R12.2 Oracle Inventory Management Fundamentals

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R12.2 Oracle Inventory
Management Fundamentals
Student Guide Volume II
D87519GC20
Edition 2.0 | November 2014 | D87945
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o r t u i
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Jan Lineberry o
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Technical Contributors and Reviewers
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David Nelson, Itzik Pripstein, Leslie Stodart
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Table of Contents
R12.x Overview of Oracle Inventory ...............................................................................................................1-1
R12.x Overview of Oracle Inventory...............................................................................................................1-3
Objectives ......................................................................................................................................................1-4
Overview of Oracle Inventory .........................................................................................................................1-5
Inventory Capabilities .....................................................................................................................................1-6

Receipt to Issue Life Cycle .............................................................................................................................1-8
Receiving Inventory........................................................................................................................................1-9
Quiz................................................................................................................................................................1-11
Types of Inventory Receipts ...........................................................................................................................1-12
Transferring Inventory ....................................................................................................................................1-13
Issuing Inventory ............................................................................................................................................1-14
Quiz................................................................................................................................................................1-16
Oracle Inventory Application Integration ........................................................................................................1-17
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Integration of Oracle Inventory to Financial Module Applications ...................................................................1-18
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Setting Up Oracle Landed Cost Management in Oracle Inventory .................................................................1-19
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Defining Process Manufacturing Options on the Process Manufacturing tab (Master Item window)..............1-21
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Summary ........................................................................................................................................................1-23
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R12.x Inventory Organizations........................................................................................................................2-1
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R12.x Inventory Organizations .......................................................................................................................2-3
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Objectives ......................................................................................................................................................2-4
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Inventory Organizations .................................................................................................................................2-5
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Inventory Organization Structure....................................................................................................................2-6
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Quiz................................................................................................................................................................2-7
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Sample Inventory Organization ......................................................................................................................2-8
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Multi-Organization Structure ..........................................................................................................................2-9
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Setting Up Locations ......................................................................................................................................2-10
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Defining Organizations
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Quiz................................................................................................................................................................2-12
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Inventory
n on Parameters ............................................................................................................................2-14
Costing Parameters .......................................................................................................................................2-15
Revision, Lot, Serial, and License Plate Number (LPN) Parameters .............................................................2-16
ATP, Pick, Item-Sourcing Parameters............................................................................................................2-17
Interorganization Parameters .........................................................................................................................2-18
Other Account Parameters .............................................................................................................................2-19
Warehouse Management Parameters (For WMS Only).................................................................................2-20
What Is a Subinventory? ................................................................................................................................2-21
Defining Subinventories .................................................................................................................................2-23
Locator Control...............................................................................................................................................2-24
Dynamic and Static Locators .........................................................................................................................2-25
Quiz................................................................................................................................................................2-26
Subinventory-Locator Relationship ................................................................................................................2-27
Locator Flexfield Structure .............................................................................................................................2-28
Interorganization Shipping Networks ..............................................................................................................2-29
Shipping Method ............................................................................................................................................2-30
Additional Setup Steps ...................................................................................................................................2-31
Quiz................................................................................................................................................................2-32
Copyright 2014. Oracle and/or its affiliates. All rights reserved.
Student Guide Table of Contents

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Additional Organizational Setups ...................................................................................................................2-33
Copying Inventory Organizations ...................................................................................................................2-34
Organization Hierarchy ..................................................................................................................................2-36
Organization Reports .....................................................................................................................................2-38
Profile Options................................................................................................................................................2-40
Implementation Considerations ......................................................................................................................2-42
Summary ........................................................................................................................................................2-48
R12.x Units of Measure ....................................................................................................................................3-1
R12.x Units of Measure ..................................................................................................................................3-3
Objectives ......................................................................................................................................................3-4
Units of Measure ............................................................................................................................................3-5
Quiz................................................................................................................................................................3-7
Uses of Units of Measure ...............................................................................................................................3-8
Unit of Measure Class ....................................................................................................................................3-9
Unit of Measure Conversions .........................................................................................................................3-10
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Quiz................................................................................................................................................................3-11
Lot-Level Unit of Measure Conversions .........................................................................................................3-12
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Units of Measure Setup ..................................................................................................................................3-13
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Unit of Measure Reports ................................................................................................................................3-14
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Profile Options................................................................................................................................................3-15
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Organization Parameter Setup .......................................................................................................................3-16
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Summary ........................................................................................................................................................3-18
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R12.x Item Fundamentals ................................................................................................................................4-1
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R12.x Item Fundamentals ..............................................................................................................................4-3
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Objectives ......................................................................................................................................................4-4
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What Is an Item? ............................................................................................................................................4-5
Steps to Set Up, Define,
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Defining Items ................................................................................................................................................4-7
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Item Attributes ................................................................................................................................................4-12
Item Attribute Groups .....................................................................................................................................4-13
Item Status .....................................................................................................................................................4-14
Unit of Measure Attributes ..............................................................................................................................4-15
Item Statuses and Attributes ..........................................................................................................................4-17
Status Attributes and Functionality .................................................................................................................4-18
Status Attribute Interdependencies ................................................................................................................4-21
Quiz................................................................................................................................................................4-24
Item Attribute Relationships ...........................................................................................................................4-25
Item Templates ..............................................................................................................................................4-26
Creating Item Templates ................................................................................................................................4-27
Enabling Attributes in a Template ..................................................................................................................4-28
Organization Assignment and Organization Items .........................................................................................4-29
Control Levels ................................................................................................................................................4-30
Quiz................................................................................................................................................................4-32
Revision Control .............................................................................................................................................4-33
Restricting Items to Subinventories ................................................................................................................4-34

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Item Relationships..........................................................................................................................................4-35
Categories and Category Sets .......................................................................................................................4-36
Categories and Oracle Product Information Management .............................................................................4-37
Assigning Items to Categories .......................................................................................................................4-38
Quiz................................................................................................................................................................4-39
Item Catalogs .................................................................................................................................................4-40
Deletion Constraints and Deletion Groups .....................................................................................................4-41

Deletion Constraints .......................................................................................................................................4-42
Item Reports ..................................................................................................................................................4-44
Profile Options................................................................................................................................................4-47
Summary ........................................................................................................................................................4-53
R12.x Lot and Serial Control ...........................................................................................................................5-1
R12.x Lot and Serial Control ..........................................................................................................................5-3
Objective ........................................................................................................................................................5-4
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Overview of Lot Control ..................................................................................................................................5-5
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Child Lots .......................................................................................................................................................5-6
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Setting Up Lot Control (Organization Parameters) .........................................................................................5-7
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Quiz................................................................................................................................................................5-8
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Lot Number Uniqueness ................................................................................................................................5-9
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Setting Up Lot Control (Item Attributes) .........................................................................................................5-10
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Managing Lots................................................................................................................................................5-12
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Lot Divisible/Indivisible ...................................................................................................................................5-14
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Lot Expiration .................................................................................................................................................5-15
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Quiz................................................................................................................................................................5-16
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Disabled Lots .................................................................................................................................................5-17
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Quiz................................................................................................................................................................5-18
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Purging Lot Transactions ...............................................................................................................................5-19
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Cycle Counts Under Lot Control.....................................................................................................................5-20
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Physical Inventory Under Lot Control .............................................................................................................5-21
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Serial Number Overview ................................................................................................................................5-22
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Generating Serial Numbers ............................................................................................................................5-23
Serial Uniqueness ..........................................................................................................................................5-25
Quiz................................................................................................................................................................5-27
Maintaining Serial Numbers ...........................................................................................................................5-28
Serial Tagging Assignments ..........................................................................................................................5-29
Setting Up Serial Tagging Assignments .........................................................................................................5-31
Serial Genealogy............................................................................................................................................5-33
Lot Genealogy ................................................................................................................................................5-34
Lot Genealogy Tracking .................................................................................................................................5-35
Benefits of Lot Genealogy ..............................................................................................................................5-36
Using Global Lot Attributes ............................................................................................................................5-37
Setting Up Global Lot Attributes .....................................................................................................................5-38
Updating Global Lot Attributes .......................................................................................................................5-39
Lot and Serial Reports ...................................................................................................................................5-40
Profile Options................................................................................................................................................5-43
Summary ........................................................................................................................................................5-47
R12.x Transaction Setup .................................................................................................................................6-1

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R12.x Transaction Setup ................................................................................................................................6-3
Objectives ......................................................................................................................................................6-4
Overview of Inventory Transactions ...............................................................................................................6-5
Inventory Transactions ...................................................................................................................................6-6
Transaction Source Types .............................................................................................................................6-7
Transaction Types..........................................................................................................................................6-9
Transaction Action .........................................................................................................................................6-10

