INV_Inventory Beginers Guide

Oracle Inventory

Beginner’s Guide

Beginner’s Guide

Oracle Inventory

Thampy Mathew

Oracle Inventory

Beginner’s GuideThampy Mathew

Foreword

These notes are compiled keeping in view of students just begin to learn Oracle Applications. Even though there is nothing very complicated in Oracle Inventory, a beginner finds it very confusing and complicated initially for some time. While attending lectures, under the guidance of the faculty, the students do all the relevant exercises. But, after the lecture hours when he/she is trying to do the same exercise all by himself/herself, he/she will find that the steps are not remembered properly. The lecture notes are not of much use because that is not written properly or there is no mention of certain steps in the notes. This in turn leads the student to a kind of desperation. The purpose of these notes is to save the students from the kind of desperation mentioned above.

These notes are definitely not describing Oracle Inventory in detail. For an in depth study, the students must go through the given Course Material, Help Files and PDF Files. Any body will opt for an advanced study only when they understand the preliminaries. The object of these notes is to make a student comfortable with the preliminaries.

In these notes wherever I have used the word ‘Choose’ you have to pick a value from an available LOV by pressing the keys Ctrl + L. Similarly, wherever the word ‘Enter’ is used you have to type the value in that field. If the students in general feel that the notes are of some help while practicing at the initial stage, I will feel that my work borne fruit.

THAMPY MATHEW

Thampy Mathew

Oracle Inventory

Beginner’s Guide

ContentsPage

1.0 Sequencing the implementation of Inventory 1

1.1 Define Flexfields 11.1.1 Item 11.1.2 Item Categories 1

1.1.2.1 Define Value sets 31.1.2.2 Define Flex Structure 31.1.2.3 Compile the Flex Structure 41.1.2.4 Enter Possible Values for Each Segment 41.1.2.5 Define Category Codes (Category Names) 51.1.2.6 Define Category Sets 51.1.2.7 Assign Items to Category Codes 61.1.2.8 List the Items Belonging to a Particular Category 6

1.1.3 Item Catalog Group 11.1.4 Stock Locators 11.1.5 Account Aliases 11.1.6 Sales Orders 1

1.2 Assign Default Category Sets 71.3 Define Workday Calendar 81.4 Define ATP Rules 101.5 Define Picking Rules 101.6 Define Locations 101.7 Define Organizations 111.8 Define Shipping Networks 141.9 Define Units Of Measures 151.10 Define Item Attribute Control Levels 161.11 Define Item Status Templates 181.12 Define User Item Types 191.13 Define User Item Type Templates 191.14 Define Asset Items and Assign to Organizations 191.15 Define Expense Items and Assign to Organizations 201.16 Define UOM Conversions 211.17 Define Item Revisions 231.18 Define Item Relationships 231.19 Create Item Catalog 241.20 Define Asset Subinventories and Assign Items 251.21 Define Expense Subinventories and Assign Items 261.22 Define Vehicle 27

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Beginner’s Guide1.23 Define Container Types 27

ContentsPage

1.24 Define Containers 271.25 Define Freight Carriers 281.26 Define Transaction Source Types 281.27 Define Transaction Reasons 281.28 Define Account Aliases 281.29 Define Shipping Methods 291.30 Define Transit Times for Shipping Methods 291.31 Define Organization Access 291.32 Launching Transaction Managers 30

2.0 Open Inventory Accounting Periods 30

3.0 Miscellaneous Transactions 30

3.1 Miscellaneous Receipt 303.2 Miscellaneous Issue 313.3 Transferring Items Between Subinventories 313.4 Transferring Items Between Organizations Without ISO 323.5 Tracking Materials in Intransit Inventory 42

4.0 Inventory Controls 43

4.1 Revision Control 434.2 Locator Control 444.3 Lot Control 464.4 Serial Control 47

5.0 Inventory Planning 50

5.1 Min-Max Planning 505.1.1 Organization Level Min-Max Planning for Buy Items 505.1.2 Subinventory Level Min-Max Planning for Buy Items 525.1.3 Organization Level Min-Max Planning for Make Items 54

5.2 Reorder Point Planning 56

5.2.1 Set the Required Item Attributes 565.2.2 Define a Forecast 565.2.3 Define or Generate Safety Stock 575.2.4 Run the Reorder Point Report 59

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Beginner’s Guide5.2.5 Do Requisition Import from Purchasing 59

ContentsPage

5.2.6 Find out the Requisition Number from the Requisition Summary window. Page 60

5.3 Replenishment61

5.4 Kanban 63

6.0 Accuracy 65

6.1 ABC Analysis 656.2 Cycle Counting Using ABC Compile 686.3 Physical Inventory 70

7.0 Inventory Costing 73

7.1 Cost Elements 737.2 Cost Sub-elements 737.3 Cost Types 747.4 Define Item Cost 757.5 Updating Item Cost 767.6 Viewing Different Costs of an Item at Different Times 76

8.0 Purchase Order Receipts 77

9.0 Checking ATP 77

10.0 Attaching Documents 77

11.0 Transferring Transactions to GL 78

12.0 Closing Inventory Accounting Periods 79

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Oracle Inventory

Beginner’s Guide

1.0 Sequencing the implementation of Inventory

1.1 Define Flexfields1.1.1 Item

Refer the Item Categories described in 1.1.2

1.1.2 Item Categories

1.1.2.1 Define Value sets1.1.2.2 Define Flex Structure1.1.2.3 Compile the Flex Structure1.1.2.4 Enter Possible Values for Each Segment1.1.2.5 Define Category Codes (Category Names)1.1.2.6 Define Category Sets1.1.2.7 Assign Items to Category Codes1.1.2.8 xList the Items Belonging to a Particular Category

1.1.3 Item Catalog Group


1.1.4 Stock Locators


1.1.5 Account Aliases


1.1.6 Sales Orders


Flexfields

Flexfields are of two types (1) Descriptive Flexfields and (2) Key Flexfields. As the name suggests, Descriptive Flexfields are used for providing extra information about a particular record. They normally remain hidden. On the screen, you will find only a very small box slightly bigger than a check box. When the cursor enters into the box, a bigger text box appears in which the user can enter the required information. When finished the longer text box disappears and it will

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Oracle Inventory

Beginner’s Guideappear as a small box as usual. With the help of this type of an arrangement, the programmers save the much needed screen space.

Key Flexfields are slightly different in its construction. They are attached to certain specific fields of the screen. As the cursor enters that particular text box to which a Flexfield is attached, multiple text boxes, which otherwise remain hidden, pop up. The user enters values in the text boxes that pop up and when finished, they disappear and the values arranged one after another, separated by a dot or hyphen, appears as a single value in the normal text box. For example, suppose we have attached a Flexfield with three text boxes in one of the text boxes, Text Box 1 on your screen. In the normal situation, you will not see the three text boxes of the Flexfield. But, as the cursor enters the Text Box 1 to which the Flexfield is attached, the three text boxes will pop up. Suppose you entered a value of 01 in the first text box, a value of 02 in the second text box and a value of 03 in the third text box. When you click on OK, all the three text boxes disappear, and a value of 01.02.03 appears in Text Box 1.

Which field in your screen can be made a Flexfield is decided in the Application Level. A user cannot change it. But, how many text boxes should pop up when the cursor enters into it is decided at the user level. The user can also decide what shall be the kind of data (Character or Numeric) that can go into each one of the text box that pop up and also he can decide how many characters or digits a pop up text box can accept.

Technically, a pop up text box is called a Segment and the combination of the data type (Character or Numeric) and the maximum length (Maximum number of characters or digits that can go into a text box) is called a Value Set.

You have to create one value set for each segment and you can choose as high as 30 segments for a Flexfield.

The method of defining the Flexfield remains the same through out Oracle Applications. Though there are six flexfields, as listed above, can be created in Oracle Inventory, as the method of creation is exactly the same, we will discuss only one, which is the Item Category Flexfield.

Suppose you want to segregate all the items in your subinventories. You have decided to classify them as Electronic, Mechanical and Others. After the first classification, you will get three groups of items under three different headings. Now, you have decided to classify each group as Buy, Make and Others. After the second classification you will get nine groups of items as Electronic.Buy, Electronic.Make, Electronic.Others Mechanical.Buy, Mechanical.Make, Mechanical.Others, Others.Buy, Others.Make and Others.Others.

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Beginner’s GuideNow, look at the classification names. Each one is made up of two words, one is to the left side of the dot and the other is to the right side of the dot. So, we can say that category names in the example given above are made up of two segments. Now, if we list the possible values for Segment 1 and Segment 2, it will be as follows.

Possible Values for Segment 1 Possible Values for Segment 2Electronic BuyMechanical MakeOthers Others

From the above list we can find that the values for Segment 1 are made up of characters and the length of the longest value is 10. Similarly, the values for Segment 1 are also made up of characters and the length of the longest value is 6. So, we can finalize that we have to define two value set as follows.

