inventory flexfields

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Oracle Inventory Flexfields Implementation

Oracle Inventory Flexfields Oracle Inventory provides the following flexfields:

System Items Item Catalogs Item Categories Stock Locators Account Alias Sales Order

Depending on your system's setup, Inventory may also use some or all of the followingflexfields provided by other Oracle products:

Accounting (Oracle General Ledger) Sales Tax Location (Oracle Recievables) Territory (Oracle Recievables)

System Items: You can use the System Items Flexfield (also called the Item Flexfield) for recording andreporting your item information. You must design and configure your Item Flexfield before youcan start defining items

All Oracle Applications products that reference items share the Item Flexfield and supportmultiple-segment implementations. However, this flexfield supports only one structure.You must set up your OE: Item Flexfield profile option to specify the Item Flexfield structurethat you will use for your Oracle applications.
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Users can also set up the OE: Item Flexfield Entry Method profile option to specify your preferred method of entry for this flexfield.You can optionally use the item flexfield to default item information for invoice, debit memo,and credit memo lines or you can enter your own line information.Item Catalogs:

This key flexfield supports only one structure

Item Catagories: You must design and configure your Item Categories Flexfield before you can start definingitems since all items must be assigned to categories. You can define multiple structures for yourItem Categories Flexfield, each structure corresponding to a different category grouping scheme.You can then associate these structures with the categories and category sets you define

Stock Locators:
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You can use the Stock Locators Flexfield to capture more information about stock locators ininventory. If you do not have Oracle Inventory installed, or none of your items have locatorcontrol, it is not necessary to set up this flexfield.If you keep track of specific locators such as aisle, row, bin indicators for your items, you needto configure your Stock Locators Flexfield and implement locator control in your organization.

This key flexfield supports only one structure.

Account Aliases:

This key flexfield supports only one structure

Sales Order: The Sales Order Flexfield is a key flexfield used by Oracle Inventory to uniquely identify salesorder transactions Oracle Order Management interfaces to Oracle Inventory.
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Your Sales Order Flexfield should be defined as Order Number, Order Type, and Order Source.This combination guarantees each transaction to Inventory is unique. You must define thisflexfield before placing demand or making reservations in Oracle Order Management.You must set up the OM: Source Code profile option to determine the source code you will usein for the third segment of this flexfield to guarantee that each transaction is unique. (OracleInventory defaults the value of the OM: Source Code profile option to 'ORDERMANAGEMENT'.)For your value sets, you must use Dynamic Inserts. The Validation Type should be None. ValueRequired should be Yes to improve performance of concurrent programs. The value set must bealphanumeric. The value set maximum size must be 40.You should set the Required field to Yes in the Validation Information region when enabling the

flexfield segments. Setting this field to Yes, improves performance when updating existingdemand or reservations by guaranteeing that Oracle Order Management always supplies a value.Set Right-justify Zero-fill Numbers to No so sales order numbers are not padded with zeros.Oracle Inventory defines a unique ID for each order in MTL_SALES_ORDERS based on thisflexfield. The Inventory unique ID, as opposed to the Order Management unique ID, is usedthroughout Oracle Manufacturing applications.Item Categories:
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Categories are logical groupings of items that have similar characteristics. A category set is adistinct category grouping scheme and consists of categories.

Each category grouping scheme can use different terminology for its categories, as well asdifferent naming structures based on number of segments. You can define multiple structures foryour Item Categories flexfield. You can configure each flexfield structure by using as manysegments and any level of value set validation that you need.

When inventory is installed, a default category must be assigned to each of the followingfunctional areas: Inventory, Purchasing, Order Entry, Costing, Engineering, and Planning. Whenan item is enabled for a functional area, it is assigned the default category set. You cannot deletethe items default category set assignment. Default categories are required so that each functionalarea has at least one category set that contains all items in that functional area. For thefunctional areas, optionally, you can have a unique category set; for example, you may set up aunique category set for Purchasing. It is also possible to have one category set defined to be thedefault category set for all functional areas.The complete set up of item categories is done in below 5 steps in sequence.
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Item Category Flexfield Structures: You can define multiple segment structures for the Item Categories Flexfield. Each segmentstructure may have its own display prompts and fields.When you install or upgrade Oracle Inventory or Oracle Purchasing, Oracle provides twocategory flexfield structures by default: Item Categories and PO Item Category.Each segment structure can display prompts and fields that apply specifically to a particularnaming convention. For example, you might want one of your category sets to use two segmentsfor the names of categories. Another item grouping scheme might use just one segment for the

names of categories. You choose a flexfield structure for every category set and category thatyou define.

