Oracle Inventory

Beginner’s Guide

Beginner’s Guide

Oracle Inventory

Thampy Mathew

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Beginner’s Guide

Foreword
These notes are compiled keeping in view of students just begin to learn Oracle
Applications. Even though there is nothing very complicated in Oracle Inventory, a
beginner finds it very confusing and complicated initially for some time. While attending
lectures, under the guidance of the faculty, the students do all the relevant exercises. But,
after the lecture hours when he/she is trying to do the same exercise all by
himself/herself, he/she will find that the steps are not remembered properly. The lecture
notes are not of much use because that is not written properly or there is no mention of
certain steps in the notes. This in turn leads the student to a kind of desperation. The
purpose of these notes is to save the students from the kind of desperation mentioned
above.

These notes are definitely not describing Oracle Inventory in detail. For an in depth
study, the students must go through the given Course Material, Help Files and PDF Files.
Any body will opt for an advanced study only when they understand the preliminaries.
The object of these notes is to make a student comfortable with the preliminaries.

In these notes wherever I have used the word ‘Choose’ you have to pick a value from an
available LOV by pressing the keys Ctrl + L. Similarly, wherever the word ‘Enter’ is
used you have to type the value in that field. If the students in general feel that the notes
are of some help while practicing at the initial stage, I will feel that my work borne fruit.

THAMPY MATHEW

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Contents
Page
1.0 Sequencing the implementation of Inventory 1

1.1 Define Flexfields 1

1.1.1 Item 1
1.1.2 Item Categories 1

1.1.2.1 Define Value sets 3

1.1.2.2 Define Flex Structure 3
1.1.2.3 Compile the Flex Structure 4
1.1.2.4 Enter Possible Values for Each Segment 4
1.1.2.5 Define Category Codes (Category Names) 5
1.1.2.6 Define Category Sets 5
1.1.2.7 Assign Items to Category Codes 6
1.1.2.8 List the Items Belonging to a Particular Category 6

1.1.3 Item Catalog Group 1

1.1.4 Stock Locators 1
1.1.5 Account Aliases 1
1.1.6 Sales Orders 1

1.2 Assign Default Category Sets 7

1.3 Define Workday Calendar 8
1.4 Define ATP Rules 10
1.5 Define Picking Rules 10
1.6 Define Locations 10
1.7 Define Organizations 11
1.8 Define Shipping Networks 14
1.9 Define Units Of Measures 15
1.10 Define Item Attribute Control Levels 16
1.11 Define Item Status Templates 18
1.12 Define User Item Types 19
1.13 Define User Item Type Templates 19
1.14 Define Asset Items and Assign to Organizations 19
1.15 Define Expense Items and Assign to Organizations 20
1.16 Define UOM Conversions 21
1.17 Define Item Revisions 23
1.18 Define Item Relationships 23
1.19 Create Item Catalog 24
1.20 Define Asset Subinventories and Assign Items 25
1.21 Define Expense Subinventories and Assign Items 26
1.22 Define Vehicle 27

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1.23 Define Container Types 27

Contents
Page
1.24 Define Containers 27
1.25 Define Freight Carriers 28
1.26 Define Transaction Source Types 28
1.27 Define Transaction Reasons 28
1.28 Define Account Aliases 28
1.29 Define Shipping Methods 29
1.30 Define Transit Times for Shipping Methods 29
1.31 Define Organization Access 29
1.32 Launching Transaction Managers 30

2.0 Open Inventory Accounting Periods 30

3.0 Miscellaneous Transactions 30

3.1 Miscellaneous Receipt 30

3.2 Miscellaneous Issue 31
3.3 Transferring Items Between Subinventories 31
3.4 Transferring Items Between Organizations Without ISO 32
3.5 Tracking Materials in Intransit Inventory 42

4.0 Inventory Controls 43

4.1 Revision Control 43

4.2 Locator Control 44
4.3 Lot Control 46
4.4 Serial Control 47

5.0 Inventory Planning 50

5.1 Min-Max Planning 50

5.1.1 Organization Level Min-Max Planning for Buy Items 50
5.1.2 Subinventory Level Min-Max Planning for Buy Items 52
5.1.3 Organization Level Min-Max Planning for Make Items 54

5.2 Reorder Point Planning 56

5.2.1 Set the Required Item Attributes 56

5.2.2 Define a Forecast 56
5.2.3 Define or Generate Safety Stock 57
5.2.4 Run the Reorder Point Report 59

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5.2.5 Do Requisition Import from Purchasing 59

Contents
Page
5.2.6 Find out the Requisition Number from the Requisition Summary
window. Page 60

5.3 Replenishment
61
5.4 Kanban 63

6.0 Accuracy 65

6.1 ABC Analysis 65

6.2 Cycle Counting Using ABC Compile 68
6.3 Physical Inventory 70

7.0 Inventory Costing 73

7.1 Cost Elements 73

7.2 Cost Sub-elements 73
7.3 Cost Types 74
7.4 Define Item Cost 75
7.5 Updating Item Cost 76
7.6 Viewing Different Costs of an Item at Different Times 76

8.0 Purchase Order Receipts 77

9.0 Checking ATP 77

10.0 Attaching Documents 77

11.0 Transferring Transactions to GL 78

12.0 Closing Inventory Accounting Periods 79

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1.0 Sequencing the implementation of Inventory

1.1 Define Flexfields
1.1.1 Item

Refer the Item Categories described in 1.1.2

1.1.2 Item Categories

1.1.2.1 Define Value sets

1.1.2.2 Define Flex Structure
1.1.2.3 Compile the Flex Structure
1.1.2.4 Enter Possible Values for Each Segment
1.1.2.5 Define Category Codes (Category Names)
1.1.2.6 Define Category Sets
1.1.2.7 Assign Items to Category Codes
1.1.2.8 xList the Items Belonging to a Particular Category

1.1.3 Item Catalog Group

Refer the Item Categories described in 1.1.3

1.1.4 Stock Locators

Refer the Item Categories described in 1.1.3

1.1.5 Account Aliases

Refer the Item Categories described in 1.1.3

1.1.6 Sales Orders

Refer the Item Categories described in 1.1.3

Flexfields

Flexfields are of two types (1) Descriptive Flexfields and (2) Key Flexfields. As
the name suggests, Descriptive Flexfields are used for providing extra information
about a particular record. They normally remain hidden. On the screen, you will
find only a very small box slightly bigger than a check box. When the cursor
enters into the box, a bigger text box appears in which the user can enter the
required information. When finished the longer text box disappears and it will

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appear as a small box as usual. With the help of this type of an arrangement, the
programmers save the much needed screen space.

Key Flexfields are slightly different in its construction. They are attached to
certain specific fields of the screen. As the cursor enters that particular text box to
which a Flexfield is attached, multiple text boxes, which otherwise remain hidden,
pop up. The user enters values in the text boxes that pop up and when finished,
they disappear and the values arranged one after another, separated by a dot or
hyphen, appears as a single value in the normal text box. For example, suppose
we have attached a Flexfield with three text boxes in one of the text boxes, Text
Box 1 on your screen. In the normal situation, you will not see the three text boxes
of the Flexfield. But, as the cursor enters the Text Box 1 to which the Flexfield is
attached, the three text boxes will pop up. Suppose you entered a value of 01 in
the first text box, a value of 02 in the second text box and a value of 03 in the
third text box. When you click on OK, all the three text boxes disappear, and a
value of 01.02.03 appears in Text Box 1.

Which field in your screen can be made a Flexfield is decided in the Application
Level. A user cannot change it. But, how many text boxes should pop up when the
cursor enters into it is decided at the user level. The user can also decide what
shall be the kind of data (Character or Numeric) that can go into each one of the
text box that pop up and also he can decide how many characters or digits a pop
up text box can accept.

Technically, a pop up text box is called a Segment and the combination of the
data type (Character or Numeric) and the maximum length (Maximum number of
characters or digits that can go into a text box) is called a Value Set.

You have to create one value set for each segment and you can choose as high as
30 segments for a Flexfield.

The method of defining the Flexfield remains the same through out Oracle
Applications. Though there are six flexfields, as listed above, can be created in
Oracle Inventory, as the method of creation is exactly the same, we will discuss
only one, which is the Item Category Flexfield.

Suppose you want to segregate all the items in your subinventories. You have
decided to classify them as Electronic, Mechanical and Others. After the first
classification, you will get three groups of items under three different headings.
Now, you have decided to classify each group as Buy, Make and Others. After the
second classification you will get nine groups of items as Electronic.Buy,
Electronic.Make, Electronic.Others Mechanical.Buy, Mechanical.Make,
Mechanical.Others, Others.Buy, Others.Make and Others.Others.

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Now, look at the classification names. Each one is made up of two words, one is
to the left side of the dot and the other is to the right side of the dot. So, we can
say that category names in the example given above are made up of two
segments. Now, if we list the possible values for Segment 1 and Segment 2, it will
be as follows.

Possible Values for Segment 1 Possible Values for Segment 2

Electronic Buy
Mechanical Make
Others Others

From the above list we can find that the values for Segment 1 are made up of
characters and the length of the longest value is 10. Similarly, the values for
Segment 1 are also made up of characters and the length of the longest value is 6.
So, we can finalize that we have to define two value set as follows.

Value Set 1 Value Set 2

Data Type : Character Data Type : Character
Max Length : 10 (12 on safer side) Max Length : 6 (8 on safer side)

We have now made all basic preparations needed for creating a Flex Structure.
Now, we will see how it can be implemented.

1.1.2.1 Define Value sets

Value Set for the First Segment

(a) N  Setup  Flexfield  Validation  Sets
(b) Enter a Name (Say VS 1)
(c) Enter a Description
(d) Choose a Data Type (Char)
(e) Choose the Max Size (12)
(f) Save

Value Set for the Second Segment

(a) N  Setup  Flexfield  Validation  Sets
(b) Enter a Name (Say VS 2)
(c) Enter a Description
(d) Choose a Data Type (Char)
(e) Choose the Max Size (8)
(f) Save

1.1.2.2 Define Flex Structure

(a) N  Setup Flexfield  Key  Segments

(b) F11, Keep the cursor in ‘Application’, Type O%I%, Ctrl + F11

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See that Oracle Inventory appeared in the field ‘Applications’

(c) Move Cursor to the field ‘Flexfield Title’

(d) Press the down arrow key repeatedly till the value Item Categories
appears in the field.
(e) Enter a name for your Structure (Say ‘My Structure’)
(f) Optionally enter a description
(g) Click on the push button ‘Segments’
(h) Enter Num (1)
(i) Enter a name for your first segment (Elect/Mech)
(j) Enter a window prompt for your first segment
(Electronic/Mechanical)
(k) In the field Column choose the value SEGMENT1
(l) In the Value set field choose the name of the Value Set defined for
the first segment. That is VS 1
(m)Move cursor to the next line
(n) Enter Num (2)
(o) Enter a name for your second segment (Buy/Make)
(p) Enter a window prompt for your first segment (Buy/Make)
(q) In the field Column choose the value SEGMENT2
(r) In the Value set field choose the name of the Value Set defined for
the second segment. That is VS 2
(s) Save

1.1.2.3 Compile the Flex Structure

(Continuation)

(t) Come back to the first window by closing the current window
(u) Check the check box Freeze Flexfield Definition
(v) Click on the push button ‘Compile’
(w) Click on OK

(x) Help  View My Request

(y) Click on the push button ‘Find’
(z) See that the Server processed your request to compile the Flexfield
definition

1.1.2.4 Enter Possible Values for Each Segment

(a) N  Setup  Flexfields  Key Values

(b) Choose the radio button Value Set
(c) Enter the name of the first Value Set (VS 1)
(d) Click on the push button ‘Find’
(e) Enter values Electronic, Mechanical and Others
(f) Save

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(g) Close
(h) N  Setup  Flexfields  Key Values
(i) Choose the radio button Value Set
(j) Enter the name of the first Value Set (VS 2)
(k) Click on the push button ‘Find’
(l) Enter values Buy, Make and Others
(m) Save

1.1.2.5 Define Category Codes (Category Names)

Here, you are defining the necessary combinations. In our example, we

have seen that nine combinations are possible. But it is absolutely not
essential that you should create all the possible combinations. You
need to create only that many combinations which you wish to use as
Category Names.

(a) N  Setup  Item  Categories  Category Codes

(b) Keep the cursor in line one and choose the Structure Name (My
Structure)
(c) Tab. As soon as the cursor enters the field Category, the flexfields
pop up with two text boxes named ‘Mechanical/Electronic’ and
‘Buy/Make’. Choose the value Electronic in the first field and a
value of Buy in the second field.
(d) Click on OK
(e) Optionally enter a description for the combination just created
(f) Move Cursor to he next line and repeat steps (b) to (d) till all the
required combinations are made.
(g) Save

1.1.2.6 Define Category Sets

(a) N  Setup Item  Categories  Category Sets

(b) Enter a name for the Category Set (My Inventory CS)
(c) Optionally enter a description
(d) Choose the Flex Structure (My Structure)
(e) Choose a value for the ‘Controlled At’ field (Organization
or Master). If Master is selected as value for this field, the
Items assigned to this Category Set can not have different
category names in different organizations and if it is
controlled at Organization level the Items assigned to this
Category set can have different Category Names in
different organizations.
(Further explanation for this shall be given in step 1.2)
(f) Choose the combination Others.Others as Default Category

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(Explanation shall be provided in step 1.2
(g) Check the check box Enforce Valid Categories
(h) In the lines below create only those combinations that you
want a user to use them as category names.
(i) Save

You will be able to create combinations that are already

defined in step 1.1.2.5. But, here you are permitted to
exclude certain combinations that are already created in
step 1.1.2.5. Because you have checked the check box
‘Enforce Valid Categories’ a user will be able to use only
those combinations that are made below.

When creating combinations, see that you are not

creating the same combination that is already mentioned
in step (f) above (Others.Others in this case).

1.1.2.7 Assign Items to Category Codes

(Continuation)

(j) Click on the push button ‘Assign’

(k) Choose the first item and Tab to the field Category
(l) Choose a Category Code
(m)Move cursor to next line and repeat steps (j) to (l)
(n) Repeat till all the required items are assigned to the
required Category Code
(o) save

1.1.2.8 List the Items Belonging to a Particular Category

Change organization to V1-Vision Operations

(a) Help  View My Request

(b) Click on the push button ‘Submit a New Request’
(c) Choose the report named Item Categories Report
(d) Enter the following parameters
Category Set : My Inventory CS
Category From:(Choose a combination to which you have
already assigned items.
Category To : Choose the same value mentioned above.
(e) Click on OK
(f) Click on the push button ‘Submit’
(g) Click on No
(h) Click on ‘Find’

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(i) When the report processing is completed, click on the push button
‘View Output’. You will see that the report lists all items that were
assigned to the category selected in step (d) above.

