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Oracle inventory EBS R11

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Page 1: Oracle inventory EBS R11

Training OnTraining OnOracle InventoryOracle Inventory

Oracle Applications 11i

Page 2: Oracle inventory EBS R11

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Introduction to Oracle inventory management

Inventory Enterprise Structure

Inventory Setup

Creating and Maintaining Items

Inventory Controls

Inventory Transactions

Inventory Accuracy Control

Inventory Planning

Agenda

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Introduction to Oracle inventory management

What is Inventory?

Stocking ,tracking and maintaining the level of

different items like Raw material, Finished Goods, etc in

an organization.

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Introduction to Oracle inventory management

Oracle Inventory enables users to satisfy a company’s business needs, area such as:

Defining part numbers

Modeling organization structures

Tracking perpetual inventory

Maintaining accurate on-hand balances

Planning material replenishments

Forecasting anticipated demand

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Inventory Integration with other modules

OracleOraclePurchasingPurchasing

Oracle Oracle Inventory Inventory

ExternalSystems

OracleOracleWIPWIP

Oracle CostOracle CostManagementManagement

OracleOracleEngineeringEngineering Oracle BillsOracle Bills

of Materialof Material

Oracle Order Oracle Order ManagementManagement Oracle MasterOracle Master

Scheduling/MRPScheduling/MRP

OracleOracleFlow ManufacturingFlow Manufacturing

OracleOracleShippingShipping

OracleOracleProject Project

ManufacturingManufacturing

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Inventory Integration with finance modules

Oracle Oracle AssetsAssets

Oracle Oracle ReceivablesReceivables

OracleOraclePayablesPayables

OracleOracleGeneral General LedgerLedger

Oracle Oracle Inventory Inventory

ExternalSystems

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Introduction to Oracle inventory management

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Introduction to Oracle inventory management

Item Item

An item is a part or service that are purchased, sold,

planned, manufactured, stocked, distributed, or

prototyped .

Item Statuses and AttributesStatus attributes are item attributes that enable key

functionality for each item. An item status is defined by

selecting the value check boxes for the status attributes.

Both status attributes and item status can be controlled at

the item level or organization levels.

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Introduction to Oracle inventory management Unit of Measure

A unit of measure (UOM) is a term used along with a numeric value, to specify the quantity of an item. For example, “each” is a unit of measure that used to specify the number of units of an item.

A unit of measure class is a group of units of measure with similar characteristics. For example, “weight” can be a unit of measure class with units of measure such as kilogram, gram, pound, and ounce.

A unit of measure conversion is a mathematical relationship between two different units of measure.

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Introduction to Oracle inventory management

Base UOM

Yes

No

No

UOM

lbs

kg

g

1 kg = 2.208 X lbs

1 g = 0.002208 X lbs

UOM Class = Weight UOM Conversion

UOM Interclass Conversion

Conversion

2Weightlbs

Item

Keyboard

DestinationBase UOM

DestinationUOM Class

SourceBase UOM

SourceUOM Class

QuantityEach

2 Each = 1 lb

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Introduction to Oracle inventory management

Organization Calendar workday calendar must be defined in Inventory if the

following are to be performed : inventory forecasting ,reorder-point planning, available-to-promise analysis or cycle counting.

Inventory automatically generates a workday pattern (the base calendar) that includes all days, including non-workdays, between the start and end dates specified.

workday exceptions can be assigned to the base calendar to denote holidays, schedule maintenance, or overtime.

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Introduction to Oracle inventory management

Categories and Category Sets

Categories are logical groupings of items that have similar characteristics.

A category set is a distinct category grouping scheme and consists of categories.

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Introduction to Oracle inventory management

Finished GoodFinished Good

SubassemblySubassembly

HardwareHardware

SoftwareSoftware

PCPC

OtherOther

Category Grouping

Inventory Category Set

Purchasing Category Set

Craig Category Set

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Introduction to Oracle inventory management

Inventory Controls

With Oracle Inventory locator, revision, lot, and serial

number control can be implemented.

Any combination of the four controls (locator, revision,

lot, and serial number) can be implemented for each

item. Inventory controls are optional for all items.

User can choose to implement inventory controls for

specific items.

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Introduction to Oracle inventory management

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Introduction to Oracle inventory management

Inventory Transactions

Transaction A transaction is an item movement into, within, or out of

inventory. A transaction changes the quantity, location, or cost of an item. Inventory supports a number of predefined and user-defined transaction types.

Every material movement has a corresponding set of accounting transactions that Oracle Inventory automatically generates.

All transactions validate the various controls (revision, locator, lot number, and serial number) enabled for items.

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Introduction to Oracle inventory management

Material FlowMaterial Flow Business FlowBusiness Flow

Receive GoodsReceive Goods

Ship GoodsShip Goods

Move GoodsMove Goods

MRPMRP Order EntryOrder Entry

PurchasingPurchasing

InventoryInventory

WIPWIP

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Introduction to Oracle inventory management

Inventory Enterprise Structure

Inventory Setup

Creating and Maintaining Items

Inventory Controls

Inventory Transactions

Inventory Accuracy Control

Inventory Planning

Agenda

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Inventory Enterprise Structure

Inventory Enterprise Structure

The Oracle Applications organization models define organizations and the relationships among them in arbitrarily complex enterprises. This organization model serves as the cornerstone for all of the Oracle Applications products. It dictates how transactions flow through different organizations and how those organizations interact with each other.

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Inventory Enterprise Structure

LELELELE

Set of Books

IOIO

OUOUOUOU

IOIOIOIO

OUOU

IOIOIOIO IOIO

BGOrganization Structure

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Inventory Enterprise Structure

Multi-org

Multi-Org is a key component that provides secure access to the different organizations of the enterprise supports multiple organizations of the enterprise structure in a single database.

Operating Unit is the primary organization unit through which user secures transaction data, but also creates processes and reports on financial applications data. An Operating Unit can be used to model an autonomous business unit that performs one or more business activities and creates transactions with financial impact.

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Inventory Enterprise Structure

Business Group This is an Organization that represents

the consolidated enterprise, a major division, or an operation company and has no accounting impact. The Business Group partitions Human Resources information and the Purchasing Approval Hierarchy. If you request a list of employees (in any module) you will see only those employees in the Business Group of which your Operating Unit is a part. Multiple Legal Entities can relate to a single Business Group.

OU

Set of Books

Legal Entity

Business Group

Inventory Organization

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Inventory Enterprise Structure

Set of Books Set of Books is the financial reporting

entity that secures financial entries and account balances within the GL application. SOB will be based on 3C’s (Currency, Calendar, Chart of Accounts)

A Set of Books is the highest level that impacts accounting. A Set of Books is associated with a single Business Group, but multiple Sets of Books may be associated with a single Business Group

OU

Set of Books

Legal Entity

Business Group

Inventory Organization

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Inventory Enterprise Structure

GRE/Legal Entity The Legal Entity represents a legal

company for which the user prepares fiscal or tax reports.

Legal Entities are associated with a Set of Books. One or more Legal Entities may be associated with a single Set of Books, and multiple Legal Entities may be associated with a single Business Group.

OU

Set of Books

Legal Entity

Business Group

Inventory Organization

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Inventory Enterprise Structure

Operating Unit – An operating unit represents an organization that uses

any Oracle subledger application, for example, Order Management, Payables. It may be a sales office, a division, or a department. An operating unit is associated with a legal entity. Information is secured by operating unit for these applications. Each user sees information only for their operating unit.

