8b. edu4097y_what are organizations_marked.pptx

2Copyright © 2010, Oracle and/or its affiliates. All rights reserved.

R12.x Defining Inventory Organizations

Copyright © 2010, Oracle and/or its affiliates. All rights reserved.1 - 2

Objectives

After completing this lesson, you should be able to:• Understand the structure of an inventory organization.• Understand the multi-organization structure in Oracle

Applications.• Understand how to use the organization reports.• Understand how to set up the organization profile options.• Understand organization implementation considerations.


Inventory Organizations

Company

Distribution Center

WarehouseAn inventory organization is a facility where you store and transact items. Before you can use Oracle

Inventory, you must define one or more inventory organizations. Inventory organizations represent distinct entities in your enterprise and can be one of the following:

A physical entity such as a manufacturing facility, warehouse, or distribution center.A logical entity such as an item master organization, which you use to define items.An inventory organization may have the following attributes:An inventory organization can have its own location, ledger, costing method, workday calendar, and

items.An inventory organization can share one or more of these characteristics with other organizations.


Inventory Organization Structure

Organization

Subinventories

Locators

Subinventories are unique physical or logical separations of material inventory, such as raw material inventory, finished goods inventory, or defective goods inventory.

You use locators to identify physical areas where you store inventory items.

You can set up an inventory organization without subinventories; however, you cannot transact items in that inventory organization until it has at least one subinventory.


Quiz

An inventory organization where you store and transact items can have only one subinventory:a. Trueb. False


Sample Inventory Organization

Outbound Outbound

Receivingsub

Raw materialssub

Manufacturingsub

Finished goodssub

Inspectionsub

Defectivegoods

sub

Shipping sub

Inbound


Multi-Organization Structure

What is multi-organization structure?• Applications and database enhancement• Enables you to consolidate your operations under one

installation of Oracle Applications on a single global instance

• Enables you to keep transaction data secure by line of business


Setting Up Locations

Physical location

Employees Organizations

Define information describing the physical locations of employees and organizations.

Locations are shared between Oracle Inventory, Oracle Purchasing, and Oracle Human Resource Management Systems. Locations flagged as global locations are available to all business groups. You can associate each organization with only one location; however, you can associate more than one organization with the same location.

Physical locations are defined in Oracle Human Resource Management Systems.


Defining Organizations

InventoryOrganization A

Ledger

Locator Locator Locator Locator Locator

Subinventory Subinventory Subinventory Subinventory

InventoryOrganization B

Operating unit

organization classifications are inventory organization, legal company, and HR organization.

each inventory organization to an operating unit. Each operating unit is associated to a legal entity and a primary ledger


Quiz

Locations define information about the physical locations of employees and organizations:a. Trueb. False


Inventory Parameters

The Inventory Parameters tab enables you to:• Set up organization information • Enable related, optional Oracle Applications

Oracle EnterpriseAsset Management

Oracle ProcessExecution

Oracle Warehouse Management


Costing Parametersתמחיריים פרמטרים

Which costing method is the organization going to use?• Standard• Average• LIFO (last-in-first-out)• FIFO (first-in-first-out)


Revision, Lot, Serial, and License Plate Number (LPN) Parameters

Item AS5222Serial #5847329

Serial parameters LPN parameters

LPN101

Revision parameters

Revision A

Lot parameters

Lot 403B


ATP, Pick, Item-Sourcing Parameters

The ATP, Pick, Item-Sourcing Parameters tab enables you to:• Set the available to promise (ATP) default rule for the

organization• Set the picking defaults for the organization• Set the item-sourcing defaults for the organization


Interorganization Parameters

The Inter-Org Information tab enables you to determine the parameters the organization uses when it transfers material between organizations.

M1 Seattlemanufacturing

M2 Bostonmanufacturing


Other Account Parameters

You use the Other account parameters tab enables you to set up receiving account information, profit and loss account information, and other additional accounts.


Warehouse Management Parameters

If you have Oracle Warehouse Management installed you can enter organization parameters that apply only to Oracle Warehouse Management.



What Is a Subinventory?

Finished goods

Raw materials

Defective items


What Is a Subinventory?

Receiving Subinventory• Optional• Tracking of goods is

possible• Does not reflect in on

hand quantity• Available if receipt is

made through use of Oracle Warehouse Management and Oracle Mobile Supply Chain Applications

Storage Subinventory• Mandatory• Tracking of goods is

possible• Material reflects in on-

hand quantity


Defining Subinventories

Subinventory• Physical or logical separation of material• You must define at least one subinventory for each

organization


Locator Control

Row

Rack

Bin

In coordination with locator settings at the subinventory and item level, you must first specify locator controls at the Organization

level

None: Inventory transactions within this organization do not require locator information.

Prespecified only at item level: Inventory transactions within this organization require a valid, predefined locator for each item.

Dynamic entry allowed: Inventory transactions within this organization require a locator for each item. You can choose a valid, predefined locator, or define a locator dynamically at the time of transaction.

