ORACLE INVENTORY

11i

March 2009
 ORACLE INVENTORY
Contents
Introduction .................................................................................................... 2
Inventory Concepts ....................................................................................... 3
Background to Inventory Accounting .......................................................... 4
Purchase Order for Inventory Item............................................................... 5
Receipt of Inventory Item ............................................................................ 12
Return of Inventory Item ............................................................................. 14
Payment of Inventory Item .......................................................................... 16
Issuing Stock from Stores .......................................................................... 17
Grant/Project Issues.............................................................................................17
General Ledger Account - Miscellaneous Issues or Receipts .........................22
On Line Enquiries ........................................................................................ 26
Transaction Summaries.......................................................................................26
On-Hand Item Availability ....................................................................................28
Material Transactions...........................................................................................29
Inventory Reports ........................................................................................ 31
Year End Procedure..................................................................................... 35
Physical Inventory................................................................................................35
Snapshot: ..............................................................................................................36
Generating Physical Inventory Tags...................................................................37
To Print the Tags: .................................................................................................39
Physical Inventory Tag Counts ...........................................................................39
Physical Inventory Adjustments .........................................................................40
Processing Physical Inventory Adjustments.....................................................42
Appendix I – Getting Help ........................................................................... 44
Appendix II - The Toolbar ............................................................................ 45
Appendix III – Keyboard Shortcuts ............................................................ 46

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Introduction
This user guide assumes familiarity with navigating within Oracle Financials, either
gained through attendance on the Navigation Course, or through having read the
Navigating within Oracle Financials document. In addition, appendices are
included at the end of this guide to provide assistance in getting help and using the
toolbar and keyboard shortcuts.

Familiarity with the Microsoft Windows environment is also assumed, as well as an

understanding of basic Windows’ terminology, such as clicking and double
clicking.

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Inventory Concepts
The Oracle Inventory module allows a department to track the receipt and issue of
stock items from the Purchase Order stage through to the issue from the
departmental stores.

Item details are held in the Master List within the College Central Organisation (ML).
The Master Item List contains all the stock items purchased and sold. Stock items
can only be created within this Organisation. Once created the stock items are
assigned to the correct departmental Inventory Organisation. This is done by the
Inventory Module Leader.

Items are purchased using the standard Purchase Order screens. Item attributes
ensure that when the item is received, the stock levels are updated in the appropriate
Inventory Organisation, i.e. Oracle Inventory increases the quantity of item in the
Sub-inventory Organisation.

When inventory items are set up, they have associated with them a Unit of Measure,
which is known as the Primary Unit of Measure e.g. Each, Pack, or Bottle etc. The
Primary Unit of Measure is the Unit of Measure in which the item is purchased.
Additionally, each item can have a Unit of Measure conversion associated with it so
that packs can be broken down and issued individually for example.

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Background to Inventory Accounting
Each Departmental Inventory Organisation (Store) will have several accounts to
record the accounting entries arising from the different Inventory transactions.

Main Stores balance sheet account:

This account is used to record the receipt and issue of inventory items and the
balance on this account represents the current stock value. Costs are recorded on an
average cost basis.

Expense Account:
This account is used to record the running costs of the stores.

Invoice Price Variance Account:

The inventory module updates the stock value based on receipt quantity at the
purchase order price. Any difference between the purchase order price and the
actual invoice price (plus VAT) as appropriate is recorded in this account.

ACCOUNTING FOR INVENTORY STOCKS

Purchasing:
When items are purchased the cost is charged against the stores balance sheet
account. This account is associated with the item and will default into the accounting
flex field in the purchase order distributions window.

Receipt of Goods:
Upon the receipt of the goods the item is received into the store via the Inventory
Module. The stock is updated based quantity received at the purchase order price
plus VAT (as appropriate).

The stock level is updated by a periodic process, which runs in the Cost Manager
every few minutes.

An entry is also created in the departmental Inventory Accrual account based on the
receipt quantity and purchase order price to reflect the money due to the supplier for
the goods received.

Payment of Invoices for Inventory Items

As previously mentioned when the goods are received into the Inventory organisation
an entry is created in the Inventory AP accrual account (based on receipt quantity at
PO price).

The Inventory accrual account defaults into the accounting flex field when the invoice
is being paid (payment of the supplier invoice is done in the Accounts Payable
Module using the appropriate responsibility).

When the invoice is paid, any difference in the price of the goods on the purchase
order and that on the invoice is automatically posted to the Invoice Price Variance
account hence, any extra costs or profits are collected in the correct place.

Stock Issues:
On issue, the cost of the item is debited to the account of the person to whom the
stock is issued and credited to the stores balance account.

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Purchase Order for Inventory Item
In order to enter Purchase Orders for Inventory Items, you must be set up as a Buyer
and must have selected the responsibility of PO Buyer.

• In the Navigator Window, expand Purchase Orders and open Purchase

Orders by double clicking on them or by clicking on them and clicking on Open.

• Leave the PO, Rev fields blank, as these fields will be automatically generated.

