balances with actual counts of inventory. A tag is a tool for recording the on-hand quantity of a specific item in a particular location. A tag is usually a piece of pater posted at the location of the item. (Refer to “Oracle Inventory User’s Guide Release 11i”, page 13-7)

Business and Functional: Checked - Used for third-party pre-numbered Tag generation. Technical: MTL_PHYSICAL_INVENTORIES.DYNAMIC_TAG_ENTRY_FLAG is set to 1

Business and Functional: Unchecked – All tags must be Oracle automatically generated or manually entered before use. Technical: MTL_PHYSICAL_INVENTORIES.DYNAMIC_TAG_ENTRY_FLAG is set to 2 Functional: Select Snapshot button

or select Tools > Perform snapshot

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2. Take snapshots of on-hand quantities – how much does Oracle say that you have ? (Refer to “Oracle Inventory User’s Guide Release 11i”, page 13-5) Business: Snapshot must be completed before generating Tags. After taking the snapshot, application will no longer be able to update header information of the physical inventory. The snapshot saves all item on-hand quantities and costs and uses this information as the basis for all physical inventory adjustments rather than the current on-hand quantity. System allow to resume transaction activities even before running the adjustments program for the physical inventory. Therefore need to procedurally coordinate snapshot of physical inventory with actual counting and ensure that no transaction activity occurs in a particular location until adjustments are launched and posted. Once snapshot concurrent process INCAPF is finished, the snapshot complex box is check, the snapshot date is updated and the Tags button is enabled in the define physical inventory window. Functional: Inventory > Counting > Physical Inventory > Physical Inventories > New > Snapshot /u01/applmgr/apsappl/inv/11.5.0/forms/US/INVADPPI.fmx

or select Tools > Perform snapshot

Functional result:

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View > Requests

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Ensure that concurrent request has completed successfully

Technical: Concurrent program INCAPF [Freeze Physical Inventory] is launched and performs the following: MTL_PHYSICAL_INVENTORIES.FREEZE_DATE is set to SYSDATE INCAPF calculates the number of SKU and this is set in MTL_PHYSICAL_INVENTORIES.NUMBER_OF_SKUS. INCAPF inserts rows into MTL_PHYSICAL_ADJUSTMENTS equal to the calculation from MTL_PHYSICAL_INVENTORIES.NUMBER_OF_SKUS (above) each with a unique value.

Primary Key MTL_PHYSICAL_ADJUSTMENTS.ADJUSTMENT_ID based on SEQuence built into the source code which returns NEXTVAL. INCAPF derives On-Hand Quantity from MTL_ONHAND_QUANTITIES.TRANSACTION_QUANTITY and populates MTL_PHYSICAL_ADJUSTMENTS.SYSTEM_QUANTITY

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Technical Example: MTL_PHYSICAL_INVENTORIES.NUMBER_OF_SKUS is system calculated and set at 14. INCAPF inserts Fourteen (14) rows into MTL_PHYSICAL_ADJUSTMENTS.ADJUSTMENT_ID

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3a. Generate tags – slips of paper to put with specific subinventory groups (Refer to “Oracle Inventory User’s Guide Release 11i”, page 13-7) Business: Tags are alphanumericially-labeled slips of paper posted at an item’s location to record on-hand quantity at that location. Tags are either created by Oracle auto-generated or manually entered. Oracle Physical Inventory is used to reconcile system-maintained items on-hand balances with actual counts of inventory. A tag is a tool for recording the on-hand quantity of a specific item in a particular location. A tag is usually a piece of pater posted at the location of the item. Physical Inventory Tags represent actual hard copy counts for a group of a given item. (Refer to “Oracle Inventory User’s Guide Release 11i”, page 13-7) There are three options when Generating Tags: 1. Dynamic Tag Entry 2. Default Tags 3. Blank Tags Dynamic Tag Entry: Business: Used for third-party pre-numbered Tag generation or when Tags are are generated outside the system. Functional: Checked - You do not have to run the Tag Generation program. Use your own tag numbers when you enter the counts.