Transaction Reasons .....................................................................................................................................6-12
Predefined Transaction Types .......................................................................................................................6-14
Quiz................................................................................................................................................................6-15
Transaction Managers ...................................................................................................................................6-16
Running Transaction Managers .....................................................................................................................6-17
Creating Picking Rules ...................................................................................................................................6-19
Quiz................................................................................................................................................................6-20
Inventory Picking Rules ..................................................................................................................................6-21
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Picking Rules .................................................................................................................................................6-22
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Default Picking Rule (Master Item Setup) ......................................................................................................6-26
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Account Aliases..............................................................................................................................................6-27
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Quiz................................................................................................................................................................6-28
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Accounting Periods ........................................................................................................................................6-29
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Material Shortage Alerts and Notifications .....................................................................................................6-30
Setting Up Shortage Alerts and Notifications .................................................................................................6-32
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Profile Options................................................................................................................................................6-33
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Implementation Considerations for Shortage Checks ....................................................................................6-38
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Summary ........................................................................................................................................................6-39
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R12.x Material Issue and Transfer ..................................................................................................................7-1
R12.x Material Transfer and Issue
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Objectives ......................................................................................................................................................7-4
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Inventory Transactions
f e r Documents and Requisitions .......................................................................7-5
InventoryaTransactionsswith Documents and Requisitions .............................................................................7-6
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non Transactions ...........................................................................................................................7-8
Subinventory Transfer ....................................................................................................................................7-9
Quiz................................................................................................................................................................7-10
Inter-Organization Direct Shipment ................................................................................................................7-11
Inter-Organization Intransit Shipment.............................................................................................................7-12
Managing Shipments .....................................................................................................................................7-14
Quiz................................................................................................................................................................7-15
Managing Receipts ........................................................................................................................................7-16
Express Receipts and Receiving Transactions ..............................................................................................7-18
Direct Receipts ...............................................................................................................................................7-19
Standard Receipt ...........................................................................................................................................7-20
Inspection Receipt..........................................................................................................................................7-21
Move Orders ..................................................................................................................................................7-22
Setting Up Move Orders .................................................................................................................................7-23
Quiz................................................................................................................................................................7-27
Move Orders Process Flow ............................................................................................................................7-28
Move Order Requisition Approval Process ....................................................................................................7-29
Benefits of Managed Material Flow in a Facility Using Move Orders .............................................................7-30

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Move Order Source Types .............................................................................................................................7-31
Move Order Components ...............................................................................................................................7-33
Generate Move Orders ..................................................................................................................................7-34
Move Order Allocating....................................................................................................................................7-36
Item Allocation................................................................................................................................................7-38
Transact Move Orders ...................................................................................................................................7-39
Material Allocation Options in Transact Move Orders Window ......................................................................7-40

Implementation Considerations for Move Orders ...........................................................................................7-41
Mobile Transactions .......................................................................................................................................7-42
Overview of Consigned Inventory ..................................................................................................................7-43
Main Consignment Terms ..............................................................................................................................7-44
Benefits of Consigned Inventory ....................................................................................................................7-45
Vendor Managed Inventory (VMI) Material ....................................................................................................7-46
Accessing Information About Consigned and Vendor Managed Inventory ....................................................7-47
Transferring VMI Material ...............................................................................................................................7-49
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Return to Vendor Transactions ......................................................................................................................7-50
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Features of Return to Vendor Transactions ...................................................................................................7-51
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Process Flow for Returns ...............................................................................................................................7-52
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Transactions Reports .....................................................................................................................................7-53
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Summary ........................................................................................................................................................7-58
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R12.x On-hand and Availability.......................................................................................................................8-1
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R12.x On-hand and Availability ......................................................................................................................8-3
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Objectives ......................................................................................................................................................8-4
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Overview of On-hand Quantity .......................................................................................................................8-5
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Overview of Availability ..................................................................................................................................8-6
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Quiz................................................................................................................................................................8-7
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Material Workbench .......................................................................................................................................8-8
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Display Options ..............................................................................................................................................8-9
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Quiz................................................................................................................................................................8-11
S Itemssfwith e the Material Workbench ...................................................................................8-12
Viewing a
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of Material .....................................................................................................................8-13
no of Reservations ..............................................................................................................................8-16
N Overview
Material Transactions ..................................................................................................................8-15
Reservation Versus Allocation .......................................................................................................................8-17

Quiz................................................................................................................................................................8-18
Reservation Types .........................................................................................................................................8-19
Reservations and Supplies ............................................................................................................................8-20
Supply Types .................................................................................................................................................8-22
Demand Types ...............................................................................................................................................8-23
Reserving Material .........................................................................................................................................8-24
Quiz................................................................................................................................................................8-26
Reservation Management - Transfer Supply ..................................................................................................8-27
Reservation Management - Transfer Demand ...............................................................................................8-28
Using Available to Promise (ATP) Rules (Optional) .......................................................................................8-29
Selecting ATP Default Rule (Optional) ...........................................................................................................8-30
Uses of ATP in Oracle Inventory ....................................................................................................................8-31
Formula for Available to Promise (ATP) .........................................................................................................8-32
What Are Supply and Demand? .....................................................................................................................8-33
Specifying Demand Sources ..........................................................................................................................8-34

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Specifying Supply Sources ............................................................................................................................8-36
Defining Computation Options .......................................................................................................................8-37
ATP Rules: Selecting Accumulation Values ...................................................................................................8-38
On-hand and Availability Reports ...................................................................................................................8-39
Profile Options................................................................................................................................................8-40
Summary ........................................................................................................................................................8-42
R12.x Material Status .......................................................................................................................................9-1
R12.x Material Status .....................................................................................................................................9-3
Objectives ......................................................................................................................................................9-4
Overview of Material Status Control ...............................................................................................................9-5
Material Status ...............................................................................................................................................9-8
Quiz................................................................................................................................................................9-9
Setting Up Material Status Control .................................................................................................................9-10
Setting Up: Verifying Transaction Type Setup ...............................................................................................9-11
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Material Status Definition window ..................................................................................................................9-12
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Material Status Definition window: Selecting Planning Attributes ...................................................................9-13
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Material Status Definition window: Selecting Allowed and Disallowed Transactions......................................9-14
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Material Status Definition window: Allowed and Disallowed Transactions .....................................................9-15
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Quiz................................................................................................................................................................9-16
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Material Status Definition window: Assigning Usage Levels ..........................................................................9-17
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Assigning Material Status to a Subinventory/Locator ....................................................................................9-19
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Using Cumulative or On-hand Material Status for an Organization ................................................................9-20
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Cumulative Material Status ............................................................................................................................9-21
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On-hand Material Status ................................................................................................................................9-22
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Advantages of On-hand Material Status ........................................................................................................9-23
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Setting Up Material Status: Enabling Material Status .....................................................................................9-24
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On-hand Material Status: Activating On-hand Level Material Status Tracking ...............................................9-26
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On-hand Material Status Setting Up: Assigning Material Status to Items.......................................................9-27
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On-hand Material Status Setting Up: Allowing Different Material Statuses ...................................................9-29
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Changing the On-hand Material Status ..........................................................................................................9-31
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Quiz................................................................................................................................................................9-32
Disabling Material Statuses ............................................................................................................................9-33
Entering Material Status for Receipt Transactions .........................................................................................9-34
Quiz................................................................................................................................................................9-36
Performing A Status Update (Under ERES Approval Status) ........................................................................9-37
ERES Approval: Online and Deferred Mode ..................................................................................................9-38
Quiz................................................................................................................................................................9-40
Material Status Reports ..................................................................................................................................9-41
Profile Options................................................................................................................................................9-42
Summary ........................................................................................................................................................9-45
R12.x Replenishment Fundamentals ..............................................................................................................10-1
R12.x Replenishment Fundamentals .............................................................................................................10-3
Objectives ......................................................................................................................................................10-4
Overview of Inventory Planning......................................................................................................................10-5
Order Planning ...............................................................................................................................................10-6
Quiz................................................................................................................................................................10-7
How Much to Order ........................................................................................................................................10-8

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Replenishment Process for Intra-Org Supply Sources ...................................................................................10-9
Replenishment Process for Supplier Supply Sources ....................................................................................10-10
Replenishment Process for Inter-Org Supply Sources ...................................................................................10-11
Replenishment Process for Production Supply Sources ................................................................................10-12
Replenishment Methods ................................................................................................................................10-13
Overview of Inventory Forecasting .................................................................................................................10-14
Forecast Types ..............................................................................................................................................10-16

Quiz................................................................................................................................................................10-17
Forecast Setup and Maintenance ..................................................................................................................10-18
Oracle Inventory Replenishment Methods .....................................................................................................10-19
Replenishment Method Levels .......................................................................................................................10-20
Safety Stock ...................................................................................................................................................10-21
Economic Order Quantity ...............................................................................................................................10-22
Overview of Reorder Point Planning ..............................................................................................................10-23
Uses of Reorder Point Planning .....................................................................................................................10-24
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Reorder Point Planning Steps ........................................................................................................................10-26
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Performing Reorder Point Planning................................................................................................................10-27
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Overview of Min-Max Planning.......................................................................................................................10-29
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Quiz................................................................................................................................................................10-30
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Uses of Min-Max Planning .............................................................................................................................10-31
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Min-Max Planning ..........................................................................................................................................10-32
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Min-Max Planning: How Much to Order? .......................................................................................................10-33
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Min-Max Planning Steps ................................................................................................................................10-34
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Item Planning Attributes .................................................................................................................................10-35
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Min-Max Planning Setup Procedure...............................................................................................................10-36
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Selecting a Planning Level .............................................................................................................................10-37
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Entering Planning Attributes ...........................................................................................................................10-38
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Submitting the Min-Max Planning Requests ..................................................................................................10-39
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Overview of Replenishment Counting ............................................................................................................10-41
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Uses of Replenishment Counting ...................................................................................................................10-42
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Quiz................................................................................................................................................................10-43
Replenishment Planning Steps ......................................................................................................................10-44
Subinventories Window..................................................................................................................................10-46
Item Subinventories Window ..........................................................................................................................10-47
Item Subinventories: Order Modifier Tab .......................................................................................................10-48
Replenishment Count Headers ......................................................................................................................10-49
Replenishment Count Lines ...........................................................................................................................10-50
Processing Replenishment Counts ................................................................................................................10-52
Mobile Replenishment Count Overview .........................................................................................................10-53
Overview of PAR Counting ............................................................................................................................10-54
Processing PAR Counts .................................................................................................................................10-55
Reorder Quantity for PAR Count ....................................................................................................................10-56
Overview of Kanban Replenishment ..............................................................................................................10-57
Kanban Cards ................................................................................................................................................10-58
Kanban Planned Items ...................................................................................................................................10-59
Kanban Cards ................................................................................................................................................10-60
Kanban Supply Status....................................................................................................................................10-62
Kanban Replenishment Sources ....................................................................................................................10-63