• Enter the name of the Supplier or choose their name from the List of Values. If
the supplier has more than one site, you must select the correct one from the List
of Values; otherwise this field will be automatically populated with the supplier
site address. If you are unsure whether the address on the system is the same
as the address you wish to use it is possible to display the supplier’s full postal
address. Choose View Supplier Address from the Inquire menu. If you open
the supplier window to view the supplier address, close this window before
continuing.

• If the address is not the one to which you wish to send the order, and no other
addresses are on the system for this supplier, email [email protected] in
order for the correct address to be made available on the system. Details of the
information required for setting up new suppliers can be found on the FIS
website.

• In the Ship To field, enter the correct destination for the goods or choose it from
the List of Values. Note: This address must be the departmental stores
address.

• In the Bill To field, enter the correct Bill To address or choose it from the List of
Values.
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• The Description field is an optional ‘free text’ field – this means that you are not
restricted to particular descriptions but can type in whatever is appropriate.

Note: This field is provided in order to enable you to search for the Purchase Order
at a later date and is designed to contain a summary of the order – for instance:
‘Stationery Order’. This description will not appear on the printed order since each of
the items on the order will have specific descriptions.

• Click in the Num field in the lower section of the window to generate a line
number.

• The Type field will automatically be filled in to say Goods.

• In the Item field enter the Inventory Item Code and press Tab.

The Category will automatically be entered in the Category field, a description of the
item will default into the Description field, the purchase unit of measure will be
entered in the UOM field, and the cost per item (ex Vat) will default into the Unit
Price field. This price is the system price for the item, if it is incorrect please amend it
to the correct price (ex Vat) and then send an email to the Inventory Module Leader
who will update the system price so that the new price will default on future orders.

• Enter the number required in the Quantity field.

• If you have been promised a date by which the goods will be delivered, enter this
date in the Promised field, or select the correct date from the Calendar
(generated by opening the List of Values).

Use the arrows on

Use the arrows on
the right to scroll
the left to scroll
between the years
between months

• It is possible to enter the date by which the order is required in the Need by field,
either by typing it in or by selecting the date from the Calendar.

Note: The Promised and Need by dates are for reference only and do not print out
on the approved purchase order.

• Click on the Shipments button and the Shipments screen will be displayed.

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• Ensure that the Organisation (ORG) field contains your departmental prefix not
ML which is the College Central Organisation. This field must contain your
departmental prefix otherwise you will not be able to receive the Inventory items
into Inventory.

NOTE
Providing you did not save the order prior to clicking on the Shipments button you
can change the Inventory organisation if it is incorrect. To change the inventory
organisation close the Shipments window and re-enter the correct delivery
address in the Ship to field (this should be your departmental stores address).
Save your changes and click on the Shipments button to return to the Shipments
window which should now display your department stores organistion.

If you saved the order before clicking on the Shipments button you cannot update
the Org field. If it displays ML rather than your departmental prefix then you did
not choose the correct stores address in the Ship To field in the Header screen.
If this happens you will need to close this window and delete the order line.
Change the Ship to Adress to the correct departmental stores address in the
Header screen and re-enter the line information. Click on the Shipments button.
The Org field should now display your departmental prefix.

• Ensure that the correct Vat Code is displayed in the field TAX CODE. This field is
located further on the right after the taxable check box. You will see that the
taxable box is checked, this should NEVER be unchecked irrespective of the TAX
CODE used.

• Click on the Distributions button.

• The Distribution window opens and the Type field should contain the value of
INVENTORY.

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• Enter details of the Purchase Order requestor and delivery information if desired.

• Click in the Sub inventory field, click on the List of Values button or press Ctrl
& L. This will generate the Sub inventory details. Ensure it is the correct sub
inventory for your department.

• Click in the Charge Account field. The correct stores account should enter
automatically.

• Save this record by clicking on the Save button on the Toolbar.

• Enter any other items you wish to be included on the order and complete the
Shipments and Distributions details for them.

• Close the distributions window.

• Close the shipments window.

• Click on the Approve button to open the Approve Document window.

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• If you need to forward the order to an authorised signatory for approval, select the
check box next to Forward.

• The Forward From, Approval Path and Forward To fields are automatically
filled in. However, you must ensure that the correct name is in the Forward To
field. To change the name, either delete the existing name and type in the correct
name as it exists in the system, or select it from the List of Values. Please use
Ctrl & L, or choose List of Values from the Edit menu to select the name from
the List of Values.

• The Forward To field is case sensitive and the name must be entered in exactly
the same format as it appears on the system, selecting the name from the List of
Values ensures that the correct format is selected.

If you do not enter the name in the correct format a message will appear in the grey
bar at the bottom of the screen as shown below:

• Delete the incorrect name from the Forward To field and re-enter the name in
the correct format.

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• Click on OK.

• If other internal control mechanisms apply and you are able to create and
approve your own documents with the authorisation of the Head of Department,
simply click on the OK button and do not select the Forward check box.

A note will appear to tell you that the document has been submitted for approval.

• Click on OK.

REQUESTING A PO AUTOMATICALLY PRINTED WHEN

APPROVED
When submitting an order for approval it is possible to request that the order or order
and VAT Certificate are automatically printed out once the order has been approved.