Technical: MTL_PHYSICAL_INVENTORIES.DYNAMIC_TAG_FLAG is set to 1

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Default Tags and Blank Tags: Business: Used to have Tags automatically generated by Oracle. Functional: Unchecked - All tags must be Oracle automatically generated or manually entered before use.

Technical: MTL_PHYSICAL_INVENTORIES.DYNAMIC_TAG_FLAG is set to 2 Functional: Inventory > Counting > Physical Inventory > Tag Generation

Inventory > Counting > Physical Inventory > Tag Generation /u01/applmgr/apsappl/inv/11.5.0/forms/US/INVARPGT.fmx

Select the name of the Physical Inventory from the List of Values. Select Tag Type to create from the radio buttons

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Technical: Query is performed for all available physical inventory names which returns values from MTL_PHYSICAL_INVENTORIES.PHYSICAL_INVENTORY_NAME which is populated in the List of Values which the user selects in the GUI Application. When user selects from List of Values, then corresponding Primary Key MTL_PHYSICAL_INVENTORIES.PHYSICAL_INVENTORY_ID populates Foreign Key MTL_PHYSICAL_INVENTORY_TAGS.PHYSICAL_INVENTORY_ID thus forming an equijoin between MTL_PHYSICAL_INVENTORIES and MTL_PHYSICAL_INVENTORY_TAGS and populating the GUI Description field per value residing in MTL_PHYSICAL_INVENTORIES.DESCRIPTION and also populates the GUI Snapshot Date field per value residing in MTL.PHYSICAL_INVENTORIES.FREEZE_DATE

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Blank Tag Entry: Business: Used to enter counts for those items whose locations are not currently recorded in the system. Used to retain empty Tags to record counts for stock-keeping units for which Inventory has no on-hand quantity. These Tags do not contain any information about the items or location in physical inventory definition. This information can be specified when entering the Tag counts. Allows user to specify a starting Tag number, the increment for each digit in the Tag numbers and an ending Tag number or the total number of Tags. Functional:

Allow Dynamic Tags - Unchecked - All tags must be Oracle automatically generated or manually entered before use. Tag Type – Blank – Used to enter counts for those items whose locations are not currently recorded in the system. Floor staff needs to fill out the item and location information, in addition to the count quantity for each Tag or this information can be specified when entering the Tag counts. Show Serial on Tags – Checked – This option will display Serial Number on Tags

Show Serial on Tags – Unchecked – This option will not display Serial Number on Tags User will have to match the serial numbers to the items manually.

Enter Starting Tag number in the Starting Tag field using zero (0) padding to the left of the start number if necessary to accommidate all possible digits.

Tag numbers may be alphanumeric, however only the numeric portion will be incremented. Enter the amount by which each digit can increase: Technical: The incremental value will be stored in MTL_PHYSICAL_INVENTORIES.TAG_NUMBER_INCREMENTS and MTL_PHYSICAL_INVENTORY_TAGS_S sequence

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Functional Example 1: In this example, each numeric digit can increase by one.

Functional Example 2: In this example, each numeric digit can increase by one, alpha digit remain constant.

Functional Example 3: In this example, each numeric digit can increase by one as long as they remain ending in an even number (in which the last digit increments by two).

Enter the Ending Tag number: The Number of Tags is automatically populated. Functional Example 4: In this example, the user selected a Starting Tag of 000000, only even tags, with an Ending Tag of 200000. The Application calculated that 100001 Tags will be generated.

Functional Example 5: In this example, the user selected a Starting Tag of 000000, only even tags, with a request to only generate 100 Tags. The Application calculated Ending Tag number of 000198.

Blank Tag Entry allows the user to specify either the Ending Tag or the Number of Tags.