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Kanban Card Printing .....................................................................................................................................10-64
Planning and Replenishment Reports ............................................................................................................10-65
Profile Options................................................................................................................................................10-67
Summary ........................................................................................................................................................10-72
R12.x Inventory Accuracy Fundamentals ......................................................................................................11-1
R12.x Inventory Accuracy Fundamentals .......................................................................................................11-3

Objectives ......................................................................................................................................................11-4
Overview of Inventory Accuracy .....................................................................................................................11-5
Overview of ABC Analysis .............................................................................................................................11-6
Quiz................................................................................................................................................................11-7
Defining an ABC Analysis ..............................................................................................................................11-8
Defining and Running an ABC Compilation ...................................................................................................11-9
Quiz................................................................................................................................................................11-10
ABC Compilation Criteria ...............................................................................................................................11-11
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ABC Valuation Scope.....................................................................................................................................11-14
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Defining ABC Groups .....................................................................................................................................11-15
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Defining ABC Classes ....................................................................................................................................11-16
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Quiz................................................................................................................................................................11-17
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ABC Item Assignments ..................................................................................................................................11-18
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ABC Assignments API ...................................................................................................................................11-20
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Overview of Physical Inventory ......................................................................................................................11-21
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Why Perform Physical Inventories? ...............................................................................................................11-22
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Defining Physical Inventories .........................................................................................................................11-23
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Physical Inventory Tags .................................................................................................................................11-24
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Inventory Snapshots ......................................................................................................................................11-25
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Entering Physical Inventory Counts ...............................................................................................................11-27
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Voiding Tags ..................................................................................................................................................11-28
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Quiz................................................................................................................................................................11-29
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Physical Inventory Approval Tolerances ........................................................................................................11-30
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Physical Inventory Adjustments .....................................................................................................................11-31
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Physical Inventory API ...................................................................................................................................11-32
Overview of Cycle Counting ...........................................................................................................................11-33
Overview of Opportunistic Cycle Counting .....................................................................................................11-34
Quiz................................................................................................................................................................11-36
Defining and Maintaining a Cycle Count ........................................................................................................11-37
Cycle Count Approval Tolerance....................................................................................................................11-38
Approval Tolerances ......................................................................................................................................11-39
Hit/Miss Tolerance .........................................................................................................................................11-41
Measurement Errors ......................................................................................................................................11-42
Cycle Count Items ..........................................................................................................................................11-43
Automatic Scheduling ....................................................................................................................................11-45
Manual Scheduling.........................................................................................................................................11-46
Count Requests .............................................................................................................................................11-47
Entering Cycle Counts ...................................................................................................................................11-49
Lot Cycle Counting for a Lot Controlled Item .................................................................................................11-50
Cycle Count Open Interface ...........................................................................................................................11-51
Count Adjustments and Approvals .................................................................................................................11-52
Automatic Recounts .......................................................................................................................................11-53

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Approving Cycle Counts and Adjustments .....................................................................................................11-54
Accuracy Reports ...........................................................................................................................................11-56
Profile Options................................................................................................................................................11-62
Summary ........................................................................................................................................................11-66
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e r g e lic
t o fb rabl
a S sfe
t a s -tran
h
Na non
Related Publications
Oracle Publications
Title Part Number
Oracle Inventory Users Guide E48820-02
Additional Publications
System release bulletins
Installation and users guides
Read.me files
International Oracle Users Group (IOUG) articles
Oracle Magazine
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xi
Typographic Conventions
The following two lists explain Oracle University typographical conventions for words that
appear within regular text or within code samples.
Typographic Conventions for words within regular text

Convention Object or Term Example

Courier New User input; Use the SELECT command to view
commands; information stored in the LAST_NAME
column, table, and column of the EMPLOYEES table.
schema names;
functions;
PL/SQL objects; Enter 300.
paths
s a
Log in as scott
)h a
Initial cap Triggers; za
Assign a When-Validate-Item trigger to the
o
user interface ORD block.
h s c de
object names, such
o r t u i
as button names
Click the Cancel button.
olw dent G
For more informationw
o
Italic Titles of courses
g@ iManualS tu see
on the subject
and manuals; r
Oracle SQLeReference
b hs
emphasized words o f e t
or phrases;
h a snott save changes
us to the database
placeholders or as
Do t o
variables na
( e n se or variables.
t placeholders
e r g e lic
t o fb rabl Enter hostname, where hostname is the
a S sfe host on which the password is to be
t a sh -tran changed
NaQuotation
marks non Lesson or module This subject is covered in Lesson 3,
title referenced Working with Objects.
within a course

xii
Typographic Conventions (continued)
Typographic Conventions for words within code samples
Convention Object or term Example

Uppercase Commands, SELECT employee_id

functions FROM employees
Lowercase Syntax variables CREATE ROLE role
italic
Initial cap Forms triggers Form module: ORD
Trigger level: S_ITEM.QUANTITY
item
Trigger name: When-Validate-Item
. . .
s a
Lowercase Column names, . . .
)h a
table names, OG_ACTIVATE_LAYER
o za
Filenames, (OG_GET_LAYER ('prod_pie_layer'))
h s c de
PL/SQL objects . . .
o r t u i
SELECT last_name
olw dent G
FROM o
employees;
w tu
Bold Text that must be CREATE USER scott g @
r tiger; s S
b e h i
entered by a user IDENTIFIED
of se t
BY
s t u Navigation Paths
Typographic Conventions in a s ha Application
Oracle t o
n at epaths,
This course uses simplified(navigation n sesuch as the following example, to direct you
e r
through Oracle Applications.g e lic
o fb> Invoice
a b l
t
(N) Invoice > Entry
er to the following:
S path stranslates
f
Batches Summary (M) Query > Find (B) Approve
a
shFrom-tthe
This simplified
anNavigator window, select Invoice then Entry then Invoice Batches
1.ta(N) r
Na Summary.
non
2. (M) From the menu, select Query then Find.
3. (B) Click the Approve button.
Notations:
(N) = Navigator
(M) = Menu
(T) = Tab
(B) = Button
(I) = Icon
(H) = Hyperlink
(ST) = Sub Tab

xiii
Typographic Conventions (continued)
Typographical Conventions in Oracle Application Help System Paths
This course uses a navigation path convention to represent actions you perform to find
pertinent information in the Oracle Applications Help System.
The following help navigation path, for example

(Help) General Ledger > Journals > Enter Journals
represents the following sequence of actions:
1. In the navigation frame of the help system window, expand the General Ledger entry.
2. Under the General Ledger entry, expand Journals.
3. Under Journals, select Enter Journals.
4. Review the Enter Journals topic that appears in the document frame of the help system
window.
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xiv
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Unauthorized reproduction or distribution prohibited Copyright 2015, Oracl
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R12.x Inventory olw dAccuracy
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Fundamentals
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R12.x Inventory Accuracy Fundamentals

Chapter 11 - Page 1
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Chapter 11 - Page 2

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Chapter 11 - Page 3
Objectives
Objectives
After completing this lesson, you should be able to:

Create an ABC compile.
Define and maintain a cycle count.
Define a physical inventory.
Demonstrate count adjustments and approvals.
s a
Understand how to use inventory accuracy reports.
)h a
Understand how to set up inventory accuracy profileoza
c de
options. ths i r
l wo nt
Understand inventory accuracy implementation
o Gu
considerations. wo tude
e r g@ is S
t o fb e th
s h as to us
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a S sfe
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Chapter 11 - Page 4
Overview of Inventory Accuracy
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Chapter 11 - Page 5
Overview of ABC Analysis
Overview of ABC Analysis

Higher More
s a
Importance Control
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Lower g @
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er ble l i c (DIRAC LE
f b
to determines
An ABC analysis
a SABC s f ertoathe the relative value of a group of inventory items based on criteria
a shA items
you define.
t r n ranked higher than B items, and so on.
aare
refers rankings you assign your items as a result of this analysis,
t
where
-
NaYou nuse
onthe ABC analysis you compile to drive cycle counts. You count items of high value (A
items) very frequently, items of lower (B items) value less frequently, and items of lowest (C
items) value very infrequently.

Chapter 11 - Page 6
Quiz
Quiz
An ABC analysis determines the relative value of a group of

inventory items based on the alphabetic order of the item
name:
a. True
b. False
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Answer:abS s fe
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N no

Chapter 11 - Page 7
Defining an ABC Analysis
Defining an ABC Analysis

ABC Analysis Process Steps
0 Define and run an ABC

compilation.
s a
Define ABC classes.
)h a
o za
Define ABC group, assign items to
h s c de
ABC classes within a group.
o r t u i
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o
0pdate item assignments. w
g @
er this S tud
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to use
urge ABC s information.
a
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Chapter 11 - Page 8
Defining and Running an ABC Compilation
Defining and Running an ABC Compilation

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a b lof your items based upon selected criteria. You can define and
t
S sfer for your entire organization or for a specific subinventory within your
An ABC compile
compileaan ABC analysis
t a sh -tran
organization.
NaYou nchoose
on the compilation criterion, the scope of your analysis, the cost type to use in
determining item values and any additional information that may be conditionally necessary
based on your compilation criterion.