1. Lets create an item category as Procut Information with three segment: Product Line -Product Name - Brand Name
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Product Line - Electronics, Machine, FMGProduct Name - Mobile, TV, Bus Engine, Soap, BiscuitBrand Name - LG, Samsung, Cummins, Britania2. Define all the value sets as shown below

3. Define the item category flex field.

4. Filling up the value set of the stucture product information
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Defining Item Categories: Enter a flexfield Structure Name, a unique Category (value) for each structure segment, and aunique description for the new category. If you want to make a category inactive, enter a dateyou want the category to be inactive on. Save your work.If you choose a multi segment flexfield structure you can assign a specific meaning to eachsegment. For example in our case the category "Electronics.Mobile.Samsung" means an itemassinged to this category is a samusng brand mobile device of elcetroincs product group.
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Category Sets: Category sets may be used as a means to develop custom lists of items on which to report andsort. You can also create other category sets such as Johns Priority or Janes Priority, withcategories like high, medium, and low.The category set Inventory is seeded when you install Oracle Inventory.The category set Purchasing is seeded when you install Oracle Purchasing.If you plan to use Order Managements group pricing functionality with item categories, youmust add the categories to the Order Entry category set.Attention:1. You must use this window to define valid categories for each purchasing category set beforeyou can use Oracle Purchasing.2. For the Controlled At level, if the item defining attribute of the functional area (e.g.Inventorys is Inventory Item) is controlled at the Organization leve l, then the new defaultCategory Set should also be controlled at the Organization level.
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Enter a unique category set Name and Description. In the Flex Structure section, enter whichflexfield structure is to be used. The categories assigned to the category set must have the sameflexfield structure as the set itself. Select a control level and a default category.You will then need to select Enforce List of Valid Categories if you want validation of thecategories at the time of input. You will then enter in or select the valid categories for thecategory set.Assigning Items to Categories: When you enable an item in a functional area, the item is assigned to the default (mandatory)category set and default category of the functional area. You can override the category setsdefault category. In addition, you can manually assign your item to an unlimited number ofcategory sets. You may optionally assign an item to more than one category within a category set

based on the category set definition.

When you assign your item to another organization Oracle Inventory copies Master levelcategory sets, Organization level default category sets, and the associated categories assigned inthe Item Master organization. This means that if you manually assign an Organization levelcategory set to the item in the Master organization, Inventory does not copy over thatOrganization level category set when you assign that item to another organization.
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After assigning an item to another organization you can disable the item for one or morefunctional areas in the new organization. However, Inventory does not remove the correspondingfunctional areas default category set. For example, you may have set the value of the Purchasedattribute to Yes when you defined th e item in the item master organization. When you assignthis item to another organization Inventory copies over the Yes value of the Purchased

attribute andtherefore assigns the default category set of the purchasing functional area. In the neworganiza tion you may decide to set the value of the Purchased attribute to No. After youdisable the item for the purchasing functional area in the new organization, the item still retainsthe purchasing default category set. You may manually delete the purchasing category set in thenew organization.If you copy an item from another item with category sets defined at the Organization level,Inventory assigns the new item the default categories of the mandatory category sets, even if theoriginal item did not have the default categories. This is because Inventory copies the values ofthe item defining attributes and not the category sets and categories themselves.Default Category Sets:

Set to each of the following functional areas: Inventory, Purchasing, Order Management,Costing, Engineering, and Planning. Product Line Accounting is seeded with the Inventorycategory set. Inventory makes the default category set mandatory for all items defined for use bya functional area. If your item is enabled for a particular functional area you cannot delete theitems corresponding default category set assignment. Default category sets are required so thateach functional area has at least one category set that contains all items in that functional area.You can enable an it em for each functional area by using that functional areas item definingattribute. An item defining attribute identifies the nature of an item. For example, whatdesignates an item as an engineering item is the attribute Engineering Item. If a function alareas item defining attribute is controlled at the Organization level, then that functional areamay only have an Organization level default category set.When you enable an item for a certain functional area, Oracle Inventory automatically assignsthe item to the default category set of that functional area and the default category of that set. Forexample, if you set Inventory Item to Yes, then Inventory automatically assigns the item to theInventory functional areas default category set and default category.You may change a functional areas default category set under certain conditions. You shouldensure that every item within the functional area belongs to the new default category set (whichreplaces the existing default category set). If the item defining attribute of the functional area iscontrolled at the Organization level then the new default category set should also be controlled atthe Organization level.