Inventory Organizations – An inventory organization is a facility in your enterprise

where you store and transact your inventory items. The items in an inventory organization can be in the form of raw materials, semi-finished goods, or finished goods for varying periods of time.

– Inventory Organizations belong to an Operating Unit.

OU

Set of Books

Legal Entity

Business Group

Inventory Organization

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Inventory Organization Structure

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Inventory Enterprise Structure

Inventory Organization Structure

Organization

Subinventories

Locators

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Inventory Enterprise Structure

Inventory Enterprise Structure

Organizations– An inventory organization is a facility in your enterprise where

you store and transact your inventory items. The items in an inventory organization can be in the form of raw materials, semi-finished goods, or finished goods for varying periods of time.

– A physical entity such as a manufacturing facility, warehouse, distribution center, or a branch office.

– A logical entity such as an item master organization, which you can use just to define items but no transactions. The item master organization is discussed in detail in the lesson titled “Defining and Maintaining Items Fundamentals.

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Inventory Enterprise Structure

– SubinventorySubinventories are unique physical or logical separations of

material inventory, such as raw material inventory, finished goods inventory, or defective goods inventory. In Oracle Inventory, all material within an organization is held in a subinventory. Therefore, you must define at least one subinventory.

– LocatorYou 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

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Review Question

What are the 3 C’s in Set of Books?

Currency Calendar Chart of Account

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Introduction to Oracle inventory management

Inventory Enterprise Structure

Inventory Setup

Creating and Maintaining Items

Inventory Controls

Inventory Transactions

Inventory Accuracy Control

Inventory Planning

Agenda

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Inventory Setup

Required Setup Steps Step

1

2

3

4

5

6

7

Level *

Global

Global

Global

Global

Global

Global

Organization

Activity

Define Item Flexfield

Define Item Categories Flexfield

Define Item Catalog Group Flexfield

Define Stock Locators Flexfield

Define Account Aliases Flexfield

Define Sales Orders Flexfield

Define Organizations

* Defined Once Globally or for each organization

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Inventory Setup

Required Setup Steps

* Defined Once Globally or for each organization

Step

8

9

10

11

12

13

14

Level *

Organization

Global

Global

Organization

Global

Either Level

Either Level

Activity

Organization access

Defining Intercompany Relations

Define Unit of Measure Classes

Define Subinventories

Define Item Attribute Controls

Define Categories

Define Category Sets

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Inventory Setup

Required Setup Steps

* Defined Once Globally or for each organization

Step

15

16

17

18

19

Level *

Global

Global

Global

Global

Global

Activity

Define Default Category Sets

Define Statuses

Define Cost Types

Define Accounting Periods

Set Profile Options

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Inventory Setup

Flexfield Definitions

Flexfield Name Table Name Comment

1 Account Aliases MTL_GENERIC_DISPOSITIONS It supports just one structure2 Item Catalogs MTL_ITEM_CATALOG_GROUPS It supports only one structure 3 Item Categories MTL_CATEGORIES This should be defined before defining

items. There Can be multiple structures per instance

4 Sales Orders MTL_SALES_ORDERS Defined as Order Number, Order Type, and Order Source to make each transaction unique. It’s defined before placing demand /reservations

5 Stock Locators MTL_ITEM_LOCATIONS Used to capture more information about stock locators and items

6 System Items (Items Flexfield)

MTL_SYSTEM_ITEMS This should be configured before defining items. OE: Item Flexfield profile option should be set to specify the Item Flexfield structure that will be used for Oracle applications.

* Refer System Administrator & AOL training for Flexfield set up

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Inventory Setup

• Oracle Inventory users use the Personal Profile Values window to set profile values only at the user level.

• System administrators use the System Profile Values window to set profile values at the site, application, responsibility, and user levels.

• Required profiles have no default; they require input from a user or an administrator. Optional profiles have defaults which may be accepted or manually overridden.

Profile Options

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Profile Option

INV: Allow Expense to Asset Transaction

INV: Default Item Status

INV: Default Primary Unit of Measure

INV: Dynamic Precision Option

INV: Inter-Organization Currency Conv

INV: Item Master Flexfield

INV: MinMax Reorder Approval

Default

Yes

Active

Each

-9,999,999.00

Corporate

No Default

Approved

Req’d

No

No

No

No

No

Yes

No

These profiles are updateable at all levels:

Inventory Setup

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Profile Option

INV: Proj Misc Trans Expenditure Type INV:

RC Line Failure

INV: Requisition Approval

INV: Save Search Items

INV: Updateable Customer Item

INV: Updateable Item Name

TP:INV: Cycle Count Approvals Form

Default

User Entered

Continue Processing

Approved

No

No

No

Concurrent Processing

Req’d

No

No

No

No

No

No

No

These profiles are updateable at all levels:

Inventory Setup

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Profile Option

TP:INV: Cycle Count Entries Form

TP:INV: Enter Replenishment Count Form

TP:INV: Inter-Organization Transfer Form

TP:INV: Misc Issue and Receipt Form

TP:INV: Transaction Processing Mode

TP:INV: Transfer Between SubInv Form

TP:INV: Update Average Cost Form

Default

Concurrent ProcessingConcurrent Processing

Online Processing

Online Processing

Immediate Con- current Processing

Online Processing

Online Processing

Req’d

No

No

No

No

No

No

No

These profiles are updateable at all levels:

Inventory Setup

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Profile Option

TP:INV: Server Side Online Processing

INV: CCEOI Commit Point

INV: Override Negative Qty for Backflush

INV: Order Transact Form

INV: Purchasing by Revision

INV: Debug Trace

INV: Debug File (Include complete path)

Default

Concurrent Processing

No Default

No

Online Processing

Yes

No Default

No Default

Req’d

No

Yes

No

No

No

Yes

Yes

These profiles are updateable at all levels:

Inventory Setup

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Inventory Setup

Profile Option

INV: FIFO for Original Receipt Date

INV: Debug Level

INV: Detail Serial Numbers

Default

No

No Default

No

Req’d

No

Yes

No

These profiles are updateable at all levels:

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Profile Option

INV: Accounting Category Set

INV: Capable to Promise

INV: External ATP

INV: Use Catalog Name in Item Desc.

INV: Minimum Number of Quantity Trees

INV: CCEOI Workers

INV: Detect Truncation on UOM Conversn

Default

No Default

No Default

No Default

No

500

No Default

No Default

Req’d

Yes

Yes

Yes

No

No

Yes

Yes

These profiles are updateable only at the Site level:

Inventory Setup

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Inventory Setup

Organization Setup Before using Oracle Inventory, one or more organizations

need to be defined. Organizations represent distinct entities in a company and can include separate manufacturing facilities, warehouses, distribution centers, and branch offices.

Organizations can be classified and connected to model the overall enterprise structure. The classifications include:

- Business Groups

- Legal Entities (LE) / Government Reporting Entities (GRE)- Operating Units

- Inventory Organizations

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Inventory Setup

Organization Setup (N)> Inventory>Setup>Organizations>Locations

physical locations of Employees

and Organizations. Locations are

shared between Inventory,

Purchasing and Human

Resources. Each organization

can be associated with only one

location. One or more

organizations can be associated

with the same location

Flagged as global,

locations are

available to all

Business Groups

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Inventory Setup

Organization Setup (N)>setup>Organizations> Organizations

organization classification is used

to describe the general purpose of

organization. Examples are

Inventory Org, GRE / Legal Entity,

and HR Organization. Inventory

Organization classification is used

for inventory management.

