Oracle Inventory Super User Workshop Program

Inventory Module /SCM/

Trainer September 25-October 18, 2017

Addis Ababa, Ethiopia
Bitaniya Belayneh
  Who is who?
2  Participants…

 Why we are here?

 Purpose…

 When do we start working?

 Time…

 What will be our approach?

 Communication and participation

 How much is expected from you?

 At end…

 Where do we apply the skills acquired?

 Module and integration wise

3 Contents
 ERP at a glance

 Oracle modules and integration

 SCM modules

 Setups and configurations

 Oracle Inventory forms

 Error tracing and handling techniques

 Oracle Reports

 Oracle documentation
4 ERP at a glance…

 Solution purchased : Oracle.

 Implementer: Oracle platinum partner Tech Mahindra Ltd.

 Package name: Oracle E-business suite.

 Platform: Java form and webpage.

 Team responsibilities
5
• Conduct trainings
Super User •
•
Fix issues
Setup and configuration
• Check regular activities

• Identify problems
Tech M. • Fix issues
Consultant • Develop workaround solutions

• Fix concurrent program errors

DBA •
•
Notify production down time
Apply patch's
• Clone instances

• Develop custom reports

Techno-Functional • System administration
6 Cont’d
 CBE vision: “Becoming world class bank by the year 2025.”
 One of the initiatives from the 16 projects executed by CBE.
 The solution was purchased near to five $5,000,000 including implementation.
 All modules have been went Go-Live and owned by processes.

 It addresses five(5) support processes: Supply Chain

Management
 Human Resource (9 modules)
Human
Hyperion
 Finance (6 modules) Resource

 Supply Chain Mgt. (5 modules)

ER
 Business Intelligence (4 tools)
Business
 Hyperion (6 modules) Finance

P
Intelligence
 Cont’d
7

Supply Chain
Finance Hyperion
Human Resource Business Intelligence
Management

OTL AR/ AP
i-Procurement
Oracle BI Budget and
enterprise Edition monitor
Core HR
Bond Mgt.
Payroll
Sourcing
Learning Mgt.
BI publisher
GL
Purchasing Planning & succession
Treasury/ Cash Oracle Data
PMS
Integrator
Inventory i-Recruitment Fixed Asset
Absence Mgt.
Enterprise Asset EFCAZ
i-Expense
Self-Service
Management
8 Supply Chain Management modules

i-Procurment

Sourcing

Purchasing

Inventory

Enterprise Asset Management

9 i-Procurment module

Objective:
 Automates requisitioning through a self – service system.

Benefits:
 Easy online ordering and self -service tracking and receiving provide
better service.
 Enables user to request non-catalogue items for purchase.
 Functionality to receive materials by the requestor.
10 Sourcing module

Objective:
 Facilitate the overall bid processes. i.e. Acquisition and awarding supplier.

Benefits:
 Processes of identifying potential suppliers

 Simplify bid evaluation and analysis

 Online negotiation and awarding

11 Purchasing module
Objective:
Streamline procurement process.

Benefits:

Enables to truck the Purchase document status.

Payment process is automatic.

Varity of Purchase Orders.

Can set approval limit.

Convert PR to PO

Note: Tightly integrated with Inventory and Account Payable modules.

 Inventory module
12
Objective:
Support the warehouse to manage requests, inventory and transactions in efficiently.

Benefits:
Handle material requests from user departments.

Efficient replenishment of stock.

maintain inventory record accuracy/ real time.

Allow to receive, store and issue material in stock.

Automatic pricing, claiming and

Periodic period closing and Inventory accuracy.

Note: Tightly integrated with eAM, FA, Account Payable and Purchasing modules.
13 Enterprise Asset Management module

Objective:
 Cover all the aspects of the assets life. i.e. maintain profile, maintenance,
capitalization.
Benefits:
 Maintain detail record history.
 Direct request for material from warehouse.
 Retain failure analysis and resolution.
 Tracking the costs related to maintenance or repairs.
 Schedule preventive maintenance.
 14 Inventory Organization structure
Master

CBE master item

Fleet
Capital Items Child/ Org Operational Mainten Workshop Supplies HealthCare Center
ance

Sub Inventory

Furniture
IT
Office
ATM & Prize
Formats Stationery Negotiable Uniform
Fleet Building Office Drug Dispensary
Hardware POS linked spare Items spares store
1/10/23
15 i-Procurment, Purchase Order

Enterprise Asset Management summery

Enable us to realize:

 Correlation of the modules,

 Impact on each other and

 Easily understand and fix issues.