1.2 Assign Default Category Sets

Oracle Applications identifies eight functional areas in any organization as

follows.

Inventory
Purchasing
Planning
Service
Costing
Engineering
Order Entry
Internal Orders

Out of the 158 attributes of an item, eight are called Key Attributes or
Status Attribute. Each Key Attribute stands for one of the functional areas
given above. It is mandatory that every functional area must have a
Category Set and each item must be assigned to the respective Category
Set as soon as you enable the corresponding Key Attribute. To achieve
this we assign a Default Category Set to each functional area listed above.

Functional Area Key Defining Attribute Enabling Value

Inventory Inventory Item Yes
Purchasing Purchased Yes
Planning MS/MRP Planning MRP Planning or
MPS Planning
Service Serviceable Product Yes
Costing Costing Enabled Yes
Engineering Engineering Item Yes
Order Entry Customer Ordered Yes
Internal Orders Internal Ordered Yes

1.2.1 N  Setup  Items  Categories  Default Category set

1.2.2 Choose a Category Set against each functional area.
1.2.3 Save

(Please do not change the existing Category Set)

In step 1.1.2.6 (e) we have seen that a Control Level is required to be

defined when you define a Category Set. Similar to this the Item attributes
also can be controlled at two levels (Master or Organization). Also we

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have seen that enabling the Key Attribute is the point of time when an
Item is assigned to its respective functional area by the system. Because of
this very reason, if a particular Key Attribute is controlled at Master
Level, the Category Set assigned to its corresponding functional area
also must be controlled at Master Level and if the Key Attribute is
controlled at Organization Level, then the Category Set assigned to its
corresponding functional area also must be controlled at
Organization Level.

We have also seen that in a Category Set there will be many Category
Names. Now, the question is, out of the many Category Names
available in a Category Set assigned to a particular functional area,
the system should assign the item to which Category Name. The
system will always assign all the items only to that particular
Category Name which you have defined as the Default Category in the
Category Set defining window. Refer step 1.1.2.6 (f). After defining
the items, you have to reassign the actual category as follows.

From the Item defining window,

Special  Categories
In the window that appears, you can change the category name.

1.3 Define Workday Calendar

1.3.1 N  Setup  Organization  Calendars

1.3.2 Enter a name for the Calendar
1.3.3 Optionally enter a description
1.3.4 Select a Quarterly Type
1.3.5 Choose the Calendar Date Ranges
(Choose the From date in such a way that the starting day is a
Monday)
1.3.6 Click on the push button ‘Workday Pattern’
1.3.7 Enter a Seq. Number
1.3.8 Enter days On (say 6)
1.3.9 Enter days Off ( say 1)
If your calendar starts on a Monday, this pattern means that
Sunday is Off.
1.3.10 Optionally enter a description
1.3.11 Click on the push button ‘Shifts’
1.3.12 Enter a Shift No (say 1)
1.3.13 Optionally enter a description
1.3.14 Move cursor to the next line and enter 2 and so on
1.3.15 Keep the cursor in shift number 1 and click on the push button
‘Workday Pattern’

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Assuming that your calendar stats on Monday, if you want
Wednesday Off for your first shift enter the pattern as follows.
Seq On Off
1 2 1
2 4 0

Always ensure that the total of the On/Off must be equal to 7

1.3.16 Save and close the window

1.3.17 Keep the cursor in shift number 2 and define the workday pattern
as mentioned above.

1.3.18 Keep the cursor in Shift 1 and click on the push button ‘Times’
Suppose the first shift timing is from morning 7.00 to evening 3.30
with a break of ½ an hour from 11.00 to11.30, enter the values as
follows.

Start Stop
7:00:00 11:00:00
11:30:00 15:30:00

1.3.19 Save and Close the window.

1.3.20 Move cursor to the next shift and define the second shift timings as
above.

1.3.21 Click on the push button ‘Dates’

1.3.22 Whichever dates you want to make as holidays, just click on those
dates.

Creating Holidays Using Calendar Exception Templates

This is an alternate way of marking the holidays. If you adapt this

method, then you need not to do step 1.3.22.

Creating a Calendar Exception Template

(a) N  Setup  Organization  calendar Exception Templates

(b) Enter a name for the template
(c) Optionally enter a description
(d) In the field named Dates, enter all dates which are the holidays
(e) Save

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Applying the Exception Template to Your Calendar

1.3.23 After step 1.3.21 skip step 1.3.22 and click on the push button
‘Exception List’
1.3.24 Click on the push button ‘Load…’
1.3.25 Choose the Template that you have created
1.3.26 Click on OK
1.3.27 Save
The dates that entered in the template will be marked as holidays in
your Calendar.

Building the Calendar

1.3.28 Special  Build

1.3.29 Help  View My Request
1.3.30 Click on ‘Find’
See that your request is processing is complete.

Any changes made in a Calendar will come into effect only after
Building it.

1.4 Define ATP Rules

N  Setup  Rules  Available To Promise

(Refer page 347 of the Inventory Course Material)

1.5 Define Picking Rules

N  Setup  Rules  Picking

Refer page 58 of Inventory Course Material

1.6 Define Locations

N  Setup  Organizations  Locations

Refer page 6 of Inventory Course Material

An organization can have multiple locations defined for it. The name and
address of the exact place where the organization is located will be the
primary location. Apart from this you can define additional locations for
this organization. The other locations may be the locations of the
organization’s Godowns at other places.

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If an outside location is shared by more than one organization, don’t attach
an Inventory Organization in the location definition. If the location is used
by single organization, it is always suggested to attach the corresponding
organization name in the location definition.

Note:
If you choose a particular location as the Ship-To location in one of
your purchase orders and if no Inventory Organization is attached to
that location, then you have to pen the Shipment window of the PO
and select the organization there. On the contrary, if the Ship-To
location selected in your PO is having an Inventory Organization
attached to it, the corresponding organization will automatically
default in the Shipment window of your PO.

1.7 Define Organizations

1.7.1 N  Setup Organizations  Organizations

1.7.2 Enter the name of your organization
1.7.3 Choose a Type
1.7.4 Enter the Establishment date of your organization
1.7.5 Choose the location of your organization
1.7.6 Choose Internal as value for the field Internal/External
1.7.7 Save
1.7.8 Bring the cursor to the Organization Classification block
1.7.9 Choose the classification Inventory Organization
1.7.10 Check the check box ‘Enabled’
1.7.11 Save

Entering Accounting Information of the Organization

1.7.12 lick on the push button ‘Others’

1.7.13 Choose Accounting Information
1.7.14 Press the tab key (Flexfield pop up)
1.7.15 Choose Vision Operations as the GRE/Legal Entity
1.7.16 Choose Vision Operations as the Operating Unit
1.7.17 Choose Vision Operations as the Set Of Books
1.7.18 Click on OK
1.7.19 Click on OK
1.7.20 Save

Entering Inventory Parameters of the Organization

1.7.21 Click on the push button ‘Others’ again

1.7.22 Choose Inventory Information

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1.7.23 Enter an organization Code (Can use a maximum of 3
alphanumeric characters)
1.7.24 Choose Vision Operations as the Item Master Organization
Though you can choose any Inventory Organization as the Item
Master organization, so long as you practice in Concourse, always
choose Vision Operations as the Item Master Organization.

If the Item Master Organization is any thing other than Vision

Operations, when you try to assign items to organizations, you
will find that your organization is not listed.

1.7.25 Choose the Calendar that you have already defined

1.7.26 Check or uncheck the check box Allow Negative Balances
If the check box is checked, during inventory transactions, if the
qty of any item is driven negative, the system will not object. If the
check box is unchecked, you will not be able to do any transaction
by which the qty of any item will be driven negative.
1.7.27 Chose the locator control

1.7.28 Change region to ‘Costing Information’

1.7.29 Choose a Costing Method
If BOM and WIP are installed always Standard as the Costing
Method, because Average Costing is not possible were BOM and
WIP are installed.
1.7.30 Check or uncheck the check box ‘Transfer Details to GL
If this check box is unchecked, only summary of the Inventory
Transactions will be transferred to GL, and not the complete
details. Checking this check box can lead to system slow down
when the transactions are transferred to GL.
1.7.31 Check or uncheck the check box ‘Reverse Encumbrance’
1.7.32 Choose all the Valuation Accounts

1.7.33 Change region to ‘Revision, Lot, Serial’

1.7.34 Enter a Starting Revision (any single alphanumeric character)
Any item assigned o this organization, if placed under revision
control will use this value as the first revision.
1.7.35 Choose a Lot Control Uniqueness (Across Items or None)
1.7.36 Choose a Lot Number Generation Level (At organization level, At
item level or User-defined)
1.7.37 Enter a Lot Number Prefix (Any alphanumeric characters)
1.7.38 Enter the total length of the Lot Numbers

1.7.39 Choose the Serial Number Uniqueness (Within Inventory Items,

Within Organization, Across Organizations)

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1.7.40 hoose the Serial Number Generation Level (At item level, At
organization level)
1.7.41 Enter a Serial Number Prefix (any alphanumeric character)
1.7.42 Enter a Starting Serial Number

1.7.43 Change region to ‘ATP’ Pick, Item Sourcing’

1.7.44 Choose an ATP Rule
If no ATP Rule is attached, you will not be able to do Sales Order
Scheduling in Order Entry.
1.7.45 Choose a Picking Rule
1.7.46 Enter a Subinventory Order (The value you enter here will be used
as a default for all the Subinventories of the organization)
1.7.47 Enter a Locator Order (The value you enter here will be used as a
default for all the Subinventories of the organization)
1.7.48 Choose the Item Source Type (Supplier or Inventory)
1.7.49 If Inventory is selected as the Source Type, choose the
Organization from where you source the items.
1.7.50 If the organization name is entered, choose the name of the
Subinventory from where you source the material.

(The values you enter here doesn’t have too much of meaning.
Even if you enter Inventory as the Source Type, you can purchase
items from Suppliers)

1.7.51 Change region to ‘Inter-org Information’

1.7.52 Choose a Inter-organization Transfer Charge type
1.7.53 Choose all the Accounts

1.7.54 Change region to ‘Other Accounts’

1.7.55 Choose all the Accounts
1.7.56 Save and Close

Entering Receiving Options for the Organization

If you fail to define the Receiving Options for the Organization, you
will not be allowed to make any purchase order receipts in that
organization.

1.7.57 Click on the push button ‘Others’ again

1.7.58 Choose Receiving Information
1.7.59 The options you select in this window will be used as default
values.

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The critical information that the system seeks from this
window is the Receiving Account. Without providing an
account you will not be allowed to save. This account is used to
create automatic journal entries when PO receipts are made.

1.8 Define Shipping Networks

If you want to transfer materials between organizations, you have to define

the Shipping Network

We assume that we want to transfer from M1 to M2 and M2 to M1

1.8.1 N  Setup  Organizations  Shipping Network

1.8.2 Choose your current organization in the field Organization
1.8.3 Choose a Scope (To Organization, From Organization or From or
To Organization)
1.8.4 Move cursor to the lines
1.8.5 Choose M1 in the From field
1.8.6 Choose M2 in the To field
1.8.7 Choose the Transfer Type (Direct or Intransit)
If you have chosen Direct as the Transfer Type, then the remaining
two fields will be disabled.
1.8.8 If you have selected Intransit as the Transfer Type, then choose an
FOB

Receipt : The shipping organization owns the goods until

the receiving organization receives it.

Shipment : The destination organization owns the goods as soon as

the shipping organization ships it.

1.8.9 If the Transfer Type is selected as Intransit, then choose a Receipt

Routing (Direct, Standard or Inspection Required)
1.8.10 Check or uncheck the check box ‘Internal Orders Required’.
If this check box is checked, you will have to create an Internal
Sales Order, whenever you want to transfer material from M1 to
M2.

1.8.10 Move cursor to the next line

1.8.11 Choose M2 in the From field
1.8.12 Choose M1 in the To field
1.8.13 Repeat steps 1.8.7 to 1.8.10
1.8.14 Save

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1.9 Define Unit Of Measures

The UOM definition involves two steps as follows

 Define UOM Classes
 Define UOM

Define UOM Classes

1.9.1 N  Setup  Unit Of Measure  Classes

1.9.2 Create a blank row by pressing Ctrl + Down Arrow keys

1.9.3 Enter a name for the UOM Class

1.9.4 Optionally enter a description
1.9.5 Enter the name of the UOM that you want to use as the base unit of
measure.

There is no hard and fast rule to decide the Base UOM for a
UOM Class. The very frequently used UOM can be taken as the
base UOM for that class. When UOM Conversions are defined,
the conversions will be defined as one particular UOM of the
same class is equal to how many base UOM’s.

For example, if KG is defined as the base UOM of a UOM Class

named ‘weight’ then the conversions will be defined as:

1 Quintal = 100 KG’s

1 Ton = 1000 KG’s
1 Gm = 0.001 KG

1.9.6 Enter a Code for the defined UOM

1.9.7 Save

Define Unit Of Measures

(Continuation)

1.9.8 Click on the push button ‘Unit of Measure’

1.9.9 In this window, you will find that the Base UOM is there already.
But, you can define additional UOM’s for this Class as follows
1.9.10 Enter a name for the next UOM of the same Class where your
cursor was when you clicked on the push button ‘Unit Of
Measure’.
1.9.11 Enter a code for the above UOM
1.9.12 Optionally enter a description
1.9.13 Save

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1.10 Define Item Attribute Control Levels

One hundred and fifty eight attributes are there for every Item. The way in
which we set the attributes decides the functionality of he item. The
attributes can be controlled at two levels (1) Master and (2) Organization.

Master Level Item Attribute Control

If a particular attribute is controlled at Master Level, you will be able to
update it only at the Master Level. (That is, you have to enter into the item
definition window by the navigation N  Items  Master Items.) When
ever you update an attribute that is controlled at the Master Level, the
made change will reflect in all organizations to which the item is assigned.