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Default Tag Entry: Business: Used to generate one tag per SKU, or unique combination of item, subinventory, locator, revision, lot number and serial number that exists in the subinventories of physical inventory. Allows user to specific a starting number and the increment for each digit of the Tags. Functional:

Allow Dynamic Tags - Unchecked - All tags must be Oracle automatically generated or manually entered before use. Tag Type – Default – Tags contain information on the items in the physical inventory definition. Floor staff only needs to enter the quantity counted for each Tag. Show Serial on Tags – Checked – This option will display Serial Number on Tags

Show Serial on Tags – Unchecked – This option will not display Serial Number on Tags User will have to match the serial numbers to the items manually.

Enter Starting Tag number in the Starting Tag field

Tag numbers may be alphanumeric, however only the numeric portion will be incremented. Enter the amount by which each digit can increase: Technical: The incremental value will be stored in MTL_PHYSICAL_INVENTORIES.TAG_NUMBER_INCREMENTS and MTL_PHYSICAL_INVENTORY_TAGS_S sequence

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Functional Example 1: In this example, each numeric digit can increase by one.

Functional Example 2: In this example, each numeric digit can increase by one, alpha digit remain constant.

Functional Example 3: In this example, each numeric digit can increase by one as long as they remain ending in an even number (in which the last digit increments by two).

Functional Example 4: In this example, the user selected a Starting Tag of 000001. This Physical Inventory Name (selected from the List of Values in the Name field above) restricts the Number of Tags generated to 77; the application calculated Ending Tag number of 000077.

Default Tag Entry does not allow the user to specify either the Ending Tag or the Number of Tags.

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Business and Functional: Choose the Generate button to create the Tag numbers

Pressing Generate does not physically print the tags. Use the Physical Inventory Tags report to print tags that have been generated by Inventory > Reports > ABC and Counting > Run Physical Inventory Tags report Also see “Oracle Inventory User’s Guide Release 11i”, (September 2002), Oracle Corporation, Physical Inventory Tags, page 14-91. Functional result:

View > Requests

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Ensure that concurrent request has completed successfully

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Technical: Concurrent process INCAPT [Generate Physical Inventory Tags] is launched and performs the following: Query performed to select ORGANIZATION_ID per equijoin between Primary Key MTL_PHYSICAL_INVENTORIES.PHYSICAL_INVENTORY_ID and Foreign Key MTL_PHYSICAL_INVENTORY_TAGS.PHYSICAL_INVENTORY_ID MTL_PHYSICAL_INVENTORIES.NEXT_TAG_NUMBER and MTL_PHYSICAL_INVENTORIES.TAG_NUMBER_INCREMENTS are calculated per GUI selections above and updated. Tag numbers are generated using the starting Tag Number and the incremented using SEQuence MTL_PHYSICAL_INVENTORY_TAGS_S Records corresponding to the Tag Numbers are inserted into MTL_PHYSICAL_INVENTORY_TAGS with Primary Key MTL_PHYSICAL_INVENTORY_TAGS.TAG_ID MTL_PHYSICAL_INVENTORY_TAGS table is further populated by rows from retrieved from equijoin MTL_PHYSICAL_ADJUSTMENTS.PHYSICAL_INVENTORY_ID joined with MTL_PHYSICAL_INVENTORY_TAGS. PHYSICAL_INVENTORY_ID The same number of records are inserted into MTL_PHYSICAL_INVENTORIES by equijoin Primary Key MTL_PHYSICAL_INVENTORIES.PHYSICAL_INVENTORY_ID and Primary Key MTL_PHYSICAL_INVENTORIES.ORGANIZATION_ID joined with Foreign Key MTL_PHYSICAL_INVENTORY_TAGS. PHYSICAL_INVENTORY_ID Foreign Key MTL_PHYSICAL_INVENTORY_TAGS. ORGANIZATION_ID

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3b. Physically Printing the Tags: Business and Functional: Tags MUST be first generated before they can be printed. Use the Physical Inventory Tags report to print tags that have been generated by Inventory > Reports > ABC and Counting > Run Physical Inventory Tags report Also see “Oracle Inventory User’s Guide Release 11i”, (September 2002), Oracle Corporation, Physical Inventory Tags, page 14-91. Functional: Inventory > Reports > ABC and Counting

Select a Single Request

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Inventory > Reports > ABC and Counting > Single Request /u01/applmgr/apsappl/fnd/11.5.0/forms/US/FNDRSRUN.fmx

In the Name field, select the Physical inventory counts report from the List of Values.