 Definition of PO types
16
 Standard Purchase Orders
You generally create standard purchase orders for one-time purchase of various items. You create standard purchase orders when
you know the details of the goods or services you require, estimated costs, quantities, delivery schedules, and accounting
distributions. If you use encumbrance accounting, the purchase order may be encumbered since the required information is known.
 Blanket Purchase Agreements
You create blanket purchase agreements when you know the detail of the goods or services you plan to buy from a specific supplier
in a period, but you do not yet know the detail of your delivery schedules. You can use blanket purchase agreements to specify
negotiated prices for your items before actually purchasing them.
 Blanket Releases: You can issue a blanket release against a blanket purchase agreement to place the actual order (as long as the release is
within the blanket agreement effectivity dates). If you use encumbrance accounting, you can encumber each release.
 Contract Purchase Agreements
You create contract purchase agreements with your suppliers to agree on specific terms and conditions without indicating the goods
and services that you will be purchasing. You can later issue standard purchase orders referencing your contracts, and you can
encumber these purchase orders if you use encumbrance accounting.
 Planned Purchase Orders
A planned purchase order is a long-term agreement committing to buy items or services from a single source. You must specify
tentative delivery schedules and all details for goods or services that you want to buy, including charge account, quantities, and
estimated cost.
 Scheduled Releases: You can issue scheduled releases against a planned purchase order to place the actual orders. If you use encumbrance
accounting, you can use the planned purchase order to reserve funds for long term agreements. You can also change the accounting
distributions on each release and the system will reverse the encumbrance for the planned purchase order and create a new encumbrance for
the release.
17 PO types…
18 AP matching options

Training

Bank formats

Capital items
19 Receipt routing types

Routing type Gate Receiving Sub-Inventories

Standard Receipt Visual inspection Delivered to sub-Inventories

Physical inspection
Inspection Receipt (Accept/ Reject) Delivered to sub-Inventories

Direct Receipt Receipt & Delivery

20

Inventory Setups and configurations

21 Organization
 How many Organizations?

 An entity; store or warehouse.

 Logical entity: e.g. master item, which you use to define items.

 Physical entity: e.g. Inventory organization, which you store and transact items.

HCO
At Organization level:

 Define assign item,

CIO WSO
Master  Define accounting combinations,

 Costing methods,
OPO FMO
 etc.
 Sub Inventory
22 FMO Fleet
spr

How Many Sub 15 Districts

Inventories within
your Organization?
WSO 15 Districts

Office
Workshop
Spares
Uniform Stationery

Drug Store

OPO
Furniture

Promotion Print Form

HCO ATM &

Office
POS

CIO Negotiable

Dispensary

Prize IT
Linked Hardware
  District Sub Inventories.
23 Sub inventories  Adama

 Jimma

 Dessie

 B/Dar

 Gonder

 Central sub Inventories  Mekelle

 Diredawa
 OPO (Print form, Stationery,  Nekemit

Negotiable, Promotion & Uniform)  Hawassa

 Shashemene
 WSO (Workshop)
 W/Sodo

 North Addis

 South Addis

 West Addis
 24

S o u r ce

Supplier
Purchasing
HCO Workflow

M O T ra n s fe r R e q u e st
Drug Store

Dispensary

T r a n sa c t M O T r a n s fe r
CN
NBE

CBE
 Facility Mgt. Sub Inventories workflow
25

Purchasing

Supplier
26 Stock locator
Locators represent rack and bin in warehouse.

 Dynamic Locators: Create during a transaction as needed.

 Static Locators: Predefined for the item.

Rack: A01

Bin: 001
27 Categories
There are 2 types of categories:

 Item category  Asset Category

 Is defined in Inventory module.  Is defined in Fixed Asset module
 Major.Minor  Major.Minor
 For stock items  For Capital items
 E.g. VEHICLE PARTS.BATTERY  E.g. HARDWARES.PRINTER-SCANER
28 Item Master

 Master item, attributes

 Item Template

 Unit of Measure

 Manufacturers part number

 Item relationships

 Item search

 Item deletion
 Item template
29

Template type Description

FA item FA item / expense / standard

FA item inspection FA item / expense / inspection required

Lot item Stock / cycle count / lot controlled / standard

Lot item Inspection Stock / cycle count / lot controlled / inspection required

Serial control item Stock / cycle count / serial controlled / Standard

Stock item Stock / standard

Stock item Inspection Stock / inspection required

Promotion Expense / inspection required

30

Unit of Measure?
 Pad
31 Unit of Measure Pack

Each

 An item attribute. Intra-Class

 Class Quantity

 Base Unit

 Types of UOM Inter-Class

 Primary and

 Secondary UOM
Gallon

 Conversion Litre

 Inter-Class: between classes

 Intra-Class: within the class Volume

32 Example on UOM conversion
 Standard
 Pack of 50 > Each

 Intra-Class
 OPFM00026
 Pack > each (1 Pack = 10 Each)

 Inter-Class
 WSEL00068
 Square Meter > Each (1 Each= 0.025 M2)
33 Shipping Networks

 Used to transfer item from one Organization to another organization.