Organization Level Item Attribute Control

If a particular attribute is controlled at organization level, you will be able
to update it only at the Organization Level. (That is, you have to enter into
the item definition window by the navigation N  Items  Organization
Items.) When ever you update an attribute that is controlled at the
Organization Level, the made change will not reflect in any organization
other than the organization where the change is done. For example,
suppose the attribute Inventory Item is controlled at Organization Level.
When you defined an item you set the above attribute to ‘No’ and assigned
to two organizations M1 and M2. After that you updated the item
definition by setting ‘Yes’ to Inventory Item from the Item Master
Organization (V1). If you check the organization attribute in M1 or M2 for
the above item, you will find that the attribute Inventory Item is still
disabled. In this case, if you want to enable Inventory Item in M1, first you
change the working organization to M1 and then navigate N  Items 
Organization Items and enable the attribute Inventory Item. If you want to
enable this attribute in M2 also, then change your working organization to
M2 and then navigate N  Items  Organization Items and enable the
attribute Inventory Item

In short we can say that an attribute controlled at Master level will have
the same value always in all the organizations, but an attribute
controlled at organization level can have different valuesindifferent
organizations

Out of the 158 attributes the below given 2 attributes can be controlled
only at the master level 18 can be controlled only at the organization level.

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Attributes That Can Be Controlled Only At The Master Level

1. Base Model
2. BOM Item Type

Attributes That Can Be Controlled Only At The Organization

Level

1. Engineering Item
2. Preprocessing Lead Time
3. Processing Lead time
4. Post processing Lead Time
5. Cumulative Manufacturing Lead Time
6. Cumulative Total Lead Time
7. Fixed Lead Time
8. Variable Lead Time

9. Cost of Goods Sold Account

10. Encumbrance Account
11. Expense Account
12. Sales Account

13. Planner
14. Planning Exception Set

15. Source Organization

16. Source Subinventory

17. WIP Supply Locator

18. WIP Supply Subinventory

1.10.1 N  Setup  Items  Attributes

This window is divided into two blocks. In the upper block, 150
attributes are listed and in the lower block, the 8 Status Attributes
or Key Attributes are listed.Inthe upper block, against each
attribute you can choose a value for the ‘Controlled At’ field.
(Master or Organization)

In the lower block also you can choose a value of Master or

Organization for the ‘Controlled At’ field. Apart from the control
level setting, in the case of Status Attributes, you have to choose a
value for the field ‘Status Setting’

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Status Setting of the Key Attributes
In the ‘Status Setting’ field of the key attributes, you can choose
either Defaults Value or Sets Value. If Defaults Value is selected,
the users will be able to make changes whenever they want. On the
contrary, if Sets Value is selected, a user will not be able to update
the values even at the Master Level.

The window of Attribute Control will be accessible only by a very

high authority of the organization in a real situation.

1.11 Define Item Status Templates

1.11.1 N  Setup  Items  Status Codes

1.11.2 Enter a name for the template
1.11.3 Optionally enter a description

You can see that all the 8 Status Attributes are listed below with a
check box against each one of them. Whether you can check or
uncheck the check box as per your requirement.

The ‘Usage’ field is only a display field where you can see what is
the Status Setting for each Key Attribute. For example, in the
Attribute Control window, suppose you have selected a value of
Defaults Value for the attribute ‘BOM Allowed’, a value of Sets
Value for the attribute ‘Build in WIP and a value of None for the
attribute Purchasable. In the current window you will see the
following values in the ‘Usage’ field.

Status Attribute Status Setting Usage

BOM Allowed Defaults value Default Item Attribute

Build in WIP Sets Value Sets Item Attribute
Purchasable None Not Used

Once when this template is applied to an item and hen saved, even
from the master organization no body will be able to update the
attribute Build in WIP. If any situation arises in which you want to
update the Build in WIP attribute of the above-mentioned item, you
have to change the Status Setting of Build in WIP to ‘Defaults
Value’ from the ‘Attribute Control’ window. The Attribute Control
window will be normally available for a higher authority of an
organization.

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1.12 Define User Item Types

User Item Types are nothing but a label for the item. In a given time when
a user wants to find out the general functionality of an item, it is difficult
to go through all the regions of the item definition window. To save a user
from the difficulty mentioned above, we use a label or name or Item Type
to roughly understand the way in which the attributes are set in general.
By seeing the name, say, ‘Purchased Item’ we get an idea about the
possible attribute setting of that item. Similarly, by seeing the name, say,
‘Finished Good’ we get an idea about the possible attribute setting of that
item. This name or better to say this User Item Type is assigned in the first
window of Item definition.

1.12.1 N  Setup  Items  Item Types

1.12.2 Click on the Lines
1.12.3 If no blank row is available, create one by pressing the keys Ctrl
and Down Arrow together.
1.12.4 Enter a Code for the Item Type
1.12.5 Enter a Meaning for the Code
The word(s) you enter as Meaning will be the word(s) that is
going to be displayed in the LOV of the field named ‘User Item
Type’ in the Item definition window.
1.12.6 Optionally enter a description
1.12.7 Optionally enter an ‘Effective From’ date.
1.12.8 Check the check box ‘Enabled’
1.12.9 Save

1.13 Define User Item Type Templates

1.13.1 N  Setup  Items  Templates

1.13.2 Enter a name for the Template
1.13.3 Optionally enter a description
1.13.4 Choose an organization code only if you want to restrict the use of
this template only n a particular organization, otherwise leave
this field blank
1.13.5 Choose values for all those attributes that are common for a set of
items.
1.13.6 Save

1.14 Define Asset Items and Assign to Organizations

Caution:
In no case, the Primary Unit Of Measure assigned to an item CAN NOT
be changed after saving.

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1.14.1 Items  Master Items
1.14.2 Enter a name (code) for the item
1.14.3 Enter a description for the item (mandatory field)

Setting the Attributes by Copying from a User Item Type Template

1.14.4 Special  Copy From…
1.14.5 Choose the required Template name (Leave the item field blank)
1.14.6 Click on the push button ‘Done’
1.14.7 Save

Assigning the Items to Different Organizations

(This must be done in continuation to the step 11.14.7)

11.14.8 Special  Organization Assignment (This option in the

Special menu will be available only if the item definition is saved)
11.14.9 The names and codes of all organizations that are coming
under the current item master organization will be there in this
window with a check box to the right of each organization name.

Check the above said check box against all those organization
names to which you want to assign the current item.
11.14.10 Save

Note:
In your organization definition, if any organization other than V1-
Vision Operations, then you will not find your organization in the
above window.

1.15 Define Expense Items and Assign to Organizations

1.15.1 The complete procedure is exactly the same as in the case of

defining an asset item. All that you have to do is, after step
11.14.6, that is, after applying the template, change the region to
‘Costing’ and set the following attributes.

Costing Enabled - No
Asset Item - No

After ensuring the above attribute setting, you can proceed with the
steps from 11.14.7

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1.16 Define UOM Conversions

You can define two types of UOM Conversions.

 Standard Conversions
 Item Specific Conversions

The Item Specific Conversions can conversions can again be made in

two ways.

o Inter Class Conversions

o Intra Class Conversions

Standard Conversions
Standard Conversions are defined between standard UOM’s like
Kilogram, Gram, Meter, Centimeter, Each, Dozen etc. As the defined
conversion factors are universally accepted figures, it can be made
applicable to any item.

Standard Conversions can be defined even before defining the item

Assumptions:
Unit of Measure Class : Weight
UOM’s defined for the above class : Gm, Kg, Quintal and Ton
Base UOM : Kg

StandardConversion factor for:

Gm = 0.001
Quintal = 100
Ton = 1000

1.16.1 N  Setup  Unit of Measures  Conversions

1.16.2 Choose the region ‘Standard’
1.16.3 Choose a UOM other than the Base Unit of Measure in the field
‘Unit’. (Gm, Quintal or Ton)
1.16.4 Tab to the field ‘Conversion’.
1.16.5 Enter the Conversion factor (for Gm, enter the value 0.001, for
Quintal, enter the value 100 and for Ton, enter the value 1000)
1.16.6 Save

Read the display field at the bottom of the screen

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Item Specific Conversions

Item Specific Conversions can be defined only after defining items.

There will be many situations when you want to use a different UOM for an item
when transacting it. If a different UOM is used, naturally there must be a
relationship established between the involved UOM’s. We have already seen that
when standard conversions are defined between different UOM’s of the same
class, it is not item specific. It need not be item specific because the conversions
are done between UOM’s of the same class and moreover, the used conversion
factors are world wide accepted standards.

Now, let us look into a practical situation where you use a UOM of Box for a
particular item. Here the question is 1 Box = How Many. Even though both the
UOM’s involved in this conversion belong to the same class, the answer to this
question can be given only if the item is specified. We can say that if the item
A01 is packed into the box, 1 Box = 50 Each. If item A02 is packed into the box,
1 Box = 25 Each. That is, if conversions are defined for non-standard UOM’s,
they must be Item Specific.

Now, let us analyze a situation when you want to define a conversion between
UOM’s of two different classes. Assume that we want to define conversion
between KG and Cubic Meter. In this case also, we will be able to derive a
conversion factor only if the item is known. So, a conversion between UOM’s of
different classes, is also will be Item Specific.

A conversion defined for an item between two UOM’s of the same class is known
as Intra Class Conversion.

A conversion defined for an item between two UOM’s of different classes is

known as Inter Class Conversion.

Intra Class Conversions

1.16.7 N  Setup  Unit Of Measures  Conversions

1.16.8 Change region to Intra-class
1.16.9 Choose an item
1.16.10 Choose a UOM other than the Base UOM in the field named ‘Unit’
1.16.11 Choose a conversion factor in the field named ‘Conversion’
1.16.12 Save
1.16.13 Move cursor to the next line and repeat steps 1.16.9 to 1.16.12

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Inter Class Conversions

The conversions of this type are always defined with the primary UOM of the
item.

1.16.7 N  Setup  Unit Of Measures  Conversions

1.16.8 Change region to Inter-class
1.16.9 Choose an item

As soon as you choose the item, in the Source block the ‘Base Unit’ of
the class to which the item’s primary UOM belongs will default.

1.16.10 Choose a base UOM of a different class other than the Class to which the
primary UOM of the selected item belongs, in the field named ‘Base
Unit’ of the Destination block
1.16.11 Choose a conversion factor in the field named ‘Conversion’
1.16.12 Save
1.16.13 Move cursor to the next line and repeat steps 1.16.9 to 1.16.12

1.17 Define Item Revisions

When an item is placed under Revision Control, the value assigned to the
field ‘Starting Revision’ in the organization definition will be used as the
first revision. When subsequent revision numbers are required you have to
define it separately as follows.

1.17.1 N  Items  Organization Items

1.17.2 Enter the item name
1.17.3 Click on the push button ‘Find’
1.17.4 Special  Revisions
1.17.5 Enter a new revision
1.17.6 Optionally enter a description
1.17.7 Enter an effective From date.
You can assign a future date also as the effective date
1.17.8 Save

1.18 Define Item Relationships

1.18.1 N  Items  Item Relationships

1.18.2 Choose a From Item
1.18.3 Choose a To Item

1.18.4 Choose the relation Type (Related or Substitute)

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1.18.8 Indicate whether the relationship is one way or reciprocal by
checking or unchecking the check box ‘Reciprocal’

1.19 Create Item Catalog

Item Catalog is used to query item by one of its values. We will create a
Catalog with the items and values as given below.

Descriptive Values for Items

Elements
A01 A02 A03 A04 A05 A06
CCD ½” 1/3” ¼” - - -
Color/Mono Color Mono Color Color Mono Color
Lens Size 6 x 24 6 x 36 6 x 48 - - -
Resolution 330 400 450 300 400 400
Monitor Size - 17” 14” 21”
Pixels - 300 x 400 600 x 400 800 x 400

Define Catalog Group and assign Descriptive Elements

1.19.1 N  setup  Items  Catalog Group

1.19.2 Enter a name for the Catalog Group
1.19.3 Optionally enter a description
1.19.4 Click on the push button ‘Details’
1.19.5 Change region to ‘Descriptive Elements’
1.19.6 Enter a Seq number
1.19.7 Enter the first name of the Descriptive Elements of this catalog
Group
1.19.8 Check or uncheck the check box ‘Required’
If this check box is checked, when you assign an item to the
Catalog Group, for any item, you will have to enter a value for this
descriptive element. On the other hand, if this check box is
unchecked, a value for this field, while assigning items to the
Catalog Group, will be optional.
1.19.9 Move Cursor to the next line
1.19.10 Repeat steps 1.20.5 to 1.20.8 till all the descriptive
elements are entered.

Assign Items to the Catalog Group

1.19.11 N  Items  Master Items

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1.19.12 F11, enter a partial item name, Ctrl + F11
1.19.13 Special  Catalog
1.19.14 Choose the Catalog Group Name
1.19.15 Check the check box ‘Catalog Complete’
1.19.16 Click on the ‘Lines’
1.19.17 All the descriptive elements that you have entered for the
Catalog Group defaults.
1.19.18 Enter values of the item queried in step 1.20.10 for each
Descriptive Element. If a particular descriptive element is not
applicable for a particular item, then you can leave that field blank.
1.19.19 Query the next item and repeat steps 1.20.11 to 1.20.16 till
all the required items are assigned to the Catalog Group

Searching for Item in the Catalog by Specifying a

Descriptive Element Value

1.19.20 N  Items  Items Search

1.19.21 Choose the required organization
1.19.22 Change the region to Item Catalog
1.19.23 Choose the catalog Group Name

All the descriptive elements defined for the catalog group will
default

1.19.24 Enter a value against one of the descriptive elements. Say,

we entered a value of 400 against the descriptive element
‘Resolution’.
1.19.25 Click on the push button ‘Find’
The items A02, A05 and A06 must be listed as these three items
are having a value of 400 for the descriptive element Resolution.

1.20 Define Asset Subinventories and Assign Items

Subinventories are always organization specific. So, you have to define

subinventories separately for each organization. Between organizations,
the subinventory names can be repeated.

1.20.1 N  Setup  Subinventories

1.20.2 Click on the push button ‘New’
1.20.3 Enter a name for the Subinventory
1.20.4 Optionally enter description
1.20.5 Check the check box ‘Qty Tracked’
1.20.6 Check the check box ‘Asset Subinventory’
1.20.7 Check or uncheck the remaining check boxes (Include in ATP,
Allow Reservation, Nettable) as per your requirement.

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1.20.8 Choose a ‘Locator Control’ option (None, Prespecified, Dynamic
Entry or Item Level)
1.20.9 Optionally enter a ‘Picking Order’
1.20.10 Optionally enter the following Lead Times.

