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Copyright © 2007, Oracle. All rights reserved.

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Author

Tyra Crockett, Maneesha Nanda

Technical Contributors and Reviewers

Jennifer Sherman, Susan Flierl, Ronald Delong, David Nelson, Jean-Francois Guerrini

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Copyright © Oracle Corporation, 2007. All rights reserved.

R12 Oracle Inventory Management Fundamentals Table of Contentsi

Table of Contents

Overview of Oracle Inventory........................................................................................................................1-1 R12 Overview of Oracle Inventory ...............................................................................................................1-3 Objectives......................................................................................................................................................1-4

Overview .......................................................................................................................................................1-5 Inventory Capabilities....................................................................................................................................1-6 Inventory Capabilities (Cont) ........................................................................................................................1-7 Receipt to Issue Life Cycle............................................................................................................................1-8 Receiving Inventory ......................................................................................................................................1-9 Transferring Inventory...................................................................................................................................1-12 Issuing Inventory...........................................................................................................................................1-14 Oracle Inventory Application Integration......................................................................................................1-16 Integration of Oracle Inventory to Financial Applications ............................................................................1-18 Summary........................................................................................................................................................1-19

Inventory Structure.........................................................................................................................................2-1 R12 Defining Inventory Organizations..........................................................................................................2-3 Objective........................................................................................................................................................2-4

Inventory Organizations ................................................................................................................................2-5 Inventory Organization Structure ..................................................................................................................2-6 Sample Inventory Organization.....................................................................................................................2-7 Multi-Organization Structure.........................................................................................................................2-8 Setting Up Locations .....................................................................................................................................2-9

Guided Demonstration - Setting up Locations...........................................................................................2-10 Defining Organizations..................................................................................................................................2-11 Inventory Parameters.....................................................................................................................................2-12 Costing Parameters........................................................................................................................................2-13 Revision, Lot, Serial, and License Plate Number (LPN) Parameters ............................................................2-14 ATP, Pick, Item-Sourcing Parameters...........................................................................................................2-15 Interorganization Parameters.........................................................................................................................2-16 Other Account Parameters.............................................................................................................................2-17

Warehouse Management Parameters.............................................................................................................2-18 Guided Demonstration - Setting Up Organizations...................................................................................2-19 What is a Subinventory?................................................................................................................................2-24 What is a Subinventory (Cont) ......................................................................................................................2-25 Defining Subinventories................................................................................................................................2-26

Guided Demonstration - Defining Subinventories.....................................................................................2-27 Practice - Creating Subinventories ............................................................................................................2-28 Solution - Creating Subinventories............................................................................................................2-29

Locator Control .............................................................................................................................................2-35 Dynamic and Static Locators.........................................................................................................................2-36 Subinventory-Locator Relationship...............................................................................................................2-37 Locator Flexfield Structure............................................................................................................................2-38

Guided Demonstration - Defining Locators ..............................................................................................2-39 Practice - Defining Locators......................................................................................................................2-40 Solution – Setting Up Locator Control ......................................................................................................2-41

Interorganization Shipping Networks............................................................................................................2-43 Shipping Method ...........................................................................................................................................2-45 Additional Set Up Steps ................................................................................................................................2-46 Additional Organizational Setups..................................................................................................................2-47 Copying Inventory Organizations..................................................................................................................2-48 Organization Hierarchy .................................................................................................................................2-50 Organization Reports.....................................................................................................................................2-52 Organization Reports (Cont)..........................................................................................................................2-53


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Profile Options...............................................................................................................................................2-54 Implementation Considerations.....................................................................................................................2-55 Implementation Considerations (Cont)..........................................................................................................2-56 Summary........................................................................................................................................................2-61

Units of Measure..............................................................................................................................................3-1 R12 Units of Measure....................................................................................................................................3-3 Objectives......................................................................................................................................................3-4

Units of Measure ...........................................................................................................................................3-5 Uses of Units of Measure ..............................................................................................................................3-6 Unit of Measure Class ...................................................................................................................................3-7

Guided Demonstration - Creating Units of Measure .................................................................................3-8 Guided Demonstration - Creating Unit of Measure Classes ......................................................................3-9

Unit of Measure Conversions ........................................................................................................................3-10 Guided Demonstration - Defining Unit of Measure Conversions..............................................................3-11

Lot-Level Unit of Measure Conversions .......................................................................................................3-12 Units of Measure Setup .................................................................................................................................3-13

Practice - Defining Units of Measure ........................................................................................................3-14 Solution – Defining Units of Measure.......................................................................................................3-16