Value Set 1 Value Set 2Data Type : Character Data Type : CharacterMax Length : 10 (12 on safer side) Max Length : 6 (8 on safer side)

We have now made all basic preparations needed for creating a Flex Structure. Now, we will see how it can be implemented.

1.1.2.1 Define Value sets

Value Set for the First Segment(a) N Setup Flexfield Validation Sets(b) Enter a Name (Say VS 1)(c) Enter a Description(d) Choose a Data Type (Char)(e) Choose the Max Size (12)(f) Save

Value Set for the Second Segment(a) N Setup Flexfield Validation Sets(b) Enter a Name (Say VS 2)(c) Enter a Description(d) Choose a Data Type (Char)(e) Choose the Max Size (8)(f) Save

1.1.2.2 Define Flex Structure

(a) N Setup Flexfield Key Segments(b) F11, Keep the cursor in ‘Application’, Type O%I%, Ctrl + F11

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Beginner’s GuideSee that Oracle Inventory appeared in the field ‘Applications’

(c) Move Cursor to the field ‘Flexfield Title’(d) Press the down arrow key repeatedly till the value Item Categories

appears in the field.(e) Enter a name for your Structure (Say ‘My Structure’)(f) Optionally enter a description(g) Click on the push button ‘Segments’(h) Enter Num (1)(i) Enter a name for your first segment (Elect/Mech)(j) Enter a window prompt for your first segment

(Electronic/Mechanical)(k) In the field Column choose the value SEGMENT1(l) In the Value set field choose the name of the Value Set defined for

the first segment. That is VS 1(m)Move cursor to the next line(n) Enter Num (2)(o) Enter a name for your second segment (Buy/Make)(p) Enter a window prompt for your first segment (Buy/Make)(q) In the field Column choose the value SEGMENT2(r) In the Value set field choose the name of the Value Set defined for

the second segment. That is VS 2(s) Save

1.1.2.3 Compile the Flex Structure(Continuation)

(t) Come back to the first window by closing the current window(u) Check the check box Freeze Flexfield Definition(v) Click on the push button ‘Compile’(w)Click on OK

(x) Help View My Request(y) Click on the push button ‘Find’(z) See that the Server processed your request to compile the Flexfield

definition

1.1.2.4 Enter Possible Values for Each Segment

(a) N Setup Flexfields Key Values(b) Choose the radio button Value Set(c) Enter the name of the first Value Set (VS 1)(d) Click on the push button ‘Find’(e) Enter values Electronic, Mechanical and Others(f) Save

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Oracle Inventory

Beginner’s Guide(g) Close(h) N Setup Flexfields Key Values(i) Choose the radio button Value Set(j) Enter the name of the first Value Set (VS 2)(k) Click on the push button ‘Find’(l) Enter values Buy, Make and Others(m) Save

1.1.2.5 Define Category Codes (Category Names)

Here, you are defining the necessary combinations. In our example, we have seen that nine combinations are possible. But it is absolutely not essential that you should create all the possible combinations. You need to create only that many combinations which you wish to use as Category Names. (a) N Setup Item Categories Category Codes(b) Keep the cursor in line one and choose the Structure Name (My

Structure)(c) Tab. As soon as the cursor enters the field Category, the flexfields

pop up with two text boxes named ‘Mechanical/Electronic’ and ‘Buy/Make’. Choose the value Electronic in the first field and a value of Buy in the second field.

(d) Click on OK(e) Optionally enter a description for the combination just created(f) Move Cursor to he next line and repeat steps (b) to (d) till all the

required combinations are made.(g) Save

1.1.2.6 Define Category Sets

(a) N Setup Item Categories Category Sets(b) Enter a name for the Category Set (My Inventory CS)(c) Optionally enter a description(d) Choose the Flex Structure (My Structure)(e) Choose a value for the ‘Controlled At’ field (Organization

or Master). If Master is selected as value for this field, the Items assigned to this Category Set can not have different category names in different organizations and if it is controlled at Organization level the Items assigned to this Category set can have different Category Names in different organizations.(Further explanation for this shall be given in step 1.2)

(f) Choose the combination Others.Others as Default Category

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Beginner’s Guide(Explanation shall be provided in step 1.2

(g) Check the check box Enforce Valid Categories(h) In the lines below create only those combinations that you

want a user to use them as category names.(i) Save

You will be able to create combinations that are already defined in step 1.1.2.5. But, here you are permitted to exclude certain combinations that are already created in step 1.1.2.5. Because you have checked the check box ‘Enforce Valid Categories’ a user will be able to use only those combinations that are made below.

When creating combinations, see that you are not creating the same combination that is already mentioned in step (f) above (Others.Others in this case).

1.1.2.7 Assign Items to Category Codes(Continuation)

(j) Click on the push button ‘Assign’(k) Choose the first item and Tab to the field Category(l) Choose a Category Code(m)Move cursor to next line and repeat steps (j) to (l)(n) Repeat till all the required items are assigned to the

required Category Code(o) save

1.1.2.8 List the Items Belonging to a Particular Category

Change organization to V1-Vision Operations

(a) Help View My Request(b) Click on the push button ‘Submit a New Request’(c) Choose the report named Item Categories Report(d) Enter the following parameters

Category Set : My Inventory CSCategory From:(Choose a combination to which you have

already assigned items.Category To : Choose the same value mentioned above.

(e) Click on OK(f) Click on the push button ‘Submit’(g) Click on No(h) Click on ‘Find’

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Beginner’s Guide(i) When the report processing is completed, click on the push button

‘View Output’. You will see that the report lists all items that were assigned to the category selected in step (d) above.

1.2 Assign Default Category Sets

Oracle Applications identifies eight functional areas in any organization as follows.

InventoryPurchasingPlanningServiceCostingEngineeringOrder EntryInternal Orders

Out of the 158 attributes of an item, eight are called Key Attributes or Status Attribute. Each Key Attribute stands for one of the functional areas given above. It is mandatory that every functional area must have a Category Set and each item must be assigned to the respective Category Set as soon as you enable the corresponding Key Attribute. To achieve this we assign a Default Category Set to each functional area listed above.

Functional Area Key Defining Attribute Enabling ValueInventory Inventory Item YesPurchasing Purchased YesPlanning MS/MRP Planning MRP Planning or

MPS PlanningService Serviceable Product YesCosting Costing Enabled YesEngineering Engineering Item YesOrder Entry Customer Ordered YesInternal Orders Internal Ordered Yes

1.2.1 N Setup Items Categories Default Category set1.2.2 Choose a Category Set against each functional area.1.2.3 Save

(Please do not change the existing Category Set)

In step 1.1.2.6 (e) we have seen that a Control Level is required to be defined when you define a Category Set. Similar to this the Item attributes also can be controlled at two levels (Master or Organization). Also we

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Beginner’s Guidehave seen that enabling the Key Attribute is the point of time when an Item is assigned to its respective functional area by the system. Because of this very reason, if a particular Key Attribute is controlled at Master Level, the Category Set assigned to its corresponding functional area also must be controlled at Master Level and if the Key Attribute is controlled at Organization Level, then the Category Set assigned to its corresponding functional area also must be controlled at Organization Level.

We have also seen that in a Category Set there will be many Category Names. Now, the question is, out of the many Category Names available in a Category Set assigned to a particular functional area, the system should assign the item to which Category Name. The system will always assign all the items only to that particular Category Name which you have defined as the Default Category in the Category Set defining window. Refer step 1.1.2.6 (f). After defining the items, you have to reassign the actual category as follows.

From the Item defining window,Special Categories

In the window that appears, you can change the category name.

1.3 Define Workday Calendar

1.3.1 N Setup Organization Calendars1.3.2 Enter a name for the Calendar1.3.3 Optionally enter a description1.3.4 Select a Quarterly Type1.3.5 Choose the Calendar Date Ranges

(Choose the From date in such a way that the starting day is a Monday)

1.3.6 Click on the push button ‘Workday Pattern’1.3.7 Enter a Seq. Number1.3.8 Enter days On (say 6)1.3.9 Enter days Off ( say 1)

If your calendar starts on a Monday, this pattern means that Sunday is Off.

1.3.10 Optionally enter a description1.3.11 Click on the push button ‘Shifts’1.3.12 Enter a Shift No (say 1)1.3.13 Optionally enter a description1.3.14 Move cursor to the next line and enter 2 and so on1.3.15 Keep the cursor in shift number 1 and click on the push button

‘Workday Pattern’

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Beginner’s GuideAssuming that your calendar stats on Monday, if you want Wednesday Off for your first shift enter the pattern as follows.

Seq On Off1 2 12 4 0

Always ensure that the total of the On/Off must be equal to 7

1.3.16 Save and close the window1.3.17 Keep the cursor in shift number 2 and define the workday pattern

as mentioned above.

1.3.18 Keep the cursor in Shift 1 and click on the push button ‘Times’Suppose the first shift timing is from morning 7.00 to evening 3.30 with a break of ½ an hour from 11.00 to11.30, enter the values as follows.