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Choose a Sort By parameter from the List of Values

Choose a Physical Inventory from the List of Values

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Submit the request to physically print the Tags

Functional Result:

View > Requests

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Ensure that concurrent request has completed successfully

Confirm that Physical Inventory Tags have successfully printed.

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4. Count items – Count items, record count on the tag, verify by recounting or sampling Business: Floor staff uses Tags generated and printed to record physical counts. Tags can be queried based on Tag Number, Item, Revision, Subinventory, Locator, Lot, and Serial Number. If Default Tags are used, then the Tags can be queried and counts entered. If Blank Tags are used, then the Tag can be queried and the necessary Item, Revision, Subinventory, Locator, Lot, Serial Number, and actual count quantity is entered. If Dynamic Tags are used, then counts can be entered for any item without a pre-generated Tag number. After Physical Inventory is counted and count quanties are recorded on each Tag (as well as any other required information), then counts are entered into the Application.

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5. Enter counts – input total number of items from each tag for each group into system (Refer to “Oracle Inventory User’s Guide Release 11i”, page 13-11) Business: After recording the physical counts on the Tags, the quanties on the Tags are entered into the Application. Functional:

Entering Tag Counts for Default Tags: Business: System will display the tags with relevant item information. User need to enter only the quantity counted for each tag. User can also query a subset of tags by any combination of tag number, item, revision, subinventory, locator, lot and serial number. Functional: Inventory > Counting > Physical Inventory > Tag Counts /u01/applmgr/apsappl/inv/11.5.0/forms/US/INVADPTE.fmx Select the Physical Inventory Name from the List of Values.

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Press the Find Button

Determine whether to query all existing Tags or a subset

Functional Result:

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Select the Default Counter from the List of Values.

Enter count information for each Tag

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Detail tab displays additional information for reference which corresponds to each Tag:

Save your work Entering Tag Counts for Blank or Dynamic Tags: Business: System will display the tags but no item information. User needs to enter the count quantity as well as the item information (item name, subinventory, locator, revision, lot and serial numbers). User can query by Tag number for the Blank Tags. User can enter Tag numbers to query Dynamic Tags generated outside of the System.

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6. Void tags – complete for all groups and check off as completed (Refer to “Oracle Inventory User’s Guide Release 11i”, page 13-11) Business: It is important for auditing purposes to track the status of each physical inventory tag. Therefore if one or more Tags are not used, then they should be voided in the Physical Inventory Counts window, therefore a voided Tag is not reported as a missing Tag in the Physical Inventory Missing Tag Listing. If blank Tags were generated at the beginning of Physical Inventory, but not all were used, then the unused portion should be voided. This accounts for all the Tags that have been generated in the process. Tags that are lost, damaged, or discards should be voided. All voided Tag will be adjusted by system to a count quantity of zero. Void tags that were deliberately disguarded during physical inventory.

Save your work Technical: Value entered into Qty field in INVADPTE form populates MTL_PHYSICAL_INVENTORY_TAGS.TAG_QUANTITY Value entered into UOM field in INVADPTE form populates MTL_PHYSICAL_INVENTORY_TAGS.TAG_UOM Value entered into Counted By field in INVADPTE form populates MTL_PHYSICAL_INVENTORY_TAGS. COUNTED_BY_EMPLOYEE_ID When Tag is voided MTL_PHYSICAL_INVENTORY_TAGS.TAG_QUANTITY is set to NULL and MTL_PHYSICAL_INVENTORY_TAGS.VOID_FLAG is set to 1. Value entered into Qty field in INVADPTE form also populates MTL_PHYSICAL_ADJUSTMENTS.COUNT_QUANTITY Value derived from calculuation of MTL_PHYSICAL_ADJUSTMENTS.COUNT_QUANTITY minus MTL_PHYSICAL_ADJUSTMENTS. SYSTEM_QUANTITY is used to populate MTL_PHYSICAL_ADJUSTMENTS.ADJUSTMENT_QUANTITY