Preprocessing,
Processing
Post Processing

1.20.11 Optionally enter the following item Sourcing details

Type : (Supplier or Inventory)

Organization : (If ‘Type’ is selected as ‘Inventory’, then
optionally choose an organization
Subinventory : (If ‘Type’ is selected as ‘Inventory’, then
optionally choose a Subinventory)

1.20.12 Change region to ‘Accounts’

1.20.13 Choose all the accounts
1.20.14 Save

Assign Items
(Continuation)

1.20.15 Click on the push button ‘Item/Subinventory’

1.20.16 Choose the Item
1.20.17 Move cursor to the next line and choose the next item
1.20.18 Repeat the above step till you finish assigning all the items
1.20.19 Save

1.21 Define Expense Subinventories and Assign Items

1.21.1 N  Setup  Subinventories

1.21.2 Click on the push button ‘New’
1.21.3 Enter a name for the Subinventory
1.21.4 Optionally enter description
1.21.5 Uncheck the check box ‘Qty Tracked’
As soon as you uncheck the check box ‘Qty Tracked’, al the
remaining check boxes will be automatically unchecked.
1.21.6 Change region to ‘Accounts’
1.21.7 Choose all the accounts
1.21.8 Save

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Assign Items
(Continuation)

1.21.9 Click on the push button ‘Item/Subinventory’

1.21.10 Choose the Item
1.21.11 Move cursor to the next line and choose the next item
1.21.12 Repeat the above step till you finish assigning all the items
1.21.13 Save

1.22 Define Vehicle

1.22.1 N  Items  Master Items

1.22.2 Enter the name of the vehicle in the Name field
1.22.3 Enter a description (mandatory)
1.22.4 Choose the ‘User Item Type’ as Vehicle from the LOV. Do not
copy any template)
1.22.5 Change region to ‘Physical Attributes’
1.22.6 Check the check box ‘Vehicle’
1.22.7 Optionally you can enter the remaining Physical Attributes
1.22.8 Save

1.23 Define Container Types

1.23.1 N  Setup  Items  Container Types

1.23.2 Click on the Lines
1.23.3 Enter a Code for the Container Type that you are defining
1.23.4 Enter a meaning for the Code. This meaning that you enter here
will be available every where else in the LOV where ever you want
to choose a Container Type
1.23.5 Optionally enter a description
1.23.6 Enter an effective From date
1.23.7 Check the check box ‘’Enabled’
1.23.8 Save

1.24 Define Containers

1.24.1 N  Items  Master Items

1.24.2 Enter the Container Name
1.24.3 Enter a description
1.24.4 Choose the ‘User Item Type’ as Box, carriage etc from the LOV.
Do not copy any template)
1.24.5 Change region to ‘Physical Attributes’
1.24.6 Check the check box ‘Container’

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1.24.7 Choose a Container Type from the LOV
1.24.8 Optionally choose the remaining Physical Attributes
1.24.9 Save

1.25 Define Freight Carriers

Normally people consider Freight carrier as a Vehicle. As far as Oracle

Applications is concerned this is not true. In Oracle Appps, the term
Freight Carrier means, a transporting company. Vehicle you have to define
as an Item as mentioned in 1.23.

1.25.1 N  Setup  Freight Carriers

1.25.2 Enter a CarrierName
1.25.3 Optionally enter a description
1.25.4 Choose a ‘Distribution Account’
1.25.5 Save

1.26 Define Transaction Source Types

1.26.1 N  Setup  Transactions  Types

1.26.2 Change region to ‘User-defined’
1.26.3 Choose a Source Type
1.26.4 Choose an action
1.26.5 Save

Note:
Refer page 190 of the Course Material to find the list of Source Types
and actions that you can choose in steps 1.27.3 and 1.27.4

1.27 Define Transaction Reasons

1.27.1 N  Setup  Transactions  Reasons

1.27.2 Enter a transaction reason
1.27.3 Optionally enter a description
1.27.4 Save

1.28 Define Account Aliases

1.28.1 N  Setup  Account Aliases

1.28.2 Enter an Alias
1.28.3 Optionally enter a description
1.28.4 Choose an Account for which the Alias is defined
1.28.5 Save

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1.29 Define Shipping Methods

1.29.1 N  Setup  Organization  Shipping Methods

1.29.2 Enter a Code for the new shipping method
1.29.3 Enter a meaning for the above Code. This meaning that you enter
here will be the value that you are going to get in the LOV
wherever a Shipping Method is to be selected.
1.29.4 Optionally enter a description
1.29.5 Enter an effective From date
1.29.6 Check the check box ‘Enabled’
1.29.7 Save

1.30 Define Transit Times for Shipping Methods

1.30.1 N  Setup 
1.30.2 Choose the From Organization and Location
1.30.3 Choose the To Organization and Location
1.30.4 Choose the Shipping Method
1.30.5 Enter the number of days that the specified shipping method will
take to transfer material between the organizations mentioned in
steps 1.31.2 and 1.31.3.
1.30.6 Move cursor to the next line and repeat steps 1.31.4 and 1.31.5 till
then Intransit Times for all the possible Shipping Methods are
defined.
1.30.7 Check the check box ‘Default Method’ only for that Shipping
Method which you frequently used.
1.30.8 Save

1.31 Define Organization Access

1.31.1 N  Setup  Organizations  Organization Access

1.31.2 Choose an Organization
1.31.3 Choose a application (Oracle Purchasing, Oracle Human
Resources etc) in the field named ‘Application’
1.31.4 Choose a Responsibility name in the field named ‘Name’
1.31.5 Move cursor to the next line and repeat steps 1.32.2 to 1.32.4
1.31.6 Save

Note:
The organization names can be repeated
The combination of ‘Application’ and ‘Responsibility’ cannot be
repeated. That is, the value derived by combining the values of
‘Application’ and ‘Responsibility’ must be unique. You can make
combinations as follows.

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Application Name
Oracle Purchasing PO Super User
Oracle Purchasing Local User

1.32 Launching Transaction Managers

If the Cost Manager is inactive for an organization, in WIP, the Resources

and Materials will not be costed when assemblies are moved from
operation to operation or during Closing the Job. If the Cost Manager is
inactive, you can activate it as follows.

1.32.1 N  Setup  Transactions  Interface Managers

If the status of the ‘Cost Manager’ is Active do not do
anything. Else activate it as follows.
1.32.2 Keep the cursor in ‘Cost Manager’
1.32.3 Special  Launch Manager
1.32.4 Close the Form
1.32.5 N  Setup  Transactions  Interface Managers
See that the status of ‘Cost Manager’ is change to ‘Active’

2.0 Open Inventory Accounting Periods

You will be permitted to do any transaction in Oracle Inventory, only in an
Open Period.

2.1 N  Accounting Close Cycle  Open Inventory Accounting Periods

2.2 Keep the cursor in the current month and click on the push button ‘Change
Status’
2.3 Choose the option ‘Open’
2.4 Move cursor to one step above and repeat steps 2.2 and 2.3

3.0 Miscellaneous Transactions

3.1 Miscellaneous Receipt

3.1.1 N  Transactions  Miscellaneous Transactions

3.1.2 Choose the Type as Miscellaneous Receipt
3.1.3 Click on the push button ‘Transaction Lines’
3.1.4 Choose an Item
3.1.5 Choose the Subinventory

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3.1.6 Enter the Qty
3.1.7 Choose the Account
3.1.8 Optionally choose a Reason
3.1.9 Save

Checking the On-hand Quantities

3.1.10 N  On-hand Availability  On-hand Quantities

3.1.11 Enter the Item
3.1.12 Click on the push button ‘Find’
3.1.13 If On-hand quantity exists for the item a new window will be
opened with details of the on-hand quantities
3.1.14 Click on the push button ‘Subinventory’
You can now see Subinventory wise distribution of the item.

3.2 Miscellaneous Issue

3.2.1 N  Transactions  Miscellaneous Transactions

3.2.2 Choose the Type as Miscellaneous Issue
3.2.3 Click on the push button ‘Transaction Lines’
3.2.4 Choose an Item
3.2.5 Choose the Subinventory
3.2.6 Enter the Qty
3.2.7 Choose the Account
3.2.8 Optionally choose a Reason
3.2.9 Save

Checking the On-hand Quantities

3.2.10 N  On-hand Availability  On-hand Quantities

3.2.11 Enter the Item
3.2.12 Click on the push button ‘Find’
3.2.13 If On-hand quantity exists for the item a new window will be
opened with details of the on-hand quantities
3.2.14 Click on the push button ‘Subinventory’
You can now see Subinventory wise distribution of the item.

3.3 Transferring Items Between Subinventories

3.3.1 N  Transactions  Subinventory Transfer

3.3.2 Choose the Type as Inventory sub transfer
3.3.3 Click on the push button ‘Transaction Lines’
3.3.4 Choose the Item

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3.3.5 Choose the Subinventory (From Subinventory)
3.3.6 Choose the ‘To Subinv’
3.3.7 Enter the Qty to be transferred
3.3.8 Optionally choose a Reason
3.3.9 Save
3.3.10 Check On-hand quantities.

You must see that the Qty enteredinstep 3.3.7 is incremented in the
Subinventory that is selected in step 3.3.6 and decremented in the
subinventory that is selected in step 3.3.5.

3.4 Transferring Items Between Organizations Without ISO

You will be able to transfer items between organizations only if

Shipping Network is defined for the organizations involved. Refer
step 1.8 above.

If the check box ‘Internal Orders Required’ is checked in the Shipping

Network, you will be able to transfer items only through an Internal
Sales Order. How an Internal Sales Order is created shall be
described in the Order Entry Notes.

When you transfer items between organizations without using an

Internal Sales Order, there are three ways depending upon the
Transfer Type (Direct or Intransit) and Receipt Routing (Standard or
Inspection Required) you defined in the Shipping Network.

If the defined Transfer Type for a particular Shipping Network is

Direct, the qty in the corresponding subinventory of the Destination
organization will be incremented as soon as you transfer qty from the
Source organization. You need not to receive the material in the
Destination organization.

If the defined Transfer Type is Intransit and the Receipt Routing is

Standard for a particular Shipping Network, then you have to first
Receive the transferred item in the destination organization and later
in a separate transaction, the received items should be delivered to the
required Subinventory.

If the defined Transfer Type is Intransit and the Receipt Routing is

Inspection Required for a particular Shipping Network, then you have
to first Receive the transferred item in the destination organization.
Then in a separate transaction you have to inspect the received items

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and later in a third transaction, the accepted items should be
delivered to the required Subinventory.

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Direct Inter-organization Transfer

3.4.1 N  Transactions  Inter-org Transfers

3.4.2 Choose the To Org
3.4.3 Ctrl + L. The Type will default as per the definition in the
Shipping Network
3.4.4 Enter a value in the field named ‘Number’ in the ‘Shipment’ block
(This is a mandatory field)
3.4.5 Optionally enter the Freight Carrier, waybill/Airbill, Containers
and Expected Receipt Date
3.4.6 Click on the push button ‘Transaction Lines’
3.4.7 Choose the item
3.4.8 Choose the (source) Subinventory
3.4.9 Choose the (destination) ‘To Subinventory’
3.4.10 Enter Qty
3.4.11 Optionally enter a Reason

Entering Inter-org Transfer Charge

If Requested Value is selected as the option in the organization

definition for the field ‘Inter-org Transfer Charge’, then the actual
value can be entered while doing the inter-organization transfer as
follows.

3.4.12 Move cursor to the field named ‘Added Value’

3.4.13 Enter a value in this field
3.4.14 Save

If Requested Percent is selected as the option in the organization

definition for the field ‘Inter-org Transfer Charge’, then the actual
percent can be entered while doing the inter-organization transfer
as follows. This percentage that you enter here is the
percentage of the Transaction Value.

3.4.14 Skip steps 3.4.12 to 3.4.14

3.4.15 Move cursor to the field named ‘Transfer Charge’
3.4.16 Enter the percentage of transaction value that you wish to include
as transfer charge.
3.4.17 Save

Entering Freight Charges

3.4.18 Move cursor to the field named ‘Transportation Cost’

3.4.19 Enter the freight charge in this field

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3.4.20 Save

3.4.15 Change organization to the Destination Organization

Check On-hand Quantities

3.4.16  On-hand Availability  On-hand Quantities
3.4.17 Enter the transferred item
3.4.18 Click on the push button ‘Find’

You must see that the transferred qty is incremented in the

Destination organization.

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Intransit/Standard Inter-organization Transfer

3.4.1 N  Transactions  Inter-org Transfers

3.4.2 Choose the To Org
3.4.3 Ctrl + L. The Type will default as per the definition in the
Shipping Network
3.4.4 Enter a value in the field named ‘Number’ in the ‘Shipment’ block
(This is a mandatory field)
3.4.5 Optionally enter the Freight Carrier, waybill/Airbill, Containers
and Expected Receipt Date
3.4.6 Click on the push button ‘Transaction Lines’
3.4.7 Choose the item
3.4.8 Choose the (source) Subinventory
3.4.9 Choose the (destination) ‘To Subinventory’
3.4.10 Enter Qty
3.4.11 Optionally enter a Reason

Entering Inter-org Transfer Charge

If Requested Value is selected as the option in the organization

definition for the field ‘Inter-org Transfer Charge’, then the actual
value can be entered while doing the inter-organization transfer as
follows.

3.4.12 Move cursor to the field named ‘Added Value’

3.4.13 Enter a valueinthis field
3.4.14 Save

If Requested Percent is selected as the option in the organization

definition for the field ‘Inter-org Transfer Charge’, then the actual
percent can be entered while doing the inter-organization transfer
as follows. This percentage that you enter here is the
percentage of the Transaction Value.

3.4.15 Skip steps 3.4.12 to 3.4.14

3.4.16 Move cursor to the field named ‘Transfer Charge’
3.4.17 Enter the percentage of transaction value that you wish to include
as transfer charge.
3.4.18 Save

Entering Freight Charges

3.4.19 Move cursor to the field named ‘Transportation Cost’

3.4.20 Enter the freight charge in this field

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3.4.21 Save

3.4.22 Change organization to the Destination Organization

Check On-hand Quantities

3.4.23 N  On-hand Availability  On-hand Quantities
3.4.24 Enter the transferred item
3.4.25 Click on the push button ‘Find’

You will see that the transferred qty is NOT incremented in the
Destination organization.