Start Stop7:00:00 11:00:0011:30:00 15:30:00

1.3.19 Save and Close the window.1.3.20 Move cursor to the next shift and define the second shift timings as

above.

1.3.21 Click on the push button ‘Dates’1.3.22 Whichever dates you want to make as holidays, just click on those

dates.

Creating Holidays Using Calendar Exception Templates

This is an alternate way of marking the holidays. If you adapt this method, then you need not to do step 1.3.22.

Creating a Calendar Exception Template

(a) N Setup Organization calendar Exception Templates(b) Enter a name for the template(c) Optionally enter a description(d) In the field named Dates, enter all dates which are the holidays(e) Save

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Applying the Exception Template to Your Calendar

1.3.23 After step 1.3.21 skip step 1.3.22 and click on the push button ‘Exception List’

1.3.24 Click on the push button ‘Load…’1.3.25 Choose the Template that you have created1.3.26 Click on OK1.3.27 Save

The dates that entered in the template will be marked as holidays in your Calendar.

Building the Calendar

1.3.28 Special Build1.3.29 Help View My Request1.3.30 Click on ‘Find’

See that your request is processing is complete.

Any changes made in a Calendar will come into effect only after Building it.

1.4 Define ATP Rules

N Setup Rules Available To Promise(Refer page 347 of the Inventory Course Material)

1.5 Define Picking Rules

N Setup Rules PickingRefer page 58 of Inventory Course Material

1.6 Define Locations

N Setup Organizations LocationsRefer page 6 of Inventory Course Material

An organization can have multiple locations defined for it. The name and address of the exact place where the organization is located will be the primary location. Apart from this you can define additional locations for this organization. The other locations may be the locations of the organization’s Godowns at other places.

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Beginner’s GuideIf an outside location is shared by more than one organization, don’t attach an Inventory Organization in the location definition. If the location is used by single organization, it is always suggested to attach the corresponding organization name in the location definition.

Note:If you choose a particular location as the Ship-To location in one of your purchase orders and if no Inventory Organization is attached to that location, then you have to pen the Shipment window of the PO and select the organization there. On the contrary, if the Ship-To location selected in your PO is having an Inventory Organization attached to it, the corresponding organization will automatically default in the Shipment window of your PO.

1.7 Define Organizations

1.7.1 N Setup Organizations Organizations1.7.2 Enter the name of your organization1.7.3 Choose a Type1.7.4 Enter the Establishment date of your organization1.7.5 Choose the location of your organization1.7.6 Choose Internal as value for the field Internal/External1.7.7 Save1.7.8 Bring the cursor to the Organization Classification block1.7.9 Choose the classification Inventory Organization1.7.10 Check the check box ‘Enabled’1.7.11 Save

Entering Accounting Information of the Organization

1.7.12 lick on the push button ‘Others’1.7.13 Choose Accounting Information1.7.14 Press the tab key (Flexfield pop up)1.7.15 Choose Vision Operations as the GRE/Legal Entity1.7.16 Choose Vision Operations as the Operating Unit1.7.17 Choose Vision Operations as the Set Of Books1.7.18 Click on OK1.7.19 Click on OK1.7.20 Save

Entering Inventory Parameters of the Organization

1.7.21 Click on the push button ‘Others’ again1.7.22 Choose Inventory Information

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Beginner’s Guide1.7.23 Enter an organization Code (Can use a maximum of 3

alphanumeric characters)1.7.24 Choose Vision Operations as the Item Master Organization

Though you can choose any Inventory Organization as the Item Master organization, so long as you practice in Concourse, always choose Vision Operations as the Item Master Organization.

If the Item Master Organization is any thing other than Vision Operations, when you try to assign items to organizations, you will find that your organization is not listed.

1.7.25 Choose the Calendar that you have already defined1.7.26 Check or uncheck the check box Allow Negative Balances

If the check box is checked, during inventory transactions, if the qty of any item is driven negative, the system will not object. If the check box is unchecked, you will not be able to do any transaction by which the qty of any item will be driven negative.

1.7.27 Chose the locator control

1.7.28Change region to ‘Costing Information’1.7.29 Choose a Costing Method

If BOM and WIP are installed always Standard as the Costing Method, because Average Costing is not possible were BOM and WIP are installed.

1.7.30 Check or uncheck the check box ‘Transfer Details to GLIf this check box is unchecked, only summary of the Inventory Transactions will be transferred to GL, and not the complete details. Checking this check box can lead to system slow down when the transactions are transferred to GL.

1.7.31 Check or uncheck the check box ‘Reverse Encumbrance’1.7.32 Choose all the Valuation Accounts

1.7.33Change region to ‘Revision, Lot, Serial’1.7.34 Enter a Starting Revision (any single alphanumeric character)

Any item assigned o this organization, if placed under revision control will use this value as the first revision.

1.7.35 Choose a Lot Control Uniqueness (Across Items or None)1.7.36 Choose a Lot Number Generation Level (At organization level, At

item level or User-defined)1.7.37 Enter a Lot Number Prefix (Any alphanumeric characters)1.7.38 Enter the total length of the Lot Numbers

1.7.39 Choose the Serial Number Uniqueness (Within Inventory Items, Within Organization, Across Organizations)

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Beginner’s Guide1.7.40 hoose the Serial Number Generation Level (At item level, At

organization level)1.7.41 Enter a Serial Number Prefix (any alphanumeric character)1.7.42 Enter a Starting Serial Number

1.7.43 Change region to ‘ATP’ Pick, Item Sourcing’1.7.44 Choose an ATP Rule

If no ATP Rule is attached, you will not be able to do Sales Order Scheduling in Order Entry.

1.7.45 Choose a Picking Rule1.7.46 Enter a Subinventory Order (The value you enter here will be used

as a default for all the Subinventories of the organization)1.7.47 Enter a Locator Order (The value you enter here will be used as a

default for all the Subinventories of the organization)1.7.48 Choose the Item Source Type (Supplier or Inventory)1.7.49 If Inventory is selected as the Source Type, choose the

Organization from where you source the items.1.7.50 If the organization name is entered, choose the name of the

Subinventory from where you source the material.

(The values you enter here doesn’t have too much of meaning. Even if you enter Inventory as the Source Type, you can purchase items from Suppliers)

1.7.51 Change region to ‘Inter-org Information’1.7.52 Choose a Inter-organization Transfer Charge type1.7.53 Choose all the Accounts

1.7.54 Change region to ‘Other Accounts’1.7.55 Choose all the Accounts1.7.56 Save and Close

Entering Receiving Options for the Organization

If you fail to define the Receiving Options for the Organization, you will not be allowed to make any purchase order receipts in that organization.

1.7.57 Click on the push button ‘Others’ again1.7.58 Choose Receiving Information1.7.59 The options you select in this window will be used as default

values.

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Beginner’s GuideThe critical information that the system seeks from this window is the Receiving Account. Without providing an account you will not be allowed to save. This account is used to create automatic journal entries when PO receipts are made.

1.8 Define Shipping Networks

If you want to transfer materials between organizations, you have to define the Shipping Network

We assume that we want to transfer from M1 to M2 and M2 to M1

1.8.1 N Setup Organizations Shipping Network1.8.2 Choose your current organization in the field Organization1.8.3 Choose a Scope (To Organization, From Organization or From or

To Organization)1.8.4 Move cursor to the lines1.8.5 Choose M1 in the From field1.8.6 Choose M2 in the To field1.8.7 Choose the Transfer Type (Direct or Intransit)

If you have chosen Direct as the Transfer Type, then the remaining two fields will be disabled.

1.8.8 If you have selected Intransit as the Transfer Type, then choose an FOB

Receipt : The shipping organization owns the goods until the receiving organization receives it.

Shipment : The destination organization owns the goods as soon as the shipping organization ships it.

1.8.9 If the Transfer Type is selected as Intransit, then choose a Receipt Routing (Direct, Standard or Inspection Required)

1.8.10 Check or uncheck the check box ‘Internal Orders Required’.If this check box is checked, you will have to create an Internal Sales Order, whenever you want to transfer material from M1 to M2.

1.8.10 Move cursor to the next line1.8.11 Choose M2 in the From field1.8.12 Choose M1 in the To field1.8.13 Repeat steps 1.8.7 to 1.8.101.8.14 Save

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1.9 Define Unit Of Measures

The UOM definition involves two steps as follows Define UOM Classes Define UOM

Define UOM Classes

1.9.1 N Setup Unit Of Measure Classes1.9.2 Create a blank row by pressing Ctrl + Down Arrow keys

1.9.3 Enter a name for the UOM Class1.9.4 Optionally enter a description1.9.5 Enter the name of the UOM that you want to use as the base unit of

measure.

There is no hard and fast rule to decide the Base UOM for a UOM Class. The very frequently used UOM can be taken as the base UOM for that class. When UOM Conversions are defined, the conversions will be defined as one particular UOM of the same class is equal to how many base UOM’s.