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Item Catalog: An item catalog group is a standard set of descriptive elements to which you assign items.Examples of catalog descriptive elements are color, shape, length, and so on. For example, atextile manufacturer might define pattern attributes such as color, size, texture, and style.

Usage: An electronics company (say Samsung) can use the catalog to incorporate length, breadthand height of each mobile it produces. As the company Samsung also produces other electronics

products such as TV, Refrigerator and etc. We should first create an item category as mobile andthen create a catalog group as mobile-catalog with three catalogs length-breadth and height.Defining and Using Item CatalogsFollow these steps to define and use item catalogs:1 Define the item catalog group.
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2 Define descriptive elements within each catalog group.

3 Enter categories for the catalog groups.

Items belonging to the above category are attached with the descriptive element of the catalog.

4 Enter descriptive element values for each item.
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5 Update item descriptions with catalog group and descriptive element values.

6 Search for items using descriptive elements as the search criteria.
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Searching all the items with breadth 20.

Stock Locators: You use locators to identify physical areas where you store inventory items. Item quantities can

be tracked by locator. Items can also be restricted to specific locators

1. Add the segment values of the KFF stock locator. Navigation : GL -> Financials -> Flexfields -> Key -> Values
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2. Enter the new locator in locator form which can be accessed from below navigation or onsubinventory form.

Navigation : Inventory -> Set up -> Stock Locator

1. Locator Type: Indicate the locator type available choices are as follows: Dock Door,Receiving, Inspection Station, Storage Locator, Consolidation Locator, Staging Lane, andPacking Station. Dock doors are used in Oracle Warehouse Management environments only.2. Indicate the material status of this locator, which controls the enabled transactions for all

material in this locator. The status is not overridden by the status of any subinventory, lot orserial, within this locator. The statuses of those objects will be considered when determiningtransactions that are not enabled. This field is used if you have Oracle Warehouse Managementinstalled.3. Enter the subinventory where the locator resides.4. Enter a picking order value indicating the priority for picking items from this locator relativeto another locator. This value is used by Oracle Warehouse Management to sequence pickingtasks. A picking order of 1 means that order management functions pick items from this locator

before other locators with a higher number (2, 3, and so on). If you have Oracle WarehouseManagement installed, this field determines the picking path through the warehouse and not theorder in which material is allocated for a sales order.5. Enter a dropping order to indicate the priority for dropping items in this locator relative toanother locator. Oracle warehouse management uses this value to sequence tasks.
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6. Enter the inactive date for the locator. This is the date the locator becomes inactive.

Defining Account Aliases: An account alias is an easily recognized name or label representing a general ledger accountnumber. You can view, report, and reserve against an account alias. During a transaction, you

can use the account alias instead of an account number to refer to the account.

Inventory Period Close: The period close process for perpetual costing enables you to1. Summarize costs related to inventory and manufacturing activities for a given accounting

period.2. Distribute those costs to the general ledger.3. Calculates ending period subinventory values.4. Closes the open period for Inventory and Work in ProcessGenerally, you should open and close periods for each separate inventory organizationindependently. By keeping only one period open, you can ensure that your transactions are datedcorrectly and posted to the correct accounting period. (For month end adjustment purposes, youcan temporarily hold multiple open periods.)The accounting periods and the period close process in Cost Management use the same periods,fiscal calendar, and other financial information found in General Ledger.Inventory an d work in process transactions automatically create accounting entries. Allaccounting entries have transaction dates that belong in one accounting period. You can reportand reconcile your transaction activity to an accounting period and General Ledger. You cantransfer summary or detail transactions to General Ledger. You can transfer these entries toGeneral Ledger when you close the period or perform interim transfers.When you transfer to General Ledger, a general ledger (GL) batch ID and organization code aresent with the transferred entries. You can review and report the GL batch number in GeneralLedger and request Inventory and Work in Process reports by the same batch number. You canalso view general ledger transfers in Inventory and drill down by GL batch ID into the inventoryand WIP accounting distributions.