Receiving the Item in the Destination Organization

3.4.26 N Transactions  Receiving  Receipts
3.4.27 Enter the Number you entered in step 3.4.4
3.4.28 Click on the push button ‘Find’
3.4.29 Close the Receipt Header
You will see that there is a value of Receiving in the field
named ‘Destination’
3.4.30 Ensure that your current organizations location is defaulted as
value for the field named Deliver-To
3.4.31 Check the check box at the extreme left side of each line
3.4.32 Save
3.4.33 Click on the push button ‘Header’
3.4.34 Note down he Receipt Number
3.4.35 Close

Check On-hand Quantities

3.4.36 N  On-hand Availability  On-hand Quantities
3.4.37 Enter the transferred item
3.4.38 Click on the push button ‘Find’

You will see that the transferred qty is still NOT incremented in the
Destination organization.

Delivering the Received Item to a Suitable subinventory of

the Destination Organization
3.4.39 N  Transactions  Receiving  Receiving Transactions
3.4.40 Enter the Receipt Number noted down in step 3.4.25
3.4.41 Click o the push button ‘Find’
3.4.42 Check the check box at the extreme left side of each line
You will see that the ‘Destination’ is automatically changed to
Inventory

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3.4.43 Choose a subinventory name to which you want to deliver the
received item as value for the field named ‘Subinventory’
3.4.44 Save

Check On-hand Quantities

3.4.45 N  On-hand Availability  On-hand Quantities
3.4.46 Enter the transferred item
3.4.47 Click on the push button ‘Find’

This time you must see that the Delivered Qty is incremented in the
destination organization.

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Intransit/Inspection Required Inter-organization Transfer

3.4.1 N  Transactions  Inter-org Transfers

3.4.2 Choose the To Org
3.4.3 Ctrl + L. The Type will default as per the definition in the
Shipping Network
3.4.4 Enter a value in the field named ‘Number’ in the ‘Shipment’ block
(This is a mandatory field)
3.4.5 Optionally enter the Freight Carrier, waybill/Airbill, Containers
and Expected Receipt Date
3.4.6 Click on the push button ‘Transaction Lines’
3.4.7 Choose the item
3.4.8 Choose the (source) Subinventory
3.4.9 Choose the (destination) ‘To Subinventory’
3.4.10 Enter Qty
3.4.11 Optionally enter a Reason

Entering Inter-org Transfer Charge

If Requested Value is selected as the option in the organization

definition for the field ‘Inter-org Transfer Charge’, then the actual
value can be entered while doing the inter-organization transfer as
follows.

3.4.12 Move cursor to the field named ‘Added Value’

3.4.13 Enter a value in this field
3.4.14 Save

If Requested Percent is selected as the option in the organization

definition for the field ‘Inter-org Transfer Charge’, then the actual
percent can be entered while doing the inter-organization transfer
as follows. This percentage that you enter here is the
percentage of the Transaction Value.

3.4.15 Skip steps 3.4.12 to 3.4.14

3.4.16 Move cursor to the field named ‘Transfer Charge’
3.4.17 Enter the percentage of transaction value that you wish to include
as transfer charge.
3.4.19 Save

Entering Freight Charges

3.4.20 Move cursor to the field named ‘Transportation Cost’

3.4.21 Enter the freight charge in this field

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3.4.22 Save

3.4.23 Change organization to the Destination Organization

Check On-hand Quantities

3.4.24 N  On-hand Availability  On-hand Quantities
3.4.25 Enter the transferred item
3.4.26 Click on the push button ‘Find’

You will see that the transferred qty is NOT incremented in the
Destination organization.

Receiving the Item in the Destination Organization

3.4.27 N Transactions  Receiving  Receipts
3.4.28 Enter the Number you entered in step 3.4.4
3.4.29 Click on the push button ‘Find’
3.4.30 Close the Receipt Header
You will see that there is a value of Receiving in the field
named ‘Destination’
3.4.31 Ensure that your current organizations location is defaulted as
value for the field named Deliver-To
3.4.32 Check the check box at the extreme left side of each line
3.4.33 Save
3.4.34 Click on the push button ‘Header’
3.4.35 Note down the Receipt Number
3.4.36 Close

Check On-hand Quantities

3.4.37 N  On-hand Availability  On-hand Quantities
3.4.38 Enter the transferred item
3.4.39 Click on the push button ‘Find’

You will see that the transferred qty is still NOT incremented in the
Destination organization.

Inspecting the Received Item

3.4.40 N  Transactions  Receiving  Receiving Transactions
3.4.41 Enter the Receipt Number that you noted down in step 3.4.25
You will see that the ‘Destination’ is still Receiving
3.4.42 Click on the push button ‘Inspect’
3.4.43 Enter an Action
3.4.44 Choose a Status Accept
3.4.45 Enter the Qty accepted

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3.4.46 Move cursor to the next line if the accepted qty is less than the
received qty
3.4.47 Enter an Action
3.4.48 Choose a status Reject
3.4.49 Enter the qty rejected
The total of the accepted qty and the rejected qty should match
with the qty received
3.4.50 Save

Check On-hand Quantities

3.4.51 N  On-hand Availability  On-hand Quantities
3.4.52 Enter the transferred item
3.4.53 Click on the push button ‘Find’

You will see that the transferred qty is still NOT incremented in the
Destination organization.

Delivering the Received Item to a Suitable subinventory of

the Destination Organization
3.4.54 N  Transactions  Receiving  Receiving Transactions
3.4.55 Enter the Receipt Number noted down in step 3.4.25
3.4.56 Click o the push button ‘Find’
This time you will see that the ‘Destination’ is changed to
Inventory
3.4.57 Check the check box at the extreme left side of each line
3.4.58 Choose a subinventory name to which you want to deliver the
received item as value for the field named ‘Subinventory’
3.4.59 Save

Check On-hand Quantities

3.4.60 N  On-hand Availability  On-hand Quantities
3.4.61 Enter the transferred item
3.4.62 Click on the push button ‘Find’

This time you must see that the Delivered Qty is incremented in the
destination organization.

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3.5 Tracking Materials in Intransit Inventory

Intransit Inventory
Intransit Inventory is not a defined subinventory. The material is in
Intransit Inventory means that the material is on the road or better to
say that the material is on the move.

Till the transferred quantities are received in the Destination

organization, you will be able to see the Intransit Inventory only from
the Source Organization

3.5.1 Change Organization to the Organization from where the

transfer is made.
3.5.2 N  Transactions  Transaction Summaries
3.5.3 Enter an Item
3.5.4 Click on the push button ‘Summarize’
3.5.5 Change region to ‘Intransit’

Here you will be able to see the quantities of material lying in

the Intransit Inventory.

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4.0 Inventory Controls

‘Inventory Control’ means how individual item or a group of items can be tracked
when transactions are performed on it. Oracle Inventory is capable of handling
four different types of controls on the items that are assigned to an organization.
They are:

4.1 Revision control

4.2 Locator Control
4.3 Lot Control
4.4 Serial Control

The purpose of each type of control and in Oracle Inventory how you can
implement one or two or three or all the four controls on an item shall be
discussed below.

4.1 Revision Control

Revision Control is normally adopted for identifying a modified item. Let

us take the example of an item, Oracle Applications. Even though the
name Oracle Applications remains the same for all the versions, they are
not one and the same. Depending on the version number, the item named
Oracle Applications varies though the difference is marginal in many
cases. Thus, when you want to identify the changes made in an item, you
can place that item under Revision Control.

4.1.1 N  Items  Organization Items

4.1.2 Enter the item that you want to place under Revision Control
4.1.3 Click on the push button ‘Find’
4.1.4 Change region to ‘Inventory’
4.1.5 Check the check box ‘Revision Control’
4.1.6 Save

Hereafter you will not be able to do any transaction with the

above item without specifying a valid Revision.

Caution:
You cannot change revision control when an item has on-hand
quantity. If Revision Control is controlled at Master level, the
check for on-hand qty is against the sum of on-hand quantities
in all child organizations.

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Testing

4.1.7 Transactions  Miscellaneous Transactions

4.1.8 Choose the Type as Miscellaneous Receipt
4.1.9 Click on the push button ‘Transaction Lines’
4.1.10 Choose the item selected in step 4.1.2
4.1.11 Do not choose a value in the field named ‘Rev’
4.1.12 Choose the Subinventory
4.1.13 Enter Qty
4.1.14 Choose the Account
4.1.15 Optionally choose a Reason
4.1.16 Save

You will see that the system does not permit you to save it, as
you have not provided a valid revision in step 4.1.11. Now,
chose a revision in the field ‘Rev’ and save. You will see that
the transaction is effected.

When you want a new revision for a particular item that

should be defined as given in step 1.17

4.2 Locator Control

Locator Control is adopted to find out where exactly the item is lying in a
store. Normally Locator Control is adopted for items smaller in size. The
locators are defined as Row, Rack Bin. You can customize your Item
Locator key flexfield to suit your exact requirement.

Pre-specified Locator Control

4.2.1 In the organization definition (Inventory Parameters region),

ensure that you selected the option Determined at Subinventory
Level for the field named ‘Locator Control’
4.2.2 In the subinventory definition, ensure that you selected the value
Item Level for the field named ‘Locator Control’
4.2.3 N  Items  Organization Items
4.2.4 Enter the item that you want o place under Locator Control
4.2.5 Click on the push button ‘Find’
4.2.6 Change region to ‘Inventory’
4.2.7 Choose a value Prespecified in the field named ‘Locator Control’
4.2.8 Save

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Defining Locators for a Subinventory

4.2.9 N  Setup  Organization  Subinventories

4.2.10 F11, Enter the Subinventory name, Ctrl + F11
4.2.11 Click o the push button ‘Open’
4.2.12 Click o the push button ‘Locators’
4.2.13 By keeping the cursor in the first item, define the locators for it in
the lower block named ‘Locators for this Item Subinventory’
4.2.14 Move cursor to the next item in the upper block and repeat the
above step.
4.2.15 Save

Now, you cannot do transactions with the above item without

choosing a valid locator.

Testing

4.2.16 Transactions  Miscellaneous Transactions

4.2.17 Choose the Type as Miscellaneous Receipt
4.2.18 Click on the push button ‘Transaction Lines’
4.2.19 Choose the item selected in step 4.2.4
4.2.20 Choose a value in the field named ‘Rev’
4.2.21 Do not choose a value for the field named ‘Locator’
4.2.22 Choose the Subinventory
4.2.23 Enter Qty
4.2.24 Choose the Account
4.2.25 Optionally choose a Reason
4.2.26 Save

You will see that the system does not permit you to save it, as
you have not provided a valid Locator in step 4.2.21. Now,
chose a Locator in the field ‘Locator’ and save. You will see
that the transaction is effected.

Dynamic Entry Locator Control

4.2.27 In the organization definition (Inventory Parameters region),

ensure that you selected the option Determined at Subinventory
Level for the field named ‘Locator Control’
4.2.28 In the subinventory definition, ensure that you selected the value
Item Level for the field named ‘Locator Control’
4.2.29 N  Items  Organization Items
4.2.30 Enter the item that you want o place under Locator Control
4.2.31 Click on the push button ‘Find’

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4.2.32 Change region to ‘Inventory’
4.2.33 Choose a value Dynamic Entry in the field named ‘Locator
Control’
4.2.34 Save

4.2.35 Do the Testing as mentioned in step 4.2.16 to 4.2.26

4.3 Lot Control

Lot Control is adopted to identify a group of items. If you are a Textile

Manufacturer, the cotton that you receive may be placed under lot control.
Each truckload of cotton may be treated as one lot.

4.3.1 Ensure the following values for Lot Control fields (Revision, Lot,
Serial region) in your organization definition.

Uniqueness : Across Items

Generation : At Item Level
Prefix : Enter an alphanumeric character as prefix
Total Length : Enter a value of 4 if you want to generate
three-digit lot number. (The extra 1 is for the prefix)

4.3.2 N  Items  Organization Items

4.3.3 Enter the item that you want to place under Lot Control
4.3.4 Click on the push button ‘Find’
4.3.5 Change region to ‘Inventory’
4.3.6 Choose a value of Full Control for the field named Lot Control
4.3.7 Enter a Starting Lot Prefix (an alphanumeric character)
4.3.8 Enter a Starting Lot Number
4.3.9 Save

Testing

4.3.10 Transactions  Miscellaneous Transactions

4.3.11 Choose the Type as Miscellaneous Receipt
4.3.12 Click on the push button ‘Transaction Lines’
4.3.13 Choose the item selected in step 4.3.3
4.3.14 Choose a value in the field named ‘Rev’
4.3.15 Choose a value for the field named ‘Locator’
4.3.16 Choose the Subinventory
4.3.17 Enter Qty
4.3.18 Choose the Account
4.3.19 Optionally choose a Reason

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4.3.20 Save

You will see that the system does not allow you to save the
transaction as you have not selected a valid lot number for the
qty received.

4.3.21 Click on the push button ‘Lot/Serial’

4.3.22 Click on the push button ‘Generate’
You will fin a new lot number appears in the field named Lot
4.3.23 Enter a partial qty of the total received qty, in the field named
‘Quantity’.
4.3.24 Move cursor to the next field
4.3.25 Click on the push button ‘Generate’
4.3.26 Enter the remaining qty in the ‘Quantity’ field
4.3.27 When finished click on the push button ‘Done’

Note:
It is definitely not necessary to do steps 4.3.24 to 4.3.26, if you wish to
give the same lot number for all the received qty. In that case, you
have to enter all the received qty in step 4.3.23.

4.4 Serial Control

Serial Number Control is adopted when you want to track individual

pieces of an item. This is generally used for costly items.

4.4.1 Ensure the following values for Serial Control fields (Revision,
Lot, Serial region) in your organization definition.

Uniqueness : Within Inventory Items

Generation : At Item Level
Prefix : Enter an alphanumeric character as prefix
Starting Serial Number : Enter a number

4.4.2 N  Items  Organization Items

4.4.3 Enter the item that you want to place under Serial Control
4.4.4 Click on the push button ‘Find’
4.4.5 Change region to ‘Inventory’
4.4.6 Choose a value of Predefined for the field named Serial
Generation
4.4.7 Enter a Starting Serial Prefix (an alphanumeric character)
4.4.8 Enter a Starting Serial Number
4.4.9 Save

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Generating Serial Numbers

4.4.10 N  On-hand Availability  Generate Serial Numbers

4.4.11 Chose the following parameters for the report

Item : Chose the item selected in 4.4.3

Quantity : Enter the total number of serial numbers
you want to generate this time.
4.4.12 Click on OK
4.4.13 Click on the push button ‘Submit’
4.4.14 Help  View My Request
4.4.15 Click on the push button ‘Find’
See that the server processed your request

Testing

4.4.16 Transactions  Miscellaneous Transactions

4.4.17 Choose the Type as Miscellaneous Receipt
4.4.18 Click on the push button ‘Transaction Lines’
4.4.19 Choose the item selected in step 4.4.3
4.4.20 Choose a value in the field named ‘Rev’ (assumes that the same
item is under Revision control also)
4.4.21 Choose a value for the field named ‘Locator’ (assumes that the
same item is under Locator control also)
4.4.22 Choose the Subinventory
4.4.23 Enter Qty
4.4.24 Choose the Account
4.4.25 Optionally choose a Reason
4.4.26 Save

You will see that the system does not allow you to save the
transaction as you have not selected a valid lot number and a
valid serial number for the qty received.