Chapter 11 - Page 9
Quiz
Quiz
An ABC compile is a ranking of your items based upon

selected criteria. You can define and compile an ABC analysis
at the following levels:
a. Entire organization
b. A particular role
s a
c. Specific subinventory within your organization
)h a
d. Specific LPN locator
o za
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Answer:aa,Sc s fe
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a tas n-tra
N no

Chapter 11 - Page 10
ABC Compilation Criteria
ABC Compilation Criteria

On-hand value
Item AS4922 Item AS6026 Item AS6027

$300 $75 $5
On-hand 100 On-hand 3 On-hand 25
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A Item
s t oBfItem se t C Item
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S usage
For each distinct
f r you can choose one criterion (such as current on-hand value or
evalue)
compile,
MRPh a
demand
s that a s
nchoose definesto value and rank each item included in the ABC compile. The
t a - t r
NaFor example,
criterion you what the rank of a particular item will be in the ABC Compile.
n o n if you use current on-hand quantity as your compile criterion, then item X with an
on-hand quantity of 10 units is of higher rank than item Y with a quantity of 5 units. If you use
current on-hand value as the criterion and if item X has a cost of $10 per unit and item Y has a
cost of $25 per unit, then item Y has a higher value than item X since Oracle Inventory
compares $100 ($10x10 units) to $125 ($25x5 units).
Explaining ABC Compilation Criteria Options
Current On-Hand Quantity

Use the current on-hand quantity of inventory. Assign the sequence number by
descending quantity.
Current-On-Hand Value
Use the current on-hand quantity of inventory multiplied by the cost for the cost type.
Assign the sequence number by descending value.

Historical Usage Value
Use the historical usage value (transaction history). This is the transaction quantities
times the unit cost of the transactions for the time period you specify. Assign the
sequence number by descending value.
Historical Usage Quantity

Use the historical usage quantity (transaction history) for the time period you specify.
Assign the sequence number by descending quantity.
Historical Number of Transactions

Use the historical number of transactions (transaction history) for the time period you
specify. Assign the sequence number by descending number of transactions.
Forecasted Usage Value

Use the forecasted usage value based on the forecast quantity calculated and the cost
s a
type you specify. Assign the sequence number by descending value.
)h a
o za
Forecasted Usage Quantity
h c de
sdescending
Use the forecasted usage quantity. Assign the sequence numberrtby
o u i
quantity.
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Item unit cost
g @
r ABChcompile
s S based on the unit cost of
Enables you to create and rank the itemsbin e i
of se t
an
items.
s t
a to u
a s h
Previous Cycle Count Adjustment
( n at Quantity
e n se
Oracle Inventoryg
e r e ic Assign
ldate.
sums the quantity of all cycle count adjustments that have occurred
o fb rab
since the last ABC l
compile the sequence number by descending quantity.
t
S sfeAdjustment Value
PreviousaCycle Count
t a h an sums the value of all cycle count adjustments that have occurred since
s Oracle-trInventory
Na nthe onlast ABC compile date. Assign the sequence number by descending value.

MRP Demand Usage Quantity

Oracle Inventory sums the MRP gross requirements for the MRP plan you specify.
MRP Demand Usage Value

Oracle Inventory sums the MRP gross requirements for the MRP plan you specify, then
multiplies each by the item cost type you choose in the ABC compile form. Assign the
MPS Demand Usage Quantity

Oracle Inventory sums the MPS gross requirements for the MPS schedule you specify.

MPS Demand Usage Value
Oracle Inventory sums the MPS gross requirements for the MPS schedule you specify,
then multiplies each by the item cost type you choose in the ABC compile form. Assign
the sequence number by descending value.
DRP Demand Usage Quantity

Oracle Inventory sums the DRP gross requirements for the DRP plan you specify.
DRP Demand Usage Value

Oracle Inventory sums the DRP gross requirements for the DRP plan you specify, then
multiplies each by the item cost type you choose in the ABC compile form. Assign the
s a
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ABC Valuation Scope
ABC Valuation Scope

Subinventory 1
Inventory
Subinventory 2
organization
Subinventory 3
s a
Item valuation
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wSubinventory
Inventory g@ S tu 1
Subinventory 1
b e r h is
Subinventory 2
f
organization t
to use Subinventory 3
a s
t a sh e to
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r g l i c ORACLE'
t o f be able
a S aindividual
You can select
f er subinventories
valuation
s
scope for determining the ranking of items. You can do an ABC
a shcompile
compile across
t r a nitems within a particular subinventory,
or across an organization. If you choose to restrict
t
on- all subinventories in the organization or by the individual subinventory.
Naitemsnacross
ABC to you have the option of valuing your

Defining ABC Groups
Defining ABC Groups

Class A ABC group 1
s a
)h a
o za
h s c de
ABC group 2 Class B Class C or t u i
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ABC assignment
a f er reduce
Sto selectively
groups
s
link a particular ABC compile with a valid set of ABC classes. This
allows
a
you
t r a n for a particular
shitem assignments or increase the number of ABC classes you want to use in
t -
NaOracle
your ABC compile.
o n
n Inventory uses these groups when you automatically assign your items to ABC
classes. It ensures that you divide your items into the exact number of groupings you specified
in the ABC group.
You must also assign a sequence number to each class associated with the ABC group. The
class with the lowest sequence number is assumed to have the highest rank and will have
higher rank items assigned to that class than the next higher sequence number.
You may update an assignment group to add new classes, however you cannot delete a
class. If you need to delete a class, you must create a new assignment group with only the
desired classes.

Defining ABC Classes
Defining ABC Classes

Class "A"
ABC Classes Class "B" s a

)h a
o za
h s c de
Class "C"
o r t u i
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S classes
You use ABC
f
Classes r identify the value groupings to which your items belong. You can
eusing
to
define a
sh Low,
these
a s
n later assign
your own terminology. For example you might define classes High,
t a t r
- those of the lowestyour
NaMedium,
Medium, and items of highest rank to high, those of lower rank to
n o n
and rank to low. You must assign an ABC class to at least one
ABC group.
You can use ABC classes to group items for a cycle count where you count A items more
frequently than B items. When you use ABC classes in this way, you perform an ABC
analysis and assign items to classes based on analysis results.

Quiz
Quiz
ABC classes identify the value groupings to which your items

belong. You can use your own terminology to define these
classes such as Low, Medium, and High:
a. True
b. False
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Answer:aa S s fe
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ABC Item Assignments
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When youS define ABC r
featassignments you specify the cutoff point for each ABC class. Each
ABC h a
class mustn s
have least one item assigned to it and all items in the ABC compile must
a tbeasassigned
n - trtoaan ABC class. You can use any of the following fields to determine the cutoff
N points:no
Seq: You can enter the sequence number from the ABC Descending Value Report for
the last item to be included in each ABC class. Oracle Inventory automatically calculates
this value if you choose to assign classes by another method. Oracle Inventory displays
the last sequence number as the default of the last class.
Inventory Value: You can enter the cumulative value from the ABC Descending Value
Report for the last item to include in each ABC class. Oracle Inventory automatically
calculates the maximum value. This maximum value is restricted to the total inventory
value compiled and is displayed in the Total Compile Value field. Oracle Inventory
displays the total inventory value as the default for the last class.
ABC Item Assignments Note

% Items: You can enter the percent of number of items compiled from the ABC
Descending Value Report to include in each class. Oracle Inventory automatically
calculates this value if you choose to assign classes by another method.

% Value: You can enter the percent of total compile value from the ABC Descending
Value Report to include in each class. Oracle Inventory automatically calculates this
value if you choose to assign classes by another method.
It is possible to have several items in the ABC compile with zero value. If any item with zero
value is in a class other than the last class, you may only assign items using the sequence
number or item percent.
For the Inventory Value, % Item, and % Value fields, if the value entered does not exactly
match any item, Oracle Inventory chooses the first item with a value greater than the value
entered. For example, if you choose 20% to be A items, inventory calculates which items
comprise 20% and will include the next item if a partial is in the calculation. If 20% = the first
10 items in your compile, plus part of the 11th item, then items 1-11 are A items.
If you are not satisfied with the class into which an item falls as a result of the automatic ABC
assignment process, you can change it. For example, you compile your ABC analysis based
on historical usage value. A new item in your inventory is ranked low because it has little
transaction history. However, you know that for the future this item should really be ranked
s a
higher. Use the Update ABC Assignments form to reclassify this item.
)h a
za
Whenever you recompile an ABC analysis or change the method by which you assign your
o
h s c de
ABC classifications, you lose any changes you might have made to your item assignments. All
r t i
items are reclassified based on their new ranks in the ABC Descending Value Report and the
o u
method you choose to determine cutoff points.
olw dent G
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ABC Assignments API
ABC Assignments API

Insert/update the ABC assignments data using this public

API.
Quickly process a large number of records.
Import data from other Oracle or non-Oracle systems.
s a
)h a
o za
h s c de
o t
r system i
Non-Oracle
u
Oracle system
olw dent G
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Quickly process
g @
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b e
of se t
a large number
of records s t
a s ha to u Import data
( n at ense
r g l i c 'ORACLE
t o f be able
S sferAPI enables you to insert/update the ABC assignments data (into
The ABC Assignments
a
h tran table--mtl_abc_assignments) by importing data from other Oracle or
ABCsassignments
a
t -systems. The API consists of the following files:
Nanon-Oracle
noninv_abc_assignments_pub
INVPAASB.pls: INV Public Abc ASsignments Body
INVPAASS.pls: INV Public Abc ASsignments Spec

Overview of Physical Inventory
s a
)h a
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o r t u i
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t o f b abl
A physicalS
a f
inventory is
s era can
periodic reconciliation of system on-hand balances with physical
t a sh of-tyour
counts in
r ansystem on-hand
inventory. You perform physical inventories whenever you choose to verify the
Naentirenoorganization
accuracy quantities. You can perform a physical inventory for an
n or for particular subinventories within an organization. Physical inventories
are usually performed once every six months or once a year depending on the organization
requirements.