Organization location field links a location to

an organization to a location. This is a must for

Legal Entity organizations

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Inventory Setup

Organization Setup (N)>setup>Organizations> Organizations

Link Between Organization

& Legal entity/Set of Books

& Operating Unit.

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Inventory Setup

Using an Item Master Organization

Item Master Organization is usually the first Inventory organization that is set up. Its single purpose is for entering items. It has no subinventories and is not used for inventory transactions. Items are entered in an item master organization and then assigned to be used in child organizations.

Child Organization is an inventory organization with at least one subinventory that is set up for processing inventory transactions. It is not used to enter items. It gets a list of items from the master.

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Inventory Setup

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Inventory Setup

Organization Setup (N)>setup>Organizations> Parameters

This must be the first organization to be

defined as this is a required field in

parameters. Later it can be changed. There

can be any number of Item masters in an

instance but it is advised that there is only

one item master unless absolutely

necessary.

Item master can be common across

operating units, legal entity & SOB. It can

be optionally common across business

groups also. It is also advised that there are

no transactions carried in an item master

For forecasting, planning, available-

to-promise analysis, or cycle

counting, workday calendar must be

defined. This calendar is entered in

the parameters screen in order to be

used by the above functions. When

defining a calendar system assumes

a workday pattern that includes all

days, between the start and end

dates unless specified.

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Inventory Setup

Organization Setup (N)>setup>Organizations> Parameters

Decides Whether the inventory

balance in the organization can

go below zero. If enabled ,does

allow the inventory to go below

zero.

Locator control option

determines at which level

the locator is controlled.

Options are None, Pre

specified, Dynamic &

Controlled at subinventory

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Inventory Setup

Organization Setup (N)>setup>Organizations> Parameters

Costing organization determines

which is the costing organization for

the organization in question. However

for an average costing organization

the costing organization is the same

organization i.e. the costs cannot be

shared.

Determines the costing

method used in the

organization. Options are

Standard costing,

Average costing, FIFO &

LIFO

Valuation accounts for the

organization. Once any

transaction takes place in

an organization ,these

accounts cannot be

changed in an Average

costing scenario.

Indicate whether all transactions

are posted in detail or summary to

the general ledger.

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Inventory Setup

Organization Setup (N)>setup>Organizations> Parameters

Enforces unique lot numbers across

items, if set. The options are Across

items & None

option for lot number

generation. It can be generated

at item level, org level or User

defined

option for serial number uniqueness.

Options are Within organization, Within

inventory & items Across organizations

Can be generated at org

level or at item level

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Inventory Setup

Organization Access

This setup controls access to

organizations based on the user

responsibility assigned to a user by

the system administrator. If

implemented for one user

responsibility, it is then required for

all other user responsibilities

accessing the same organization.

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Inventory Setup

Organization Setup

Organization

Subinventory

Locator

Inventory Organizations are made up of one or more

subinventories which can be made up of one or more

locators

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Inventory Setup

Subinventory set up

A subinventory is a physical or logical grouping of

inventory, such as raw material, finished goods, defective

material, or a freezer compartment.

The subinventory is the primary place where items are

physically stocked. A subinventory must be specified for

every inventory transaction

Subinventories can be further divided into areas

designated as locators.

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Inventory Setup

Subinventory set up

(N) INV> Setup>Organizations>Subinventories

Indicates whether

to include items in

this subinventory in

ATP calculations.

Indicates whether to maintain

the value of this subinventory

on the balance sheet

Indicates whether each

transaction for this

subinventory updates

the quantity on hand

for the subinventory

Indicates whether to

include this subinventory

while performing available

to reserve calculations.

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Inventory Setup

Subinventory set up

(N) INV> Setup>Organizations>Subinventories

Indicate whether the planning

process uses the on–hand

balance of these

subinventory items as

available inventory

Can only be selected if

locator control is set as

Determined at subinventory

level in the Organization

Parameters window

indicates the priority with which items

are picked from this subinventory,

relative to another subinventory,

where a given item resides.

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Inventory Setup

Subinventory set up

(N) INV> Setup>Organizations>Subinventories

These valuation

accounts are used

in a standard

costing scenario.

For average costing

org, system picks

up the accounts

from org level

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Inventory Setup

Workday CalendarWorkday calendar can be defined both in Inventory and

Bills of Material.

It defines which days are “ON” within an organization and

which shifts are available to be worked. The workday

calendar is the Oracle term for a manufacturing calendar.

The workday calendar is separate from the Oracle General

Ledger calendar.

Each organization references a workday calendar.

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Inventory Setup

(N) INV> Setup>Organizations>CalendarWorkday Calendar

workday calendar consists of a start date, and

end date, and on and off days that follow one

or more defined workday patterns. A workday

calendar can also include shift information and

exception dates, such as holidays/scheduled

down time. Workday exceptions identify

deviations to the workday calendar. Shift

exceptions identify deviations for a shift.

Attention: Shift exceptions take precedence

over workday exceptions. Note: Before using a calendar it must

be built using tools>build option

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Inventory Setup

Units of MeasureUnits of measure (UOM) are defined for tracking/moving/storing

& counting items. Each item defined in Inventory must have a

primary UOM. Each transaction performed in Inventory must have

a UOM associated with the transaction quantity and a conversion

defined back to the primary UOM.

Multiple related UOMs are grouped together in a class with a

base unit of measure Inventory uses the base UOM to perform

conversions between units of measure in each class and between

two different unit of measure classes.

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Define UOM classes

Define multiple non base UOMs for each class

Define intraclass conversions

Define interclass conversions

Define one base UOMfor each UOM class

Inventory Setup

Perform the following steps to define multiple UOMs and

set up conversions:

Units of Measure

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Inventory Setup

Units of Measure Classes(N) Inventory>Setup>Units of Measure>Classes

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Inventory Setup

Units of Measure (UOM)

A unit of measure (UOM) is a term used along with a numeric value, to specify the quantity of an item. For example, “each” is a unit of measure used to specify the number of units of an item.

(N) Inventory>Setup>Units of Measure>Units of Measure

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Inventory Setup

Units of Measure Conversions

unit of measure conversion

is a mathematical

relationship between two

different units of measure.

For example, 10 Kilograms

= 1 Each, or 2.2 pounds = 1

kilogram.

If items are transacted in UOM belonging to classes other than their primary UOM class, conversions between the base units of measure in different UOM classes must be defined

(N) Inventory>Setup>Units of Measure>Conversions

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Introduction to Oracle inventory management

Inventory Enterprise Structure

Inventory Setup

Creating and Maintaining Items

Inventory Controls

Inventory Transactions

Inventory Accuracy Control

Inventory Planning

Agenda

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Creating and Maintaining Items

Setting up item Definition

DefineItems

Choose Item Attribute Control Levels

DefineCategories

and Category

Sets

CreateTemplates

DefineStatuses

3

DefineCatalogs

1

2

DefineStatusControlLevels

DefineUOMs

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Creating and Maintaining Items

Item Attributes Item attributes are fields in the item table used to store specific characteristics of an item, such as item status, unit of measure, revision control, etc.. These can be controlled at either the master or the organization level.

Attributes Controlled at the Master Level

An item has the same value for such attributes in all organizations in which it is defined.