For example, if KG is defined as the base UOM of a UOM Class named ‘weight’ then the conversions will be defined as:

1 Quintal = 100 KG’s1 Ton = 1000 KG’s1 Gm = 0.001 KG

1.9.6 Enter a Code for the defined UOM1.9.7 Save

Define Unit Of Measures(Continuation)

1.9.8 Click on the push button ‘Unit of Measure’1.9.9 In this window, you will find that the Base UOM is there already.

But, you can define additional UOM’s for this Class as follows1.9.10 Enter a name for the next UOM of the same Class where your

cursor was when you clicked on the push button ‘Unit Of Measure’.

1.9.11 Enter a code for the above UOM1.9.12 Optionally enter a description1.9.13 Save

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Beginner’s Guide

1.10 Define Item Attribute Control Levels

One hundred and fifty eight attributes are there for every Item. The way in which we set the attributes decides the functionality of he item. The attributes can be controlled at two levels (1) Master and (2) Organization.

Master Level Item Attribute ControlIf a particular attribute is controlled at Master Level, you will be able to update it only at the Master Level. (That is, you have to enter into the item definition window by the navigation N Items Master Items.) When ever you update an attribute that is controlled at the Master Level, the made change will reflect in all organizations to which the item is assigned.

Organization Level Item Attribute ControlIf a particular attribute is controlled at organization level, you will be able to update it only at the Organization Level. (That is, you have to enter into the item definition window by the navigation N Items Organization Items.) When ever you update an attribute that is controlled at the Organization Level, the made change will not reflect in any organization other than the organization where the change is done. For example, suppose the attribute Inventory Item is controlled at Organization Level. When you defined an item you set the above attribute to ‘No’ and assigned to two organizations M1 and M2. After that you updated the item definition by setting ‘Yes’ to Inventory Item from the Item Master Organization (V1). If you check the organization attribute in M1 or M2 for the above item, you will find that the attribute Inventory Item is still disabled. In this case, if you want to enable Inventory Item in M1, first you change the working organization to M1 and then navigate N Items Organization Items and enable the attribute Inventory Item. If you want to enable this attribute in M2 also, then change your working organization to M2 and then navigate N Items Organization Items and enable the attribute Inventory Item

In short we can say that an attribute controlled at Master level will have the same value always in all the organizations, but an attribute controlled at organization level can have different valuesindifferent organizations

Out of the 158 attributes the below given 2 attributes can be controlled only at the master level 18 can be controlled only at the organization level.

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Attributes That Can Be Controlled Only At The Master Level

1. Base Model2. BOM Item Type

Attributes That Can Be Controlled Only At The Organization Level

1. Engineering Item2. Preprocessing Lead Time3. Processing Lead time4. Post processing Lead Time5. Cumulative Manufacturing Lead Time6. Cumulative Total Lead Time7. Fixed Lead Time8. Variable Lead Time

9. Cost of Goods Sold Account10. Encumbrance Account11. Expense Account12. Sales Account

13. Planner14. Planning Exception Set

15. Source Organization16. Source Subinventory

17. WIP Supply Locator18. WIP Supply Subinventory

1.10.1 N Setup Items AttributesThis window is divided into two blocks. In the upper block, 150 attributes are listed and in the lower block, the 8 Status Attributes or Key Attributes are listed.Inthe upper block, against each attribute you can choose a value for the ‘Controlled At’ field. (Master or Organization)

In the lower block also you can choose a value of Master or Organization for the ‘Controlled At’ field. Apart from the control level setting, in the case of Status Attributes, you have to choose a value for the field ‘Status Setting’

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Status Setting of the Key AttributesIn the ‘Status Setting’ field of the key attributes, you can choose either Defaults Value or Sets Value. If Defaults Value is selected, the users will be able to make changes whenever they want. On the contrary, if Sets Value is selected, a user will not be able to update the values even at the Master Level.

The window of Attribute Control will be accessible only by a very high authority of the organization in a real situation.

1.11 Define Item Status Templates

1.11.1 N Setup Items Status Codes1.11.2 Enter a name for the template1.11.3 Optionally enter a description

You can see that all the 8 Status Attributes are listed below with a check box against each one of them. Whether you can check or uncheck the check box as per your requirement.

The ‘Usage’ field is only a display field where you can see what is the Status Setting for each Key Attribute. For example, in the Attribute Control window, suppose you have selected a value of Defaults Value for the attribute ‘BOM Allowed’, a value of Sets Value for the attribute ‘Build in WIP and a value of None for the attribute Purchasable. In the current window you will see the following values in the ‘Usage’ field.

Status Attribute Status Setting Usage

BOM Allowed Defaults value Default Item AttributeBuild in WIP Sets Value Sets Item AttributePurchasable None Not Used

Once when this template is applied to an item and hen saved, even from the master organization no body will be able to update the attribute Build in WIP. If any situation arises in which you want to update the Build in WIP attribute of the above-mentioned item, you have to change the Status Setting of Build in WIP to ‘Defaults Value’ from the ‘Attribute Control’ window. The Attribute Control window will be normally available for a higher authority of an organization.

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1.12 Define User Item Types

User Item Types are nothing but a label for the item. In a given time when a user wants to find out the general functionality of an item, it is difficult to go through all the regions of the item definition window. To save a user from the difficulty mentioned above, we use a label or name or Item Type to roughly understand the way in which the attributes are set in general. By seeing the name, say, ‘Purchased Item’ we get an idea about the possible attribute setting of that item. Similarly, by seeing the name, say, ‘Finished Good’ we get an idea about the possible attribute setting of that item. This name or better to say this User Item Type is assigned in the first window of Item definition. 1.12.1 N Setup Items Item Types1.12.2 Click on the Lines1.12.3 If no blank row is available, create one by pressing the keys Ctrl

and Down Arrow together.1.12.4 Enter a Code for the Item Type1.12.5 Enter a Meaning for the Code

The word(s) you enter as Meaning will be the word(s) that is going to be displayed in the LOV of the field named ‘User Item Type’ in the Item definition window.

1.12.6 Optionally enter a description1.12.7 Optionally enter an ‘Effective From’ date.1.12.8 Check the check box ‘Enabled’1.12.9 Save

1.13 Define User Item Type Templates

1.13.1 N Setup Items Templates1.13.2 Enter a name for the Template1.13.3 Optionally enter a description1.13.4 Choose an organization code only if you want to restrict the use of

this template only n a particular organization, otherwise leave this field blank

1.13.5 Choose values for all those attributes that are common for a set of items.

1.13.6 Save

1.14 Define Asset Items and Assign to Organizations

Caution:In no case, the Primary Unit Of Measure assigned to an item CAN NOT be changed after saving.

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1.14.1 Items Master Items1.14.2 Enter a name (code) for the item1.14.3 Enter a description for the item (mandatory field)

Setting the Attributes by Copying from a User Item Type Template1.14.4 Special Copy From…1.14.5 Choose the required Template name (Leave the item field blank)1.14.6 Click on the push button ‘Done’1.14.7 Save

Assigning the Items to Different Organizations

(This must be done in continuation to the step 11.14.7)

11.14.8 Special Organization Assignment (This option in the Special menu will be available only if the item definition is saved)

11.14.9 The names and codes of all organizations that are coming under the current item master organization will be there in this window with a check box to the right of each organization name.

Check the above said check box against all those organization names to which you want to assign the current item.

11.14.10 Save

Note:In your organization definition, if any organization other than V1-Vision Operations, then you will not find your organization in the above window.

1.15 Define Expense Items and Assign to Organizations

1.15.1 The complete procedure is exactly the same as in the case of defining an asset item. All that you have to do is, after step 11.14.6, that is, after applying the template, change the region to ‘Costing’ and set the following attributes.

Costing Enabled - NoAsset Item - No

After ensuring the above attribute setting, you can proceed with the steps from 11.14.7

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1.16 Define UOM Conversions

You can define two types of UOM Conversions.

Standard Conversions Item Specific Conversions

The Item Specific Conversions can conversions can again be made in two ways.

o Inter Class Conversionso Intra Class Conversions

Standard ConversionsStandard Conversions are defined between standard UOM’s like Kilogram, Gram, Meter, Centimeter, Each, Dozen etc. As the defined conversion factors are universally accepted figures, it can be made applicable to any item.

Standard Conversions can be defined even before defining the item

Assumptions:Unit of Measure Class : WeightUOM’s defined for the above class : Gm, Kg, Quintal and TonBase UOM : Kg

StandardConversion factor for:Gm = 0.001Quintal = 100Ton = 1000

1.16.1 N Setup Unit of Measures Conversions1.16.2 Choose the region ‘Standard’1.16.3 Choose a UOM other than the Base Unit of Measure in the field

‘Unit’. (Gm, Quintal or Ton)1.16.4 Tab to the field ‘Conversion’. 1.16.5 Enter the Conversion factor (for Gm, enter the value 0.001, for

Quintal, enter the value 100 and for Ton, enter the value 1000)1.16.6 Save

Read the display field at the bottom of the screen

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Item Specific Conversions

Item Specific Conversions can be defined only after defining items.