The Approve Document window now includes a Print PO and VAT Certiciate fields
which when checked will automatically submit a concurrent request to print the
PO/VAT Certificate once the order has been approved.

This option requires that there is a valid printer defined in the printer field (if you have
a valid printer defined in your profile options this will default in the printer field) and
the number of copies must be greater than 0.
Note: This print option uses the default print parameter settings e.g. account code
information and requestor information is not printed out.

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For details on Checking the Status of Purchase Orders, Changing Purchase Order
Approver, Approving Orders and Printing of Purchase Orders refer to the Purchasing
User guide.

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Receipt of Inventory Item
• To receive inventory items into the Inventory store, switch responsibility to
Inventory.

• In the Navigator Window, expand Transactions, then expand Receiving and

open Receipts by double clicking on them or by clicking on them and clicking on
Open

• Choose the relevant Organisation from the list – which should be your
departmental stores.

• The Find Expected Receipts Window will open and you will be prompted to
search for the relevant purchase order for the goods that you have received.

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 • Type in as much information as you know, (it is sufficent to just enter the
Purchase Order Number) and click on the Find button. Do not click on FIND
without entering any search criteria.

• The Receipt Header window will open. Add any additional details that you want
in the Receipt Header and then close the Receipt Header window.

• The Receipts window is now displayed enabling you to enter your receipts.

• Ensure that the Destination Type field has a value of Inventory.

• The quantity quoted on the purchase order will be entered in the Quantity field. If
only a partial number has been received, over-write this number with the correct
amount.

Select this
check box for
the goods
which have
been received

• The Destination Type should be Inventory.

• Save your changes by clicking on the Save button on the Toolbar.

• Saving the receipt will automatically generate two concurrent processes,

Receiving Transaction Processor and Journal Import.

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Return of Inventory Item
• To return inventory goods you must use the Inventory responsibility.

• In the Navigator Window, expand Transactions, then expand Receiving and

open Return by double clicking on them or by clicking on them and clicking on
Open

• If prompted, choose the relevant Organisation from the list – which should be
your departmental stores.

You will be prompted to search for the relevant purchase order for the goods you
have received.

• Type in as much information as you know, and click on the Find button. (The
purchse number will be sufficient on its own).

• The Receiving Returns window will open.

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• Select the check box to the left of the Quantity field by clicking in it.

• Enter the number of items to be returned in the Quantity field.

• In the Return To field, click on the List of Values or press Ctrl & L. Select the
option Supplier and the name of the supplier from which you purchased the
goods will be entered in the Supplier/Customer/Location field.

• Save your changes by clicking on the Save button on the Toolbar.

Note: Upon saving return transactions two concurrent requests will automatically be
generated, Journal Import and Receiving Transaction Processor.

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Payment of Inventory Item
Invoices for Inventory Items are paid through the Account Payables module. This
function would be performed with adequate system responsibility in the Account
Payables module.

Refer to the Account Payable User Guide for guidance on payment of Invoices but
note the following:

• Ensure the Account defaults to AP Accrual Account which would reverse entry on
Inventory Accruals Account created when the goods were received.

• Any additional charges such as delivery charges should NOT be charged to the
Inventory AP accrual account but should be charged to the departmental stores
expense account.

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Issuing Stock from Stores
Grant/Project Issues.

• Log into Oracle Financials and choose the responsibility of Inventory.

• In the Navigator Window expand Transactions and open UCL Misc.

Transactions by double clicking on them or by selecting them and clicking on the
Open button.

• Choose the correct organisation if prompted (this should be your department

stores) from the list by double clicking on it or by selecting it and clicking on OK.

Note: If you have already chosen an organisation during your current session, you
will not be prompted to select one, as it will assume you wish to use the same one. If
at any point you wish to use a different organisation, open Change Organisation
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from the Navigator window, click on the Change Organisation button and select
the correct organisation from the list.

• The Miscellaneous Transaction window will be displayed.

• In the Type field, enter Grants/Project Issues, which can also be selected from
the List of Values. The List of Values can be opened by pressing and holding
down the Control (Ctrl) key and pressing the letter L, or by clicking on the List of
Values button on the right hand side of the Type field.

• Click on the Transaction Lines button to open the Grant/Project Issue window.
A message will appear asking if you wish to find all records in this folder. This is
because a custom folder has been set up to facilitate the data entry.

• Click on Yes to open the Grant Project/Issues window.

• Enter the Item Code in the Item field.

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• Press the Tab key, or click in the Sub inventory field and click on the List of
Values button or press Ctrl & L. This will automatically enter the correct Sub
inventory details.

• Ensure that you check that the correct Unit of Measure (UOM) is displayed in the
UOM field this should be the unit of issue. For instance, if the item has been
purchased from the supplier in packs containing ten, but you are issuing them
individually providing that a UOM conversion for the item has been set up then
the UOM field will display EACH. If this is not the case please contact the
Inventory module leader before proceeding so that the conversion can be set up.