Master-level attributes can be only updated by using the Master Item window.

Inventory reflects your changes in all organizations that carry the item.

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Creating and Maintaining Items

Item Attributes

Attributes Controlled at the Organization Level

An item may have different values for such attributes in each

organization in which it is defined.

When defining items in the item master, defaults for

organization-level attributes can be specified.

Values of organization-level attributes can be updated only

by using the Organization Item form in each organization that

carries the item.

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Creating and Maintaining Items

Item Attributes (N) Inventory>Setup>Items >Attribute Controls

Control level can be

determined using this

field

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Creating and Maintaining Items

Status Attributes

Each status attribute is dependent on at least one other attribute. For example Stockable attribute cannot be set to yes if Inventory Item attribute is set to No.

Defaults Value: Value of this attribute defaults when assigning the status to an item. Can be changed.

Not Used: Use neither default nor status control.

Sets Value: Value of this attribute defaults when assigning the status to an item. Once assigned the default cannot be changed.

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Creating and Maintaining Items

Functional AreaFunctional Area FunctionalityFunctionality

Stockable

Purchasable

Transactable

Build in WIP

InventoryAllows to store the item in an asset subinventory

Inventory, Order Management, Purchasing, WIP

Allows to transact the item Inventory, OM, PO and WIP

Purchasing Allows to place the item on a purchase order

Work in ProcessAllows to build the item on a discrete job and/or a repetitive schedule

Status Attribute

Status Attributes and Functionality

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Creating and Maintaining Items

Internal Orders Enabled

BOM Allowed

Customer Orders Enabled

Invoice Enabled

Functional Area Area Functionality

Order Management

Inventory, Order Management, Purchasing

Bills of Material

ReceivablesAllows to create an invoice for the item

Allows to create a bill of material for the item

Allows to create an internal sales order for the item

Allows to place the item on a sales order

Status Attribute

Status Attributes and Functionality

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Creating and Maintaining Items

Item Status When defining an item, status must be given by using the Item

Status attribute. The Item Status attribute has a user defined set

of yes/no values for the status attributes. The values are applied

to the status attributes when an item status code is chosen when

defining an item.

For example, in the beginning of a product development cycle

Item Status attribute is set to Prototype with all of the status

attributes defaulted to yes except for Customer Orders Enabled.

When the item is ready the Item Status attribute is set to Active to

allow all functions for the item.

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Creating and Maintaining Items

Item Status (N) Inventory>Setup>Items>Status Codes

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Creating and Maintaining Items

Item Attributes

Status Control

An unlimited number of status codes can be defined by the

user.

One or more of these status codes can be assigned to an Item

for implementation on a future date. The status codes then

automatically change on their user specified effectivity dates.

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Creating and Maintaining Items

Item Templates

Templates are defined sets of attributes that can be used

over and over to create many similar items. Templates make

initial item definition easier and more consistent.

Templates can be applied at any time after the item is

created. Multiple templates can be applied to a single item.

Templates can hold a complete set of attributes or a partial

set. If a partial set, then only values stored in the template

overwrite those on the item

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Creating and Maintaining Items

Item TemplatesUsers can define their own templates or predefined templates

include:

ATO Model ATO Item Kit

PTO Model Phantom Item Purchased

Subassembly Freight ATO Option Class

Finished Good Outside Processing Item PTO Option Class

Planning Item Reference Item Supply Item

Product Family

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Creating and Maintaining Items

Item Templates(N) Inventory>Setup>Items>Templates

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Creating and Maintaining Items

Item CategoriesA category is a logical classification of items that have similar

characteristics.

A category set is a distinct grouping scheme and consists of multiple

categories.

Some application modules, Inventory , for example require that all items are

assigned to a category. The user specifies a default category for this

purpose in each of these modules. Categories and category sets are used to

group items for various reports and programs.

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Creating and Maintaining Items

Item Categories - SetupDefine the Flexfield structures for the item categories Flexfield.

Define categories.

Define category sets and assign the categories to the sets. Each set can

use a different Flexfield definition if required.

Assign default category sets to each functional area, like Purchasing,

Planning and Inventory

Assign items to categories. An item can be assigned to only one category

within a set.

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Creating and Maintaining Items

Item Categories - Define Categories(N) Inventory>Setup>items>Categories>Category Codes

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Creating and Maintaining Items

Item Categories - Define Category sets (N) Inventory>Setup>items>Categories>Category sets

Category is assigned to category

set from here.

This option should only be

enabled for user defined

category sets. Functional

category sets cannot have

same item with multiple

categories within itself.

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Creating and Maintaining Items

Item Categories - Assign items to Categories (N) Inventory>Setup>items>Categories>Category sets>Assign

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Creating and Maintaining Items

Defining Items

With the Master Item window, items and the attributes

associated with them (such as description, unit of measure or

lot control) can be defined and updated.

Much of the information for an item is optional. Only the

information needed to maintain the item are defined.

An item cannot be defined at the Organizational level.

Oracle will automatically switch to the Master Item window

when defining a new item.

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Creating and Maintaining Items

Defining Items

An item is a part or service that is purchased, sold, planned, manufactured, stocked, distributed, or prototyped. The following Modules use items:

Items

Lead Time

Attributes

Inventory

Attributes

Invoicing

Attributes

MRP/MPS

Attributes

Costing

Attributes

Bills of Material

Attributes

Order Management

Attributes

Purchasing

Attributes

Planning

Attributes

Work in Process

Attributes

Receiving

Attributes

Service

Attributes

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Creating and Maintaining Items

Copy items

Enter attribute values

Enable in child organizations

Update organization level attributes

Define item costs

Copy templates

1

Steps to Setup, Define and Maintain items

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Creating and Maintaining Items

Master Item vs. Organizational Item

Whether an item attribute is defined/maintained at the Master level or the Organization level can be designated.

Attributes at the Master level are the same across all organizations that the item is assigned to.

If an attribute is maintained at the Organization level, it can have different values in each organization the item is assigned.

Some attributes can be maintained at only the Master level or the Organizational Level. Unit of Measure should be maintained at the Master level. Min-Max should be maintained at the organizational level if multiple organizations are used.

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Creating and Maintaining Items

Organization Assignment and Organization Item

Item can be enabled in all child organizations under master organization or child organizations where the item to be used is chosen. Inventory propagates item to all organizations in which the item is to be defined.

Organizational attributes for item attributes which are enabled in that organization, can be entered or changed which are enabled in that organization. For example, go to an organization to choose reorder point planning for an item, and then go to another organization and choose Min-Max planning for the same item.

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Creating and Maintaining Items

Defining Items

(N) Inventory>Items>Master Items

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Creating and Maintaining Items

Defining Items

Organization Assignment

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Creating and Maintaining Items

Defining Item Relationships

The following types of relationships can be defined for items:

Item cross-references

Substitute items

Related items

Manufacturer part numbers

Customer item numbers

Relationships between items can be defined to improve purchasing management and item searching capabilities. Substitute items can be received in Oracle Purchasing.

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Creating and Maintaining Items

Defining Item Relationships(N) Inventory>Items>Item Relationships

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Creating and Maintaining Items

Cross–reference typesCross–reference types define relationships between items and entities such as old item numbers or supplier item numbers. For example, a cross–reference type Old can be created to track the old item numbers , and a cross-reference type Supplier to track supplier part numbers.

multiple cross-reference types can be assigned to a single item.