There will be many situations when you want to use a different UOM for an item when transacting it. If a different UOM is used, naturally there must be a relationship established between the involved UOM’s. We have already seen that when standard conversions are defined between different UOM’s of the same class, it is not item specific. It need not be item specific because the conversions are done between UOM’s of the same class and moreover, the used conversion factors are world wide accepted standards.

Now, let us look into a practical situation where you use a UOM of Box for a particular item. Here the question is 1 Box = How Many. Even though both the UOM’s involved in this conversion belong to the same class, the answer to this question can be given only if the item is specified. We can say that if the item A01 is packed into the box, 1 Box = 50 Each. If item A02 is packed into the box, 1 Box = 25 Each. That is, if conversions are defined for non-standard UOM’s, they must be Item Specific.

Now, let us analyze a situation when you want to define a conversion between UOM’s of two different classes. Assume that we want to define conversion between KG and Cubic Meter. In this case also, we will be able to derive a conversion factor only if the item is known. So, a conversion between UOM’s of different classes, is also will be Item Specific.

A conversion defined for an item between two UOM’s of the same class is known as Intra Class Conversion.

A conversion defined for an item between two UOM’s of different classes is known as Inter Class Conversion.

Intra Class Conversions

1.16.7 N Setup Unit Of Measures Conversions1.16.8 Change region to Intra-class1.16.9 Choose an item1.16.10 Choose a UOM other than the Base UOM in the field named ‘Unit’1.16.11 Choose a conversion factor in the field named ‘Conversion’1.16.12 Save1.16.13 Move cursor to the next line and repeat steps 1.16.9 to 1.16.12

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Inter Class Conversions

The conversions of this type are always defined with the primary UOM of the item.

1.16.7 N Setup Unit Of Measures Conversions1.16.8 Change region to Inter-class1.16.9 Choose an item

As soon as you choose the item, in the Source block the ‘Base Unit’ of the class to which the item’s primary UOM belongs will default.

1.16.10 Choose a base UOM of a different class other than the Class to which the primary UOM of the selected item belongs, in the field named ‘Base Unit’ of the Destination block

1.16.11 Choose a conversion factor in the field named ‘Conversion’1.16.12 Save1.16.13 Move cursor to the next line and repeat steps 1.16.9 to 1.16.12

1.17 Define Item Revisions

When an item is placed under Revision Control, the value assigned to the field ‘Starting Revision’ in the organization definition will be used as the first revision. When subsequent revision numbers are required you have to define it separately as follows.

1.17.1 N Items Organization Items1.17.2 Enter the item name1.17.3 Click on the push button ‘Find’1.17.4 Special Revisions1.17.5 Enter a new revision1.17.6 Optionally enter a description1.17.7 Enter an effective From date.

You can assign a future date also as the effective date1.17.8 Save

1.18 Define Item Relationships

1.18.1 N Items Item Relationships1.18.2 Choose a From Item1.18.3 Choose a To Item

1.18.4 Choose the relation Type (Related or Substitute)

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Beginner’s Guide1.18.8 Indicate whether the relationship is one way or reciprocal by checking or unchecking the check box ‘Reciprocal’

1.19 Create Item Catalog

Item Catalog is used to query item by one of its values. We will create a Catalog with the items and values as given below.

Descriptive Elements

Values for Items

A01 A02 A03 A04 A05 A06CCD ½” 1/3” ¼” - - -Color/Mono Color Mono Color Color Mono ColorLens Size 6 x 24 6 x 36 6 x 48 - - -Resolution 330 400 450 300 400 400Monitor Size - 17” 14” 21”Pixels - 300 x 400 600 x 400 800 x 400

Define Catalog Group and assign Descriptive Elements

1.19.1 N setup Items Catalog Group1.19.2 Enter a name for the Catalog Group1.19.3 Optionally enter a description1.19.4 Click on the push button ‘Details’1.19.5 Change region to ‘Descriptive Elements’1.19.6 Enter a Seq number1.19.7 Enter the first name of the Descriptive Elements of this catalog

Group1.19.8 Check or uncheck the check box ‘Required’

If this check box is checked, when you assign an item to the Catalog Group, for any item, you will have to enter a value for this descriptive element. On the other hand, if this check box is unchecked, a value for this field, while assigning items to the Catalog Group, will be optional.

1.19.9 Move Cursor to the next line1.19.10 Repeat steps 1.20.5 to 1.20.8 till all the descriptive

elements are entered.

Assign Items to the Catalog Group

1.19.11 N Items Master Items

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Beginner’s Guide1.19.12 F11, enter a partial item name, Ctrl + F111.19.13 Special Catalog1.19.14 Choose the Catalog Group Name1.19.15 Check the check box ‘Catalog Complete’1.19.16 Click on the ‘Lines’1.19.17 All the descriptive elements that you have entered for the

Catalog Group defaults.1.19.18 Enter values of the item queried in step 1.20.10 for each

Descriptive Element. If a particular descriptive element is not applicable for a particular item, then you can leave that field blank.

1.19.19 Query the next item and repeat steps 1.20.11 to 1.20.16 till all the required items are assigned to the Catalog Group

Searching for Item in the Catalog by Specifying a Descriptive Element Value

1.19.20 N Items Items Search1.19.21 Choose the required organization1.19.22 Change the region to Item Catalog1.19.23 Choose the catalog Group Name

All the descriptive elements defined for the catalog group will default

1.19.24 Enter a value against one of the descriptive elements. Say, we entered a value of 400 against the descriptive element ‘Resolution’.

1.19.25 Click on the push button ‘Find’The items A02, A05 and A06 must be listed as these three items are having a value of 400 for the descriptive element Resolution.

1.20 Define Asset Subinventories and Assign Items

Subinventories are always organization specific. So, you have to define subinventories separately for each organization. Between organizations, the subinventory names can be repeated.

1.20.1 N Setup Subinventories1.20.2 Click on the push button ‘New’1.20.3 Enter a name for the Subinventory1.20.4 Optionally enter description 1.20.5 Check the check box ‘Qty Tracked’1.20.6 Check the check box ‘Asset Subinventory’1.20.7 Check or uncheck the remaining check boxes (Include in ATP,

Allow Reservation, Nettable) as per your requirement.

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Beginner’s Guide1.20.8 Choose a ‘Locator Control’ option (None, Prespecified, Dynamic

Entry or Item Level)1.20.9 Optionally enter a ‘Picking Order’1.20.10 Optionally enter the following Lead Times.

Preprocessing,ProcessingPost Processing

1.20.11 Optionally enter the following item Sourcing details

Type : (Supplier or Inventory)Organization : (If ‘Type’ is selected as ‘Inventory’, then

optionally choose an organizationSubinventory : (If ‘Type’ is selected as ‘Inventory’, then

optionally choose a Subinventory)

1.20.12 Change region to ‘Accounts’1.20.13 Choose all the accounts1.20.14 Save

Assign Items(Continuation)

1.20.15 Click on the push button ‘Item/Subinventory’1.20.16 Choose the Item1.20.17 Move cursor to the next line and choose the next item1.20.18 Repeat the above step till you finish assigning all the items1.20.19 Save

1.21 Define Expense Subinventories and Assign Items

1.21.1 N Setup Subinventories1.21.2 Click on the push button ‘New’1.21.3 Enter a name for the Subinventory1.21.4 Optionally enter description 1.21.5 Uncheck the check box ‘Qty Tracked’

As soon as you uncheck the check box ‘Qty Tracked’, al the remaining check boxes will be automatically unchecked.

1.21.6 Change region to ‘Accounts’1.21.7 Choose all the accounts1.21.8 Save

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Assign Items(Continuation)

1.21.9 Click on the push button ‘Item/Subinventory’1.21.10 Choose the Item1.21.11 Move cursor to the next line and choose the next item1.21.12 Repeat the above step till you finish assigning all the items1.21.13 Save

1.22 Define Vehicle

1.22.1 N Items Master Items1.22.2 Enter the name of the vehicle in the Name field1.22.3 Enter a description (mandatory)1.22.4 Choose the ‘User Item Type’ as Vehicle from the LOV. Do not

copy any template)1.22.5 Change region to ‘Physical Attributes’1.22.6 Check the check box ‘Vehicle’1.22.7 Optionally you can enter the remaining Physical Attributes1.22.8 Save

1.23 Define Container Types

1.23.1 N Setup Items Container Types1.23.2 Click on the Lines1.23.3 Enter a Code for the Container Type that you are defining1.23.4 Enter a meaning for the Code. This meaning that you enter here

will be available every where else in the LOV where ever you want to choose a Container Type

1.23.5 Optionally enter a description1.23.6 Enter an effective From date1.23.7 Check the check box ‘’Enabled’1.23.8 Save

1.24 Define Containers

1.24.1 N Items Master Items1.24.2 Enter the Container Name1.24.3 Enter a description1.24.4 Choose the ‘User Item Type’ as Box, carriage etc from the LOV.