Note: The conversion between the Primary Unit of Measure (i.e. the Unit of
Measure in which the item is bought) and selected Unit of Issue will be displayed
at the bottom of the screen for the current issue line.

• Press the Tab key or click on the Quantity field and enter the quantity to be
issued. If upon entering the quantity the error message shown below is displayed
this indicates that according to the Inventory module there is not sufficient stock
to cover the issue quantity.

• Do not proceed with the transaction until you have investigated the matter. Do
NOT enter stock issues if they will drive the Inventory negative. The most
common cause for this message is that the items have been physically received
in the stores but the receipt transaction has not yet been entered into the
Inventory module.

• It is not necessary to enter the Unit Price as the system will automatically use the
average cost as the issue price.

• Press the tab key to get to the Account field and open the List of Values (Ctrl &
L) to generate the Accounting Flexfield.

• Enter the Inventory clearing account for your department stores. If you do not
know details of this account please contact the Inventory Module Leader. This
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 account is used to record Inventory issues to grant/projects accounts. The
transactions are periodically transferred to the relevant grant/projects accounts by
the Grants Module Leader.

• Press the Tab key or click in the Source Project field and enter the Grant/Project
Code to which the item is to be issued. This can be selected from the List of
Values. Please ensure that the grant is still active. This can be checked by
selecting the Grant/Project from the List of Values and checking the
completion date of the project.

• In the Source Task field, enter the Sponsor Expenditure Category, or choose it
from the List of Values. Note: If there is only one Source Task available, clicking
on the List of Values or pressing Ctrl & L will enter the details.

• Enter the Analysis Code in the Expenditure Type field or select it from the List of
Values.

• Enter the correct Expenditure Organisation from the List of Values (Control &
L). It is important to ensure that you have the correct expenditure organisation
otherwise the transactions cannot be transferred to the relevant grant.

• Then click in the field which has two brackets (see example below) to open the
Transaction history flex field.

Click Here

• To enter the Award, select the List of Values in the Award Number field.

• The Longlist (LOV) window will open. Enter a % sign in the following window
before clicking OK.

• The award number will then default into the Award number field.

• Enter the Requestor details.

• Optionally enter a reason in the Reason field. Click on the List of Values button
on the right hand side of the field to bring up the list of valid reasons from which
you can make your selection.

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• Optionally enter any additional comments in the Reference field. This is a free
text field and accepts both alpha and numeric characters.

• Save your changes by clicking on the Save button. Upon saving the screen will
clear this is expected behaviour.

Note: Costs are transferred by running Project Cost Transfers periodically – this is
done by the Inventory Module Leader. The Grants module leader is then able to
transfer the costs to the relevant grant accounts.

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General Ledger Account - Miscellaneous Issues or Receipts

• Log into Oracle Financials and choose the responsibility of Inventory.

• In the Navigator Window expand Transactions and open UCL Misc

Transactions by double clicking on them or by selecting them and clicking on the
Open button.

• Choose the correct organisation (this should be your department stores) from the
list by double clicking on it or by selecting it and clicking on OK.

Note: If you have already chosen an organisation during your current session, you
will not be prompted to select one, as it will assume you wish to use the same one. If
at any point you wish to use a different organisation, open Change Organisation
from the Navigator window, click on the Change Organisation button and select the
correct organisation from the list.

• The Miscellaneous Transaction window will then appear.

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• In the Type field, enter either Miscellaneous Issue or Miscelleaneous Receipt
as required or select from the List of Values. The List of Values can be opened
by pressing and holding down the Control (Ctrl) key and pressing the letter L, or
by clicking on which appears to the right of the Type field.

• Click on the Transaction Lines button.

• A message will appear asking if you wish to find all records in this folder. This is
because a custom folder has been set up to facilitate the data entry.

• Click on Yes to open the Miscellaneous Issue window.

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• Enter the Item Code in the Item field.

• Press the Tab key, or click on the Sub inventory field and click on (located to
the right of the field). This will automatically enter the correct Sub inventory
details.

• Ensure that you check that the correct Unit of Measure (UOM) is displayed in the
UOM field, this should be the unit of issue. For instance, if the item has been
purchased from the supplier in packs containing ten, but you are issuing them
individually providing that a UOM conversion for the item has been set up then
the UOM field will display EACH. If this is not the case please contact the
Inventory module leader before proceeding so that the conversion can be set up.

Note: The conversion between the Primary Unit of Measure (i.e. the Unit of
Measure in which the item is brought) and the selected Unit of Issue will be
displayed at the bottom of the screen for the current issue line.

• Press the Tab key or click on the Quantity field and enter the quantity to be
issued. If upon entering the quantity the error message shown below is displayed
this indicates that according to the Inventory module there is not sufficient stock
to cover the issue quantity.

• Do not proceed with the transaction until you have investigated the matter. Do
NOT enter stock issues if they will drive the Inventory negative. The most
common cause for this message is that the items have been physically received

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 in the stores but the receipt transaction has not yet been entered into the
Inventory module.

• It is not necessary to enter the Unit Price as the system will automatically use the
average cost as the issue price.

