Physical Inventory PDF
Physical Inventory PDF
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 reports.
EXECUTIVE OVERVIEW
Physical inventory integrates with Oracle Cost Management and Oracle General
Ledger. If there is a quantity discrepancy for items, Inventory derives the item costs
from Cost management and posts the inventory value changes to General Ledger.
Item Costs
Physical Inventory
Quantity Changes
Enter Counts
Post Adjustments
a.
Enter Tolerances
Specify Scope
c.
Technical Notes:
When physical Inventory definition is saved the following tablecolumn values are
inserted / updated
Tables
MTL_PHYSICAL_INVENTORIES
MTL_PHYSICAL_SUBINVENTORIES
Nil
Nil
Name: Define Physical Inventory
Short Name: INVADPPI
To run the snapshot navigation is Inventory -> Counting -> Physical Inventory ->
Define Physical Inventory -> Choose the Snapshot button
Snapshot must be completed before generating the tags. After taking the snapshot,
system will no longer allow to update header information of the physical inventory.
The snapshot saves all item onhand quantities and costs and uses this information as
the basis for all physical inventory adjustments rather than the current on-hand
quantity. System allows 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 is finished, the snapshot complete box is checked,
the snapshot date is updated and the Tags button is enabled in the define physical
inventory window.
Technical Notes:
When
snapshot is finished the following tablecolumn values are inserted / updated
Tables
MTL_PHYSICAL_INVENTORIES
FREEZE_DATE
( MPI )
NUMBER_OF_SKUS : Number of
SKUs are calculated and updated .
MTL_PHYSICAL_SUBINVENTORIES
Nil
MTL_PHYSICAL_INVENTORY_TAGS
Nil
MTL_PHYSICAL_ADJUSTMENTS
( MPA )
PHYSICAL_INVENTORY_ID
ORGANIZATION_ID
SUBINVENTORY_NAME
INVENTORY_ITEM_ID
SYSTEM_QUANTITY
ADJUSTMENT_QUANTITY will be
set as ve of SYSTEM_QUANTITY
ACTUAL_COST
REVISION LOCATOR_ID
LOT_NUMBER
LOT_EXPIRATION_DATE
SERIAL_NUMBER
Physical inventory tags are used to record the count of inventory items. Tags are
referred by its alphanumeric identification code. Oracle Inventory can automatically
generate tag numbers that can be used to enter inventory counts. Tags can be
generated only after snapshot is completed. The system also supports using numbers
generated outside the Oracle Inventory. There should be only one item on a tag but
multiple tags can refer to the same item .
Physical Inventory can be performed for items under serial control. If default tags
are generated, system generates one tag per item per serial number.
Dynamic Tag Entry : Determines whether manually created tags can be entered or
not . If the option is not to allow dynamic tag entry, all tags must be generated
before the use. Dynamic Tag Entry is allowed when tag numbers are generated
outside the system. For example when using third-party pre-numbered tags.
Blank Tags: Do not contain any information about the items in physical inventory
definition. Blank tags can be generated to enter counts for those items whose
locations are not currently recorded in the system.
To generate the tags navigation is Inventory -> Counting -> Physical Inventory ->
Tags Generation -> Choose Generate button
a.
c.
d. Enter the starting tag number for example - 0001 and say user wants the
increment to be 5, then for the increment enter 1115. The increment field
should have the number of digits the starting tag has and it should have 1's
preceding what the actual increment value would be. Tag numbers may be
alphanumeric, but increment will be done only for the numeric portion.
e.
Choose the Generate button to create the tag numbers and information. Note
that this process does not physically print the tags. To print the tags, user
need to run the Physical Inventory Tags report using the navigation
Inventory -> Reports -> ABC and Counting -> Run Physical Inventory Tags
report
Technical Notes:
When
tags are generated the following tablecolumn values are inserted / updated
Tables
MTL_PHYSICAL_INVENTORIES
the
MTL_PHYSICAL_SUBINVENTORIES
Nil
MTL_PHYSICAL_INVENTORY_TAGS
PHYSICAL_INVENTORY_ID
ORGANIZATION_ID
TAG_ID
VOID_FLAG is set to 2.
Possible values are 1-Void, 2- Active
TAG_NUMBER
ADJUSTMENT_ID
SUBINVENTORY
REVISION
LOCATOR_ID
LOT_NUMBER
LOT_EXPIRATION_DATE
SERIAL_NUMBER
MTL_PHYSICAL_ADJUSTMENTS
Nil
Form
Generates tag numbers based on the starting tag number & the increment
and insert the records in to table MTL_PHYSICAL_INVENTORY_TAGS
table
4. ENTER COUNTS
Generated tags are used to record the physical counts. After recording the physical
counts user must enter the quantity for each tag. To enter the Tag counts the
navigation is Inventory -> counts -> Physical Inventory -> Tag Counts.
Navigate to the Physical Inventory Tag Counts window. Enter name of the employee
that performed the physical inventory in the Default Counter field. This is used as a
default for the Counted by field of each tag.
If the default tags are used, the 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.
If blank tags are used in the physical inventory, user can query up the tags by tag
number. The system displays the tags but no item information. Need to enter the
count quantity as well as the item information i.e. item name, subinventory, locator,
revision, lot and serial numbers.
If dynamic tags are allowed in physical inventory definition user can enter tag
numbers generated outside the system. User needs to enter the count quantity as well
as the item information.