 Item should be assigned in two organizations.

 Requires accounting entries.

FMO WSO
34 Item related setups

 Manufacturer’s Part number

 Item Relationship

 Item deletion (Not recommended)

 Item search
35 Planner Setup

 Planner is Move Order request approver.

 Controlled at Master or Sub Inventory level.

 In which condition does Move Order requests automatically approved?

 If we set period at Organization level.

 If item or sub inventory has no planner.

36 Miscellaneous setups

 Organization access

 Purchasing parameters

 Receiving parameters

 Average cost update

 Locator transfer
37 Cost Manager

 Cost manager is a scheduled program.

 Run at user-defined time (HH, MM, SS)

 One time setup.

 Applied for all organization.

 Used to calculate the inventory value cost periodically.

38 On hand availability

 Used to check on hand availability.

 Has mass issue functionality.

 Has geonology functionality.

 Check locator.

 Lot/Serial number.
39

Material Transactions
40
Transaction Types

 Miscellaneous transactions  PO Receipt

 Miscellaneous receipt  Receipt

 Miscellaneous Issue  Inspection

 Move Order  Receiving Transaction

 Move Order Transfer request  Corrections

 Move Order Issue request  PO return

 Transact Move Order  View Receiving Transaction

 Oracle GL accounting concepts
41

Stationery Spare parts

…#### …####
T-24 GL
Building Health care
…#### …####

Push
Incremental

OPO FMO
#### #####
Oracle T-24 GL
WSO (####) HCO
#### ####
 Purchasing – Inventory accounting cycle
42

Budget/
Inventory AP Receiving
Encumbrance PIP A/C Supplier A/C Material A/C
Accrual A/C Inventory A/C
A/C
43
Oracle Fixed Asset accounting cycle

Inventory AP Asset Clearing CBE Warehouse Cost Center

Budget A/C PIP A/C
Accrual A/C A/C (Capitalization) (Depreciation)
 Oracle Material Transfer & Issue accounting entries
44

Expense A/C
@ Issue
Material A/C

Material A/C
@ Transfer
Material A/C
45 Miscellaneous Receipt

 It is a non-PO receipt to Inventory.

 Used to add quantity & price to an item.

 Used for migration purpose.

 Has no unique number.

 Reference/Reason shall be maintained.

 Requires credit account.

 Cr. Oracle T-24------------xxx

 Dr. Oracle Stock ---xxx

46
Miscellaneous Issue

 It is a non-request issue from Inventory.

 Used to deduct quantity & price from an item.

 Has no unique number.

 Reference/Reason shall be maintained.

 Requires debit account.

 Dr. Expense A/C-----------xxx

 Cr. Oracle Stock ---xxx

 Material Requisition/ Move Order
47

Move Order: used to request Operational and Workshop

supplies items.
 Move Order Issue request: is a request for material from
 Move Order Transfer request: is a request for material to district sub inventory.

central warehouse.
 For consumption purpose and expense account will be

 Used for stock replenishment. affected.

 Transfer requested by district.  Requested by Branches under the district.

 Transacted by central warehouse.  Transacted by District Sub Inventory.

 Same accounting entries.  Accounting entries required.

 No Lot number required to select.  No Lot number required to select.

48 Move Order Transfer

 The functionality allows to transfer items between sub-inventories.

 Source sub inventory: the issuer sub inventory and

 Destination sub inventory: the receiver sub inventory

 No/Same accounting entries.

 Only quantity is transacted/ transferred.

 Run “CBE Move Order request-transfer” report.

49 Move Order Issue

 Planner approves the Move Order request, if any.

 Quantity can be issued as per requested or deduct by issuer.

 Accounting/ claim is done at background.

 PO Receipts
50

Routing type Gate Receiving Sub-Inventories

Standard Receipt Visual inspection Delivered to sub-Inventories
Inspection Receipt Physical inspection Delivered to sub-Inventories

Direct Receipt Receipt & Delivery

Purchase Order return

 After inspection, item may be rejected by technical team/ person.

 Oracle Inventory has functionality of returning items rejected to supplier.

51 Standard receipts
 Applicable for items which does not require technical inspection.
 Items delivered to respective sub inventory after visual inspection.
 Required: PO Number
52 Inspection receipts

 Applicable for items which require technical inspection.

 Items delivered to sub inventory after inspection acceptance.

 Required: PO number
53 Direct Receipts
 Applicable for items which does not require inspection.