• Press the Tab key to get to the Account field and open the List of Values (Ctrl &
L) to generate the Accounting Flexfield.

• Type in the Account Code to which the item is to be charged/issued in the

Account field, or select it from the List of Values.

• Use the Tab key to go to the Analysis field, or click in it with the mouse.

• Enter the Analysis Code or select it from the List of Values.

• All of the other fields should be entered by default, click on the OK button when
complete.

• Optionally enter a reason in the Reason field. Click on the List of Values button
on the right hand side of the field to bring up the list of valid reasons from which
you can make your selection.

• Optionally enter any additional comments in the Reference field. This is a free
text field and accepts both alpha and numeric characters.

• Enter the name of the Requestor in the Transaction History Flexfield. This will
open if you click in the field marked with square brackets.

• Click OK.

• Save your changes by clicking on the Save button on the Toolbar. The data is
saved and the screen is cleared.

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On Line Enquiries
Transaction Summaries

• In the Navigator Window, expand Transactions and open Transaction

Summaries by double clicking on them or by selecting them and clicking on
Open.

• Choose the correct organisation (this should be your department stores) from the
list by double clicking on it or by selecting it and clicking on OK.

Note: If you have already chosen an organisation during your current session,
you will not be prompted to select one, as it will assume you wish to use the
same one. If at any point you wish to use a different organisation, open Change
Organisation from the Navigator window, click on the Change Organisation
button and select the correct organisation from the list.

• The Summarise Transactions window will open.

• Change the start and end dates if required, or leave the date to enquire on the
transactions completed on today’s date.

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• Enter the Item Code in the Item field, or choose it from the List of Values. This
will provide a summary of transactions for a specific item.

• To search for a summary of transactions on all items, enter the date range in the
date fields and Enter the sub inventory in the Subinventory field.

• Click on the Summarise button.

This screen will show you the Net Quantity, Net Value and Volume. It also shows
you the total value of items received in the stores and the value of items that were
issued.

• For details of individual item transaction information, click on the Transaction

Details button, whilst putting your cursor on the required row.

• Use the Blue Tabs in the Material Transactions window to view other details
such as, location, transaction type etc.

• Scroll across the window to find out details regarding the date of transaction and
the quantity etc.

• It is possible to view account information for the transaction by clicking on the

Distributions button.

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On-Hand Item Availability

• In the Navigator Window, expand On-Hand Availability and open UCL On-
Hand Quantities by double clicking on them or by selecting on them and clicking
on Open.

• Choose the correct organisation (this should be your department stores) from the
list by double clicking on it or by selecting it and clicking on OK.

Note: If you have already chosen an organisation during your current session, you
will not be prompted to select one, as it will assume you wish to use the same one. If
at any point you wish to use a different organisation, open Change Organisation
from the Navigator window, click on the Change Organisation button and select the
correct organisation from the list.

• The Find On-Hand Quanities window will open.

• Enter the Item Code and/or any other details on which you wish to perform a
search.

• It is possible to search for range of items on this UCL customised form.

Note: if you wish to search for a range of items select Subinventory in the
display section of this form.

• Click on the Find button.

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Note: The total quantity shown at the bottom left of the window refers to the quantity
for the last line currently displayed in the window. When you scroll up or down the
item description changes but the quantity always shows the total quantity for the last
line currently displayed in the window.

Material Transactions
This enables you to perform search on the inventory transactions using a variety of
search criteria e.g. Date Range, Item Number, Transaction type.

• In the Navigator Window, expand Transactions and open Material

Transactions and the Find Material Transactions Screen opens.

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• Enter the Item Code or Date Range or Transaction Type and/or any other
details on which you wish to perform a search.

• Click on Find to display the Material Transactions screen which displays a list of
the transactions matching the search criteria.

Click on the blue tabs to get additional information e.g the transaction type to
display PO number for PO receipt transactions.

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Inventory Reports
Oracle provides many pre-defined reports in the system. You will only be able to run
reports relating to your current responsibility. If you cannot find the report you wish to
run, check that you have chosen the correct responsibility. Please note that Oracle
Financials generally refers to reports as requests.

Listed below are the most commonly used reports for transaction information.

• Material account distribution report – this will give full details of transactions
based on parameters selected.
• Material account distribution summary – this will give a summary of
transactions based on parameters selected.
• Transaction Value Historical Summary - Average Costing – this will give
details of past item quantities, past item values or past inventory balances
depending on parameters selected.
• All Inventories Value Report – this gives the value of the Inventory at the time
the report is run.
• Item Quantities summary – This report provides a list of items and quantities
and is a quick way of providing a list of items in Inventory.

Procedure for Running Reports:

• In the Navigator Window, expand Reports; select the type of report you wish to
Run. You can run Transactions Reports, Cost Reports etc. Selecting the option
All will enable you to select from the full range of Inventory reports.

A Submit a New Request window will appear to ask whether you want to run a single
request or a pre-defined set of requests.

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• Click on OK. (Use the default of single request).

• In the Name field, open the List of Values (Ctrl & L) to display the possible
reports.