Why Perform Physical Inventories?
Why Perform Physical Inventories?

Accurate on-hand quantities are essential for effective

planning and for minimizing inventory investment.
Accurate on-hand quantities are required for tax and audit
purposes.
s a
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Defining Physical Inventories
Defining Physical Inventories

Physical inventory by Complete organization

subinventory physical inventory
s a
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er ble l i c CORACLE'
f b
toand fmaintain
You can define
a Sinventory
s era an unlimited number of physical inventories in Oracle Inventory.
h tsuch anas adjustments, pertaining to this physical inventory.
A physical is identified by a unique name you assign. You use this name to identify
t a
any sactivity,
- r
NaYou ncan
ondefine multiple physical inventories to count selected portions of your inventory, or
you can count the total inventory for you organization. For example, if your warehouse has
two large stockrooms, each represented by a subinventory, you can define two physical
inventories, one for each subinventory. You can then perform your physical inventory of the
first stockroom, independent of the second.

Physical Inventory Tags
Physical Inventory Tags

Generate tags
s a
)h a
o za
Oracle Inventory
h s c de Inventory tags
o r t u i
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a S represent
Physical inventory
f
tags
s erare used to record the physical counts of inventory items. Physical
inventory
t a
tags
r an the count hard
shA tag-tcontains actual copy tags that some companies use to count inventory
Naitemnonoantag, multiple tags can reference the same item, with each tag referring to a unique
items. for a group of a given item. Although you can record only one
physical location for an item.

Oracle Inventory can generate default or blank tags for your physical inventory. If you choose
to generate default tags for each item, specify the starting tag number and the increment by
which you want to increase each digit in the tag number. Your tag numbers may be
alphanumeric, but you can increment only the numeric portion. The alphabetic characters in
the tag number stay constant. Inventory then uses these tag numbers to generate a tag for
every unique combination of item number, revision, subinventory, locator, lot, and serial
number for which the system has an on-hand quantity not equal to zero.
If you want to have some empty tags handy to record counts for stock-keeping units for which
Inventory has no on-hand quantity (and therefore does not generate default tags), you can
generate blank tags. Inventory assigns tag numbers to blank tags, but does not include any
item or location detail. You specify this information when you enter your tag counts. You can
generate as many blank tags as you want.
You can also exclusively use blank tags to perform a physical inventory. If you need to
perform a complete wall-to-wall physical inventory, you can go through your warehouse and
attach blank tags to every item and/or location you see. As you perform the count, you record
the item and stock-keeping unit information along with the actual on-hand quantity.

Inventory Snapshots
Inventory Snapshots
Physical inventory snapshot

Required before you can generate inventory tags
Saves all current on-hand quantities and costs
Basis for all adjustments
All tag counts are compared to the inventory snapshot
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- All tag counts you enter for this physical
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costs. Inventory this information as the basis for all physical inventory
n o n inventory are compared with these
static quantities. This allows you to resume normal inventory operations after you have
entered your counts but before you have authorized all final physical inventory adjustments.
You can perform your recounts or investigate certain results without holding up transaction
processing.
Note: Oracle Inventory does not stop inventory processing during a physical inventory.
Therefore, you must procedurally coordinate the snapshot of your physical inventory with your
actual counting, and ensure that no transaction activity occurs in a particular location until
after you have performed your adjustments.
Note: It is recommended to clear the Pending Transactions and Transactions Open Interface,
before taking a snapshot of inventory quantities.
For example, suppose that at the start of your physical inventory the system on-hand quantity
for item WIDGET in a particular bin is 30. Oracle Inventory saves this information with the
physical inventory snapshot. During the warehouse count, you count a total of 25 units of item
WIDGET in the same bin. Before you approve your counts and perform your adjustments, you
resume normal transaction operations, and consequently, item widget reaches a system on-
hand quantity of 45. At this point, you perform your physical inventory adjustments. Oracle
Inventory computes the adjustment as the difference between the tag count and the snapshot

quantity, NOT the current system quantity of the item that has now reached 45. So in this
case, the adjustment is 25 - 30 = -5 units. When the adjustment is posted, the new system on-
hand quantity becomes 40 units.
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Entering Physical Inventory Counts
Entering Physical Inventory Counts

Count items
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Use the tags
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t a r
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counts. tags by any combination of tag number, item,
n o nsubinventory, locator, lot, and serial number. You would use this partial tag query
feature if you prefer to enter your counts by location or item, or for a particular tag number
range.
Use the tags that you generated to record your physical counts. If you use default tags for
your physical inventory, you can automatically query all tags and fill in the counts. You can
also query a subset of your tags by any combination of tag number, item, revision,
subinventory, locator, lot, and serial number. You would use this partial tag query feature if
you prefer to enter your counts by location or item, or for a particular tag number range. If you
enable dynamic tag entry for your physical inventory, you can enter counts for any item and
stock-keeping unit combination without a pre-generated tag number.
Oracle Inventory uses the counts you enter for your tags to determine if your items need
quantity adjustments; and if so, whether you need to approve them. If you set your approval
option for your physical inventory to Not required for adjustments you are ready to process
your adjustments. If you set your approval option to Required for adjustments out of tolerance,
Oracle Inventory holds for approval all tags with counts that are outside the limits of the
quantity variance or adjustment value tolerances, If you set your approval option to Required
for all adjustments, Oracle Inventory holds all counts for approval.

Voiding Tags
Voiding Tags
Count items

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s
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a h intrthe
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sthem a nPhysical Inventory Tag Counts
do not one or more of the tags Oracle Inventory generates, you should
t - in the Physical Inventory Missing Tagwindow.
Namissing
void A voided tag is not reported as a
n o n
tag Listing.
If you generated blank tags at the beginning of your physical inventory, and ended up not
using all of them, you void the unused tags. When you run the Physical Inventory Missing Tag
Listing for the whole range of tags you generated, the unused tags appear as missing tags.
If you void a default tag, (for example, a tag that identifies a stock-keeping unit for which there
is system on-hand quantity), Oracle Inventory adjusts the quantity in that location to zero. This
indicates that you did not use the tag in question, presumably because the stock-keeping unit
corresponding to the tag did not exist.

Quiz
Quiz
If you void a default tag, (for example, a tag that identifies a

stock-keeping unit for which there is system on-hand quantity),
Oracle Inventory adjusts the quantity in that location to zero:
a. True
b. False
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Answer:aa S s fe
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Physical Inventory Approval Tolerances
Physical Inventory Approval Tolerances

Oracle Inventory supports the following types of physical

inventory approval tolerances:
Quantity variance tolerance: System-tracked on-hand
quantity actual tag count quantity
Adjustment value tolerance: (System on-hand quantity-
actual count quantity) x current cost s a
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Approval a S sfe
Tolerances
t a h
s Inventory
- t r ansupports two types of physical inventory approval tolerances. For each type,
Nayou ncanonspecify a positive and a negative limit. When a particular physical inventory tag count
Oracle
entry results in an adjustment that exceeds any one of these limits, you have a physical
inventory adjustment that exceeds approval tolerances. Based on the approval option you
chose when you defined your physical inventory, this adjustment is or is not held for approval.
If you decide that approval is required for adjustments out of tolerance you must enter at least
one positive or negative value for one type of approval tolerance. The quantity variance
tolerance is a user-defined limit for the difference between the system-tracked on-hand
quantity and the actual tag count quantity. You express positive and negative quantity
variance tolerances as percentages of the system on-hand quantity. You enter these
percentages when defining your physical inventory.
The adjustment value tolerance is a user-defined limit for the total value of a physical
inventory adjustment: adjustment value = (system on-hand qty - actual count qty) x current
cost, where: Current cost is the cost at inventory snapshot. You express positive and negative
adjustment value tolerances as amounts in your ledger currency. You enter these tolerances
when defining your physical inventory.

Physical Inventory Adjustments
Physical Inventory Adjustments

Adjustments
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eview
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t r anphysical inventory.
can from this window are determined by the approval option you
NaPhysical
defined If you approve a particular adjustment, the Process
n o n
Inventory Adjustments program adjusts your inventory balance by that quantity. If
you reject an adjustment, Oracle Inventory does not change the system on-hand quantity.

Physical Inventory API
Physical Inventory API

Update existing physical tag records and their

corresponding adjustments records using this public API.
Quickly process a large number of records.
Import data from other Oracle or non-Oracle systems.
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The Physical
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a h tran
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oftthe
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Na non-
Package INV_PHY_INV_PUB:
This package contains the API to accept, validate, and update existing tags. It contains the
following procedure:
UPDATE_TAGS: Parameter: PI_TAG_RECORDS.
This procedure accepts tag records as input parameters. This procedure initiates the
validation process and then updates the existing tag records.
The Physical Inventory (PI) API accepts the following input parameters:
PI_TAG_RECORDS
PI_ADJUSTMENT_RECORDS

Overview of Cycle Counting
Overview of Cycle Counting

The periodic counting of individual inventory items throughout

the year.
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Sinventory
Cycle counting is thee
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periodic
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t a
on- cycle counting systems require the counting of a certain number of items every
NaMostneffective
for high service levels, and planning production.
workday with each item counted at a prescribed frequency. You can use cycle counting along
with ABC analysis to count items of greater importance more frequently than those of less
importance. Cycle counting supports scheduled counting based on value or counting by
location, and can be set up at the organization level or the subinventory level.
Benefits of Cycle Counting

Cycle counting enables you to keep inventory records accurate by correcting errors between
the system on-hand (perpetual) and actual on-hand (physical) quantities. Cycle counting can
also be a valuable tool to help identify patterns in the errors found. Analysis of these patterns
can suggest and help to prioritize improvements in training, tools, and processes. Over a
period of time,,these improvements may increase the average level of inventory record
accuracy.