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Creating and Maintaining Items

Cross–reference types(N) Inventory>Items>Cross References

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Creating and Maintaining Items

Customer Items

(N) Inventory>Items>Customer Items>Customer Items

Allows the entry of customer part

numbers and the customer(s) they are

associated with.

These items can also be associated

with commodity codes and container

types

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Creating and Maintaining Items

Customer Item Cross References(N) Inventory>Items>Customer Items>Customer Items

Used to define cross references

between inventory items

and the customer items defined

above.

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Introduction to Oracle inventory management

Inventory Enterprise Structure

Inventory Setup

Creating and Maintaining Items

Inventory Controls

Inventory Transactions

Inventory Accuracy Control

Inventory Planning

Agenda

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Inventory Controls

With Inventory locator, revision, lot and serial number control can be implemented

Flexibility:

- Inventory controls are optional for all items.

- any combination of the four controls (locator, revision, lot and serial number) for each item can be implemented.

Overview

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Inventory Controls

Locators are optional structures within subinventories.

Locators are the third level in the enterprise structuring

scheme of Oracle Inventory .

Locators may represent rows, aisles, or bins in warehouses.

Items can be received directly into and shipped items directly

from locators.

Locator setup

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Inventory Controls

(N) INV> Setup>Organizations>SubinventoriesLocator setup

Indicates the priority for

picking items from this

locator relative to another

locator.Subinventory to

which the locator

belongs

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Inventory Controls

A revision is a particular version of an item, bill of material, or routing.

By using the ‘Revision control’ option while defining items item quantities can be tracked by item revision. To do so a revision is a must for each material transaction.

Revision control is enabled for items for which version changes or changes that are significant enough to track but are not affecting the function and feature of the item are tracked .

Revision Control item attribute cannot be changed when an item has quantity on hand.

Revision Control

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Inventory Controls

When defining Revision numbers letters, numbers and characters such as A, A1, 2B, etc can be used.

Letters are always in upper case and numbers may include decimals.

To ensure that revisions sort properly, decimals should always be followed by a number.

Revisions are sorted according to ASCII rules.

Each revision must be greater than the previous revision. For example, revision 10 cannot be used after revision 9 because, according to ASCII sorting, 10 precedes 9.

Revision Control

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Inventory Controls

Inventory provides complete lot number support for inventory transactions.

A lot identifies a specific batch of an item that is received and stored in an organization.

Lot control is a technique for enforcing the use of lot numbers during material transactions, thus enabling the tracking of batches of items throughout their movement in and out of inventory.

If Lot Control is turned on for an item, the lot number must be indicated to perform a transaction.

Lot Control

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Inventory Controls

Lot Control must be turned on at the item level.

lot numbers must be assigned whenever items under lot control are received into inventory.

An inventory receipt can be split in to several lots, as necessary.

Quantities can be added to existing lot numbers.

Inventory will generate default lot numbers by using the default lot number generation method which is configured in the Organization Parameters window during setup.

Lot Control

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Inventory Controls

Lot can have an expiration date by assigning a number of lot control shelf life days or by entering a lot expiration date.

The expiration date controls the availability of the lot for transacting and planning purposes.

Lot Control

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Inventory Controls

An Expired Lot:

is not considered as on-hand supply when performing min-max, reorder point or MRP planning calculations.

cannot be reserved for a date beyond the expiration date.

can be transacted and is included in on-hand quantities.

is included in all inquiries and reports.

is included in a cycle count and count entry and adjustments are allowed.

is included in a physical inventory and tag entry and adjustments are allowed.

Lot Control

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Inventory Controls

Disabled Lots:

Disabling a lot only prevents it from appearing in a list of values when performing receipt transactions.

Lot Control

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Inventory Controls

A Disabled Lot:

is included in available to transact, available to promise and available to reserve calculations.

is included as on-hand supply when performing min-max, reorder point or MRP planning calculations.

is included as on-hand in all inquiries and reports, including inventory valuation reports.

can be transacted with Inventory functions and the Transaction Open Interface.

can be reserved.

Lot Control

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Inventory Controls

A serial number is an alphanumeric piece of information assigned to an individual unit of an item. A serialized unit is a combination of an item number and a serial number.

Individual units of items can be tracked by using serial numbers. Serial number control is a system technique for enforcing the use of serial numbers during a material transaction. Serial numbers can be used to track items over which a very tight control is to be maintained.

One serial number per unit of an item can be assigned

Serial Control

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Inventory Controls

Generating Serial Numbers

Depending on how Serial Number Control is set at the Master Item level will determine how serial numbers are generated.

If No Control is specified as the serial number control type, no serial number control will be enforced.

If Predefined is specified as the serial number control type, serial numbers for that item must be predefined.

If control At inventory receipt or At sales order issue, optionally serial numbers for the item can be predefined.

Serial Control

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Inventory Controls

Generating Serial Numbers

Inventory uses the starting serial number prefix and the starting serial number specified in the Item screen .

The process of generating serial numbers is done through a concurrent report. This does not assign numbers to units in inventory, it simply reserves serial numbers for an item, for later use.

Serial Control

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Introduction to Oracle inventory management

Inventory Enterprise Structure

Inventory Setup

Creating and Maintaining Items

Inventory Controls

Inventory Transactions

Inventory Accuracy Control

Inventory Planning

Agenda

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Inventory Transactions

Understanding of Transaction Types

Overview of Inventory Transactions

Miscellaneous Transactions

Subinventory Transfer

Inter Organization Transfer

Receipts

Move Orders

Overview

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A transaction type is the combination of a transaction source type and a transaction action. It is used to classify a particular transaction for reporting and querying purposes.

TransactionSource Type

TransactionType

TransactionAction

Inventory Transactions

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System Defined Transaction Types

System defined transaction type codes for different

inventory transactions. Each transaction type is linked to

source type and action

Inventory Transactions

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Use user defined terminology to define transaction type. The transaction type can be only

linked to pre seeded values of source type and action

User Defined Transaction Types

Inventory Transactions

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Types of Inventory Transactions Miscellaneous Transactions- This transaction is used to do adjustments in stock due to damage, obsolescence, issuing items for R & D or issuing track able expense items.

Subinventory Transfer- This transaction is used to transfer goods from one stockroom to another with in the same inventory organization.

Inter ORG Transfers- This transaction is used to transfer goods from one inventory organization to another.

Inventory Transactions

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Types of Inventory Transactions Receiving Transactions- This transaction is used to move goods from receiving dock to specified subinventory and locator.

Sales Issue- This transaction is used to move goods from pick subinventory to staged subinventory.

WIP Issue- This transaction is used to issue materials against production orders.