Note: Purchasing holds the accounting entries for receipts into receiving inspection and fordeliveries into expense destinations. This includes any perpetual receipt accruals. Purchasing
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also has a separate period open and close, and uses separate processes to load the general ledgerinterface.Closes Open Period: The period close process permanently closes an open period. You can no longer chargetransactions to a closed period. Once you close a period, it cannot be reopened. As a precaution,

you can do a GL transfer without closing the period.Transfers Accounting Entries to the General Ledger If your inventory organizations parameter for Transfer to GL is None, perpetual accountingentries are not transferred to the General Ledger. The other choices for the Transfer to GL

parameter are Summary and Detail, indicating whether the period close process creates summaryor detail transactions for posting to the general ledger. The period closeProcess transfers the following information: work in process transactions job costs and variances period costs for expense non standard jobs depending on the selected options, the remaining balances for repetitive schedules

Note: If you have chosen the new Periodic Costing feature, Cost Management warns you of the possibility of inadvertently Posting both Periodic and perpetual costed transactions to theGeneral Ledger. The warning displays if there is at least one legal entity cost type combinationthat has the Periodic Cost Post Entries to GL option checked, where the organization under thatlegal entity also has the perpetual cost GL transfer enabled.Calculates Ending Period Subinventory Values For each subinventory, the period close adds the net transaction value for the current period tothe prior periods ending value. This, along with values intransit, creates the ending value for thecurrent period.Transfer Transactions to General Ledger: You can perform the general ledger transfer at any time during an open period not just at

period close. Interim transfers allow you to reconcile and transfer information weekly, makingthe month end period close process much simpler and faster.The general ledger transfer loads summary or detail accounting activity for any open period intothe general ledger interface, including both inventory and work in process entries. When morethan one period is open, the transfer selects transactions from the first open period, up to theentered transfer date, and passes the correct accounting date and financial information into thegeneral ledger interface.For example, when you transfer detail entries, the transaction date is the accounting date with aline for line transfer. When you transfer summary entries with two periods open and enter atransfer date in the second period, the transfer process assigns the period one end date for all thesummarized transactions in period one and assigns the entered transfer date for the summarizedtransactions in period two.For each inventory organization, Cost Management transfers transactions to the general ledgerinterface table, line for line. If you transfer summary information, Cost Management groupstransactions by GL batch, by journal category, by currency code, and by account.Attention: Transfer in detail only if you have low transaction volumes. Transferring largeamounts of detail transactions can adversely affect General Ledger performance.For both detail and summary transfers, Cost Management passes the organization code, GL batchnumber, batch description, and batch date. When you transfer in detail, you also pass the material


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or work in process transaction number. In General Ledger, you can see the transferredinformation, as follows:

Cost Management uses the journal source Inventory for both inventory and work in processtransactions.The journal categories Inventory and Work in Process distinguish between inventory and work in

process transactions.Using Journal Import and Post Journals processes in General Ledger, you can then post thisinformation to the general ledger.Period Summarization Process: Summarization of transaction records for the open period is the last step in period close. Youhave the option to perform this process automatically or manually using the profile option,CST:Period Summary. If the profile option is set to Automatic, the period is closed and

summarized when you change the period status from Open to Closed.If the profile option is set to Manual, you can delay summarization but you must summarizethese delayed periods in accounting period order. For example, if you delay summarization for agiven period, the following period cannot be summarized until the previous period issummarized. In situations where summarization is delayed, the longer the delay the larger thenumber of transaction records needed for reconciliation purposes. This situation can causesummarization to take more time to complete.If you do not choose to summarize periods, set the period status to Closed not Summarized.The Period Close Reconciliation report is used to compare account balances with inventory valueat period end. You can run the report in simulation mode by generating it for an open period. Thereport can be generated at any time during the period.

Inventory Pending Transaction: Users can see the number of pending transactions by navigating to the Inventory AccountingPeriods Form.

Navigate > Cost > Accounting Close Cycle > Inventory Accounting PeriodsPlace cursor on the appropriate open accounting period and click on the [Pending] Button. Thereare three zones titled Resolution Required, Resolution Recommended and UnprocessedShipping Transactions.
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Unprocessed material transactions exist for this periodThis message indicates you have unprocessed material transactions in theMTL_MATERIAL_TRANSACTIONS_TEMP table. You are unable to close the period withthis condition. Please see your system administrator. Inventory considers entries in this table as