Overview of Opportunistic Cycle Counting
Overview of Opportunistic Cycle Counting

Unscheduled cycle count in the middle of a picking

operation if an item falls below a minimum quantity
tolerance for the locator.
Only available if you are using Oracle Warehouse
Management.
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Opportunistic
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s
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operation if below a minimum quantity tolerance for the locator. If the
t - you would like to performto athecycle
Nawhethernoornnot
resulting is equal specified quantity, then the system asks you
count for this item at this locator. For instance,
if the Opportunistic Cycle Count Trigger Quantity is set to 5, then any time a pick from a locator
leaves 5 or fewer pieces in the locator, the system prompts you to count the item.
Opportunistic cycle counting is controlled at the subinventory level. This means if you enable
opportunistic cycle counting for the subinventory, then all items within the subinventory will be
subject to opportunistic cycle counts. When you establish the parameters for the subinventory,
enter the Opportunistic Cycle Count Days Threshold which is the number of days tolerance that
controls whether or not redundant cycle counts are performed. If a cycle count has been
performed at this location for this item within the specified number of days, then the system
does not prompt you to perform another cycle count for this item or locator combination.
For example, if the Opportunistic Cycle Count Days Threshold is set to 14 days, then the
system will only prompt you to count this item locator combination if there has not been a cycle
count in this location within the past 14 days. If that item location combination was counted 10
days prior to the pick which would otherwise trigger a free cycle count, that trigger will not be
invoked because of the days tolerance. If an opportunistic cycle count is performed and there is

already a scheduled cycle count for that item location combination, then the system deletes the
existing cycle count entry. This prevents redundant cycle counts from being performed.
Opportunistic Cycle Counting is only available if you are using Oracle Warehouse Management.
This topic is not covered in detail in this course. For more information on Opportunistic Cycle
Counting, see the Oracle Warehouse Management Users Guide.
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Quiz
Quiz
Cycle counting can be a valuable tool to:

Keep inventory records accurate by correcting errors
between the system on-hand (perpetual) and actual on-
hand (physical) quantities.
Identify patterns in the errors found.
s a
c. Identify personnel responsible for stocking items.
)h a
d. Provide trends about future demand.
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Answer:aa,Sb s fe
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Defining and Maintaining a Cycle Count
Defining and Maintaining a Cycle Count

Define cycle count
Define cycle count
Establish tolerances & other limits
Load items to be counted into cycle

count classes s a
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Schedule counts and generate count
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Enter counts and report results
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Cycle Count Approval Tolerance
Cycle Count Approval Tolerance

al

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the cycle count is compared to an approval tolerance.
N no

Approval Tolerances
Approval Tolerances
Quantity
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variance r
tolerance r/-1161
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Oracle Inventory
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Sand Adjustment
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s
types of cycle count approval tolerances, Quantity Variance
a sh limit
Tolerance
t r a n can differ fromTolerance.
Value For each type, you can specify a positive and a
t - that exceeds any one of these limits,
Naan adjustment
negative which each other. When a particular cycle count entry results in
n o n you have a cycle count adjustment that
exceeds approval tolerances. Based on the approval option you choose when you define your
cycle count, this adjustment is either posted automatically or held for approval.
Quantity Variance Tolerance

The Quantity Variance Tolerance is a user-defined limit for the difference between the actual
cycle count quantity and the system tracked on-hand quantity. You express positive and
negative quantity variance tolerances as percentages of the system on-hand quantity.
You enter these percentages when you define your:
Cycle Count Header
Cycle Count Classes
Cycle Count Items
Oracle Inventory uses any percentages you define at the cycle count item level first. If you do
not have any defined for an item, it uses the tolerances defined for that items cycle count
class. If you do not have any defined for the class, it uses the tolerances at the cycle count
header level. If you have no tolerances defined for the header, Oracle Inventory assumes that
there is no limit to the approval tolerance.

Adjustment Value Tolerance
The Adjustment Value Tolerance is a user-defined limit for the total value of a cycle count
adjustment.
The adjustment value is calculated as:
adjusted value = (system on-hand qty actual count qty) * current item cost
The Adjustment Value Tolerance is expressed as positive and negative amounts in your
functional currency. An adjustment value is out of tolerance if it falls outside of these amounts.
You enter these tolerances when you define your cycle count header and cycle count classes.
Oracle Inventory uses the values you define at the cycle count class level first. If you do not
have any defined for an items class, it uses the values at the cycle count header level. If you
have no tolerances defined for the header, Oracle Inventory assumes that there is no limit to
the approval tolerance.
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Hit/Miss Tolerance
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The Hit/Miss
a S Tolerance
s f etheris actual
a user-defined limit for the difference between the system tracked
a sh tolerances
on-hand quantity
t r a n as percentages
and cycle count quantity. You express positive and negative
t - these tolerances, and
Nahit nif oit isnwithin
hit/miss of the system on-hand quantity. A count is considered a
a miss if it is outside them.
The Hit/Miss Tolerance allows you to evaluate the actual accuracy of your inventory.
You enter Hit/Miss tolerance percentages when you define your cycle count header and when
you define your cycle count classes. Oracle Inventory uses the percentages you define at the
cycle count class level first. If you do not have any defined for an items class, it uses the
tolerances at the cycle count header level. If you have no tolerances defined for the header,
Oracle Inventory assumes that there is no limit to the Hit/Miss tolerance, and all variances are
therefore hits regardless of the size.
Inventory uses these tolerances to generate the Cycle Count Hit/Miss Analysis report which
will be covered later in this course.

Measurement Errors
Measurement Errors
Measurement User Defined

Errors Limits for
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emeasurement errors are user-defined limits for the difference between
a
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the cycle count
sassigned a s
nItem. Inventory does nottracked
quantity and the system on-hand quantity. Measurement Error limits
t a - from the system tracked on-hand quantity
Naquantity
are make any adjustments to an item whose cycle count
n o ndiffers by less than the measurement error.
Because of this, measurement errors may implicitly override any approval tolerances you
specify.
You specify measurement errors when you define or update an item at the Master Item or
Organizational Item level. Use measurement errors with extreme caution since they actually
prevent cycle count adjustments from taking place. You would typically use this feature on an
exception basis for items you cannot accurately count. For example, if you visually check the
level of bolts in a bin to estimate the quantity, or you use their weight to approximate the
quantity, you might want to allow for measurement errors. Therefore, if your system tracked
on-hand quantity for the bolts in that bin is within an acceptable range, you do not perform a
cycle count adjustment.

Cycle Count Items
Cycle Count Items

Individual Items
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Before youScan schedule
a s f er or count items, you must load them into your cycle count by:
t
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Specifying anan existing ABC group from which to automatically load your items.
Na nManually
on entering, deleting, or updating the items to be included or excluded.
When you specify an existing ABC group, Oracle Inventory automatically includes all items in
the ABC group you choose in your cycle count. Oracle Inventory also copies the ABC classes
for that ABC group into the current cycle count classes and maintains the same classifications
for the included items. You can change the classifications of your items for your cycle count
independent of the ABC classes.
After you have generated your list of items to count from an ABC group, you can periodically
refresh the item list with new or reclassified items from a regenerated ABC group. Using the
Cycle Counts window, you can choose whether to update class information automatically for
existing items in the cycle count based on the new ABC assignments. You can also choose to
have any items that are no longer in the ABC group automatically deleted from the cycle count
list. You manually enter, delete, or update the items you want included or excluded using the
Cycle Count Items window. Use this window to load all your items for a cycle count or to
simply add items as they are defined in the system rather than recompiling your ABC group
and doing a complete reinitialization.
To enter new cycle count items

(N) Counting > Cycle Counting > Cycle Counts > [B] Open > [B] Items

Use the Cycle Count Items window to add new items to your cycle count (that did not exist
since the last compile) or to update certain attributes for existing cycle count items. You can
schedule, generate count requests for, and count only those items that are included in this list.
To ensure that the new items are included in the next compile, complete the following steps:
All items to be included in the cycle count process must have the Cycle Count Enabled
check box selected.
- (N) Inventory > Items > Master Items > Inventory tab
When attaching Classes to a cycle count, make sure that you have entered an
appropriate number (by class) for the number of times you want the items in that class
counted.
- (N) Inventory > Counting > Cycle counting > Cycle Counts. Query the cycle count >
[B] Open > Cycle Counts window > [B] Classes.
If you make changes to the cycle count definition, re-initialize the cycle count.
- (N) Inventory > Counting > Cycle Counting > Cycle Counts > Query the cycle
s a
count. [B] Open > Cycle Counts window > (T) Adjustments and ABC > ABC
)h a
Initializaiton > Option = Re(initialize)
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When running the Perform Full Cycle Count request, select the Save all Output Files
check box for the cycle count listing.
o t
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- (N) Cycle Counts Summary folder window or the Cycle
o Counts G
- (M) Tools > Perform Full Cycle Count o
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Automatic Scheduling
Automatic Scheduling
To determine which items, and the quantities you need to count

during the scheduling frequency, Oracle Inventory uses the
following:
Number of items in each cycle count class
Frequency of each class
s a
Workday calendar
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Complete S
a f
the following
s ersteps to enable automatic scheduling in Oracle Inventory:
t
sh
a - t r an Count Enabled item attribute to Yes for the items to be included in the
Set the Cycle
Na non
cycle count.
Enable automatic scheduling when you define your cycle count.
Request the schedule using the Generate Automatic Schedule Requests window.
Each time the auto scheduler runs, it schedules counts only for the schedule interval you
defined for the cycle count header. So if your schedule interval is weeks, Oracle Inventory
schedules all items that to be counted on all of the workdays in the current week. If your
schedule interval is days, then Oracle Inventory only schedules those items that are due for
counting on the current date.