4.4.27 Click on the push button ‘Lot/Serial’

If the item is under lot control also, then

4.4.28 Click on the push button ‘Generate’
4.4.29 Enter a Qty
4.4.30 Click on the push button ‘Serial’
4.4.31 Choose the radio button ‘Range’
4.4.32 The Qty field will display the total qty you are receiving
4.4.33 Choose the last number that is to be assigned to the last item of the
received qty.

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Suppose you are receiving 100 items, you must ensure that 100
or more serial numbers are generated before trying to receive
the item.
4.4.34 Save

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5.0 Inventory Planning

5.2 Min-Max Planning

Min-Max planning is generally adopted for items, which are regularly

purchased. Say, for example, let us consider the purchase of bearings, v-
belts etc. The consumption of these types of items will be more or less
same every month. So, you can fix a minimum and maximum stock level
for these items considering the consumption level.

Once an item is placed under Min-Max Planning, you can make

arrangement to create purchase requisitions automatically when the item’s
on-hand qty falls below the minimum level fixed for the it.

You can do the Min-Max planning for Buy items as well as Make items. If
a Buy item is placed under Min-Max Planning, you can do the planning to
generate purchase requisitions at two levels, viz Organization Level and
Subinventory Level.

If a Make item is placed under Min-Max Planning, the system creates WIP
Discrete Jobs instead of purchase requisitions. Min-Max Planning for a
make item can be done only at Organization Level

5.2.1 Organization Level Min-Max Planning for Buy Items

5.2.1.1 N  Items  Organization Items

5.2.1.2 Enter the item that you want to place under organization
Level Min-Max Planning
5.2.1.3 Click on the push button ‘Find’
5.2.1.4 Change region to ‘General Planning’
5.2.1.5 Choose Buy as value for the field named ‘Make or Buy’
5.2.1.6 Choose Supplier as value for the field named ‘Source
Type’
5.2.1.7 Choose the Min-Max Planning as value for the field
named ‘Inventory Planning Method’
5.2.1.8 Enter a Minimum Qty
5.2.1.9 Enter a Maximum Qty
5.2.1.10 Enter the Minimum Order Qty
5.2.1.11 Enter the Maximum Order Qty
5.1.1.10 optionally enter the Fixed Lot Multiplier
5.1.1.11 Save

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Create Purchase Requisition Automatically

Ensure that the on-hand qty of the item is well below the Min-
Max minimum qty.

5.1.1.12 Help  View My Request

5.1.1.13 Click on the push button ‘Find’
5.1.1.14 Click on the push button ‘Submit a New Request’
5.1.1.15 Choose the report ‘Min-Max Planning Report’
5.1.1.16 Select the following parameters for the report

Planning Level : Organization

Item Selection : Items under minimum quantity
Items From : Choose your item
To : Choose the same item
Restock : Yes
Include PO Supply : No
Include WIP Supply : No
Include Interface Supply : No

5.1.1.17 Click on OK
5.1.1.18 Click on the push button ‘Submit’
5.1.1.19 Click on No
5.1.1.20 Click on the push button ‘Refresh’ till then your request is
processed by the server.
5.1.1.21 Click on the push button ‘View Output’
5.1.1.22 Click on the push button ‘Next

You must see that all the relevant data have come there.

Note:
When you run the ‘Min-Max Planning Report’, the data
required to generate a purchase requisition are transferred to
the Interface Tables. These data will be converted into a
purchase requisition only when you do ‘Requisition Import’
from Oracle Purchasing.

Requisition Import from Oracle Purchasing

Caution:
Before doing the Requisition Import from Purchasing, you must
ensure the following.
You have been defined as an Employee
Your Employee name is attached to your User name
You have bee defined as a Buyer

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5.1.1.23 Switch Responsibility to ‘Purchasing’
5.1.1.24 Help  View My Request
5.1.1.25 Click o the push button ‘Submit a New Request’

5.1.1.26 Choose the report ‘Requisition Import’

5.1.1.27 Select the following parameters for the report

Import Source : INV

Group By : Item
5.1.1.28 Click on OK
5.1.1.29 Click on the push button ‘Submit’
5.1.1.30 Click on No
5.1.1.31 Click on the push button ‘Refresh’ till then the server
process your request.
5.1.1.32 Click on the push button ‘View Output’

You must see the message requisition created.

Finding the Number of the Created Requisition

5.1.1.33 N  Requisition  Requisition Summary

5.1.1.34 Enter the item
5.1.1.35 Click on the push button ‘Find’

In the window that appears, you can find out the requisition
number.

5.2.2 Subinventory Level Min-Max Planning for Buy Items

5.2.2.1 N  Setup  Organizations  Subinventories

5.2.2.2 F11, Enter the subinventory name, Ctrl + F11
5.2.2.3 Click on the push button ‘Item/Subinventory’
5.2.2.4 Click on that particular line whose item you want to place
under Min-Max Planning
5.2.2.5 Check the check box ‘Min-Max Planning’
5.2.2.6 Enter a Minimum Qty
5.2.2.7 Enter a Maximum Qty
5.2.2.8 Enter the Minimum Order Qty
5.2.2.9 Enter the Maximum Order Qty
5.1.2.10 Optionally enter the Fixed Lot Multiplier
5.1.2.11 Choose Item Sourcing as Supplier
5.1.2.12 Save

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Create Purchase Requisition Automatically

Ensure that the on-hand qty of the item in the above

Subinventory is well below the Min-Max minimum qty.

5.1.2.12 Help  View My Request

5.1.2.13 Click on the push button ‘Find’
5.1.2.14 Click on the push button ‘Submit a New Request’
5.1.2.15 Choose the report ‘Min-Max Planning Report’
5.1.2.16 Select the following parameters for the report

Planning Level : Subinventory

Subinventory : Choose the Subinventory
Item Selection : Items under minimum quantity
Items From : Choose your item
To : Choose the same item
Restock : Yes
Include PO Supply : No
Include WIP Supply : No
Include Interface Supply : No

5.1.2.17 Click on OK
5.1.2.18 Click on the push button ‘Submit’
5.1.2.19 Click on No
5.1.2.20 Click on the push button ‘Refresh’ till then your request is
processed by the server.
5.1.2.21 Click on the push button ‘View Output’
5.1.2.22 Click on the push button ‘Next

You must see that all the relevant data have come there.

Note:
When you run the ‘Min-Max Planning Report’, the data
required to generate a purchase requisition are transferred to
the Interface Tables. These data will be converted into a
purchase requisition only when you do ‘Requisition Import’
from Oracle Purchasing.

Requisition Import from Oracle Purchasing

Caution:
Before doing the Requisition Import from Purchasing, you must
ensure the following.
You have been defined as an Employee

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Your Employee name is attached to your User name
You have bee defined as a Buyer
5.1.2.23 Switch Responsibility to ‘Purchasing’
5.1.2.24 Help  View My Request
5.1.2.25 Click o the push button ‘Submit a New Request’

5.1.2.26 Choose the report ‘Requisition Import’

5.1.2.27 Select the following parameters for the report

Import Source : INV

Group By : Item
5.1.2.28 Click on OK
5.1.2.29 Click on the push button ‘Submit’
5.1.2.30 Click on No
5.1.2.31 Click on the push button ‘Refresh’ till then the server
process your request.
5.1.2.32 Click on the push button ‘View Output’

You must see the message requisition created.

Finding the Number of the Created Requisition

5.1.2.33 N  Requisition  Requisition Summary

5.1.2.34 Enter the item
5.1.2.35 Click on the push button ‘Find’

In the window that appears, you can find out the requisition
number.

5.2.3 Organization Level Min-Max Planning for Make

Items

5.2.3.1 N  Items  Organization Items

5.2.3.2 Enter the item that you want to place under organization
Level Min-Max Planning
5.2.3.3 Click on the push button ‘Find’
5.2.3.4 Change region to ‘General Planning’
5.2.3.5 Choose Make as value for the field named ‘Make or Buy’
5.2.3.6 Choose the Min-Max Planning as value for the field
named ‘Inventory Planning Method’
5.2.3.7 Enter a Minimum Qty
5.2.3.8 Enter a Maximum Qty
5.2.3.9 Enter the Minimum Order Qty
5.1.3.10Enter the Maximum Order Qty

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5.1.3.11 Optionally enter the Fixed Lot Multiplier
5.1.3.11 Save
5.1.3.12 N  Items  Master items
5.1.3.13 F11, Enter the Item Name, Ctrl + F11
5.1.3.14 Change region to ‘Purchasing’
5.1.3.15 Uncheck the check box named ‘Purchasable’
5.1.3.16 Save

Create Discrete Job Automatically

Ensure that the on-hand qty of the item is well below the Min-
Max minimum qty.

5.1.3.12 Help  View My Request

5.1.3.13 Click on the push button ‘Find’
5.1.3.14 Click on the push button ‘Submit a New Request’
5.1.3.15 Choose the report ‘Min-Max Planning Report’
5.1.3.16 Select the following parameters for the report

Planning Level : Organization

Item Selection : Items under minimum quantity
Items From : Choose your item
To : Choose the same item
Restock : Yes
For Repetitive Item : Create discrete job
Include PO Supply : No
Include WIP Supply : No
Include Interface Supply : No

5.1.3.17 Click on OK
5.1.3.18 Click on the push button ‘Submit’
5.1.3.19 Click on No
5.1.3.20 Click on the push button ‘Refresh’ till then your request is
processed by the server.
5.1.3.21 Click on the push button ‘View Output’

You will get the number of the Discrete Job created from this
window.

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5.2 Reorder Point Planning

A complete Reorder Point planning involves the following steps.

5.2.1 Set the Required Item Attributes

5.2.1.1 Set the following item attributes at organization level as

follows.

(a) N  Items  Organization Items

(b) Enter the item
(c) Click on the push button ‘Find’
(d) Change region to ‘General Planning’
(e) ‘Inventory planning Method’ : Reorder point
(f) Make or Buy : Buy
(g) Order Cost : Enter a value
(h) Carrying Cost Percent : Enter a value
(i) Source Type : Supplier
(j) Safety Stock Method : Non-MRP Planned
(k) Safety Stock Bucket Days : Enter a value
(l) Safety Stock Percent : Enter a value

5.2.2 Define a Forecast

5.2.2.1 N  Planning  Forecasts  Sets

5.2.2.2 Enter a ‘Forecast Set’ name
5.2.2.3 Optionally enter a description
5.2.2.4 Choose a ‘Bucket Type’ (Days)
5.2.2.5 Choose a ‘Level’ (Item)
5.2.2.6 Click on the Lines
5.2.2.7 Enter a ‘Forecast’ name
5.2.2.8 Optionally enter a description
5.2.2.9 Move cursor to the next line
5.2.2.10 Enter the second ‘Forecast’ name
5.2.2.11 Optionally enter a description for the second Forecast
5.2.2.12 Repeat till all the Forecast names are entered

5.2.2.13 Click on the first Forecast name

5.2.2.14 Click on the push button ‘Forecast Items’
5.2.2.15 Choose the item
5.2.2.16 Move cursor to the next line
5.2.2.17 Choose the second item and so on

5.2.2.18 Click on the push button ‘Details’

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5.2.2.19 Choose the Bucket Type (Days)
5.2.2.20 Choose the starting date of your demand in the field
named (From) Date
5.2.2.21 Choose the last date of your demand in the field named
‘End Date’
5.2.2.22 Enter your demand in the field named (Current) Quantity

The Quantity you enter here is the requirement per bucket.

Say, for example, if your Bucket Type is selected Days and you
entered a qty of 70 means that your demand for the item is 70
per day. If the selected Bucket Type is Weeks and if you
entered a Qty of 70, means that your demand for the item is 70
per week or 10 per day.

5.2.2.23 Optionally enter a ‘Confidence Percent’

The ‘Confidence Percent’ represent the accuracy of Forecast.

If you entered a Qty of 100 and a confidence Percent of 90, the
actual demand will be considered as 100 – (100 x 90/100) = 90.

5.2.2.24 Close the window

5.2.2.25 Click on the second line and repeat steps 5.2.2.18 to
5.2.2.23

5.2.2.26 Close the Details window

5.2.2.27 Close the Forecast Items window.
5.2.2.28 Click on the second Forecast name
5.2.2.29 Repeat steps 5.2.2.14 to 5.2.2.25
5.2.2.30 Save

Note:
One ‘Forecast Set’ can contain multiple ‘Forecasts’, A
Forecast can be used to define the demand for specific period
of a year or to define the demand for a particular region of
sales.

5.2.3 Define or Generate Safety Stock

Define a safety Stock Manually

5.2.3.1 N  Planning  Safety stocks

5.2.3.2 Click on the push button ‘New’
5.2.3.3 Choose the item

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5.2.3.4 Enter an Effective date
5.2.3.5 Enter the Qty that you want as Safety Stock
5.2.3.6 Save

Generate Safety Stock as a Percentage of Forecast

Demand

5.2.3.1 N Planning  Safety Stock

5.2.3.2 F11, Enter the item you entered in step 5.2.3.3, Ctrl + F11
5.2.3.3 Click on the push button ‘Open’
5.2.3.4 Special  Reload
5.2.3.5 Choose/Enter the following report parameters

Selection : Specific inventory item

Item : Choose the item
Method : User-defined percent
Forecast : Choose the Forecast (You should
choose a Forecast name and not a
Forecast set name
Safety Stock%: Enter a value

5.2.3.6 Click on OK
5.2.3.7 Click on the pus button ‘Submit’
5.2.3.8 Help  View My request
5.2.3.9 Click on the push button ‘Find’
5.2.3.10 Click on ‘Refresh’ till your request is processed by the
Server.