Unit of Measure Reports................................................................................................................................3-20 Profile Options...............................................................................................................................................3-21 Organization Parameter Setup .......................................................................................................................3-22 Implementation Considerations.....................................................................................................................3-23 Summary........................................................................................................................................................3-24

Defining and Maintaining Items.....................................................................................................................4-1 R12 Defining and Maintaining Items Fundamentals.....................................................................................4-3 Objective........................................................................................................................................................4-4 What is an Item?............................................................................................................................................4-5 Steps to Setup, Define, and Maintain Items...................................................................................................4-6 Defining Items...............................................................................................................................................4-7

Guided Demonstration - Define Item ........................................................................................................4-9 Item Master Organization..............................................................................................................................4-10 Item Master....................................................................................................................................................4-12 Item Attributes...............................................................................................................................................4-13

Item Attribute Groups....................................................................................................................................4-14 Guided Demonstration - Viewing Item Attributes.....................................................................................4-15 Item Status.....................................................................................................................................................4-16 Unit of Measure Attributes............................................................................................................................4-17 Item Statuses and Attributes..........................................................................................................................4-19 Status Attributes and Functionality ...............................................................................................................4-20 Status Attribute Interdependencies................................................................................................................4-23 Item Attribute Relationships..........................................................................................................................4-26

Practice - Viewing Item Attributes ............................................................................................................4-27 Solution – Viewing Item Attributes...........................................................................................................4-28

Item Templates ..............................................................................................................................................4-36 Creating Item Templates ...............................................................................................................................4-37 Enabling Attributes in a Template.................................................................................................................4-38

Guided Demonstration - Creating Item Templates....................................................................................4-39 Organization Assignment and Organization Items........................................................................................4-40 Control Levels ...............................................................................................................................................4-41 Revision Control............................................................................................................................................4-43

Defining Items ...........................................................................................................................................4-45 Solution - Defining Items ..........................................................................................................................4-46

Restricting Items to Subinventories...............................................................................................................4-59 Guided Demonstration - Restricting Items to Subinventories ...................................................................4-60

Item Relationships.........................................................................................................................................4-61 Guided Demonstration -Establishing Item Relationships..........................................................................4-62


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Categories and Category Sets ........................................................................................................................4-63 Assigning Items to Categories.......................................................................................................................4-64

Practice - Defining Categories...................................................................................................................4-65 Solution – Defining Categories..................................................................................................................4-66

Item Catalogs.................................................................................................................................................4-70 Guided Demonstration - Setting up Catalog Groups .................................................................................4-71

Deletion Constraints and Deletion Groups ....................................................................................................4-74 Deletion Constraints ......................................................................................................................................4-75 Deletion Constraints (Cont)...........................................................................................................................4-76 Item Reports ..................................................................................................................................................4-77 Item Reports (Cont).......................................................................................................................................4-78 Profile Options...............................................................................................................................................4-80 Profile Options (Cont) ...................................................................................................................................4-81 Implementation Considerations.....................................................................................................................4-86 Implementation Considerations (Cont)..........................................................................................................4-87 Summary........................................................................................................................................................4-88

Lot and Serial Control ....................................................................................................................................5-1 R12 Lot and Serial Control............................................................................................................................5-3 Objective........................................................................................................................................................5-4 Lot Control Overview....................................................................................................................................5-5 Child Lots ......................................................................................................................................................5-6 Setting up Lot Control (Organization Parameters) .......................................................................................5-7

Guided Demonstration - Setting Up Organizations...................................................................................5-8 Lot Number Uniqueness................................................................................................................................5-12 Setting up Lot Control (Item Attributes) ......................................................................................................5-13 Managing Lots...............................................................................................................................................5-15 Expired Lots ..................................................................................................................................................5-16 Disabled Lots.................................................................................................................................................5-17

Guided Demonstration - Generating Lots..................................................................................................5-18 Guided Demonstration - Maintaining Grades............................................................................................5-21 Guided Demonstration - Maintaining Lot Actions ....................................................................................5-23 Practice - Using the Lot Master .................................................................................................................5-24 Solution – Using the Lot Master................................................................................................................5-25

Lot Number Purging......................................................................................................................................5-32 Cycle Counts Under Lot Control...................................................................................................................5-33 Physical Inventory Under Lot Control...........................................................................................................5-34

Guided Demonstration - Revision, Lot, and Serial Controls .....................................................................5-35 Serial Number Overview...............................................................................................................................5-38 Generating Serial Numbers............................................................................................................................5-39 Serial Uniqueness ..........................................................................................................................................5-40 Maintaining Serial Numbers..........................................................................................................................5-42