• Select the name of the report you wish to run, for instance Transaction
Historical Summary, and click on OK.

• A Parameters window will open with criteria fields relevant to the report you have
selected.

Enter as much or as little criteria as required remembering that the more information
you enter, the narrower and more specific your search will be.

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• Click on OK.

• The All Reports window will then re-appear.

Note: the name of this window will depend on type of report selected, e.g. if you
select the Transaction Reports option, the name Transaction Reports will be
displayed at the top of the window rather than All Reports.

• To specify that this report is to be run at particular times, click on the Schedule
Button.

• By default, the report will be set to be run As Soon as Possible. This will be
applied if no other option is selected.

• Click on OK when complete.

• Click on the Completion Options button to specify the number of copies to be

printed, and/or change the printer to which the report will be sent.

• Click on OK when all of the options have been set.

• Click on the Submit Request button to submit the request.

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• The following message will appear. Click on Yes or No depending on whether
you wish to submit another request.

Note: If you select No and you wish to see the status of your report you will need to
take following Navigation:

• Select View from the toolbar, followed by Requests, this will bring up the
Request window.
• Click on Find. This will bring up the Request window and you can check the
status of the report request.

If the report is still Pending or Running, the Phase and Status fields will be
highlighted in green. This page will not automatically update itself while it is on your
screen. Click on the Refresh Data button to update it.

• To view the report, click on the View Output button. This will launch a web
browser window to enable you to view the report.

• If an error occurs during the running of the report, click on the View Log button.
Again, this will launch a web browser to display details about the error.

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Year End Procedure
At the year-end you will need to perform a stock count and valuation exercise.
Physical Inventory is a tool designed to facilitate year-end stock take.

The steps involved are listed in sequence below:

• Define a Physical Inventory.
• Freeze (take a snapshot of) the stock levels in the store.
• Generate Tags for items.
• Print the tags to record stock take.
• Perform the stock count – When performing the count it is the Primary Unit of
Measure (i.e. the unit in which the item is purchased) which is used to
record stock quantities, not the Unit of Issue.
• Enter the stock levels from the count.
• Perform/approve adjustments.
• Post the adjustments to the appropriate accounts.
• Resume Stores operations – please check with the Inventory Module Leader
before resuming normal stores operations.

Note: Oracle Inventory does not stop inventory processing during a physical
inventory. Therefore, you must co-ordinate the snapshot of your physical inventory
with your actual counting, and ensure that no transaction activity occurs in a
particular location until after all the stock has been counted.

Physical Inventory

Physical inventory is a stock take tool and is identified by a unique name that you
assign during the process. You use this name to identify any activity, such as
entering count information and performing adjustments relating to this physical
inventory.

• Navigate to Inventory, expand Counting, expand Physical Inventory and open

Physical Inventories by double clicking on them or by clicking on them and
clicking on Open.

If prompted selected the correct organization, this should be your department stores.

• Click on the New button and the Define Physical Inventory Window appears:

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• Enter a unique name in the Name Field.

• Enter a meaningful description in the Description field.

• Choose Always for the Approvals required box. This means that any adjustments
required to the stock levels will have to be approved.

Other options are to require approval only when the stock count differs from the
system tracked amount by a set percentage or the adjustment required is greater
than the tolerance value. All adjustments must be approved.

• Select All or Specific for the Count Sub inventories.

• Ensure that the Allow Dynamic Tags checkbox is ticked.

• Save your work.

You are now ready to take a snapshot of the inventory.

Snapshot:

Freeze (take a snapshot of) stock levels. The snapshot saves all current item on-
hand quantities and costs. Oracle Inventory uses this information as the basis for all
physical inventory adjustments. All tag counts you enter for this physical 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
authorised all final physical inventory adjustments. You can perform your recount or
investigate certain results without holding up transaction processing.

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For example, suppose that at the start of your physical inventory the system on-hand
quantity for the item CABLE C in a particular bin is 40. Oracle Inventory saves this
information with the physical inventory snapshot. During the warehouse count, you
count a total of 35 units of item CABLE C in the same bin. Before you approve your
counts and perform your adjustments, you resume normal transaction operations,
and consequently, item CABLE C
reaches a system on-hand quantity of 55. 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 55. So in this case, the adjustment is 40 - 35 = -5
units. When the adjustment is posted, the new system on-hand quantity becomes 50
units.

• Click on the Snapshot button (this will generate a concurrent request).

• Check the concurrent request has completed successfully by taking the following
navigation:

• Click View, in the toolbar at the top of the screen, followed by Requests this
will brings up the Find Requests window.
• Click Find, this will bring up the Request window.
• Check that the FREEZE PHYSICAL INVENTORY concurrent request has
completed successfully, e.g. the phase field shows COMPLETE and Status
field shows NORMAL.

A snapshot must be taken before any further stock taking steps can be executed.
Once a snapshot has been taken, you cannot modify any of the parameters you have
just set. If you have done something wrong, you will have to abandon this Physical
Inventory and open a new one. If you have to do this, refer to the Inventory Module
Leader for assistance before proceeding any further.

• Close the windows and return to the Main Navigator menu.