Manual Scheduling
Manual Scheduling
You can manually schedule counts in addition to or instead of

those generated with automatic scheduling.
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S date.counts
You can request
a s f erexample,
for specific subinventories, locators, and items, and set the count for
any inventory
a t r a n X. Or you could
shin subinventory For you could enter a request to count item A wherever it can be
t -
Nalocator
found request to count all item quantities in subinventory Y,
n o n
B-100.
Since manually scheduled counts have no impact on automatically scheduled counts, you can
potentially count some items more frequently than you had initially planned.
Physical Location Scheduling

(N) Counting > Manual Requests. Alternatively, click the Schedule button on the Cycle Counts
Summary folder window. (N) Counting > Cycle Counting > Cycle Counts > [B] Schedule
You can use this feature to execute location-based cycle counting. You first need to generate
a schedule for counting each subinventory and locator. You then need to enter the schedule
requests for each locator, specifying the schedule date.

Count Requests
Count Requests
After you have successfully scheduled your counts, you can

submit the process to generate count requests.
Schedule Generate Count

s a
Output Request
)h a
o za
h s c de
o r t u i
olw dent G
Order by w tuo
Su binventory, g @
r hAssigns s S Unique
b e i
Locator, Item,
s t of se t Number Sequence
Revision, Lot
a s ha to u
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r g l i c ORACLE'
t o f be able
a S takes
This process
s f
theerrequest
output of the automatic scheduler and your manual schedule entries
a sh combination
and generates
t r aan for which on-hand
count for each item number, revision, lot number, subinventory and
t - and locator, then by item,
Naby subinventory
locator quantities exist. These count requests are ordered first
n o n revision, and lot. Oracle Inventory assigns a unique
sequence number to each count request that can be used for reporting, querying and rapid
count entry.
As the count requests are derived from the state of on-hand balances at the time the
Generate Cycle count Requests process is run, you should wait to run it until you are ready to
count.
Note: When you schedule an item to be counted using manual scheduling, some schedule
requests may have overlapping count requirements. The count request generator does not
create duplicate count requests, but instead cross-references one count request back to each
associated schedule request.
Count Requests for Items with Zero Count

By default Oracle Inventory does not automatically generate requests to count items with an
on-hand quantity of zero. To include such items:
Define all sourcing details and inventory controls for the item. For example, if an item is
under predefined locator control be sure it is assigned to a subinventory and locator.
Select the Count Zero Quantity option when you define your cycle count.

The count request generation process automatically creates a count request. If a quantity is
found and counted, an adjustment is made.
At count entry, you may receive a warning message stating Zero count, no adjustment
performed. Oracle Inventory generates this warning if it cannot find all levels of inventory
control defined for the item. In this situation, enter the count but no adjustment is performed.
To make an adjustment and update the missing information, enter an unscheduled count
using either the Cycle Count Entries or Approve Adjustments window.
s a
)h a
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h s c de
o r t u i
olw dent G
o
w tu
@
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g
b e
s t of se t
a s ha to u
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t o fb rabl
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Entering Cycle Counts
s a
)h a
o za
h s c de
o r t u i
olw dent G
o
w tu
@
r his S
g
b e
s t of se t
a s ha to u
( n at ense
e r g e lic
t o f b abl
a S the
You can use
f
same
s erwindow toYou
enter counts of items requested through automatic or
t a sh for-your
manual cycle
t r ancycle counts. You cancanusealsounscheduled
count scheduling. enter unscheduled count entries, if they are
Nacyclencounts.
allowed counts to perform location based
on You can also use a mobile device to enter cycle count quantities. If the item is
under dual unit of measure control the system automatically supplies the secondary unit of
measure and secondary quantity.
Oracle Inventory automatically queries all count requests for which you have not yet entered a
count. You can use flexible search criteria to specify the group of count requests for which you
want counts entered to speed up the count entry process. For example, you can specify a
range of count request sequences assigned to one person so they can be entered in the same
order they were printed on the count sheet.
Note: What happens if shipments or receipts occur during the cycle count? The system asks
you to count the quantity when the count is scheduled. If any quantity is received after that,
then it is not included in the count. Similarly, you are not supposed to transact (ship) any
quantity when the count is scheduled. However, if you perform a shipment or move the item
out, then you need to keep a record of that material and then count it as part of the cycle
count. For this reason, Oracle Inventory provides a feature where you can do an opportunistic
cycle count when the quantity of an item in a pick location falls below a threshold quantity.

Lot Cycle Counting for a Lot Controlled Item
Lot Cycle Counting for a Lot Controlled Item

Option to enter the individual lot quantities without entering

the total item quantity for a lot controlled item when
performing a mobile cycle count.
System calculates the sum of the quantity entered for
individual lots as the count quantity.
s a
)h a
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h s c de
o r t u i
olw dent G
o
w tu
@
r his S
g
b e
s t of se t
a s ha to u
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t o f be able
This enhancement
f r you to enter the individual lot quantities without entering the total
S for aslotenables
econtrolled
item h a
quantity
s -the n of the quantityitem
asum when performing a mobile cycle count. The system
t a t r
Nathis n
calculates entered for individual lots as the count quantity. To enable
on set the form function parameter
feature,
ENFORCE_TOTAL_QTYCOUNT_FOR_LOTITEM to NO
(ENFORCE_TOTAL_QTYCOUNT_FOR_LOTITEM=NO) for the form function Mobile Cycle
Count (INV_MOB_CYCL_COUNT).

Cycle Count Open Interface
Cycle Count Open Interface

Cycle Count
Open Interface
s a
)h a
za
Import Cycle Export Cycle
Counts
I hsc de o Counts
o rt Gui
o olw dent
@ w tu
b e r his S
g
s t of se t
a s ha to u
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r g l i c ORACLE'
t o fbe rable
a
Cycle CountS OpensfInterface
e
h n
ascannimport/export
tra
a tYou - cycle count entries from external systems into Oracle Inventory using
o
N the Cycle
n Count Entries Open Interface.
Export Cycle Count Request

This process enables you to export cycle count requests into external systems.
Update Cycle Count Open Interface

This process enables you to update cycle count entries.
Import Cycle Count Entries from Open Interface

This process enables you to import cycle count entries open interface records into the
database.
Purge Cycle Count Entries Open Interface Data

This process enables you to purge all cycle count entries from the open interface.
Print Cycle Count Entries Open Interface Data

This process enables you to print cycle count entries open interface data.

Count Adjustments and Approvals
Count Adjustments and Approvals

Enter Cycle
I
Counts
Review
s a
tolerances
)h a
o za
h s c de
o r t u i
olw
Make
n t G
o
w tud e
adjustments
@
r his S
g
b e
s t of se t
a s ha to u
( n at ense
r g l i c Ol'ACLE"
t o f be able
a S need
After you enter
f
and save
s ebermade
your cycle counts, Oracle Inventory determines whether any
a shyou define
adjustments
t r a nthe cycle count.
to depending on the approval options and tolerances you set
t
Na non-
when

Automatic Recounts
Automatic Recounts
Items Outside
Tolerance Limits
s a
)h a
o za
h s c de
Automatic
o r t Recountu i
olw dent
Request G
o
w tu
@
r his S
g
b e
s t of se t
a s ha to u
( n at ense
r g l i c 01?ACLE"
t o f be able
If you turnS
a f ersubmits
on the Automatic
s
Recount option when you define your cycle count, Oracle
a sh tolerances
Inventory
t r a n you specify.recount
automatically requests for items that are outside the limits of the
t -limited by the maximum automatic recounts
Nanecessary,
approval Oracle Inventory submits recounts as many times as
n o n you specify for the cycle count. After
you reach the maximum number of recounts, Oracle Inventory holds the count for approval.
Any count request with the Recount status automatically appears on the next cycle count
listing. You can manually request recounts when you are approving adjustments. This recount
request will be included in the next cycle count listing.

Approving Cycle Counts and Adjustments
Approving Cycle Counts and Adjustments

Orr Request Recounts
Approve Counts and s a

Adjustments )h a
o za
h s c de
o r t u i
olw n t G
o
w tud
Query Counts e
@
r his S
g
b e
s t of se t
a s ha to u
( n at ense
r g l i c ORACLE'
t o f be able
Employees
a Swith f
access
s erortoapprove
the Count Adjustment Approvals Summary window can query,
a h pending
request the
sthose t r a n approval. You can
recount of, cycle counts pending approval. You can query all counts or
t - or take no action until further
Narejectnthe
only approve adjustments, recount an item in question,
oncount investigation takes place.
Approving Cycle Count Adjustments

You use the Count Adjustment Approvals Summary window to approve cycle count
adjustments, to request or approve recounts, or to reject the adjustment. Oracle Inventory
determines which counts need approval by using the approval tolerances you entered while
defining your cycle count. You can use flexible search criteria to specify the cycle count
adjustments you want to review or approve.
Using the Count Adjustment Approvals Summary window, you can view a variety of current
item information to help determine whether to approve an adjustment. Select the information
from the following tabbed regions:
Adjustment: View information for primary and secondary system quantity, primary and
secondary adjustment UOM, primary and secondary adjustment quantity, adjustment
value, and adjustment percent.
Item Location: View information for subinventory and locator. You can also view the
primary and secondary adjustment UOM, primary and secondary adjustment quantity,
adjustment value, and adjustment percent.

Item Details: View information for a revision, lot number, and serial number. You can
also view the unit of measure and adjustment quantity.
Reason, Reference: View or update the transaction reason and reference information.
You can also view the primary and secondary adjustment UOM, primary and secondary
adjustment quantity, adjustment value, and adjustment percent.
Count: View information for primary and secondary UOM, primary and secondary count
quantity, counter, and count date.