Practice - Generating and Maintaining Serial Numbers ............................................................................5-43 Solution –Generating and Maintaining Serial Numbers............................................................................5-44

Lot Genealogy ...............................................................................................................................................5-49 Guided Demonstration - Viewing Lot Genealogy.....................................................................................5-50

Serial Genealogy ...........................................................................................................................................5-51 Lot and Serial Reports ...................................................................................................................................5-52

Lot and Serial Reports (Cont)........................................................................................................................5-53 Profile Options...............................................................................................................................................5-55 Profile Options (Cont) ...................................................................................................................................5-56 Implementation Considerations.....................................................................................................................5-57 Implementation Considerations (Cont)..........................................................................................................5-58 Summary........................................................................................................................................................5-59

Transaction Setup............................................................................................................................................6-1 R12 Transaction Setup...................................................................................................................................6-3 Objectives......................................................................................................................................................6-4


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Overview .......................................................................................................................................................6-5 Inventory Transactions ..................................................................................................................................6-6 Move Orders..................................................................................................................................................6-7 Transaction Source Types..............................................................................................................................6-8 Transaction Action ........................................................................................................................................6-10 Transaction Reasons......................................................................................................................................6-12 Transaction Types..........................................................................................................................................6-13

Guided Demonstration - Creating Customized Transactions.....................................................................6-14 Predefined Transaction Types .......................................................................................................................6-16 Transaction Managers....................................................................................................................................6-17 Running Transaction Managers.....................................................................................................................6-18 Creating Picking Rules ..................................................................................................................................6-20

Guided Demonstration - Creating Picking Rules.......................................................................................6-22 Account Aliases.............................................................................................................................................6-23 Accounting Periods........................................................................................................................................6-24

Guided Demonstration - Opening Accounting Periods .............................................................................6-25 Material Shortage Alerts and Notifications ...................................................................................................6-26 Setting Up Shortage Alerts and Notifications................................................................................................6-28 Setting Up for Move Orders ..........................................................................................................................6-29 Setup Steps for Move Orders.........................................................................................................................6-31 Profile Options...............................................................................................................................................6-33

Profile Options (Cont) ...................................................................................................................................6-34 Implementation Considerations for Shortage Checks....................................................................................6-39 Implementation Considerations for Move Orders ........................................................................................6-40 Summary........................................................................................................................................................6-41

Issuing and Transferring Material.................................................................................................................7-1 R12 Issue and Transfer Material....................................................................................................................7-3 Module Objectives.........................................................................................................................................7-4 Overview of Inventory Transactions .............................................................................................................7-5 Inventory Transactions ..................................................................................................................................7-6 Inventory Transactions Without Documents and Requisitions......................................................................7-7 Inventory Transactions with Documents and Requisitions............................................................................7-8 Control Options and Restrictions...................................................................................................................7-9 Miscellaneous Transactions...........................................................................................................................7-10

Practice - Processing Miscellaneous Receipts ...........................................................................................7-12 Solution – Processing Miscellaneous Receipts..........................................................................................7-13

Subinventory Transfer ...................................................................................................................................7-24 Guided Demonstration - Performing Subinventory Transfers...................................................................7-25 Practice - Processing Subinventory Transfers ...........................................................................................7-26 Solution – Processing Subinventory Transfers..........................................................................................7-27

Inter-Organization Direct Shipment ..............................................................................................................7-31 Inter-organization Intransit Shipment............................................................................................................7-32

Guided Demonstration - Performing Interorganization Transfers .............................................................7-34 Practice - Performing Interorganization Transfers.....................................................................................7-35 Solution – Performing Interorganization Transfers ...................................................................................7-36

Managing Receipts ........................................................................................................................................7-41 Express Receipts and Receiving Transactions...............................................................................................7-43

Direct Receipts ..............................................................................................................................................7-44 Standard Receipt............................................................................................................................................7-45 Inspection Receipt .........................................................................................................................................7-46

Guided Demonstration - Receiving Stock into Inventory..........................................................................7-47 Practice - Receiving Material into Inventory.............................................................................................7-49 Solution – Receiving Material into Stock..................................................................................................7-50

Move Orders..................................................................................................................................................7-57 Move Orders Process Flow............................................................................................................................7-58 Move Order Requisition Approval Process ...................................................................................................7-59