Inventory Transactions

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MiscellaneousMiscellaneousReceiptReceipt

MiscellaneousMiscellaneousIssueIssue

OrganizationOrganization

SubinventorySubinventoryTransferTransfer

Subinventory

Locator

Locator

SubinventoryTransfer

Subinventory

Locator

Locator

Organization

Direct Direct InterorganizationInterorganizationTransferTransfer

Interorganization Interorganization Transfer by WayTransfer by Way

of Intransitof Intransit

Inventory Transactions

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Select the transaction type

Account for passing

adjustment transactions

If you want to enter transaction line by serial number for

serialized item check this box

Miscellaneous Transactions

Inventory Transactions

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Initial loading of item on-hand quantities when you start implementing Oracle Inventory Scrapping items by issuing them to expense accounts denoting scrap Issuing items to individuals, departments, or projects Receiving items that were acquired by assorted means (without purchase orders) Entering adjustments and corrections to system quantities due to theft, vandalism, loss, shelf-life expiration, or inaccurate record keeping

Inventory Transactions

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Enter the quantity to be adjusted

Lot or serial number can be entered if item is a serial controlled or

Lot Controlled

Miscellaneous Transactions - Transaction Lines

Inventory Transactions

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Use the Subinventory transfer window to:Transfer material within your current organization between subinventories, or between two locators within the same subinventory

Subinventory transfer

Inventory Transactions

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The type can be Subinventory transfer to transfer from one

subinventory to another or any of the user defined transaction

type for source inventory & action subinventory transfer

Subinventory Transfer

Inventory Transactions

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Subinventory Transfer Transaction Lines

Enter source subinventory

Enter destination

subinventoryEnter

Quantity

Saving the record will complete the transaction.

Inventory Transactions

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• We can perform inter–organization transfers as direct or in transit shipments.Goods that have departed from the dispatch , loading , or shipping point but have not yet arrived at the receipt , offloading , or delivery point . Also called

in transit inventory or stock in transit .

We can transfer one or more items in a single transaction. We can also transfer partial quantities of the same item to different subinventories and locators in a single transaction.

• We can also transfer expense and asset items from one organization to another using in transit inventory

Inter Org Transfer

Inventory Transactions

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Pune

Organization

Mumbai

Organization

Delhi

Organization

Pune

Organization

Use IntransitUse IntransitInventoryInventory

(FOB = Receiving)(FOB = Receiving)

AustinOrganization

RequireRequireInternal OrderInternal Order

to Shipto Ship

Use IntransitUse IntransitInventoryInventory(FOB = Shipping)(FOB = Shipping)

DirectDirectTransferTransfer

You need to define shipping network before doing inter organization transfer

Inter Org Transfer

Inventory Transactions

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Direct Inter–organization Transfers We can use a direct inter–organization transfer to move inventory directly from a shipping organization to a destination organization. The validity of a transfer transaction depends on the controls we have defined in both the shipping and destination organizations for the items we want to transfer.

Inter Org Transfer

Inventory Transactions

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Inter–Organization Transfers via Intransit InventoryWe usually transfer material to intransit inventory when transportation time is significant. When we perform the transfer transaction, we do not need to specify the delivery location. We only need to enter the subinventory we are shipping from, a shipment number, the freight information, and, depending on the inter–organization transfer charge that applies between the organizations, a percentage of the transaction value or a discrete amount that Oracle Inventory uses to compute transfer charges.

Inter Org Transfer

Inventory Transactions

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Inter Org Transfer Shipping Network

Select Transfer type as Intransit or

Direct

Enter FOB as receipt or shipment to identify who owns the inventory after

shipment has been made

Check this box if internal order is

required

Inventory Transactions

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There are three options for transfer charge.

Predefined % of transaction value. The % is maintained here. The other two options are requested % or requested value. In this case value is mentioned at the time

of entering Inter ORG transaction

Inter Org Transfer Shipping Network

Inventory Transactions

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Enter the accounts for transfer credit and PPV if

destination organization uses standard cost

On these form maintain Inter ORG receivable and payable account

Inter Org Transfer Shipping Network

Inventory Transactions

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Enter Source & Destination

OrganizationSelect type as

Intransit or Direct shipment

Enter the order number

Inter Org Transfer - In transit

Inventory Transactions

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Subinventory in the shipping organization

Subinventory in the receiving organization

Inventory Transactions

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As transaction type in Inter ORG order was in transit shipment, the inventory is

shown in transit after shipping

Note: Receiving for Inter ORG orders will be covered as a part of receiving transactions

Inventory Transactions

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Type of Receipt Transactions Receive both internally and externally sourced shipments Process unordered receipts Receive substitute items Inspect items for quality control and invoice matching needs Correct transaction errors Receive returned items into invento Return delivered items to receiving

Note: As part of inventory training only standard receiving transaction will be covered with receipt routing as Direct Delivery

Receipts

Inventory Transactions

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Use the Find Expected Receipts window to:Find source documents for which you can enter receipts. Use the Supplier and Internal tabbed region to search for Purchasing documents.

Receipts

Inventory Transactions

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Use the Receipt Header window to enter header information for all types of receipts.

Enter packing slip number

Enter other information like shipped date, number of containers etc.

Receipts

Inventory Transactions

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Use the Receipts window to enter receipt line information.

Enter the receipt quantity

Default subinventory

from PO. It can be overridden

As routing is direct receipt,

the inventory is delivered on saving the transaction

Receipts

Inventory Transactions

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Overview Of Move Orders

•Move orders are requests for the movement of material within a single organization.

• Manage all material requisition and request processes within an organization by manually or automatically creating, approving, and transacting a move order.

• Used for movement of material within a warehouse or facility for purposes like replenishment, material storage relocations, and quality handling.

Move Orders

Inventory Transactions

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Move OrderRequisition

• Account Transfer• Subinventory Transfer

• Manually Generated• Optional Approval Processing

ReplenishmentMove Orders

• Kanban• Min Max• Replenishment • Count

• Automatically Generated• Pre-approved• Ready for Transaction

Move Order Type Transaction Type Generation & Approval

Pick WaveMove Orders

Sales Order PickInternal Order Pick

• Pre approved• Print Pick Slip

Move Orders

Inventory Transactions

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Move Order Process Flow

PickingPicking

SourceSourcelocationlocation

Destinationlocation

Put awayPut away

Pick Pick TicketTicket

Move order locates Move order locates material sourcesmaterial sources

In case of shortageIn case of shortagemove ordermove order

can be re-plannedcan be re-planned

Move orderMove orderrequisitionrequisition

createdcreated

Approve Approve move move orderorder

Inventory Transactions

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Move Order Header

Default source subinventory

for move order

Select Transaction

Type

Inventory Transactions

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Move Order Lines

Enter Item and for transfer

Default transaction type from header. It can be overridden

Quantity to be transferred

Inventory Transactions

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Move Order Allocation

Press Allocate to generate reservation from source

subinventory to destination subinventory

After allocation reservation can be viewed and updated

manually if required.

Inventory Transactions

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Transact Move Orders

Print Pick List for Picker

Press Transact to move the inventory from source to destination subinventory

Inventory Transactions

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Introduction to Oracle inventory management

Inventory Enterprise Structure

Inventory Setup

Creating and Maintaining Items

Inventory Controls

Inventory Transactions

Inventory Accuracy Control

Inventory Planning

Agenda

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Inventory Accuracy Control

Cycle CountingCycle counting is the periodic counting of individual items throughout the year. Count items of higher value more frequently than items of lower value. The differences between the system quantity and counted quantity are adjusted to correct the system quantity and inventory value in the system.

Physical inventory A physical inventory is a periodic reconciliation of system on-hand balances with physical counts in inventory. It is normally done once in a year as a part of financial auditing requirement to verify inventory assets on balance sheet. Production is stopped at the time of carrying out this activity.

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Define cycle count header

Update cycle-count items

Schedule items to count

Generate count requests

Enter cycle counts

Approve cycle counts

ABC Classification of itemsCycle Counting

Inventory Accuracy Control

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ABC Analysis

•ABC analysis is a method of determining the relative value of items in your inventory sites.

• An ABC analysis involves ranking your items according to a criterion and then grouping items into classes.