Count Status, Class: View information for the sequence number, count status, and
cycle count class.
Approval: View information for date approved and approver.
Approval Actions and Adjustments Options

For items appearing in the Approval Actions, Adjustments region, you can approve, request a
recount, or reject cycle count entries that are pending approval. You can also approve or
reject any count for which a recount has already been requested. You can reject any cycle s a
count request that has not yet been counted. You can display count history information or )h a
open the Count Adjustment Approvals window.
o za
Select Approved to approve the selected count entry and post the adjustment
h s c dtoethe

transaction manager for processing. t
or t Gu i
Select Rejected to reject the selected count record. Anoadjustment l w
o deisnnot posted. No
further processing of this count entry takes place.
@ w tu
Select Recount to process a recount request r g S
is count request. An
e for thethselected
adjustment is not posted. t o f b e
a sopen s History window for the current item.
uCount
Select the Count History button s hto
a displays t o
the
For the current item, this
( n a twindow
e n se count and variance information for the current,
e r g e lic
prior and first counts.
Select thefOpen
o b button a b lto open the Count Adjustment Approvals window for the current
line. S t
This window
f ris a combination block which you can use to view and enter approval
einformation
a
shApprovals
and s
nSummary window.for the current line instead of using the Count Adjustment
adjustment
a
t a t r
Na non-

Accuracy Reports
Accuracy Reports
Report Description
ABC Assignments Report Use this report to print the ABC

assignments of items.
ABC Descending Value Report Use this report to view the results of an
ABC compile. Use this report to evaluate
the break points for assigning your ABC
classes to items.
s a
)h a
Cycle Count Entries and Adjustments
Report o za
Use this report to monitor inventory
accuracy. The report shows counts and
h s c de
adjustments for the items and calculates
o r t u i
olw dent G
the monetary value of the adjustments to
inventory value.
o
w tu
@
r his S
g
b e
s t of se t
a s ha to u
( n at ense
r g l i c cOPACLE'
t o fbe rable
a S sfe
t a s -tran
h
Na non

Accuracy Reports
Accuracy Reports
Report Description
Cycle Count Hit / Miss Analysis Use this report to view inventory
accuracy performance.
Cycle Count Listing Use this report to show inventory items

for cycle counting. You use this report to
record and enter the cycle count entries
s a
Physical Inventory Item Accuracy Report Use this report to report on physical
inventory adjustments. )h a
o za
Physical Inventory Adjustments Report
h c de
Use this report to view physical inventory
s
o r t u i
adjustments created by your count
olw dent G
entries. You use adjustments reports to
o
w tu
verify tag quantities and/or dollar impact
@
r his S
g
of the physical inventory.
b e
s t of se t
a s ha to u
( n at ense
r g l i c ORACLE'
t o fbe rable
a S sfe
t a s -tran
h
Na non

Accuracy Reports
Accuracy Reports
Report Description
Physical Inventory Counts Report Use this report to validate the count
information you entered for a physical
inventory. The report includes the count
and the counted by information essential
to review for recount.
Cycle Counts Pending Approval Use this report to review adjustments

s a
waiting for approval
)h a
Cycle Count Open Requests Listing
o za
Use this report to report items that
h s c de
require a recount. It can also include
o r t u i
items that are schedule for a count. The
olw dent G
report totals how many items were
o
w tu missed and how many items require
g @
r his S recounts for each subinventory.
b e
s t of se t
a s ha to u
( n at ense
r g l i c ORACLE'
t o fbe rable
a S sfe
t a s -tran
h
Na non

Accuracy Reports
Accuracy Reports
Report Description
Cycle Count Unscheduled Items Report Use this report to audit the cycle count
scheduler. This report lists items which
are not scheduled in the specified
schedule interval. Items that are not
cycle count enabled (for Auto Schedule)
can be included.
s a
Physical Inventory Tags Report Use this report to print physical inventory
)h a
tags.
o za
Physical Inventory Tag Listing
h s
Use this report to review the tagsc de
created by the generate o r t
physical u i
olw dent G
o
inventory tags process.
w identify
Physical Inventory Missing Tag Listing Use this@
g report to S tu tags that have
b r his
ebeen counted.
o f not
e t
h a st us
s t o
n a ta nse
g ( l i c e ORACLE"
f b er ble
a Sto sfera
t a sh -tran
Na non

Accuracy Reports
Accuracy Reports
Report Description
Physical Inventory Trend Report Use this report to review your physical
inventory accuracy over time. It provides
a summary for the number of counts and
transactions entered for the physical
inventories.
Physical Inventory Summary Report Use this report to review the results of a
s a
physical inventory. It provides a
)h a
za
summary for the number of counts for
o
h s c de
the physical inventory and for the
r t i
number of transactions processed for
o u
lw ent
the adjustment.
oprint G
Print Cycle Count Entries Open Interface Use this reportoto d count
winterfacetudata
cycle
Data Report entries @
rg his S
open
b e
s t of se t
a s ha to u
( n at ense
r g l i c ORACLE'
t o fbe rable
a S sfe
t a s -tran
h
Na non

Accuracy Reports
Accuracy Reports
Report Description
Purge Cycle Count Entries Open Use this report to purge all cycle count
Interface Data Report entries from the open interface.
Import Cycle Count Entries from Open Use this report to import cycle count
Interface Report entries open interface records into the
database.
s a
Cycle Count Schedule Requests Report Use this report to report the schedules
generated by the Automatic Scheduler )h a
o za
and entered through the Manual
h s c de
Schedule Requests window.
o r t u i
olw dent G
o
w tu
@
r his S
g
b e
s t of se t
a s ha to u
( n at ense
r g l i c ORACLE'
t o fbe rable
a S sfe
t a s -tran
h
Na non

Profile Options
Profile Options
Profile Option Description
INV: CCEOI Commit Point Defines number of cycle count entries open
interface (CCEOI) records before committing the
records into the database. Values can be any
positive number (INV_SRS_NUMBER is the value
set).
s a
INV: CCEOI Workers Indicates the number of workers to be processed
)h a
za
when running the cycle count entries open
o
h s c de
interface. Values can be any positive number
r t
(INV_SRS_NUMBER is the value set).
o u i
TP:INV Cycle Count Approvals olw
Indicates processing control n t
of cycle count
G
Form approvals in the Cycle o
w tud window.
Count e
Approvals
@
g iscontrol
rprocessing S of cycle count
TP:INV Cycle Count Entries e
Indicates the
b h
tCount Entries window.
Form
t oinf the Cycle
entries
s s e
a s ha to u
( n at ense
r g l i c ORACLE'
t o fbe rable
a S sfe
t a s -tran
h
Na non

Implementation Considerations
ABC Analysis
Do you need to compile based on organization or
subinventory?
What ABC criterion will you use?
What ABC scope will you use?
s a
What are your ABC class cut offs?
)h a
o za
h s c de
o r t u i
olw dent G
o
w tu
@
r his S
g
b e
s t of se t
a s ha to u
( n at ense ORACLE'
r g l i c
t o fbe rable
a S sfe
t a s -tran
h
Na non

Cycle Counting
How often should you perform a cycle count?
Should you count the entire organization or individual
subinventories?
Which subinventories do you need to count?
s a
What are your tolerances and limits?
)h a
Do you want to perform automatic scheduling?
o za
Do you want to perform automatic recounts? ths
c e
or t Gu i d
l w
w oo uden
r g @ s St
o f b e
e t hi
h a st us
s t o
n a ta nse
r g ( lice ORACLE'
t o fbe rable
a S sfe
t a s -tran
h
Na non

Physical Inventory
Do you need to perform a physical inventory?
How often do you need to perform a physical inventory?
Should you perform a physical inventory for the entire
organization or for individual subinventories?
s a
Which subinventories should you perform the physical
h a
inventory? za)
o
c
o rths Guide
o olw dent
@ w tu
b e r his S
g
s t of se t
a s ha to u
( n at ense ORACLE'
r g l i c
t o fbe rable
a S sfe
t a s -tran
h
Na non

Summary
Summary
In this lesson, you should have learned how to:

Create an ABC compile.
Define and maintain a cycle count.
Define a physical inventory.
Demonstrate count adjustments and approvals.
s a
Understand how to use inventory accuracy reports.
)h a
Understand how to setup inventory accuracy profile oza
c de
options. ths i r
l wo nt
Understand inventory accuracy implementation
o Gu
considerations. wo tude
e r g@ is S
t o fb e th
s h as to us
n a ta nse
r g ( lice
o
Please refer tto
fbe rable guide for labs and/or demos for this lesson.
the supplemental
a S sfe
t a s -tran
h
Na non


R12.2 Oracle Inventory Management Fundamentals

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Inventory Capabilities .....................................................................................................................................1-6

Student Guide Table of Contents

Student Guide Table of Contents

Deletion Constraints and Deletion Groups .....................................................................................................4-41

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Transaction Action .........................................................................................................................................6-10

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Material Allocation Options in Transact Move Orders Window ......................................................................7-40

Reservation Versus Allocation .......................................................................................................................8-17

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Forecast Types ..............................................................................................................................................10-16

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R12.x Inventory Accuracy Fundamentals .......................................................................................................11-3

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R12.x Inventory Accuracy Fundamentals

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R12.x Inventory Accuracy Fundamentals

R12.x Inventory Accuracy Fundamentals

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R12.x Inventory Accuracy Fundamentals

After completing this lesson, you should be able to:

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R12.x Inventory Accuracy Fundamentals

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R12.x Inventory Accuracy Fundamentals

Overview of ABC Analysis

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R12.x Inventory Accuracy Fundamentals

An ABC analysis determines the relative value of a group of