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Benefits of Managed Material Flow in a Facility..........................................................................................7-61 Move Order Source Types.............................................................................................................................7-63 Move Order Components ..............................................................................................................................7-65 Generate Move Orders...................................................................................................................................7-67 Move Order Allocating..................................................................................................................................7-69 Item Allocation..............................................................................................................................................7-71 Transact Move Orders ...................................................................................................................................7-72

Practice - Transacting Move Orders ..........................................................................................................7-73 Solution – Transacting Move Orders.........................................................................................................7-74 Guided Demonstration - Defining Subinventories.....................................................................................7-80

Mobile Transactions ......................................................................................................................................7-81 Guided Demonstration - Mobile Application Interorganization Transfers................................................7-83 Practice - Performing Mobile Transactions ...............................................................................................7-84 Solution – Mobile Transactions.................................................................................................................7-85

Managing Shipments .....................................................................................................................................7-90 Transactions Reports .....................................................................................................................................7-91 Transactions Reports (Cont) ..........................................................................................................................7-92 Summary........................................................................................................................................................7-96

On-hand and Availability................................................................................................................................8-1 R12 On-hand and Availability.......................................................................................................................8-3 Objectives......................................................................................................................................................8-4 Overview of On-hand Quantity .....................................................................................................................8-5 Overview of Reservations..............................................................................................................................8-6 Overview of Availability...............................................................................................................................8-7 Reservation Versus Allocation ......................................................................................................................8-8 Material Workbench......................................................................................................................................8-9 Display Options .............................................................................................................................................8-10 Viewing Available Items...............................................................................................................................8-12 Material Workbench Transactions.................................................................................................................8-13

Guided Demonstration - Using the Material Workbench ..........................................................................8-14 Practice - Using the Material Workbench..................................................................................................8-15 Solution – Using the Material Workbench ................................................................................................8-16

Available to Promise .....................................................................................................................................8-20 What are Supply and Demand? .....................................................................................................................8-21 Uses of ATP in Oracle Inventory ..................................................................................................................8-22 ATP Rules Setup Steps..................................................................................................................................8-23 Defining Computation Options......................................................................................................................8-24 Specifying Supply and Demand Time Fences...............................................................................................8-26 Specifying Demand Sources..........................................................................................................................8-30 Specifying Supply Sources............................................................................................................................8-32 Setting Up Item and Bills for ATP Checking ................................................................................................8-33 ATP Checking ...............................................................................................................................................8-34

Guided Demonstration - Creating an ATP Rule ........................................................................................8-35 Reservation Types .........................................................................................................................................8-36 Supply Types.................................................................................................................................................8-37 Demand Types...............................................................................................................................................8-38 Reserving Material ........................................................................................................................................8-39

Reservation Management- Transfer Supply ..................................................................................................8-41 Reservation Management- Transfer Demand................................................................................................8-42

Guided Demonstration - Creating Reservations ........................................................................................8-43 Practice - Creating Reservations................................................................................................................8-45 Solution – Creating Reservations ..............................................................................................................8-46

On-hand and Availability Reports .................................................................................................................8-48 Profile Options...............................................................................................................................................8-49 Profile Options (Cont) ...................................................................................................................................8-50 Implementation Considerations.....................................................................................................................8-51


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Summary........................................................................................................................................................8-52

Material Status Control ..................................................................................................................................9-1 R12 Material Status .......................................................................................................................................9-3 Objectives......................................................................................................................................................9-4 Material Status...............................................................................................................................................9-5 Material Status Control Levels ......................................................................................................................9-6 Material Status Transactions..........................................................................................................................9-7

Cumulative Effective Status ..........................................................................................................................9-8 Material Status Examples ..............................................................................................................................9-9 Setting Up......................................................................................................................................................9-10 Defining Item Material Status Control ..........................................................................................................9-11 Assigning Material Status Control to Subinventories and Locators ..............................................................9-12 Assigning Planning Statuses..........................................................................................................................9-13 Disabling Material Statuses ...........................................................................................................................9-14

Practice - Setting up Material Status Control ............................................................................................9-15 Solution – Setting up Material Status Control ...........................................................................................9-16

Material Status Reports .................................................................................................................................9-24 Profile Option ................................................................................................................................................9-25 Implementation Considerations.....................................................................................................................9-26 Summary........................................................................................................................................................9-27