Do not copy any template)1.24.5 Change region to ‘Physical Attributes’1.24.6 Check the check box ‘Container’1.24.7 Choose a Container Type from the LOV

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Beginner’s Guide1.24.8 Optionally choose the remaining Physical Attributes1.24.9 Save

1.25 Define Freight Carriers

Normally people consider Freight carrier as a Vehicle. As far as Oracle Applications is concerned this is not true. In Oracle Appps, the term Freight Carrier means, a transporting company. Vehicle you have to define as an Item as mentioned in 1.23.

1.25.1 N Setup Freight Carriers1.25.2 Enter a CarrierName1.25.3 Optionally enter a description1.25.4 Choose a ‘Distribution Account’1.25.5 Save

1.26 Define Transaction Source Types

1.26.1 N Setup Transactions Types1.26.2 Change region to ‘User-defined’1.26.3 Choose a Source Type1.26.4 Choose an action1.26.5 Save

Note:Refer page 190 of the Course Material to find the list of Source Types and actions that you can choose in steps 1.27.3 and 1.27.4

1.27 Define Transaction Reasons

1.27.1 N Setup Transactions Reasons1.27.2 Enter a transaction reason1.27.3 Optionally enter a description1.27.4 Save

1.28 Define Account Aliases

1.28.1 N Setup Account Aliases1.28.2 Enter an Alias1.28.3 Optionally enter a description1.28.4 Choose an Account for which the Alias is defined1.28.5 Save

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1.29 Define Shipping Methods

1.29.1 N Setup Organization Shipping Methods1.29.2 Enter a Code for the new shipping method1.29.3 Enter a meaning for the above Code. This meaning that you enter

here will be the value that you are going to get in the LOV wherever a Shipping Method is to be selected.

1.29.4 Optionally enter a description1.29.5 Enter an effective From date1.29.6 Check the check box ‘Enabled’1.29.7 Save

1.30 Define Transit Times for Shipping Methods

1.30.1 N Setup 1.30.2 Choose the From Organization and Location1.30.3 Choose the To Organization and Location1.30.4 Choose the Shipping Method1.30.5 Enter the number of days that the specified shipping method will

take to transfer material between the organizations mentioned in steps 1.31.2 and 1.31.3.

1.30.6 Move cursor to the next line and repeat steps 1.31.4 and 1.31.5 till then Intransit Times for all the possible Shipping Methods are defined.

1.30.7 Check the check box ‘Default Method’ only for that Shipping Method which you frequently used.

1.30.8 Save

1.31 Define Organization Access

1.31.1 N Setup Organizations Organization Access1.31.2 Choose an Organization1.31.3 Choose a application (Oracle Purchasing, Oracle Human

Resources etc) in the field named ‘Application’1.31.4 Choose a Responsibility name in the field named ‘Name’1.31.5 Move cursor to the next line and repeat steps 1.32.2 to 1.32.41.31.6 Save

Note:The organization names can be repeatedThe combination of ‘Application’ and ‘Responsibility’ cannot be repeated. That is, the value derived by combining the values of ‘Application’ and ‘Responsibility’ must be unique. You can make combinations as follows.

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Application NameOracle Purchasing PO Super UserOracle Purchasing Local User

1.32 Launching Transaction Managers

If the Cost Manager is inactive for an organization, in WIP, the Resources and Materials will not be costed when assemblies are moved from operation to operation or during Closing the Job. If the Cost Manager is inactive, you can activate it as follows.

1.32.1 N Setup Transactions Interface ManagersIf the status of the ‘Cost Manager’ is Active do not do anything. Else activate it as follows.

1.32.2 Keep the cursor in ‘Cost Manager’1.32.3 Special Launch Manager1.32.4 Close the Form1.32.5 N Setup Transactions Interface Managers

See that the status of ‘Cost Manager’ is change to ‘Active’

2.0 Open Inventory Accounting Periods

You will be permitted to do any transaction in Oracle Inventory, only in an Open Period.

2.1 N Accounting Close Cycle Open Inventory Accounting Periods2.2 Keep the cursor in the current month and click on the push button ‘Change Status’2.3 Choose the option ‘Open’2.4 Move cursor to one step above and repeat steps 2.2 and 2.3

3.0 Miscellaneous Transactions

3.1 Miscellaneous Receipt

3.1.1 N Transactions Miscellaneous Transactions3.1.2 Choose the Type as Miscellaneous Receipt3.1.3 Click on the push button ‘Transaction Lines’3.1.4 Choose an Item3.1.5 Choose the Subinventory

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Beginner’s Guide3.1.6 Enter the Qty3.1.7 Choose the Account3.1.8 Optionally choose a Reason3.1.9 Save

Checking the On-hand Quantities

3.1.10 N On-hand Availability On-hand Quantities3.1.11 Enter the Item3.1.12 Click on the push button ‘Find’3.1.13 If On-hand quantity exists for the item a new window will be

opened with details of the on-hand quantities3.1.14 Click on the push button ‘Subinventory’

You can now see Subinventory wise distribution of the item.

3.2 Miscellaneous Issue

3.2.1 N Transactions Miscellaneous Transactions3.2.2 Choose the Type as Miscellaneous Issue3.2.3 Click on the push button ‘Transaction Lines’3.2.4 Choose an Item3.2.5 Choose the Subinventory3.2.6 Enter the Qty3.2.7 Choose the Account3.2.8 Optionally choose a Reason3.2.9 Save

Checking the On-hand Quantities

3.2.10 N On-hand Availability On-hand Quantities3.2.11 Enter the Item3.2.12 Click on the push button ‘Find’3.2.13 If On-hand quantity exists for the item a new window will be

opened with details of the on-hand quantities3.2.14 Click on the push button ‘Subinventory’

You can now see Subinventory wise distribution of the item.

3.3 Transferring Items Between Subinventories

3.3.1 N Transactions Subinventory Transfer3.3.2 Choose the Type as Inventory sub transfer3.3.3 Click on the push button ‘Transaction Lines’3.3.4 Choose the Item

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Beginner’s Guide3.3.5 Choose the Subinventory (From Subinventory)3.3.6 Choose the ‘To Subinv’3.3.7 Enter the Qty to be transferred3.3.8 Optionally choose a Reason3.3.9 Save3.3.10 Check On-hand quantities.

You must see that the Qty enteredinstep 3.3.7 is incremented in the Subinventory that is selected in step 3.3.6 and decremented in the subinventory that is selected in step 3.3.5.

3.4 Transferring Items Between Organizations Without ISO

You will be able to transfer items between organizations only if Shipping Network is defined for the organizations involved. Refer step 1.8 above.

If the check box ‘Internal Orders Required’ is checked in the Shipping Network, you will be able to transfer items only through an Internal Sales Order. How an Internal Sales Order is created shall be described in the Order Entry Notes.

When you transfer items between organizations without using an Internal Sales Order, there are three ways depending upon the Transfer Type (Direct or Intransit) and Receipt Routing (Standard or Inspection Required) you defined in the Shipping Network.

If the defined Transfer Type for a particular Shipping Network is Direct, the qty in the corresponding subinventory of the Destination organization will be incremented as soon as you transfer qty from the Source organization. You need not to receive the material in the Destination organization.

If the defined Transfer Type is Intransit and the Receipt Routing is Standard for a particular Shipping Network, then you have to first Receive the transferred item in the destination organization and later in a separate transaction, the received items should be delivered to the required Subinventory.

If the defined Transfer Type is Intransit and the Receipt Routing is Inspection Required for a particular Shipping Network, then you have to first Receive the transferred item in the destination organization. Then in a separate transaction you have to inspect the received items

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Beginner’s Guideand later in a third transaction, the accepted items should be delivered to the required Subinventory.

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Direct Inter-organization Transfer

3.4.1 N Transactions Inter-org Transfers3.4.2 Choose the To Org3.4.3 Ctrl + L. The Type will default as per the definition in the

Shipping Network3.4.4 Enter a value in the field named ‘Number’ in the ‘Shipment’ block

(This is a mandatory field)3.4.5 Optionally enter the Freight Carrier, waybill/Airbill, Containers

and Expected Receipt Date3.4.6 Click on the push button ‘Transaction Lines’3.4.7 Choose the item3.4.8 Choose the (source) Subinventory3.4.9 Choose the (destination) ‘To Subinventory’3.4.10 Enter Qty3.4.11 Optionally enter a Reason

Entering Inter-org Transfer Charge

If Requested Value is selected as the option in the organization definition for the field ‘Inter-org Transfer Charge’, then the actual value can be entered while doing the inter-organization transfer as follows.

3.4.12 Move cursor to the field named ‘Added Value’3.4.13 Enter a value in this field3.4.14 Save

If Requested Percent is selected as the option in the organization definition for the field ‘Inter-org Transfer Charge’, then the actual percent can be entered while doing the inter-organization transfer as follows. This percentage that you enter here is the percentage of the Transaction Value.