• It is recommended that you run an All Inventories Value Report after you have
completed your snapshot. This will give you the current stock value when the
snapshot was taken and can be used to verify the adjustments have been posted
correctly.

DO NOT RESUME NORMAL STORES OPERATIONS UNTIL YOU HAVE

COMPLETED THE STOCKTAKE IN FULL AND YOU HAVE CONFIRMED WITH
THE INVENTORY MODULE LEADER THAT YOU CAN RESUME NORMAL
STORES OPERATIONS.

Generating Physical Inventory Tags

You use physical inventory tags to record the physical counts of inventory items.
Physical inventory tags represent actual hard copy tags that some organisations use
to count inventory items.

• In the Navigator Window, expand Counting, expand Physical Inventory and

open Tag Generation by double clicking on them or by clicking on them and
clicking on Open.

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• Enter the name of the Physical Inventory – use Control & L to bring up the pick
list to enable you to select the correct Physical Inventory.

• Select the type of tag to create - accept Default - (Note: Tags will only be
generated for items for which there is an on-hand quantity).

• Show Serial on Tags: Ensure this checkbox is ticked.

• Enter the starting tag number.

• Tag numbers may be alphanumeric, but you can increment only the numeric
portion.
Note: Be sure the tag number contains the total number of possible digits that a
tag can have. For example, if you have 500 items in stock, the first tag would
where the starting number is to be 1, you would enter 001.

• Click the Generate button to create the tag numbers and information (this will
generate a concurrent request).

• Check the request has completed successfully by taking the following navigation:

• Click View , in the toolbar at the top of the screen, followed by Requests this will
brings up the Find Requests window.
• Click Find, this will bring up the Request window.
• Check that the concurrent request has completed successfully, e.g. the phase
field shows COMPLETE and Status field shows NORMAL

Note: This process does not physically print the tags.

IMPORTANT: If you do not wish to print out the tags because you have your
own spreadsheet or list which will be used to record the stock count
information during the actual stock count you must still generate the tags as
this process populates the Tag Count window with the item information. You
will use the Tag Count window to enter the count information onto the system.

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To Print the Tags:

• Navigate to Reports.
• Choose option All. The Submit a New Request window will open.
• Click OK to accept default of single request. The All Reports window will open.
• In the Request Name Field, open the List of Values (Ctrl & L) and select
Physical Inventory Tags.
• Click OK.
• Enter required parameters.
• Click OK. The All Reports window will reappear.
• Click Submit Request to print out the tags.
• A Pop Up message will appear asking if you wish to submit another report. Select
No.

Note: This will produce a descriptive page for each ITEM.

If you do not wish to use the tags to enter count quantities during the actual count
because you have a spreadsheet or other paperwork on which to record a hard copy
of the actual count information during the stock take you do not need to print our the
Tags.

Physical Inventory Tag Counts

The Physical Inventory Tag Count window is where the stock count information
(results of the stocktake) is entered onto the system. The quantities entered here are
compared with the snapshot quantities to determine the adjustments to be made to
the stock quantity and value following the stocktake.

To display physical inventory tag information:

• In the Navigator Window, expand Counting, expand Physical Inventory and

open Tag Counts by double clicking on them or by clicking on them and clicking
on Open.

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• Enter the Physical inventory in the Name field. Use Control & L to bring up the
pick list to enable you to select the correct Physical Inventory.

• Enter the name of the employee that performed the physical inventory in the
Default Counter field.

• Enter or query the tag numbers for which to enter counts using one of the
following options:

Choose the Find button enter Yes or No to query all tags.

Enter existing tags individually. When you enter a tag number the item
information for that tag appears.

Enter counts for default tags:

• Enter count information for each item, this is stock take result.

• Save your work.

Entering counts for blank or dynamic tags: (This is for items for which a
tag was not generated because, either there was no on-hand quantity for
the item recorded in Inventory, or the item is a new item not currently on
Inventory).

• Display physical inventory tag information, in the Tag field.

• Go to bottom of list to find next tag number and enter the Tag number.

• Enter the item associated with the tag. If the item is a new item it will need to be
set up in the Item Master list. Contact the Inventory Module Leader to have the
item set up. A blank tag cannot be entered for this item until the Inventory
Module Leader has set up the item in the Item Master List and assigned it to the
relevant departmental Inventory Organisation.

• Enter the sub inventory in which you counted the item.

• Enter the count quantity (number counted) for the tag.

• Enter the count unit of measure (UOM).

• Enter the name of the employee who counted the item (Counted By).

• Save your work.

Physical Inventory Adjustments

Once the tag counts have been entered the system will calculate the adjustments
required to up date the stock quantities and value to reflect the results of the
stocktake.

The adjustments must be approved before they can be posted to the stock account.

- 40 -
• Run the Physical Inventory Adjustments Report to give you a list of the
adjustments which have been calculated.

• Review the Physical Inventory Adjustments Report and investigate as necessary.