Inventory Replenishment................................................................................................................................10-1 R12 Replenishment Fundamentals ...............................................................................................................10-3 Objectives......................................................................................................................................................10-4 Overview of Inventory Planning ...................................................................................................................10-5 Order Planning...............................................................................................................................................10-6 How Much to Order.......................................................................................................................................10-7 Replenishment Process for Intra-Org Supply Sources...................................................................................10-8 Replenishment Process for Supplier Supply Sources ....................................................................................10-9 Replenishment Process for Inter-Org Supply Sources...................................................................................10-10 Replenishment Process for Product Supply Sources .....................................................................................10-11 Replenishment Methods ................................................................................................................................10-12 Overview of Inventory Forecasting...............................................................................................................10-13 Forecast Types...............................................................................................................................................10-15

Forecast Setup and Maintenance ...................................................................................................................10-16 Guided Demonstration - Creating a Manual Forecast ...............................................................................10-17 Oracle Inventory Replenishment Methods ....................................................................................................10-19 Replenishment Methods Levels.....................................................................................................................10-20 Safety Stock...................................................................................................................................................10-21 Economic Order Quantity..............................................................................................................................10-22 Overview of Reorder-Point Planning ............................................................................................................10-23 Uses of Reorder-Point Planning ....................................................................................................................10-24 Reorder-Point Planning Steps........................................................................................................................10-25 Performing Reorder-Point Planning ..............................................................................................................10-26

Guided Demonstration - Setting up Reorder Point Planning.....................................................................10-28 Overview of Min-Max Planning....................................................................................................................10-30 Uses of Min-Max Planning............................................................................................................................10-31 Min-Max Planning.........................................................................................................................................10-32 Min-Max Planning: How Much to Order? ....................................................................................................10-33 Min-Max Planning Steps ...............................................................................................................................10-34 Item Planning Attributes................................................................................................................................10-35 Min-Max Planning Setup Procedure..............................................................................................................10-36 Selecting a Planning Level ............................................................................................................................10-37 Entering Planning Attributes .........................................................................................................................10-38 Submitting the Min-Max Planning Requests.................................................................................................10-39

Guided Demonstration - Setting up Min-Max Planning ............................................................................10-41 Practice - Performing Min-Max Planning..................................................................................................10-43


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Solution – Performing Min-max Planning.................................................................................................10-44 Overview of Replenishment Counting ..........................................................................................................10-50 Uses of Replenishment Counting ..................................................................................................................10-51 Replenishment Planning Steps ......................................................................................................................10-52 Subinventories Window ................................................................................................................................10-54 Item Subinventories Window ........................................................................................................................10-55 Item Subinventories: Order Modifier Tab .....................................................................................................10-56 Replenishment Count Headers ......................................................................................................................10-57 Replenishment Count Lines...........................................................................................................................10-58 Processing Replenishment Counts.................................................................................................................10-60 Mobile Replenishment Count Overview .......................................................................................................10-62

Practice - Performing a Replenishment Count Using Forms.....................................................................10-63 Solution - Performing a Replenishment Count Using Forms ....................................................................10-65 Practice - Performing a Replenishment Count Using the Mobile Application..........................................10-72 Solution - Performing a Replenishment Count Using the Mobile Application .........................................10-74

Overview of PAR Counting...........................................................................................................................10-82 Processing PAR Counts.................................................................................................................................10-83 Reorder Quantity for PAR Count ..................................................................................................................10-84 Overview of Kanban Replenishment.............................................................................................................10-86 Kanban Cards ................................................................................................................................................10-88 Kanban Planned Items...................................................................................................................................10-89

Kanban Cards ................................................................................................................................................10-91 Kanban Supply Status....................................................................................................................................10-93 Kanban Replenishment Sources ....................................................................................................................10-94 Kanban Card Printing....................................................................................................................................10-95

Guided Demonstration - Performing Kanban Replenishment ...................................................................10-96 Practice - Performing Kanban Replenishment...........................................................................................10-97 Solution – Performing Kanban Replenishment .........................................................................................10-98

Planning and Replenishment Reports............................................................................................................10-101 Planning and Replenishment Reports (Cont).................................................................................................10-102 Profile Options...............................................................................................................................................10-103 Profile Options (Cont) ...................................................................................................................................10-104 Implementation Considerations.....................................................................................................................10-105 Implementation Considerations (Cont)..........................................................................................................10-108

Summary........................................................................................................................................................10-109 Inventory Accuracy .........................................................................................................................................11-1