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7. Approve counts – compare and reconcile tag counts against system totals (Refer to “Oracle Inventory User’s Guide Release 11i”, page 13-15) Business: User must either approve or reject all adjustments of the physical innentory before running adjustment program INCAPA. Physical Inventory adjustments pending approval can be viewed, rejected, or approved. The Process Physical Inventory Adjustments program INCAPA in Step 8 adjusts inventory balances by the new quantity entered in the Tag Counts form in Step 5. If the adjustment is rejected, then Oracle Physical Inventory does not change the system on-hand quantity. When counts are approved or rejected and work is saved, flags are set for processing. Functional: Inventory > Counting > Physical Inventory > Approve Adjustments /u01/applmgr/apsappl/inv/11.5.0/forms/US/ INVADPAP.fmx

Select the physical inventory and choose approve

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Enter the name of the employee approving the adjustments

Select an adjustment or reject all adjustments of the physical inventory before running adjustment program

Save your work

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Technical: MTL_PHYSICAL_ADJUSTMENTS If Physical Adjustments are approved, then MTL_PHYSICAL_ADJUSTMENTS.APPROVAL_STATUS is set to 1 and value entered into Name field in INADPAP form populates MTL_PHYSICAL_ADJUSTMENTS.APPROVED_BY_EMPLOYEE_ID If Physical Adjustments are rejected, then MTL_PHYSICAL_ADJUSTMENTS.APPROVAL_STATUS is set to 2 and value entered into Name field in INADPAP form populates MTL_PHYSICAL_ADJUSTMENTS.APPROVED_BY_EMPLOYEE_ID If Physical Adjustments posted but not yet approved or rejected, then MTL_PHYSICAL_ADJUSTMENTS.APPROVAL_STATUS is set to 3 and value entered into Name field in INADPAP form populates MTL_PHYSICAL_ADJUSTMENTS.APPROVED_BY_EMPLOYEE_ID

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8. Run adjustments – investigate major discrepencies before authorizing adjustments (Refer to “Oracle Inventory User’s Guide Release 11i”, page 13-18) Business: Run adjustments automatically creats a material transaction in which adjustments are posted which change on-hand quantity balances and adjustment account specified. If the count of an item matches the system quantity, then no adjustment transaction is posted. Once the adjustment program is completed it does not allow new tag generation and users wlll no longer will be able to make changes to the physical inventory. No adjustment will be posted if any adjustment is still pending approval. All adjustments must be approved or rejected before adjustment can be processed. Functional: Inventory > Counting > Physical Inventory >

Inventory > Counting > Physical Inventory /u01/applmgr/apsappl/inv/11.5.0/forms/US/INVADPPI.fmx

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The status of this Physical Inventory is shown as the Snapshot is Complete, but the Adjustments have not yet been ran and posted.

To Launch Adjustments, from the menu select Tools > Launch adjustments

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Select Adjustment Account and Adjustment Date

Click Launch Adjustments button Concurrent request number is returned

Go to Inventory > Requests

Confirm that request completed successfully. Technical: INCAPA processes records which are designed by the flags that were set in the proceeding step. Concurrent program INCAPA [Perform Physical Inventory Adjustments] is launched and performs the following:

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INCAPA initially checks for any adjustment records in either pending approval or rejection status. Existance of any of these types or records will prevent adjustment from posting. INCAPA gathers data derived in fields from INVADPAP form,which is used to populate MTL_PHYSICAL_INVENTORIES.LAST_ADJUSTMENT_DATE MTL_PHYSICAL_INVENTORIES.TOTAL_ADJUSTMENT_VALUE INCAPA gathers data derived in fields from INVADPAP form,which is used to populate MTL_PHYSICAL_ADJUSTMENTS.GL_ADJUST_ACCOUNT MTL_PHYSICAL_ADJUSTMENTS.APPROVAL_STATUS is set to 3 Primary Key MTL_PHYSICAL_ADJUSTMENTS.ADJUSTMENT_ID is used to populate corresponding values in Foreign Key MTL_MATERIAL_TRANSACTIONS.PHYSICAL_ADJUSTMENT_ID MTL_PHYSICAL_ADJUSTMENTS.GL_ADJUST_ACCOUNT is used to populate corresponding values in MTL_MATERIAL_TRANSACTIONS.DISTRIBUTION_ACCOUNT_ID INCAPA gathers value derived from calculuation of [MTL_PHYSICAL_ADJUSTMENTS.COUNT_QUANTITY minus MTL_PHYSICAL_ADJUSTMENTS. SYSTEM_QUANTITY which is used to populate MTL_PHYSICAL_ADJUSTMENTS.ADJUSTMENT_QUANTITY] and using this value, inserts corresponding rows into MTL_MATERIAL_TRANSACTIONS_TEMP Primary Key MTL_MATERIAL_TRANSACTIONS_TEMP.TRANSACTION_HEADER_ID is based on SEQuence built into the source code which returns NEXTVAL. Adjustment transaction records are inserted into MTL_MATERIAL_TRANSACTIONS_TEMP INCAPA gathers all approved records from MTL_PHYSICAL_ADJUSTMENTS WHERE ADJUSTMENT_QUANTITY != 0 INCAPA gathers MTL_PHYSICAL_INVENTORIES.DESCRIPTION which is used to populate MTL_MATERIAL_TRANSACTIONS_TEMP

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INCAPA gathers MTL_PHYSICAL_INVENTORIES.APPROVAL_TOLERANCE_POS MTL_PHYSICAL_INVENTORIES.APPROVAL_TOLERANCE_NEG which is used to populate MTL_MATERIAL_TRANSACTIONS_TEMP INCAPA gathers lot-controlled and serial-controlled items which are used to populate MTL_TRANSACTION_LOT_NUMBERS MTL_SERIAL_NUMBERS_TEMP INCAPA gathers period_close_id for the adjustment date and confirms that the period is open.

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9. Purge physical inventory – new, accurate totals reflected in system, posted to GL (Refer to “Oracle Inventory User’s Guide Release 11i”, page 13-20) Business: Purging physical inventory deletes the defination from the database, but does not affect and physical inventory adjustmetns or transactions that have already been performed. Functional: Inventory > Counting > Physical Inventory >

Inventory > Counting > Physical Inventory /u01/applmgr/apsappl/inv/11.5.0/forms/US/INVADPPI.fmx The status of this Physical Inventory is shown as the Snapshot is Complete and Adjustments have been ran and posted.

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To Perform Purge, from the menu select Tools > Perform purge

Select the scope of the purge and click the Purge button

/u01/applmgr/apsappl/inv/11.5.0/forms/US/INCAPP

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Technical: Concurrent program INCAPP [ Purge Physical Inventory Information ] is launched and performs the following: INCAPP gathers and validates org_id Where MTL_PHYSICAL_ADJUSTMENTS.APPROVAL_STATUS is set to 3 then these records are posted for purge.

• If purge type is ‘All’, then records from these tables will be purged in the following order:

o MTL_PHYSICAL_ADJUSTMENTS o MTL_PHYSICAL_SUBINVENTORIES o MTL_PHYSICAL_INVENTORY_TAGS o MTL_PHYSICAL_INVENTORIES (these records will not be deleted if

adjustment transaction rows of that physical invetnory are found in MTL_MATERIAL_TRANSACTIONS table).

• If purge type is ‘Tag Only’, then:

o Records from MTL_PHYSICAL_INVENTORY_TAGS table will be purged

o Updates will be made to MTL_PHYSICAL_ADJUSTMENTS with count and adjustment quantities.

o Tags will be reset in MTL_PHYSICAL_INVENTORIES table

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