ABC Classification

Inventory Accuracy Control

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Define ABC group

Assign items to ABC classes

Update class assignments

Purge ABC information

Define ABC compilation Define ABC classes

ABC AnalysisABC Classification

Inventory Accuracy Control

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ABC Compilation

Criterion for categorizing your items in

Organization. It can be based on current value or

historical usage value

Cost type to pick up the unit cost

of items in compile set

Press Compile to generate

compile results

ABC Classification

Inventory Accuracy Control

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ABC Compilation- Descending Value ReportABC Classification

Inventory Accuracy Control

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Use ABC classes to identify the value groupings to which items belong. Define these classes using own terminology. For example, you might define classes High value, Medium value, Low value. Assign items of highest rank to the High class, those of lower rank to the Medium class and those of lowest rank to the Low class. Can use ABC classes to group items for a cycle count where you count “A” items more frequently than “B” items.

ABC Classification

Inventory Accuracy Control

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ABC Classes

Define class names for your

ABC Classification purpose

ABC Classification

Inventory Accuracy Control

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Define ABC Assignment Group

Define Group name to link compile class and set of ABC Classes

defined

ABC Classification

Inventory Accuracy Control

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Link ABC Classes to ABC assignment

group

Give a priority to all classes. The class

with lowest priority is assumed to have the

highest rank.

Define ABC Assignment Group

ABC Classification

Inventory Accuracy Control

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ABC Item Assignments

Choose the sequence value from ABC descending value report to assign a

range of items to class

Shows % of total items and % of total value assigned to a specific

class with in an Organization

ABC Classification

Inventory Accuracy Control

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Updating Item Assignments

ABC assignments generated automatically by assigning cut off sequence numbers for each class. If required classes can

be changed manually

ABC Classification

Inventory Accuracy Control

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Maintain Cycle Count

Adjustment account to store variance amount by which inventory is

adjusted

If automatic recount required for out of

tolerance items

If items not scheduled for counting to be

included

Cycle Counting

Inventory Accuracy Control

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Maintain Cycle Count

Cycle counting to be allowed for serialized

items or not. If allowed will there be

multiple serial numbers per request or one serial number

per request

What Details to be printed. Quantity only or quantity

with serial numbers

Scheduling daily or

weekly or by periods

Cycle Counting

Inventory Accuracy Control

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Maintain Cycle Count Header

Tolerances set by quantity, value and hot/miss analysis

ABC group lined for

identifying item classes

Use this option as re-initialization to

upload items for the first time from ABC group. Make it to

update to add new items added in ABC group to cycle count

items

Cycle Counting

Inventory Accuracy Control

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Cycle Count Classes

Mentions the numbers of times

the item to be counted in a year

Cycle count class specific tolerances can be maintained

here. If it is not maintained here it is

taken from cycle count header

Cycle Counting

Inventory Accuracy Control

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Cycle Count Items

Cycle count classes and item generated from ABC initialization at the time of linking cycle count

to ABC group

Item specific quantity tolerance can be maintained

here

Cycle Counting

Inventory Accuracy Control

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Schedule Cycle Count

Automatic Scheduling

Oracle inventory uses the number of items in each cycle count class, the frequency of each class, and the workday calendar of your organization to determine how many and which items you need to count during the scheduling frequency.

Manual Scheduling

You can manually schedule counts in addition to or instead of those generated with automatic scheduling.

Cycle Counting

Inventory Accuracy Control

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Generate Cycle Count Request

Cycle count Scheduler for automatic scheduling

Generate Cycle count request to generate cycle count entries

Cycle Counting

Inventory Accuracy Control

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Cycle Counting List ReportPrint this report to show items

scheduled for cycle counting in a specific period. This report is given

to people who physically count items

Cycle Counting

Inventory Accuracy Control

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Cycle Count Entries

Enter the quantity counted at the locator

in the warehouse

Cycle Counting

Inventory Accuracy Control

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Approve Cycle Count

Approve cycle count entries that are out of tolerance. The entries with variance with in tolerance will be approved by system.

Cycle Counting

Inventory Accuracy Control

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Cycle Count Entries and Adjustments Report:This report shows all cycle count entries for a specified time period. It analyzes the number of cycle count transactions you make against an item, and the number of units you actually adjust. The report also calculates the value, in your functional currency, of the adjustments to inventory.

Cycle Counting

Inventory Accuracy Control

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Inventory Accuracy Control

Define physical inventory

Take snapshot of on-hand quantities

Generate tags

Count items

Enter counts

Void tags

Approve counts

Run adjustment program

Purge physical inventory

Physical Inventory

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Inventory Accuracy Control

Define Physical Inventory

Set the option for approval of

physical inventory tags

Tolerances for Quantity and value

Click snapshot to generate the snapshot

of inventory on hand for count subinventories

Use this option when tags are generated

outside oracle inventory

Physical Inventory

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Inventory Accuracy Control

Generate Tags

You can generate blank tags for stock

points not recorded in your system

Generates a unique tag for each unique combination

of item, sub inventory, locator, revision, lot, serial

number

Starting tag number and in what order you want to

increment to generate the next tag number

Physical Inventory

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Inventory Accuracy Control

Physical Inventory Tags Counts

Enter the quantity physically counted at specific location with

in the warehouse

You can void a tag if damaged or lost. If default tag is void it sets the inventory to

zero for that SKU

Physical Inventory

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Inventory Accuracy Control

Approve Counts

Approval option- Always the system requires approval of all counts entered. You must approve or reject each adjustment before running the physical adjustments program. After the system adjusts all the approved counts the status of the adjustment changes to ‘Posted

Approval option If Out of Tolerance the system requires approval of all adjustments exceeding the tolerances entered in the physical inventory definition. You must accept or reject each of these adjustments before running the physical inventory adjustments program. After the system adjusts all the approved counts the status of the adjustment changes to ‘Posted’.

Physical Inventory

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Inventory Accuracy Control

Approve Counts

Approve or reject the count

Physical Inventory

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Inventory Accuracy Control

Perform Physical Inventory Adjustments

The system performs adjustments by creating a material transaction for the +/- quantity of the adjustment. Once adjustment program is run the system does not allow a new tag generation or any further updates to the tag counts.You must approve or reject all adjustments or the system will not run the adjustments program. Tag quantities, adjustment quantities, and adjustment values can be reported before performing the adjustments.You can use the adjustment report to authorize approvals or request recounts of items with large pending adjustments.

Physical Inventory

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Inventory Accuracy Control

Perform Physical Inventory Adjustments

Account for passing transactions due to

variance in system and counted quantity

Physical Inventory

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Inventory Accuracy Control

Purge Physical InventoryPurging tags only: You can purge all tags associated with a physical inventory definition. If irreversible mistakes are made in the count-entry phase, you can start over without refreezing your inventory.

Purging All Information You can purge the physical inventory definition, frozen quantities, tags and count quantities. This purge deletes adjustments but not the adjustment material transactions.

Physical Inventory

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Inventory Planning

Performing reorder-point planning

Performing Min-Max planning

Subinventory replenishment planning

Creating and executing Kanban cards

Planning methods:

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Min-max planning is a method of determining when and how much to order based on user-defined minimum and maximum inventory levels. In Oracle Inventory you can perform min-max planning at two levels:

Organization: To perform organization-level min-max planning for an item, you must specify organization-level minimum and maximum quantities.

Subinventory: To perform subinventory-level min-max planning for an item, you must specify subinventory-level minimum and maximum quantities.