R12 Inventory Accuracy Fundamentals ........................................................................................................11-3 Objectives......................................................................................................................................................11-4 Overview of Inventory Accuracy ..................................................................................................................11-5 ABC Analysis Overview ...............................................................................................................................11-6 Defining an ABC Analysis ............................................................................................................................11-7 Define and Run an ABC Compilation...........................................................................................................11-8 ABC Compilation Criteria.............................................................................................................................11-9 ABC Valuation Scope ...................................................................................................................................11-11 Defining ABC Groups ...................................................................................................................................11-12 Defining ABC Classes...................................................................................................................................11-13 ABC Item Assignments.................................................................................................................................11-14

Guided Demonstration - Compiling an ABC Analysis..............................................................................11-16 Practice - Compiling an ABC Analysis .....................................................................................................11-18 Solution – Compiling an ABC Analysis....................................................................................................11-20

Cycle Counting Overview .............................................................................................................................11-26 Defining and Maintaining a Cycle Count ......................................................................................................11-27 Cycle Count Approval Tolerance ..................................................................................................................11-28 Approval Tolerances......................................................................................................................................11-29 Hit/Miss Tolerance ........................................................................................................................................11-31 Measurement Errors ......................................................................................................................................11-32


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Cycle Count Items .........................................................................................................................................11-33 Automatic Scheduling ...................................................................................................................................11-35 Manual Scheduling........................................................................................................................................11-36 Count Requests..............................................................................................................................................11-37 Entering Cycle Counts...................................................................................................................................11-39 Cycle Count Open Interface ..........................................................................................................................11-40 Count Adjustments and Approvals................................................................................................................11-41 Automatic Recounts ......................................................................................................................................11-42 Approving Cycle Counts and Adjustments ...................................................................................................11-43

Guided Demonstration - Performing a Cycle Count..................................................................................11-45 Practice - Performing a Cycle Count .........................................................................................................11-48 Solution – Performing a Cycle Count........................................................................................................11-50

Mobile Inventory Accuracy Overview ..........................................................................................................11-60 Practice - Mobile Counting........................................................................................................................11-61 Solution – Mobile Counting ......................................................................................................................11-62

Physical Inventory Overview ........................................................................................................................11-67 Why Perform Physical Inventories? ..............................................................................................................11-68 Defining Physical Inventories........................................................................................................................11-69 Physical Inventory Tags ................................................................................................................................11-70 Inventory Snapshots ......................................................................................................................................11-72 Entering Physical Inventory Counts ..............................................................................................................11-74

Voiding Tags .................................................................................................................................................11-76 Approval Tolerances......................................................................................................................................11-77 Physical Inventory Adjustments....................................................................................................................11-78 Accuracy Reports ..........................................................................................................................................11-79 Accuracy Reports (Cont) ...............................................................................................................................11-80 Profile Options...............................................................................................................................................11-85 Implementation Considerations.....................................................................................................................11-86 Implementation Considerations (Cont)..........................................................................................................11-87 Summary........................................................................................................................................................11-89

Table Information............................................................................................................................................12-1 R12 Table Information ..................................................................................................................................12-3 Objective........................................................................................................................................................12-4 Organization Tables.......................................................................................................................................12-5 Subinventories and Locator Tables................................................................................................................12-7 Item Master Tables ........................................................................................................................................12-9 Item Status Tables .........................................................................................................................................12-11 Item Categories Tables ..................................................................................................................................12-13 Item Reservation Tables ................................................................................................................................12-15 Inventory Transaction Tables ........................................................................................................................12-17

Guided Demonstration - Accessing eTRM................................................................................................12-19 Summary........................................................................................................................................................12-20


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Preface

Profile

Before You Begin This Course

• Working experience with Oracle Applications

Prerequisites

• There are no prerequisites for this course.

How This Course Is Organized

R12 Oracle Inventory Management Fundamentals is an instructor-led course featuring lectureand hands-on exercises. Online demonstrations and written practice sessions reinforce the

concepts and skills introduced.


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Related Publications

Oracle Publications

Title Part Number

Oracle Inventory User’s Guide B31547-02

Additional Publications

• System release bulletins

• Installation and user’s guides

• Read-me files

• International Oracle User’s Group (IOUG) articles

• Oracle Magazine


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Typographic Conventions

Typographic Conventions in Text

Convention Element Example

Bold italic Glossary term (ifthere is a glossary)

The algorithm inserts the new key.

Caps and

lowercase

Buttons,

check boxes,

triggers,

windows

Click the Executable button.

Select the Can’t Delete Card check box.

Assign a When-Validate-Item trigger to the ORD block.

Open the Master Schedule window.

Courier new,

case sensitive

(default is

lowercase)

Code output,

directory names,

filenames,

passwords,

pathnames,

URLs,

user input,usernames

Code output: debug.set (‘I”, 300);

Directory: bin (DOS), $FMHOME (UNIX)

Filename: Locate the init.ora file.