Viewing the Generated Safety Stock

5.2.3.11 N  Planning  Safety Stock

5.2.3.12 F11, Enter the item name, Ctrl + F11
5.2.3.13 Click on the push button ‘Open’

You will see that the system has assigned a new value for the
field ‘Quantity’. Also you can see that a value of 0 is assigned
for the field named ‘Quantity’ from the day on which there
exists no demand for the item as per the Forecast selected for
the ‘Reorder Point Report’ parameter.

Note:
For doing the ROP Planning, you need to generate a Safety
Stock using any one of the methods described above. Do not
use both methods one after another

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5.2.4 Run the Reorder Point Report

Ensure that the on-hand qty of the item is well below the
Safety Stock qty.

5.2.4.1 Help  View My Request

5.2.4.2 Click on the push button ‘Submit a New Request’
5.2.4.3 Choose the report named ‘Reorder point planning’
5.2.4.4 Choose/Enter the following parameters for the report

Item Selection :
Sort By : Inventory item
Range : Full Listing
From : Enter your item
To : enter the same item selected above
Demand Cutoff Date : Choose the current date
Supply Cutoff Date : Enter today’s date or a date ahead
of today’s date
Create Requisitions : Yes
Forecast : Choose a Forecast name

5.2.4.5 Click on OK
5.2.4.6 Click on the push button ‘Submit’
5.2.4.7 Click on No
5.2.4.8 Click on the push button ‘Find’
5.2.4.9 Click on the push button ‘Refresh’ till then your request is
processed by the Server.
5.2.4.10 Click on the push button ‘View Output’
5.2.4.11 Click on the push button ‘Next’

You must see that all the relevant data are available here.

5.2.5 Do Requisition Import from Purchasing

Caution:
Before doing the Requisition Import from Purchasing, you must
ensure the following.
You have been defined as an Employee
Your Employee name is attached to your User name
You have bee defined as a Buyer

5.2.5.1 Switch Responsibility to ‘Purchasing’

5.2.5.2 Help  View My request

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5.2.5.3 Click on the push button ‘Submit a New Request’
5.2.5.4 Choose the report named Requisition Import
5.2.5.5 Choose the following parameters for the report

Import Source : INV

Group By : Item

5.2.5.6 Click on OK
5.2.5.7 Click on the push button ‘Submit’
5.2.5.8 Click on No
5.2.5.9 Click on the push button ‘Find’

5.2.5.10 Click on the push button ‘Refresh’ till then your request is
processed by the Server

5.2.5.11 Click on the push button ‘View Output’

You must get the message ‘requisition created’

5.2.6 Find out the Requisition Number from the

Requisition Summary window.

5.2.6.1 N  Requisition  Requisition Summary

5.2.6.2 Enter the item
5.2.6.3 Click on the push button ‘Find’

In the window that appears, you can find out the requisition
number.

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5.3 Replenishment

The Replenishment is normally used to replenish Expense Subinventories.

You can use this feature to replenish Asset Subinventories also. The
Expense item, while assigning them to an expense subinventory can be
placed under Min-Max Panning as usual. In the example give below, it is
assumed that the item is not under Min-Max Planning.

5.3.1 N  Counting  Replenishment Counts  Counts

5.3.2 Click on the push button ‘New’
5.3.3 Enter a name for the Replenishment Count
5.3.4 Choose the Subinventory
5.3.5 Click on the push button ‘Lines’
5.3.6 Choose the item
5.3.7 Choose the Count Type as Order Quantity
5.3.8 Enter a Qty
5.3.9 Save
5.3.10 Close the Lines window
5.3.11 Click on the push button ‘Process and Report’

5.3.12 Help  View My Request

5.3.13 Click on the push button ‘Find’
5.3.14 Click on the push button ‘Refresh’ till then your request is
processed by the Server

Do Requisition Import from Purchasing

Caution:
Before doing the Requisition Import from Purchasing, you must
ensure the following.
You have been defined as an Employee
Your Employee name is attached to your User name
You have bee defined as a Buyer

5.3.15 Switch Responsibility to ‘Purchasing’

5.3.16 Help  View My request
5.3.17 Click on the push button ‘Submit a New Request’
5.3.18 Choose the report named Requisition Import
5.3.19 Choose the following parameters for the report

Import Source : INV

Group By : Item

5.3.20 Click on OK

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5.3.21 Click on the push button ‘Submit’
5.3.22 Click on No
5.3.23 Click on the push button ‘Find’

5.3.24 Click on the push button ‘Refresh’ till then your request is
processed by the Server

5.3.25 Click on the push button ‘View Output’

You must get the message ‘requisition created’

Find out the Requisition Number from the Requisition

Summary window.

5.3.26 N  Requisition  Requisition Summary

5.3.27 Enter the item
5.3.28 Click on the push button ‘Find’

In the window that appears, you can find out the requisition
number.

Note:
In step 5.3.7, you can choose the options, Order Maximum or On-hand
quantity provided that the item is placed under Min-Max Planning at
Subinventory Level. If Order Maximum is selected as the option, you
need not to enter a Qty at all. The system will generate a purchase
requisition for the Min-Max maximum qty. On the other hand, if the
option selected is On-hand Quantity, then the Qty you enter will be
compared with the Min-Max minimum qty and if the entered qty is
less than the Min-Max minimum qty, then a purchase requisition will
be generated for a qty of Min-Max maximum qty.

You can use the Replenishment Count to replenish an asset item

assigned to an Asset Subinventory also if required.

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5.4 Kanban

5.4.1 N  Kanban  Pull Sequences

5.4.2 Click on the push button ‘New’
5.4.3 Choose the item
5.4.4 Choose the Subinventory
5.4.5 Choose a locator if the item is under Locator Control
5.4.6 Choose the Status Active
5.4.7 Choose a Card Status New
5.4.8 Choose the Source Type as Supplier
5.4.9 Choose a Supplier Name
5.4.10 Tab to the field named ‘Kanban Size’ and enter the Kanban size
5.4.11 Enter he Number of Cards
5.4.12 Enter the Min Order Qty
5.4.13 Save

5.4.14 lick on the push button ‘Cards’

5.4.15 Enter a Card Number
5.4.16 Click on the push button ‘Replenish’

See that the Card Status is changed to Empty

Do Requisition Import from Purchasing

Caution:
Before doing the Requisition Import from Purchasing, you must
ensure the following.
You have been defined as an Employee
Your Employee name is attached to your User name
You have bee defined as a Buyer

5.4.17 witch Responsibility to ‘Purchasing’

5.4.18 Help  View My request
5.3.17 Click on the push button ‘Submit a New Request’
5.3.18 Choose the report named Requisition Import
5.3.19 Choose the following parameters for the report

Import Source : INV

Group By : Item

5.3.20 Click on OK
5.3.21 Click on the push button ‘Submit’
5.3.22 Click on No
5.3.23 Click on the push button ‘Find’

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5.3.24 Click on the push button ‘Refresh’ till then your request is
processed by the Server

5.3.26 Click on the push button ‘View Output’

You must get the message ‘requisition created’

Find out the Requisition Number from the Requisition

Summary window.

5.3.26 N  Requisition  Requisition Summary

5.3.27 Enter the item
5.3.28 Click on the push button ‘Find’

In the window that appears, you can find out the requisition
number.

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6.0 Accuracy
In any organization, due to missing transactions or inaccurate entries of
transactions, there will be every possibility for differences in the system on-hand
quantities and the actual quantities lying in the Subinventory. In order to correct
the differences, people physically count the items and correct the system on-hand
quantities periodically. This we generally call as Stock Taking. Oracle Inventory
is capable of managing the Stock Taking in two ways. The two ways are (1) Cycle
Counting and (2) Physical Inventory

(1) Cycle Counting

Instead of counting all the items simultaneously, you can plan and count only a
few items every day or every week. For doing Cycle Counting of an item, you
must set the item attribute Enable Cycle Counting to Yes. Normally high value
items are placed under Cycle Counting.

For planning the number of times an item to be counted per year, you can use an
ABC compile.

(2) Physical Inventory

In Physical Inventory you will have to count all the items. This is equal to the
Half Yearly or Annual Stock Taking of an organization.

6.1 ABC Analysis

A complete ABC Analysis includes the following

 Define a ABC Compile

 Define ABC Classes
 Define ABC Assignment Group and Assign Classes to it
 Assign Items to Various Classes

Define an ABC Compile

An ABC Compile is nothing but sorting the items based on a specific

criterion.

6.1.1 ABC Codes  ABC Compiles

6.1.2 Enter a name for the Compile
6.1.3 Choose a ‘Content Scope’ (Organization)
6.1.4 Choose a ‘Valuation Scope’ (Organization)

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6.1.5 Choose a Criterion in the ‘Compile Specification’ block. (Current
on-hand value)
6.1.6 Click on the push button ‘Compile’

6.1.7 Help  View My Request

6.1.8 Click on the push button ‘Find’
6.1.9 Click on the push button ‘Refresh’ till then the server process your
request.
6.1.10 Click on the push button ‘View Output’

In this window, you can see the result of the ABC Compile

Content Scope:
The Content Scope specifies list of items to be considered in the ABC
Compile. If a value of ‘organization’ is selected here, all the items
assigned to the current organization will be included in the ABC
Compile. If a value of ‘Subinventory’ is selected, then you have to
specify a Subinventory. In this case, the items assigned to the selected
Subinventory only will be included in the ABC Compile.

Valuation Scope
The Valuation Scope specifies, in which all areas the system should
search for the items selected as per the ‘Content Scope’. For example, if
Subinventory is selected as the Content Scope and Organization is
selected as the Valuation Scope, then the system will search all
subinventories of the current organization for finding the items assigned
to the Subinventory selected in the Content Scope.

Compile Criteria that You can Use

1. Current on-hand quantity

2. Current on-hand value
3. Historical usage value
4. Historical usage quantity
5. Historical number of transactions
6. Forecasted usage value
7. Forecasted usage quantity
8. Previous cycle count adjustment quantity
9. Previous cycle count adjustment value
10. MRP demand usage quantity
11. MRP demand usage value

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Define ABC Classes

6.1.11 N  ABC Codes  ABC Classes

6.1.12 Enter a Class name
6.1.13 Optionally enter description for the above class
6.1.14 Move cursor to the next line
6.1.15 Enter the name of the second Class
6.1.16 Optionally enter a description for the second Class
6.1.17 Repeat steps 6.1.14 to 61.1.16 till all the Class names are entered
6.1.18 Save

Note:
You can enter any number of classes. Need not to limit to only three
classes named A, B and C.

Define ABC Assignment Group and Assign Classes to it

6.1.19 N  ABC Codes  ABC Assignment Groups

6.1.20 Enter a Group Name
6.1.21 Choose an ABC Compile name in the field named ‘Compile
Name’

6.1.22 Click on the push button ‘Group Classes’

6.1.23 Choose a ‘Priority’ (say 1)
6.1.24 Choose an ABC Class name in the field named ‘Class Name’
6.1.25 Move cursor to the next line and repeat steps 6.1.23 and 6.1.24
6.1.26 Repeat till all the classes are assigned to the Group
6.1.27 Save

Assign Items to Various Classes

6.1.28 Close the ‘Group Classes’ window opened in step 6.1.22

6.1.29 Click on the push button ‘Assign Items’
All the Classes belong to the Group defaults
6.1.30 Enter a value in the field named ‘Seq’
Suppose you entered a value of 100 in the above step, means that
the first 100 items listed in the ABC Compile is assigned to the A
Class. Refer step 6.1.10.
6.1.31 Move cursor to the next line
6.1.32 Enter a value for the field named ‘Seq’
Suppose you entered a value of 200 in the above step, means that
the items from 101 to 200 listed in the ABC Compile is assigned to
the B Class.

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6.1.33 Repeat steps 6.1.31 and 6.1.32 till all the items are assigned.
6.1.34 Save

6.2 Cycle Counting Using ABC Compile

6.2.1 N  Counting  Cycle Counting  Cycle Counts

6.2.2 Enter a name for the Cycle Count
6.2.3 Optionally enter a description for the Cycle Count
6.2.4 Choose a Workday Calendar
6.2.5 Choose an Adjustment Account
6.2.6 Check the check box ‘Auto Schedule’
6.2.7 Choose an auto schedule frequency (day)
6.2.8 Check the check box ‘Count Zero Quantity’
6.2.9 Enter a value in the field named Starting Seq
6.2.10 Check the check box ‘Unscheduled Entries’
6.2.11 Check the check box ‘Display system Qty’
6.2.12 Choose the option All for ‘Count Subinventories’
6.2.13 Change region to ‘Adjustments, ABC’
6.2.14 Choose If out of tolerance as value for the field named ‘Required’
in the Approval block
6.2.15 Enter the tolerances
6.2.16 Choose the ABC Assignment Group as value for the field named
Group’ in the ABC Initialization block. Refer step 6.1.20
6.2.17 Choose the option None in the field named ‘Option’ in the above
block.

Entering Count Frequencies

6.2.18 Click on the push button ‘Classes’
6.2.19 Choose the first Class name
6.2.20 Enter the number of times you wish to count the A class items in
the field named ‘Counts Per Year’
6.2.21 Move cursor to the next line
6.2.22 Choose the second Class name
6.2.23 Enter the number of times you wish to count the B class items in
the field named ‘Counts Per Year’
6.2.24 Repeat steps 6.2.21 to 6.2.23 till count frequencies are entered for
all the items.