part of the quantity movement.Closing the period in this situation is not allowed because the resultant accounting entries wouldhave a transaction date for a closed period, and never be picked up by the period close or generalledger transfer process.Uncosted material transactions exist for this periodThis message indicates you have material transactions in theMTL_MATERIAL_TRANSACTIONS table with no accounting entries (Standard Costing) andno accounting entries and no costs (Average Costing). You are unable to close the period withthis condition. These transactions are part of your inventory value.Closing the period in this situation is not allowed because the resultant accounting entries wouldhave a transaction date for a closed period, and never be picked up by the period close or generalledger transfer process.Pending WIP costing transactions exist in this periodThis message indicates you have unprocessed resource and overhead accounting transactions inthe WIP_COST_TXN_INTERFACE table. You are unable to close the period with thiscondition. These transactions are in your work in process value, and awaiting further processing.Closing the period in this situation is not allowed because the resultant accounting entries wouldhave a transaction date for a closed period, and never be picked up by the period close or generalledger transfer process.Unprocessed Shipping Transactions Pending Transactions in the Unprocessed Shipping Transactions zone indicate there aretransactions in the WSH_DELIVERY_DETAILS table in a status of shipped.Pending receiving transactions for this periodWhen you use Purchasing, this message indicates you have unprocessed purchasing transactionsin the RCV_TRANSACTIONS_ INTERFACE table. These transactions include purchase order
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Before you close a period, review all of the transactions using the Material Account DistributionReport for the period with a high dollar value and/or a high transaction quantity. Check that youcharged the proper accounts. Correcting improper account charges before you close a period iseasier than creating manual journal entries6. Balance perpetual inventory.

Check that your ending perpetual inventory value for the period being closed matches the valueyou report in the general ledger. Perpetual inventory value normally balances automatically withthe general ledger. However, one of the following sources can create a discrepancy:

Other inventory journal entries. Journal entries from products other than Inventory that affectthe inventory accounts.

Charges to improper accounts: For example, you issued material from a subinventory to amiscellaneous account, but used one of the subinventory accounts as that miscellaneous account.

Issue to miscellaneous account: For example, the following miscellaneous transaction issuewould cause an out of balance situation: debit account specified at transaction 123, creditsubinventory valuation account 123. The debit and credit net to zero with no financial charge,

but since the inventory quantity decreased, the month end inventory valuation reports will not

equal the general ledger account balance. Transactions after period end reports. This occurs when you run the end of month inventoryvaluation reports before you complete all transactions for the period.If you do not run the inventory reports at period end, you can also run these Reports:

Inventory Value Report Material Account Distribution Detail Report Material Account Distribution Summary Report Period Close Summary Report Period Close Reconciliation report Inventory Subledger Report (Average Costing Only)In a organization using Project Manufacturing Average Costing, if there is more than one costgroup, the following valuation reports should not be used for reconciliation purposes becausethese reports list the average value across cost groups.

Transaction historical Summary Report Receiving Value Report All Inventories Value Report Elemental Inventory Value Report Subinventory Account Value Report Item Cost Report7. Validate Work in Process inventory. If you use Work in Process, check work in process inventory balances against transactions withthe WIP Account Distribution Report.8. Transfer transactions in advance of closing period (optional).If time permits, run the general ledger transfer process up to the period end date before closingthe period.Closing a period executes the general ledger transfer automatically. However, you can also runthis process without closing a period using Transfer Transactions to General Ledger. Since youcannot reopen a closed period, running this process before period close allows you to proof theinterfaced transactions and make adjustments to the period via new inventory transactions asnecessary.


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9. Close Oracle Payables and Oracle Purchasing. If you use Payables and Purchasing, you need to close the accounting periods in the followingorder:

Payables Purchasing

InventoryIf you only use Purchasing and Inventory, you need to close Purchasing first. Close Payables before Purchasing, in preparation for accruing expenses on uninvoiced receipts. Doing so ensuresthat all new payables activity is for the new month and you do not inadvertently match a priormonth invoice in payables to a new month receipt. When you close Purchasing or Inventory, youcannot enter a receipt for that period. However, as a manual procedure, close Purchasing beforeInventory. This still allows miscellaneous transaction corrections in Inventory.10. Run the Period Close Reconciliation report.This report automatically runs in simulation mode for the open period. It is used to matchaccount balances with inventory value at period end.11. Close the accounting period and automatically transfer transactions to the general

ledger. This sets your Inventory Accounting Period status to Closed not Summarized. If the CST: PeriodSummary profile option is set to Automatic, no other steps are necessary. The period status is setto Closed when the summarization process has completed.12. If the CST: Period Summary profile option is set to Manual, create periodsummarization transactions by generating the Period Close Reconciliation report.The concurrent program creates summarized transaction records, and displays the differences

between account balances and inventory value.

inventory flexfields

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