Password: User tiger as your password.

Pathname: Open c:\my_docs\projects

URL: Go to http://www.oracle.com

User input: Enter 300

Username: Log on as scott

Initial cap Graphics labels

(unless the term is a

proper noun)

Customer address (but Oracle Payables)

Italic Emphasized words

and phrases,

titles of books and

courses,

variables

Do not save changes to the database.

For further information, see Oracle7 Server SQL Language

Reference Manual.

Enter [email protected], where user_id is the

name of the user.

Quotation

marks

Interface elements

with long namesthat have only

initial caps;

lesson and chapter

titles in cross-

references

Select “Include a reusable module component” and click Finish.

This subject is covered in Unit II, Lesson 3, “Working with

Objects.”

Uppercase SQL column

names, commands,

functions, schemas,

table names

Use the SELECT command to view information stored in the

LAST_NAME

column of the EMP table.

Arrow Menu paths Select File > Save.Brackets Key names Press [Enter].

Commas Key sequences Press and release keys one at a time:[Alternate], [F], [D]

Plus signs Key combinations Press and hold these keys simultaneously: [Ctrl]+[Alt]+[Del]


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Typographic Conventions in Code

Convention Element Example

Caps and

lowercase

Oracle Forms

triggers

When-Validate-Item

Lowercase Column names,

table names

SELECT last_nameFROM s_emp;

Passwords DROP USER scottIDENTIFIED BY tiger;

PL/SQL objects OG_ACTIVATE_LAYER(OG_GET_LAYER (‘prod_pie_layer’))

Lowercase

italic

Syntax variables CREATE ROLE role

Uppercase SQL commands and

functions

SELECT useridFROM emp;

Typographic Conventions in Oracle Application Navigation Paths

This course uses simplified navigation paths, such as the following example, to direct you

through Oracle Applications.

(N) Invoice > Entry > Invoice Batches Summary (M) Query > Find (B) Approve

This simplified path translates to the following:

1. (N) From the Navigator window, select Invoice then Entry then Invoice Batches

Summary.

2. (M) From the menu, select Query then Find.

3. (B) Click the Approve button.

Notations:

(N) = Navigator

(M) = Menu

(T) = Tab

(B) = Button

(I) = Icon

(H) = Hyperlink

(ST) = Sub Tab


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Typographical Conventions in Oracle Application Help System Paths

This course uses a “navigation path” convention to represent actions you perform to find

pertinent information in the Oracle Applications Help System.

The following help navigation path, for example—

(Help) General Ledger > Journals > Enter Journals

—represents the following sequence of actions:

1. In the navigation frame of the help system window, expand the General Ledger entry.

2. Under the General Ledger entry, expand Journals.

3. Under Journals, select Enter Journals.

4. Review the Enter Journals topic that appears in the document frame of the help system

window.


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R12 Oracle Inventory Management Fundamentals Table of Contentsxiv


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Overview of Oracle InventoryChapter 1 - Page 1

Overview of Oracle Inventory

Chapter 1


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R12 Overview of Oracle Inventory


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Objectives


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Overview

Overview

Oracle Inventory treats many different types of things as inventory. Inventory can be:

• Finished goods that you sell to customers

• Services that you sell to customers

• Spare parts for maintenance

• Raw materials for manufacturing processes

• Inventory you purchase from a supplier on consignment


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Inventory Capabilities


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Inventory Capabilities (Cont)


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Receipt to Issue Life Cycle

Receipt to Issue

Oracle Inventory uses the receipt to issue process to manage your inventory. When inventory

arrives in your warehouse you receive it. After you receive inventory, you can transfer it

within your organization or to another organization. Finally, you can issue material out of

Oracle Inventory.


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Receiving Inventory

Receiving Inventory

There are different ways you can receive material into your organization.

Purchasing

You can use Oracle Purchasing to receive material from outside of your organization. You can

receive:

• Purchase order receipts

• Internal requisitions

• In-transit receipts

• Return material authorizations

• Unexpected receipts

Work in Process

You can use Oracle Work in Process to receive material from the manufacturing floor. You can

receive:

• Component returns

• Negative component issues


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• Assembly returns

Inventory

You can use Oracle Inventory to receive material in to your warehouse. You can receive:

• Miscellaneous account receipts

• Receipt from projects

• User-defined receipts• Interorganization transfers


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Receiving Inventory


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Transferring Inventory

Transferring Inventory

Different applications can generate requests to transfer inventory.