3.4.14 Skip steps 3.4.12 to 3.4.143.4.15 Move cursor to the field named ‘Transfer Charge’3.4.16 Enter the percentage of transaction value that you wish to include

as transfer charge.3.4.17 Save

Entering Freight Charges

3.4.18 Move cursor to the field named ‘Transportation Cost’3.4.19 Enter the freight charge in this field

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Beginner’s Guide3.4.20 Save

3.4.15 Change organization to the Destination Organization

Check On-hand Quantities3.4.16 On-hand Availability On-hand Quantities3.4.17 Enter the transferred item3.4.18 Click on the push button ‘Find’

You must see that the transferred qty is incremented in the Destination organization.

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Intransit/Standard Inter-organization Transfer







3.4.12 Move cursor to the field named ‘Added Value’3.4.13 Enter a valueinthis field3.4.14 Save






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Check On-hand Quantities3.4.23 N On-hand Availability On-hand Quantities3.4.24 Enter the transferred item3.4.25 Click on the push button ‘Find’

You will see that the transferred qty is NOT incremented in the Destination organization.

Receiving the Item in the Destination Organization3.4.26 N Transactions Receiving Receipts3.4.27 Enter the Number you entered in step 3.4.43.4.28 Click on the push button ‘Find’3.4.29 Close the Receipt Header

You will see that there is a value of Receiving in the field named ‘Destination’

3.4.30 Ensure that your current organizations location is defaulted as value for the field named Deliver-To

3.4.31 Check the check box at the extreme left side of each line3.4.32 Save3.4.33 Click on the push button ‘Header’3.4.34 Note down he Receipt Number3.4.35 Close


You will see that the transferred qty is still NOT incremented in the Destination organization.

Delivering the Received Item to a Suitable subinventory of the Destination Organization 3.4.39 N Transactions Receiving Receiving Transactions3.4.40 Enter the Receipt Number noted down in step 3.4.253.4.41 Click o the push button ‘Find’3.4.42 Check the check box at the extreme left side of each line

You will see that the ‘Destination’ is automatically changed to Inventory

3.4.43 Choose a subinventory name to which you want to deliver the received item as value for the field named ‘Subinventory’

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This time you must see that the Delivered Qty is incremented in the destination organization.

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Intransit/Inspection Required Inter-organization Transfer







3.4.12 Move cursor to the field named ‘Added Value’3.4.13 Enter a value in this field3.4.14 Save






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You will see that the transferred qty is NOT incremented in the Destination organization.

Receiving the Item in the Destination Organization 3.4.27 N Transactions Receiving Receipts3.4.28 Enter the Number you entered in step 3.4.43.4.29 Click on the push button ‘Find’3.4.30 Close the Receipt Header

You will see that there is a value of Receiving in the field named ‘Destination’

3.4.31 Ensure that your current organizations location is defaulted as value for the field named Deliver-To

3.4.32 Check the check box at the extreme left side of each line3.4.33 Save3.4.34 Click on the push button ‘Header’3.4.35 Note down the Receipt Number3.4.36 Close



Inspecting the Received Item3.4.40 N Transactions Receiving Receiving Transactions3.4.41 Enter the Receipt Number that you noted down in step 3.4.25

You will see that the ‘Destination’ is still Receiving3.4.42 Click on the push button ‘Inspect’3.4.43 Enter an Action3.4.44 Choose a Status Accept3.4.45 Enter the Qty accepted3.4.46 Move cursor to the next line if the accepted qty is less than the

received qty

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Beginner’s Guide3.4.47 Enter an Action3.4.48 Choose a status Reject3.4.49 Enter the qty rejected

The total of the accepted qty and the rejected qty should match with the qty received

3.4.50 Save



Delivering the Received Item to a Suitable subinventory of the Destination Organization 3.4.54 N Transactions Receiving Receiving Transactions3.4.55 Enter the Receipt Number noted down in step 3.4.253.4.56 Click o the push button ‘Find’

This time you will see that the ‘Destination’ is changed to Inventory

3.4.57 Check the check box at the extreme left side of each line3.4.58 Choose a subinventory name to which you want to deliver the

received item as value for the field named ‘Subinventory’3.4.59 Save


This time you must see that the Delivered Qty is incremented in the destination organization.

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3.5 Tracking Materials in Intransit Inventory

Intransit InventoryIntransit Inventory is not a defined subinventory. The material is in Intransit Inventory means that the material is on the road or better to say that the material is on the move.

Till the transferred quantities are received in the Destination organization, you will be able to see the Intransit Inventory only from the Source Organization

3.5.1 Change Organization to the Organization from where the transfer is made.

3.5.2 N Transactions Transaction Summaries3.5.3 Enter an Item3.5.4 Click on the push button ‘Summarize’3.5.5 Change region to ‘Intransit’

Here you will be able to see the quantities of material lying in the Intransit Inventory.

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4.0 Inventory Controls

‘Inventory Control’ means how individual item or a group of items can be tracked when transactions are performed on it. Oracle Inventory is capable of handling four different types of controls on the items that are assigned to an organization. They are:

4.1 Revision control4.2 Locator Control4.3 Lot Control4.4 Serial Control

The purpose of each type of control and in Oracle Inventory how you can implement one or two or three or all the four controls on an item shall be discussed below.

4.1 Revision Control

Revision Control is normally adopted for identifying a modified item. Let us take the example of an item, Oracle Applications. Even though the name Oracle Applications remains the same for all the versions, they are not one and the same. Depending on the version number, the item named Oracle Applications varies though the difference is marginal in many cases. Thus, when you want to identify the changes made in an item, you can place that item under Revision Control.

4.1.1 N Items Organization Items4.1.2 Enter the item that you want to place under Revision Control4.1.3 Click on the push button ‘Find’4.1.4 Change region to ‘Inventory’4.1.5 Check the check box ‘Revision Control’4.1.6 Save

Hereafter you will not be able to do any transaction with the above item without specifying a valid Revision.

Caution:You cannot change revision control when an item has on-hand quantity. If Revision Control is controlled at Master level, the check for on-hand qty is against the sum of on-hand quantities in all child organizations.

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4.1.7 Transactions Miscellaneous Transactions4.1.8 Choose the Type as Miscellaneous Receipt4.1.9 Click on the push button ‘Transaction Lines’4.1.10 Choose the item selected in step 4.1.24.1.11 Do not choose a value in the field named ‘Rev’4.1.12 Choose the Subinventory4.1.13 Enter Qty4.1.14 Choose the Account4.1.15 Optionally choose a Reason4.1.16 Save

You will see that the system does not permit you to save it, as you have not provided a valid revision in step 4.1.11. Now, chose a revision in the field ‘Rev’ and save. You will see that the transaction is effected.

When you want a new revision for a particular item that should be defined as given in step 1.17

4.2 Locator Control

Locator Control is adopted to find out where exactly the item is lying in a store. Normally Locator Control is adopted for items smaller in size. The locators are defined as Row, Rack Bin. You can customize your Item Locator key flexfield to suit your exact requirement.

Pre-specified Locator Control

4.2.1 In the organization definition (Inventory Parameters region), ensure that you selected the option Determined at Subinventory Level for the field named ‘Locator Control’

4.2.2 In the subinventory definition, ensure that you selected the value Item Level for the field named ‘Locator Control’

4.2.3 N Items Organization Items4.2.4 Enter the item that you want o place under Locator Control4.2.5 Click on the push button ‘Find’4.2.6 Change region to ‘Inventory’4.2.7 Choose a value Prespecified in the field named ‘Locator Control’4.2.8 Save

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Defining Locators for a Subinventory

4.2.9 N Setup Organization Subinventories4.2.10 F11, Enter the Subinventory name, Ctrl + F114.2.11 Click o the push button ‘Open’4.2.12 Click o the push button ‘Locators’4.2.13 By keeping the cursor in the first item, define the locators for it in

the lower block named ‘Locators for this Item Subinventory’4.2.14 Move cursor to the next item in the upper block and repeat the

above step.4.2.15 Save

Now, you cannot do transactions with the above item without choosing a valid locator.

Testing

4.2.16 Transactions Miscellaneous Transactions4.2.17 Choose the Type as Miscellaneous Receipt4.2.18 Click on the push button ‘Transaction Lines’4.2.19 Choose the item selected in step 4.2.44.2.20 Choose a value in the field named ‘Rev’4.2.21 Do not choose a value for the field named ‘Locator’4.2.22 Choose the Subinventory4.2.23 Enter Qty4.2.24 Choose the Account4.2.25 Optionally choose a Reason4.2.26 Save

You will see that the system does not permit you to save it, as you have not provided a valid Locator in step 4.2.21. Now, chose a Locator in the field ‘Locator’ and save. You will see that the transaction is effected.

Dynamic Entry Locator Control

4.2.27 In the organization definition (Inventory Parameters region), ensure that you selected the option Determined at Subinventory Level for the field named ‘Locator Control’

4.2.28 In the subinventory definition, ensure that you selected the value Item Level for the field named ‘Locator Control’

4.2.29 N Items Organization Items4.2.30 Enter the item that you want o place under Locator Control4.2.31 Click on the push button ‘Find’

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Beginner’s Guide4.2.32 Change region to ‘Inventory’4.2.33 Choose a value Dynamic Entry in the field named ‘Locator

Control’4.2.34 Save

4.2.35 Do the Testing as mentioned in step 4.2.16 to 4.2.26

4.3 Lot Control

Lot Control is adopted to identify a group of items. If you are a Textile Manufacturer, the cotton that you receive may be placed under lot control. Each truckload of cotton may be treated as one lot.