 Directly deliver to sub inventory after receipt.

 E.g. i-Proc receipt

 Required: PO number
54 Inspection Form

 To be filled by technical inspection team.

 Results:

 Accept or

 Reject

 Accepted will be delivered to sub inventory.

 Rejected will be returned to supplier.

55 Receipt corrections

 Correction: is made when the 1st receipt is done with error.

 Quantity should be mandatory (+ve or –ve sign).

56 Concurrent Program

 All custom and standard reports are executed in concurrent program.

 It is a program used to execute reports.

 Programs can be scheduled.

 Reports are generated by parameters.

 Copy functionality.

 Different request phase and status.

 Custom reports can be extracted in different file formats.

 Material requisition/ Move Order
57

Move Order: used to request Operational and Workshop supplies items.

 Move Order Transfer request: is a request for material to central warehouse.

 Used for stock replenishment.

 Requested by district.
District Store Central WH
 Transacted by central warehouse.

 Same accounting entries.

 Move Order Issue request: is a request for material from district sub inventory.

 For consumption purpose and expense account will be affected.

 Requested by Branches under the district.

Branch's District Store
 Transacted by District Sub Inventory.

 Accounting entries required.

 Inventory Period close
58
 Monthly Oracle Inventory requires to Close/ Open Inventory period.

 Inventory Period: one transaction Month(September 01 – 30, 2017).

 Inventory Period will be Close/Open by central Warehouse Manager. Accordingly, district sub

inventories shall clear all pending transactions and report to Manager Warehouse.

 For HCO, Team Leader – Pharmacy will close/open inventory period.

 Period shall be open at the beginning of each inventory period.

 To close inventory period:

1. Recommended: Transactions which are optional to complete before close.

2. Required: Transactions or processes which are must be cleared before close.

 Period close …..Cont’d
59

Inventory period close is done hierarchically.

General
Payables Receivables Fixed Asset Purchasing Inventory
Ledger

• Invoice approval & • Invoice approval & • Post Mass additions. • Complete Requisitions. • Complete Pending • Check journal entries
validation. validation. • Adjustment & Transfers. • Complete pending PO transactions • Perform reconciliation
• Resolve variation. • Resolve variation. • Check reconciliation report • Adjustment entries
• Run CM • Run CM
• Run Mass Addition. • Run Mass Addition..
 Physical counting
60
 Applicable for stock items.

 Physical counting can be performed at Organization or sub inventory level.

 Snapshot: taking the inventory record balance of all items as of to-date.

 Approval: any deviation (record Vs physical) shall be approved.

 Adjustment account is mandatory.

Organ Location Cost Center Account

Central warehouse HQ Mgr-Warehouse Mgt

Health care center HQ Dir-Health Care Center

Inventory shortage/Overages
District District Name Mgr-District
 Cost Management
61

 Cost management is a concurrent program.

 It enables to push inventory transactions into Oracle GL.

 Run for each Inventory Organization.

 The program shall run periodically.

 The program can be scheduled.

E.g. Scheduled in Production.

 Batch Name for the transactions.

 Provides report in word format.

 Run 5 different concurrent programs sequentially.

62 GL accounting inquiries

 GL accounting entries are imported from Cost Management.

 Allows the Super User to extract and analyze accounting entries.

 Only Inventory Super user CBE has the GL Inquiry responsibility.

 The responsibility given from GL module.

 Super User can extract either by Journal or Account.

 Can view summery and detail accounting journals.

63

Errors committed after Go-Live…

 Oracle Documentation
64
Document ID Documentation type Particular
BP040 Current/ As-Is Document the current business requirement.

 Document the future process.

BP080 Future/ To-Be
 Depend on BP040.

 Helps to map the As-Is Vs To-Be.

 Road map for the design system.

 Document the functional requirement for specific custom report.

MD050 Custom report – Functional design.
 Helps to update custom report easily.

 Developed by functional team.

 Document the technical design for specific custom report.

 Depend on MD050/ Functional design.

MD070 Custom report – Technical design.
 Developed by functional team.

 Helps to update custom report easily.

1/10/23
 Documentation….
65

Document ID Documentation type Particular

TE040 Test script Document the UAT results.

DO070 KUT handout Document the KUT user guide based on the future design.

BR110 Security Profiles Document the responsibility definitions.

BF040 Change catalog Document the change requests.

- UPK Helps to exercise the Inventory module navigation.

66

 Do not give your password to any one.

!
 Do not leave your deice without logout even test environments.

 Do not recommend any solution without testing in test environments.

 Do not expose the functionalities of Super User responsibility.

 Do not commit any transaction in Super User responsibility.

 Do not find solution in unsettled environment.

67

Thank you !!!