There may be adjustments listed on this report for which there is an
adjustment quantity but no monetary value for the adjustment – this is
likely to be the case if you have added blank tags. If this occurs please let
the Inventory Module Leader know as additional processes will need to be
run by the Inventory Module Leader to put a monetary value to the
adjustment.

APPROVING PHYSICAL INVENTORY ADJUSTMENTS

In the Navigator Window, expand Counting, expand Physical Inventory, open

Approve Adjustments by double clicking on them or by clicking on them and then
clicking on Open.

• Enter the name of the Physical Inventory in the name field. Use Control & L to
select from the List of Values.

• Enter the name of the employee approving the adjustments.

• Display the adjustments you want to approve by clicking on the Find button.

• Select the item; check the Approve or Reject option. You must Approve or Reject
all adjustments before running the adjustment program. The adjustment program
will not process adjustments until all the lines are approved or rejected.

Note: Even lines where no adjustment is required must be approved.

• Save your work.

- 41 -
Processing Physical Inventory Adjustments

Having approved the Physical Inventory Adjustments the adjustments must be

posted to the stock account.

Run the adjustment program:

Make sure you have approved or rejected all adjustments before processing the
adjustments. Adjustments will not be posted unless all adjustments have been
approved or rejected.

• In the Navigator Window, expand Counting, expand Physical Inventory, and

open Physical Inventories window.

• Click on the Torch icon on the Toolbar to bring up the List of Values and select
the correct Physical Inventory from the List.

• Choose Launch adjustments from the Tools menu. The Launch Adjustments
window appears.

• Click in the Adjustment Account field and open the Accounting Flexfield by
clicking Ctrl & L.

• Enter the Adjustment Account number against which adjustments should be

charged.

• Click on OK.

• Enter the adjustment date (this should be no later 31 Jul in the current year).

• Choose the Launch Adjustments button to submit the concurrent request to

process adjustments.

• Note the concurrent request number and check that the Request has completed
successfully by taking the following navigation:

• If the report has not completed successfully contact the Inventory Module Leader
do not resubmit the report. To check whether the report completed successfully
take the following navigation.

- 42 -
• Click View, in the toolbar at the top of the screen, followed by Requests this will
brings up the Find Requests window.

• Click Find, this will bring up the Request window.

• Check that the concurrent request has completed successfully, e.g. the phase
field shows COMPLETE and Status field shows NORMAL.

• If the report has completed successfully, contact the Inventory Module Leader to
advise that you have completed the year end stock take process and to get
confirmation from the Inventory Module Leader as to whether you can resume
normal stores operations.

• Once the Inventory Module Leader has confirmed everything is OK and has given
you instructions about resuming normal stores operations, run an All Inventories
Value Report to give you the final closing stock balance at year end. This report
should be run before entering any new transactions.

- 43 -
Appendix I – Getting Help
At any point during your work, it is possible to access Help pages related to the work
you are doing. Click on the Help menu and select Window Help. Your web browser
will open and display the Help pages which are related to the Window which was
open. If this page does not answer the queries you have, try typing in the Search
bar.

Alternatively, try clicking on the “Related Topics” at the bottom of the page.

If you are confused by any of the jargon used by Oracle, either on the Help pages or
in the Oracle Financials application itself, try looking for the word in the Glossary.
Note: this Glossary does not provide details of the differences between American and
English Accountancy terms, and is not a fully comprehensive list.

- 44 -
Appendix II - The Toolbar

- 45 -
Appendix III – Keyboard Shortcuts
To get a list of Keyboard Shortcuts while using Oracle Applications, click on the Help
menu and choose Keyboard Help…

• Block Menu Ctrl & B • Function 5 Shift & Ctrl & F5

• Clear Block F7 • Function 6 Shift & Ctrl & F6

• Clear Field F5 • Function 7 Shift & Ctrl & F7

• Clear Form F8 • Function 8 Shift & Ctrl & F8

• Clear Record F6 • Function 9 Shift & Ctrl & F9

• Commit Ctrl & S • Insert Record Ctrl & Down

• Copy Ctrl & C • List of Values (Pick Ctrl & L

List)

• Count Query F12 • Next Block Shift &

PageDown

• Cut Ctrl & X • Next Field Tab

• Delete Record Ctrl & Up • Next Primary Key Shift & F7

• Display Error Shift & Ctrl & E • Next record Down ↓

• Down Down ↓ • Next Set of Records Shift & F8

• Duplicate Field Shift & F5 • Paste Ctrl & V

• Duplicate Shift & F6 • Previous Block Shift & PageUp

Record

• Edit Ctrl & E • Previous Field Shift & Tab

• Enter Query F11 • Previous Record Up ↑

• Execute Query Ctrl & F11 • Print Ctrl & P

• Exit F4 • Return Return

• Function 0 Shift & Ctrl & F10 • Scroll Down PageDown

• Function 1 Shift & Ctrl & F1 • Scroll Up PageUp

•
• Function 2 Shift & Ctrl & F2 • Show Keyboard Ctrl & K
Shortcuts
•
• Function 3 Shift & Ctrl & F3 • Up Up ↑

• Function 4 Shift & Ctrl & F4 • Update Record Ctrl & U

46
Notes:

47