Shipping

You can use Oracle Shipping Execution to generate a transfer to move material from a storage

area to a staging to for shipping.

Order Management

You can use Oracle Order Management to generate a transfer to move material from a storage

area to a staging area for shipping.

Work in Process

You can use Oracle Work in Process to generate a transfer to acquire components for a project.Inventory

You can use Oracle Inventory to:

• Transfer material between organizations

• Transfer material within an organization

• Replenish materials


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• Request transfers


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Issuing Inventory

Issuing Inventory

You can use the following applications to issue material:

Order Management

Oracle Order Management can generate an inventory issue through:

• Sales orders

• Internal orders

Purchasing

Oracle Purchasing can generate an inventory issue for:

• Return to vendor materials

Work in Process

Oracle Work in Process can generate an inventory issue through:

• Component issues

• Assembly returns

Inventory

Oracle Inventory can issue stock through:


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• User-defined material issues

• Interorganization transfers

• Cycle count negative issue

• Issue requests


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Oracle Inventory Application Integration

Integration of Oracle Inventory to Manufacturing Applications

Oracle Inventory interacts with the following applications:

• Oracle Cost Management receives cost information and transaction rates from Oracle

Inventory. Oracle Inventory integrates to Oracle General ledger via Oracle Cost

Management

• Oracle Work in Process provides work in process (WIP) activity and available to promise

(ATP) supply information to Oracle Inventory and receives item and on-hand quantity

information from Oracle Inventory.

• Oracle Advanced Supply Chain Planning and Oracle Global Order Promising provideATP supply information and receive on-hand quantity and forecast information from

Oracle Inventory.

• Oracle Bill of Materials receives item information from Oracle Inventory.

• Oracle Engineering provides engineering item information and receives item informationfrom Oracle Inventory.

• Oracle Order Management provides shipping, reservations, and demand information and

receives item, ATP, and on-hand quantity information from Oracle Inventory.


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• Oracle Purchasing provides receipt, delivery, ATP supply, and planning supply

information and receives item requisition, and interorganization shipment informationfrom Oracle Inventory.


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Integration of Oracle Inventory to Financial Applications

Integration of Oracle Inventory to Financial Applications

• Oracle General Ledger provides ledger and currency exchange rates and receives

transaction accounting summary detail via Oracle Cost Management.

• Oracle Payables receives Item information from Oracle Inventory.

• Oracle Receivables provides intercompany invoice information and receives iteminformation from Oracle Inventory.

• Oracle Assets receives item information from Oracle Inventory.


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Summary


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Inventory StructureChapter 2 - Page 1

Inventory Structure

Chapter 2


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R12 Defining Inventory Organizations


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Objective


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Inventory Organizations

Inventory Organizations

An inventory organization is a facility where you store and transact items. Before you can use

Oracle Inventory, you must define one or more inventory organizations. Inventory

organizations represent distinct entities in your enterprise and can be one of the following:

• A physical entity such as a manufacturing facility, warehouse, or distribution center.

• A logical entity such as an item master organization, which you use to define items.

An inventory organization may have the following attributes:

• An inventory organization can have its own location, ledger, costing method, workday

calendar, and items.

• An inventory organization can share one or more of these characteristics with otherorganizations.


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Inventory Organization Structure

Inventory Organization Structure

An inventory organization, where you store and transact items can have one or more

subinventories. Subinventories are unique physical or logical separations of material inventory,

such as raw material inventory, finished goods inventory, or defective goods inventory. In

Oracle Inventory, all material within an organization is held in a subinventory. You mustdefine at least one subinventory for every organization. You can track item quantities by

subinventory as well as restrict items to specific subinventories.

The subinventories in an inventory organization may be made up of one or more locators. Youuse locators to identify physical areas where you store inventory items. You can track items by

locator and restrict items to a specific locator. Locator control is optional in Oracle Inventory.


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Sample Inventory Organization


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Multi-Organization Structure

Multi-Organization Structure

Multi-Organization structure enables you to model multiple business units in an enterprise

using a single installation of Oracle applications. In a multi-organization architecture you can

keep data secure and separate from each business unit.

The following are the benefits of multi-organization structure:

• You can use a single installation of any Oracle Applications product to support any

number of business units, even if those business units use a different ledger.

• Secure access to data so users can access only relevant information.

• You can define a organizational model that best suits your business requirements.

• In Inventory, you can fulfill any Sales Order or Purchase Order regardless of them being booked from any Inventory organization. You can also determine if any inter