Inventory Planning

MIN MAX Planning

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1 . 0 D e f i n e P l a n n i n ga t t r i b u t e s f o r M i n - M a xp l a n n e d i t e m s a t O r g

l e v e l

M i n - M a x P l a n n i n g a t O r g

o r S u b i n v e n t o r y l e v e l ?

2 . 0 R u n M i n - M a xP l a n n i n g R e p o r t a t

O r g l e v e l

3 . 0 D e f i n e P l a n n i n ga t t r i b u t e s f o r M i n -

M a x p l a n n e d i t e m sa t S u b I n v l e v e l

4 . 0 R u n M i n - M a xP l a n n i n g R e p o r t a t

S u b I n v l e v e l

A

A u t oR e p l e n i s h -

m e n t ?

M i n - M a x r e p o r t

O r g

N o

I t e m A v a i l a b l e q u a n t i t yb e l o w M i n q u a n t i t y ?A S t o p

Y e s

N o

Y e s

M a k e o r B u y ?

S o u r c e ?

B u y

7 . 0 C r e a t eU n r e l e a s e d J o b

M a k e

5 . 0 C r e a t eP u r c h a s e

R e q u i s i t i o n s

S u p p l i e rI n t e r n a l

S u p p l i e r

6 . 0 C r e a t eI n t e r n a l

R e q u i s i t i o n s

6 . 1 C r e a t eI n t e r n a l

R e q u i s i t i o n s

Inventory Planning

MIN MAX Planning

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Inventory Planning

Enter minimum quantity

Enter maximum quantity

Enter fixed lot increments

Enter minimum order quantity

Enter maximum order quantityRun min-max report

YesYes

NoNo

Do you wantspecific lot

increments?

Determine minimumand maximum

quantities

MIN MAX Planning

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Inventory Planning

The following equation represents when you should order:

Quantity Available= Min QTY- on hand quantity + quantity on orderIf Quantity Available is>0, the order should be placed

Order quantity = (maximum quantity) - [(on-hand quantity) + (quantity on order) ]

You can constrain the order quantity by specifying the following order modifiers for an item:

Fixed lot multiplier Minimum order quantity Maximum order quantity

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Inventory Planning

Enter item planning attributes.

Define subinventory-level min-max

information (optional).

Run the Min-max report.

MIN MAX Planning

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Enter the following:• Min-max minimum quantity• Min-max maximum quantity• Fixed-lot-size multiplier• Minimum order quantity• Maximum order quantity

Specify a planning level (either Organization or

Subinventory).

Set up the appropriate profile value for

requisition approval.

Select an Inventory Planning method.

Inventory Planning

MIN MAX Planning

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Inventory Planning

Enter the minimum and

maximum quantity Enter the planning

method as Min Max Planning

Enter the source type as supplier if you want to

generate purchase requisitions. Enter

subinventory or organization if you want to generate move

orders

MIN MAX Planning

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Inventory Planning

Min Max Report

Planning level can be organization or

subinventory. If it is subinventory the min max quantity should

have been maintained at subinventory level

Demand cut off date for demand

calculation

MIN MAX Planning

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Inventory Planning

What are the different sources of supply to be

considered for calculation of quantity available

The program includes nettable subinventory as supply. In order to include non nettable subinventory make it

yes

If you don’t want to generate orders keep the option as No. it will print report for all those items

where quantity available is less than Min Quantity

MIN MAX Planning

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Oracle Inventory ProcessesOracle Inventory Processes

Oracle Purchasing ProcessesOracle Purchasing Processes

Run Order ImportOracle Order Entry ProcessesOracle Order Entry Processes

Min-Max Planning

Reorder-Point Planning

Subinventory Replenishment

Populate Requisition Interface

Run Req. Import

Create Purchase Requisition

Create Purchase Order

Create Internal Requisition

Create Internal Order

Kanban

Inventory Planning

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Inventory Planning

Reorder-point planning is a method of determining the size and timing of item replenishment orders.

Reorder-point planning uses the following pieces of information:

Safety stockReplenishment lead timeitem demandOrder costCarrying cost

Reorder-point planning

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QuantityQuantity

TimeTime

Reorder PointReorder Point

Safety StockSafety Stock

Inventory Planning

Reorder-point planning

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Inventory Planning

You can perform-reorder point planning for the entire organization.

You can use Reorder-point planning for items under independent demand.

You can specify Reorder-point planning as the inventory planning method when you define an item.

You can use Reorder-point planning for items that you do not need to control very tightly and that are not very expensive to carry in inventory.

Reorder-point planning

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Inventory Planning

Enter item planning attributes.

Define safety stocks.

Forecast Item Demand

Run Reorder-point report.

Reorder Point Planning Steps

Forecast item demand

Reorder-point planning

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Inventory Planning

Item Planning Attributes

Specify a maximum-order quantity.

Enter a carrying cost percent.

Select Reorder-point as the inventory planning method.

Enter an order cost.Specify a fixed-lot

size multiplier.

Specify a minimum-order quantity.

Reorder-point planning

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Inventory Planning

Enter Lead Times

Enter processing lead time.

Enter preprocessing lead time.

Enter postprocessing lead time.

Reorder-point planning

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Inventory Planning

Item Planning Attributes

Set your planning method

Set your lead times on the lead time tab

Safety Stock method

Reorder-point planning

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Inventory Planning

You can select one of the following three safety stock calculation methods for each item: User-defined quantityYou can enter safety stock quantities and the date for which each quantity is effective. You can update safety stock quantities that you previously entered or that Oracle Inventory calculated for you.

User-defined percentageTo use the user-defined percentage method, you must use the Reload Safety Stock window and specify the following information for the item:A forecastA safety stock percent

Reorder-point planning -Entering Safety Stock

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Inventory Planning

You can select one of the following three safety stock calculation methods for each item:Mean absolute deviation

To calculate safety stock using this method, you submit a concurrent request using the Reload Safety Stock window. In this window, you must specify the following information:

A forecastA service level percent

safety stock = Z × 1.25 × (mean absolute deviation)where Z is the appropriate value from a table of standard normaldistribution, corresponding to the service level. The mean absolute deviation is a measure of how the forecast demand deviates form the actual demand.

Reorder-point planning -Entering Safety Stock

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Inventory Planning

Entering Safety Stock- User Defined

User defined safety stock

Enter a default item if multiple entries are to be maintained for the

same item

Reorder-point planning

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Inventory Planning

Entering Safety Stock

Method as MAD or safety stock %

If method is safety stock % enter safety stock %. F method

is MAD enter service level

Enter the forecast for MAD calculation

Reorder-point planning

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Inventory Planning

Forecast Item Demand

Choose a item that had a planning

method as reorder point

Define a forecast set for your forecasting scenario. With in your forecast set define your forecast

name

Reorder-point planning

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Inventory Planning

Forecast Item Demand

Enter your forecast bucket. It can be daily,

week or periods

Enter the forecast quantity

Reorder-point planning

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Inventory Planning

Reorder Point Program

Give your demand supply and supply cut off date. Till

this date your forecast will be taken for reorder point

calculation

Enter the forecast set to be used for EOQ and reorder point calculation

Use this option as no if you don’t want to

generate requisitions and want to generate report for items will quantity less than

reorder point

Reorder-point planning

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Inventory Planning

Reorder Point Program

Mention what supply should be considered as availability for reorder point calculation

Reorder-point planning

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