Determined at subinventory level: Inventory transactions use locator control information you define at the subinventory level.


Dynamic and Static Locators

Dynamic Locators• Generate during a

transaction as needed

Static Locators• Predetermined


Quiz

Locators may represent the following entities in warehouses:a. Organizations b. Aislesc. Rowsd. Shifts


Subinventory-Locator Relationship

Subinventory: BULKWith locator control

Subinventory: FROZENWithout locator control

The possible locator control types are:•None•Prespecified•Dynamic entry•Item Level


Locator Flexfield Structure

M1 Seattle

Row 1A

Rack 1A

Bin 1A

M2 Boston

Row 1A

Rack 1A

Bin 1A

Locator flexfield structure is common across all organizations (sub inventories)

but names should be different


Interorganization Shipping Networks

Shipping organization

Destination organization

Direct organization transfer

Intransit shipment

Destination organization

moves material to an intermediary

Shipping methodsGL accounts to use in transitMaterial ownership during transfersPlanning lead-timesTransfer charges


Shipping Method

Shipping methods are the way you ship material


Additional Setup Steps

Employees

Planners

Freight carriers

Employees who perform cycle and physical inventory counts.


Quiz

When you set up a shipping network, you must select a transfer type. Select the valid transfer type(s): a. Intransitb. Dockingc. Directd. COD


Additional Organizational Setups

Organization access Material shortagesThis controls access to organizations based on the user responsibility assigned to a user by the system administrator.

trigger shortage alerts and notifications


Copying Inventory Organizations

M1 Seattle manufacturing

M2 Boston manufacturing

Copy organization

1. This model organization must be a transactional organization and not an item master organization.

2. You can copy only organizations within the same operating unit.

3. The system creates the new organizations under the same business group to which the model organization belongs, and assigns the new organizations to the same operating unit, legal entity, and ledger as the model organization.


You can choose to copy the following information from the model organization:

• Organization definition• Shipping networks• Hierarchy assignments• Bills of material and bills of

material parameters• Departments, resources, and

routings• Item information

When you copy a model organization the system automatically copies the following information:

• Subinventories• Locators • Work in Process parameters• Work in Process accounting

classes• Planning parameters• Shipping parameters

Additional Organizational Setups


Organization Hierarchy

M1 Seattle manufacturing

M2 Boston manufacturing

M3 Dallasmanufacturing

M6 Phoenixmanufacturing

Organization hierarchies enable you to group together organizations and perform operations across all organizations within a hierarchy


Inventory Reporting


Organization Reports

Report Description

Item-Subinventory Report Lists items assigned to subinventories.

Locator Quantities Report Shows inventory item quantities stored in specific locators.

Subinventory Quantities Report

Shows inventory item quantities by subinventory.

Freight Carrier Listing Lists the freight carrier codes for the current organization.

Inter-organization Shipping Information Listing

Lists the shipping networks for the current organization.

Locator Listing Lists the locators for the current organization.


Organization Reports

Report Description

Organization Parameters Listing Lists the organization parameters for the current organization.

Subinventory Listing Lists the subinventories for the current organization.

Organization Hierarchy Exceptions Report

Displays all organizations belong to a legal entity that are not assigned to an organization hierarchy.


Profile Options

Profile Option Description

INV: Inter-Organization Currency Conversion

Indicates the currency conversion for inter-organization transfers between organizations using different currencies. Available values are: Corporate, Spot, or User.

TP: INV Inter-Organization Transfer form

Indicates the processing control of inter-organization transfers in the Inter-Organization Transfer window. Available values are: Background processing (periodically), Concurrent processing (in parallel), or On-line processing (Default, immediately).


AdditionalImplementation Considerations


Additional Implementation Considerations

Products and featuresDo you need to set up additional products or features?

Oracle ProcessExecution

Oracle EnterpriseAsset Management


1. Need to determine if organization is a process or a discrete organization


Implementation Considerations

Subinventories• Is it necessary to differentiate between receiving and

storage subinventories in your warehouse? • Do you need to link your receipts to a receiving location?• Do you need to track material without it appearing in on-

hand quantity?



Locator control• Do you need to implement locator control?• Do you need to need to implement locator control for the

organization, for individual subinventories, or at the item level?

• Should locator control be predefined, just-in-time, or both?



Organization access• Should all responsibilities have access to the organization?• Which responsibilities should have access to the

organization?



Shipping networks• Do you need to ship material between organizations?• Do you need to track inventory between transfers?• How do you want to ship material between organizations?• Do you ship material to Japan, Korea, or Taiwan?



Shipping networks• Who owns the material until receipt the shipping

organization or the receiving organization?• Which receipt routing do you use standard, direct, or

inspection required?• Is an internal order required for each shipment?


Summary

In this lesson, you should have learned how to:• Understand the structure of an inventory organization.• Understand the multi-organization structure in Oracle

applications.• Understand how to use the organization reports.• Understand how to set up the organization profile options.• Understand organization implementation considerations.

8b. edu4097y_what are organizations_marked.pptx

Documents