Generating and Listing the Count Schedules

6.2.25 N  Counting  Cycle Counting  Cycle Counts
6.2.26 F11, Enter your Cycle Count Name, Ctrl + F11
6.2.27 Click on the push button ‘Open’
6.2.28 Special  Perform Full Cycle Count
This request is comprised of three reports as follows

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Generate automatic schedule requests
Generate cycle count requests
Cycle count listing

6.2.29 Click in the field ‘Parameters’ of the first report and enter the
following parameters.

All Cycle Counts : No

Cycle Count Name : Choose your cycle count name
Include Control Items : No

6.2.30 Click on OK
6.2.31 Click in the field ‘Parameters’ of the second report and enter the
following parameters.

All Cycle Counts : No

Cycle Count Name : Choose your cycle count name
Include Control Items : No

6.2.32 Click on OK
6.2.33 Click in the field ‘Parameters’ of the third report and enter the
following parameters.

All Cycle Counts : No

Cycle Count Name : Choose your cycle count name
Include Control Items : No

6.2.34 Click on OK
6.2.35 Click on the push button ‘Submit’
6.2.36 Help  View My Request
6.2.37 Click on the push button ‘Find’
6.2.38 Click on the push button ‘Refresh’ till then the server process your
request.
6.2.39 Click on the report name ‘Cycle Count Listing’
6.2.40 Click on the push button ‘View Output’

You must see the items scheduled for cycle counting

Entering Count Quantities

6.2.41 N  Counting  Cycle Counting  Cycle Count Entries

6.2.42 Enter the Cycle Count name
6.2.43 Click on the push button ‘Find’

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6.2.44 Enter the counted quantities for all the listed items in the field
named ‘Quantity’
6.2.45 Save

Approving the Cycle Count Entries

6.2.46 N  Counting  Cycle Counting  Approve Counts

6.2.47 Enter the Cycle Count name
6.2.48 Click on the push button ‘Find’
6.2.49 Choose the required radio button (None, Approved, Rejected or
Recount) for each line as appropriate.
6.2.50 Save

6.3 Physical Inventory

A complete Physical Inventory involves the following actions

 Define Physical Inventory

 Take a Snapshot of System On-hand Quantities
 Generate Physical Inventory Tags
 Print the Generated Tags
 Attach the Tags to its respective item
 Count the actual quantities and enter them in the respective
tag.
 Collect all the Tags
 Enter the quantities recorded in the Tag in the System
 Approve the Physical Inventory
 Launch Adjustments

Define Physical Inventory

6.3.1 N  Counting  Physical Inventory  Physical Inventories

6.3.2 Enter a name for your Physical Inventory
6.3.3 Optionally enter a description
6.3.4 Choose If out of tolerance as value for the field named ‘Required’
in the Approvals block.
6.3.5 Enter the tolerances
6.3.6 Choose All as value for the field ‘Count Subinventories’
6.3.7 Check the check box named ‘Allow Dynamic Tags’
6.3.8 Save

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Take a Snapshot of System On-hand Quantities

6.3.8 Click on the push button ‘Snapshot’

Generate Physical Inventory Tags

6.3.9 N  Counting  Physical Inventory  Tag Generation

6.3.10 Choose the physical inventory name in the ‘Name field
6.3.11 Choose the ‘Type’ as Default
6.3.12 Check or uncheck the check box ‘Show Serial on Tags’
6.3.13 Enter a Starting Tag
6.3.14 Enter the Digit Increment
If the ‘Starting Tag’ is entered as A001, then the ‘Digit Increment’
must be entered as 0111
6.3.15 Enter an Ending Tag
The Number of Tags will default
6.3.16 Click on the push button ‘Generate’

Print the Generated Tags

6.3.17 Help  View My Request

6.3.18 Click on the push button ‘Submit a New Request’
6.3.19 Choose the report ‘Physical Inventory Tag Report’
6.3.20 Click on the push button ‘Submit’
6.3.21 Click on No
6.3.22 Click on the push button ‘Find’
6.3.23 Click on the push button ‘Refresh’ till then the request is processed
by the Server
6.3.24 Click on the push button ‘View Output’
6.3.25 Action  Print

Attach the Tags to its respective item

This has to be done manually

Count the actual quantities and enter them in the respective

tag.

This has to be done manually

Collect all the Tags

This has to be done manually

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Enter the quantities recorded in the Tag in the System

6.3.26 N  Counting  Physical Inventory  Tag Counts

6.3.27 Enter the Physical Inventory name
6.3.28 Click on the push button ‘Find’
6.3.29 All the items will be listed now in the lines
6.3.30 Enter the counted quantities in the field named ‘Qty’ for each item.
6.3.31 Check the check box named ‘Void’ for all those items, which are
not deliberately counted.
If voiding is not done for any missing entry, the system will
assume a qty of zero when posting adjustments
6.3.32 Save

Approve the Physical Inventory

6.3.32 N  Counting  Physical Inventory  Approve Adjustments

6.3.33 Enter the Physical Inventory name
6.3.34 Click on the push button ‘Find’
6.3.35 Choose the action None, Approve or Reject for each line.
6.3.36 Save

Launch Adjustments

6.3.37 N  Counting  Physical Inventory  Physical Inventories

6.3.38 F11, Enter the Physical Inventory name, Ctrl + F11
6.3.39 Special  Launch Adjustments
6.3.40 Enter an Adjustment Account
6.3.41 Enter an Adjustment Date
6.3.42 Click on the push button ‘Launch Adjustments’

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7.0 Inventory Costing

Costing is broadly classified into Standard Costing and Average Costing. Under
Standard Costing, you will have to manually define the item cost. The system will
not generate the cost by averaging the PO prices.

In Average Costing, you need not define the Item Cost. The system will
automatically generate the Cost by averaging the PO prices.

If BOM and WIP are installed, you cannot adopt Average Costing. The only
option you can select is Standard Costing. (The Costing Method for an
organization is selected in the organization definition.) Because of this reason, we
will discuss only the things that you are supposed to do under Standard Costing.

Using Oracle Inventory is installed you can do the Inventory Costing. In

Inventory Costing, you can define and update the item costs. If Inventory and
BOM are installed, you can find out the Expected Cost of manufacturing of an
item. If Inventory, BOM and WIP are installed, you can find out the Actual Cost
of manufacturing of an item.

7.1 Cost Elements

The following are the Cost Elements

 Material (Material Cost)

 Material Overhead (Procurement cost of materials)
 Resource (Resource Cost)
 Overhead (Any overhead cost other than the Material
overhead)
 Outside processing (the cost incurred due to outside
processing)

These elements are standard you cannot add or remove the above stated
Cost Elements. But, for each Cost Element, you can define as many Sub-
elements as you like. When you define a Sub-element, you have to
specify, for which Cost Element you are defining the Sub-element.

7.2 Cost Sub-elements

Sub-elements are containers to hold a piece of cost of cost of a particular

Cost Element. For example, you can have two Sub-elements named Order
Cost and Unloading Cost for the Element Material of a particular item.

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Material Sub-element
7.2.1 N  Setup  Costs  Sub-elements  Material (for defining
Material Sub-elements)
7.2.2 Enter a Sub-element name in the field named ‘Material’
7.2.3 Optionally enter a description for the Sub-element
7.2.4 Choose the Default Basis as Item
7.2.5 Save

Overhead Sub-element
7.2.6 N  Setup  Costs  Sub-elements  Overhead (for defining
Overhead Sub-elements)
7.2.7 Enter an Overhead Sub-element name in the field named
‘Overhead’
7.2.8 Choose the Cost Element as Overhead
7.2.9 Optionally enter a description
7.2.10 Choose an Absorption Account
7.2.11 Save

7.3 Cost Types

Cost Types are logical containers for holding the cost of an item. A Cost
Type is made up of certain or all Cost Elements and their corresponding
Sub-elements. It should be note that the values of cost are held by Sub-
elements and not by Cost Elements. Even if there is only one piece of cost
for a particular Cost Element, say, Material, you have to define a Material
Sub-element for holding that piece of cost.

Oracle Inventory provides two predefined Cost Types. (1) Frozen and (2)
Current. Frozen is used as the Default Cost Type under Standard Costing
and Current is used as the Default Cost Type under Average Costing.

Under standard costing, we have seen that the item cost is defined
manually by a user. This will necessitate to updating the cost of an item
periodically. The updation cannot be done directly by changing the values
once after transacting the item. What you have to do for updating the cost
of an item is to create a separate set of costs under a different Cost Type
and then update the original cost from the new Cost Type created. Now
the item is having two Cost Types associate with it. One is the running
cost held by the Default Cost Type (Frozen) and the other is the cost held
by another Cost Type created for updating the Default Cost. In this way
you can create any number of costs for an item using different Cost Types.
Afterwards, if you want, you can compare the costs of different Cost
Types.

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Suppose you have created Cost Types named ‘Cost 2000’, ‘Cost 2001’ for
holding the item costs of the year 2000 and 2001. You used this Cost
Types to update the Default Cost Type (Frozen) in the years 2000 and
2001. Now, you got three Cost Types with values in it. You can now make
comparison among the costs of 2000 and 2001.

7.3.1 N  Setup  Costs  Cost Types

7.3.2 Click on the push button ‘New’
7.3.3 Enter a name for the Cost Type
7.3.4 Optionally enter a description
7.3.5 Choose the Default Cost Type as Frozen
7.3.6 Check the check box named ‘Multi-Org’ if you want this Cost
Type name to be available in organizations other than your current
organization. If this check box is checked, only the Cost Type
name will be available to other organizations and not the cost
defined in it.
7.3.7 Check the check box named ‘Allow Update’
7.3.8 Check the check box named ‘Available To Engineering’
7.3.9 Check the check box named ‘Component Yield’
7.3.10 Check the check box named ‘Element’
7.3.11 Check the check box named ‘Operation’
7.3.12 Save

7.4 Define Item Cost

You will be able to define the cost of an item directly only before
performing transactions on the item. If any transaction is performed,
the system will assign a cost of zero for the item and you will not be
permitted to change it directly. In such cases, you have to define the
costs in a new Cost Type and then update the existing cost from the
new Cost Type.

7.4.1 N  Costs  Item Costs

7.4.2 F11, Enter the item name, Ctrl + F11
7.4.3 Keep the cursor in the Cost Type Frozen and click on the push
button ‘Open’
7.4.4 Enter the Lot Size
7.4.5 Click on the push button ‘Costs’
7.4.6 Choose the Cost Element (Material)
7.4.7 Choose a Sub-element defined for the Cost Element ‘Material’
7.4.8 Choose the Basis Item
7.4.9 Enter the Rate or Amount.
7.4.10 Move cursor to the next line
7.4.11 Choose the Cost Element (Material Overhead)
7.4.12 Choose a Sub-element

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7.4.13 Choose a Basis Lot
7.4.14 Enter a Rate or Amount
The entered value will be divided by the Lot Size entered in step
7.4.4 to derive the Unit Cost due to this sub-element.
7.4.15 Move cursor to the next line
7.4.16 Repeat steps 7.4.11 to 7.4.14
7.4.17 Save

7.5 Updating Item Cost

7.5.1 N  Costs  Standard Cost Update  View Cost Update

7.5.2 Choose/enter the following parameters

Cost Type : Choose the Cost Type from which

you want to update the existing cost
Adjustment Account : Choose
Description : Enter
Item Range : Specific Item
Update Option : Item costs
Specific Item : Choose
Save Details : Yes

7.5.3 Click on OK
7.5.4 Click on the push button ‘Submit’
7.5.5 Help  View My Request
7.5.6 Click on the push button ‘Find’
7.5.7 Click on the push button ‘Refresh’ till then the Server processes
your request.

Testing
7.5.8 N  Costs  Item Costs
7.5.9 F11, Enter the item name, Ctrl + F11
7.5.10 Keep the cursor in the Cost Type Frozen and click on the push
button ‘Open’
7.5.11 Click on the push button ‘Views’

You must see that the item cost is changed.

7.6 Viewing Different Costs of an Item at Different Times

7.6.1 N  Costs  Standard Costs Update  View Cost History

7.6.2 Enter the item whose cost you want to see
7.6.3 Click on the push button ‘Find’

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You can now see the various costs under different Cost Types

8.0 Purchase Order Receipts

Refer the Purchasing Notes.

9.0 Checking ATP

You can check ATP for an item from inventory with different ATP Rules. By
using different ATP Rules you can find out the supply level by
including/excluding Supply and Demand Sources of your choice.

9.1 N  On-hand Availability  Available To Promise

9.2 Choose an ATP Rule in the field named ‘Default ATP Rule’
9.3 Choose the organization in the field named ‘Calendar Organization’
9.4 Choose a date in the field ‘Default Required Date’
9.5 Click on the push button ‘Items’
9.6 Choose the Organization
9.7 Chose the item
9.8 Enter the ‘Required Quantity’
9.9 Enter the ‘Required Date’
9.10 Click on the push button ‘View Results’
9.11 Click on the push button ‘Period ATP’ for viewing ATP by periods
(The periods are automatically created by the system. One period is the
duration of time between one supply date and one day before the next
supply date.)

10.0 Attaching Documents

Creating and adding an attachment to a record is a common feature supported by
many modules of Oracle Applications like Inventory, Purchasing, Order Entry,
BOM, WIP etc. The method of creation and attaching a document is more or less
the same in all the modules.

Creating a Document
10.1 N  Setup  Attachments
10.2 Enter a Description for your document (mandatory field)
10.3 Choose a Data Type

Short Text for text below 2000 characters

Long Text for text above 2000 characters
Image for pictures

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10.4 Check the check box named ‘Share’
10.5 Enter the document content in the blank area below
10.6 Save

Attaching the Document to a Record

10.7 N  Items  Organization Items
10.8 Enter the item name
10.9 Click on the push button ‘Find’
10.10 Edit  Attachments
10.11 Click on the push button ‘Document Catalog…’
10.12 Enter the Description of your document
10.13 Click on the push button ‘Find’

The Document details appears in the lower block

10.14 Click on the push button ‘Attach 1’

The Document is attached to the item. You can attach the same document
to different items at the same time.

Deleting an Attachment
10.15 N  Items  Organization Items
10.16 Enter the item name
10.17 Click on the push button ‘Find’
10.18 Edit  Attachments
If any document is attached to this item, it appears now.
10.19 Edit  Delete

Note:
When you delete an attachment, the original document is not getting
deleted. Instead the association of the document with the record is
removed.

11.0 Transferring Transactions to GL

A summarized Inventory/WIP activity for a given period can be transferred into
the GL interface tables. Then, using Journal Import in General Ledger the
information can be posted to GL.

The General Ledger transfers can be done at any time in an open period – not just
at period close. When more than one period is open, the transfer selects the
transactions from the first open period up to the entered transfer date and passes
the correct accounting date and financial information to the GL Interface,
including both Inventory and WIP entries. When detail entries are transferred, the

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transaction date is the accounting date with a line for line transfer. When
summary entries are passed with two periods open, and a transfer date is entered
in the second period, the transfer process assigns an end date to period one for all
the summarized transactions in period one, and assigns the entered transfer date
for the summarized transactions in period two.

Using Journal Import and Post Journal Process in GL, this information can be
posted to GL.

11.1 N  Accounting Close Cycle  Transfer Transactions to GL

12.0 Closing Inventory Accounting Periods

When you close a period, all Inventory and WIP transactions will be
automatically transferred to GL.

12.1 N  Accounting Close Cycle  Inventory Accounting Periods

12.2 Keep the cursor in the period that is to be closed.
12.3 Click on the push button ‘Change Status’
12.4 Choose the option Close

Note:
You cannot close a period if any prior period(s) is open. That is, if the period
Jan 2001 is open, you cannot close the period Feb 2001. First you have to
close Jan 2001 and then Feb 2001

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