Void Tags: If any of the tags are not used, they have to be voided, as this is necessary
for auditing purpose. A voided tag is not reported as a missing in the Physical
inventory Missing Tag Listing report. Tags can be voided if they are lost, damaged or
discarded before the approval or before the adjustment process. If a default tag is
voided Oracle Inventory adjusts the quantity in that location to zero.
Technical Notes:
After entering the counts and save the following tablecolumn values are inserted /
updated
Tables
MTL_PHYSICAL_INVENTORIES
Nil
MTL_PHYSICAL_SUBINVENTORIES
Nil
MTL_PHYSICAL_INVENTORY_TAGS
COST_GROUP_ID
MTL_PHYSICAL_ADJUSTMENTS
COUNT_QUANTITY
ADJUSTMENT_QUANTITY set as
equal to [(COUNT_QUANTITY)
(SYSTEM_QUANTITY)]
Form
Oracle Inventory supports two types of physical inventory approval tolerances i.e.
quantity tolerances and cost tolerances. For each type, it is allowed to specify a
positive and a negative limit. The adjustments that can be viewed from this window
are determined by the approval option selected while defining the physical inventory.
If a particular adjustment is approved, physical Inventory Adjustments program
adjusts inventory balance by that quantity. If an adjustment is rejected, Oracle
Inventory does not change the system onhand quantity.
Navigation to approve physical Inventory adjustments is Inventory -> Counting ->
Physical Inventory -> Approve Adjustments
a.
User must either approve or reject all adjustments of the physical inventory before
running adjustments program.
Technical Notes:
When physical Inventory records are approved the following tablecolumn values
are inserted / updated
Tables
MTL_PHYSICAL_INVENTORIES
Nil
MTL_PHYSICAL_SUBINVENTORIES
Nil
MTL_PHYSICAL_INVENTORY_TAGS
Nil
MTL_PHYSICAL_ADJUSTMENTS
APPROVAL_STATUS set to
1 if approved
2 if rejected
6. POST ADJUSTMENTS
After entering all the tag counts and approve the adjustments that need approval, user
can submit the process that posts the physical inventory adjustments. This will
automatically creates a material transaction, adjusting the item quantity and
debiting/crediting the adjustment account specified for the physical inventory. If the
count of an item matches with the snapshot system onhand quantity, there will be
no adjustment transaction posted.
Once the adjustment program is completed it does not allow new tag generation and
no longer will be able to make changes to the physical inventory. Oracle Inventory
will not post adjustments, if any adjustment is pending for approval.
User must approve or reject all the adjustments before running the adjustment
program. Adjustments can be previewed before actually posting them by running the
Physical inventory adjustments report. If the approval option for a particular physical
inventory is Never, Oracle Inventory does not at any time prevent from submitting
the adjustment process. For any tag that has no count entered, it assumes a count of
zero and performs adjustment transactions accordingly.
To run the adjustment program
a.
Choose Launch adjustments from the Tools menu. The Launch Adjustments
window appears.
Technical Notes:
When post adjustments program is run the following table-column values are
inserted / updated
Tables
MTL_PHYSICAL_INVENTORIES
MTL_PHYSICAL_SUBINVENTORIES
LAST_ADJUSTMENT_DATE
TOTAL_ADJUSTMENT_VALUE
Nil
MTL_PHYSICAL_INVENTORY_TAGS
Nil
MTL_PHYSICAL_ADJUSTMENTS
GL_ADJUST_ACCOUNT
APPROVAL_STATUS is set to
3 - Posted
(MPA)
MMTT / MMT
Gets period close id for adjustment date and check whether it is in open
period.
commit.
If the item is lot, serial controlled the records are also inserted into
MTL_TRANSACTION_LOT_NUMBERS
MTL_SERIAL_NUMBERS_TEMP and respectively
Purging physical inventory will delete definition from the database. Purge does not
affect any adjustments or adjustment transactions made using the physical Inventory.
Options to choose while purging are Tags only or All.
Tags Only: Purges all the tags associated with a physical inventory definition. If
irreversible mistakes are made in the count-entry phase, user can start over without
refreezing the inventory.
All: Purges the physical inventory definition, frozen quantities, tags and count
quantities.
Technical Notes:
When Purge program is run using Tags only option the following tablecolumn values
are inserted / updated / deleted
Tables
MTL_PHYSICAL_INVENTORIES
MTL_PHYSICAL_SUBINVENTORIES
Columns Updated/Inserted/Deleted
Resets the value of the fields
NEXT_TAG_NUMBER and
TAG_NUMBER_INCREMENTS to
Null
Nil
MTL_PHYSICAL_INVENTORY_TAGS
MTL_PHYSICAL_ADJUSTMENTS
When Purge program is run using All option the following tablecolumn values are
inserted / updated / deleted
Tables
MTL_PHYSICAL_INVENTORIES
MTL_PHYSICAL_SUBINVENTORIES
MTL_PHYSICAL_INVENTORY_TAGS
MTL_PHYSICAL_ADJUSTMENTS
Checks for adjustment record approval status 3 - Posted for purging the
records
If the purge type is All the records from the tables will purged in the
following order
MTL_PHYSICAL_ADJUSTMENTS
MTL_PHYSCIAL_SUBINVENTORIES
MTL_PHYSICAL_INVENTORY_TAGS
PACKAGES
REPORTS
The following reports will help during the process of performing physical inventory.
Run these reports using the navigation Inventory -> Reports -> ABC and Counting ->
Choose to run one of the following reports.
CONCLUSION
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