4.3.1 Ensure the following values for Lot Control fields (Revision, Lot, Serial region) in your organization definition.

Uniqueness : Across ItemsGeneration : At Item LevelPrefix : Enter an alphanumeric character as prefixTotal Length : Enter a value of 4 if you want to generate three-digit lot number. (The extra 1 is for the prefix)

4.3.2 N Items Organization Items4.3.3 Enter the item that you want to place under Lot Control4.3.4 Click on the push button ‘Find’4.3.5 Change region to ‘Inventory’4.3.6 Choose a value of Full Control for the field named Lot Control4.3.7 Enter a Starting Lot Prefix (an alphanumeric character)4.3.8 Enter a Starting Lot Number4.3.9 Save

Testing

4.3.10 Transactions Miscellaneous Transactions4.3.11 Choose the Type as Miscellaneous Receipt4.3.12 Click on the push button ‘Transaction Lines’4.3.13 Choose the item selected in step 4.3.34.3.14 Choose a value in the field named ‘Rev’4.3.15 Choose a value for the field named ‘Locator’4.3.16 Choose the Subinventory4.3.17 Enter Qty4.3.18 Choose the Account4.3.19 Optionally choose a Reason

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You will see that the system does not allow you to save the transaction as you have not selected a valid lot number for the qty received.

4.3.21 Click on the push button ‘Lot/Serial’4.3.22 Click on the push button ‘Generate’

You will fin a new lot number appears in the field named Lot4.3.23 Enter a partial qty of the total received qty, in the field named

‘Quantity’.4.3.24 Move cursor to the next field4.3.25 Click on the push button ‘Generate’4.3.26 Enter the remaining qty in the ‘Quantity’ field4.3.27 When finished click on the push button ‘Done’

Note:It is definitely not necessary to do steps 4.3.24 to 4.3.26, if you wish to give the same lot number for all the received qty. In that case, you have to enter all the received qty in step 4.3.23.

4.4 Serial Control

Serial Number Control is adopted when you want to track individual pieces of an item. This is generally used for costly items.

4.4.1 Ensure the following values for Serial Control fields (Revision, Lot, Serial region) in your organization definition.

Uniqueness : Within Inventory ItemsGeneration : At Item LevelPrefix : Enter an alphanumeric character as prefixStarting Serial Number : Enter a number

4.4.2 N Items Organization Items4.4.3 Enter the item that you want to place under Serial Control4.4.4 Click on the push button ‘Find’4.4.5 Change region to ‘Inventory’4.4.6 Choose a value of Predefined for the field named Serial

Generation4.4.7 Enter a Starting Serial Prefix (an alphanumeric character)4.4.8 Enter a Starting Serial Number4.4.9 Save

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Generating Serial Numbers

4.4.10 N On-hand Availability Generate Serial Numbers4.4.11 Chose the following parameters for the report

Item : Chose the item selected in 4.4.3Quantity : Enter the total number of serial numbers

you want to generate this time.4.4.12 Click on OK4.4.13 Click on the push button ‘Submit’4.4.14 Help View My Request4.4.15 Click on the push button ‘Find’

See that the server processed your request

Testing

4.4.16 Transactions Miscellaneous Transactions4.4.17 Choose the Type as Miscellaneous Receipt4.4.18 Click on the push button ‘Transaction Lines’4.4.19 Choose the item selected in step 4.4.34.4.20 Choose a value in the field named ‘Rev’ (assumes that the same

item is under Revision control also)4.4.21 Choose a value for the field named ‘Locator’ (assumes that the

same item is under Locator control also)4.4.22 Choose the Subinventory4.4.23 Enter Qty4.4.24 Choose the Account4.4.25 Optionally choose a Reason4.4.26 Save

You will see that the system does not allow you to save the transaction as you have not selected a valid lot number and a valid serial number for the qty received.

4.4.27 Click on the push button ‘Lot/Serial’

If the item is under lot control also, then4.4.28 Click on the push button ‘Generate’4.4.29 Enter a Qty4.4.30 Click on the push button ‘Serial’4.4.31 Choose the radio button ‘Range’4.4.32 The Qty field will display the total qty you are receiving4.4.33 Choose the last number that is to be assigned to the last item of the

received qty.

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Beginner’s GuideSuppose you are receiving 100 items, you must ensure that 100 or more serial numbers are generated before trying to receive the item.

4.4.34 Save

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5.0 Inventory Planning

5.2 Min-Max Planning

Min-Max planning is generally adopted for items, which are regularly purchased. Say, for example, let us consider the purchase of bearings, v-belts etc. The consumption of these types of items will be more or less same every month. So, you can fix a minimum and maximum stock level for these items considering the consumption level.

Once an item is placed under Min-Max Planning, you can make arrangement to create purchase requisitions automatically when the item’s on-hand qty falls below the minimum level fixed for the it.

You can do the Min-Max planning for Buy items as well as Make items. If a Buy item is placed under Min-Max Planning, you can do the planning to generate purchase requisitions at two levels, viz Organization Level and Subinventory Level.

If a Make item is placed under Min-Max Planning, the system creates WIP Discrete Jobs instead of purchase requisitions. Min-Max Planning for a make item can be done only at Organization Level

5.2.1 Organization Level Min-Max Planning for Buy Items

5.2.1.1 N Items Organization Items5.2.1.2 Enter the item that you want to place under organization

Level Min-Max Planning5.2.1.3 Click on the push button ‘Find’5.2.1.4 Change region to ‘General Planning’5.2.1.5 Choose Buy as value for the field named ‘Make or Buy’5.2.1.6 Choose Supplier as value for the field named ‘Source

Type’5.2.1.7 Choose the Min-Max Planning as value for the field

named ‘Inventory Planning Method’5.2.1.8 Enter a Minimum Qty5.2.1.9 Enter a Maximum Qty5.2.1.10 Enter the Minimum Order Qty5.2.1.11 Enter the Maximum Order Qty5.1.1.10 optionally enter the Fixed Lot Multiplier5.1.1.11 Save

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Create Purchase Requisition Automatically

Ensure that the on-hand qty of the item is well below the Min-Max minimum qty.

5.1.1.12 Help View My Request5.1.1.13 Click on the push button ‘Find’5.1.1.14 Click on the push button ‘Submit a New Request’5.1.1.15 Choose the report ‘Min-Max Planning Report’5.1.1.16 Select the following parameters for the report

Planning Level : OrganizationItem Selection : Items under minimum quantityItems From : Choose your item

To : Choose the same itemRestock : YesInclude PO Supply : NoInclude WIP Supply : NoInclude Interface Supply : No

5.1.1.17 Click on OK5.1.1.18 Click on the push button ‘Submit’5.1.1.19 Click on No5.1.1.20 Click on the push button ‘Refresh’ till then your request is processed by the server.5.1.1.21 Click on the push button ‘View Output’5.1.1.22 Click on the push button ‘Next

You must see that all the relevant data have come there.

Note:When you run the ‘Min-Max Planning Report’, the data required to generate a purchase requisition are transferred to the Interface Tables. These data will be converted into a purchase requisition only when you do ‘Requisition Import’ from Oracle Purchasing.

Requisition Import from Oracle PurchasingCaution:Before doing the Requisition Import from Purchasing, you must ensure the following.

You have been defined as an EmployeeYour Employee name is attached to your User nameYou have bee defined as a Buyer

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5.1.1.23 Switch Responsibility to ‘Purchasing’5.1.1.24 Help View My Request5.1.1.25 Click o the push button ‘Submit a New Request’

5.1.1.26 Choose the report ‘Requisition Import’5.1.1.27 Select the following parameters for the report

Import Source : INVGroup By : Item

5.1.1.28 Click on OK5.1.1.29 Click on the push button ‘Submit’5.1.1.30 Click on No5.1.1.31 Click on the push button ‘Refresh’ till then the server process your request.5.1.1.32 Click on the push button ‘View Output’

You must see the message requisition created.

Finding the Number of the Created Requisition

5.1.1.33 N Requisition Requisition Summary5.1.1.34 Enter the item5.1.1.35 Click on the push button ‘Find’

In the window that appears, you can find out the requisition number.

5.2.2 Subinventory Level Min-Max Planning for Buy Items

5.2.2.1 N Setup Organizations Subinventories5.2.2.2 F11, Enter the subinventory name, Ctrl + F115.2.2.3 Click on the push button ‘Item/Subinventory’5.2.2.4 Click on that particular line whose item you want to place

under Min-Max Planning5.2.2.5 Check the check box ‘Min-Max Planning’5.2.2.6 Enter a Minimum Qty5.2.2.7 Enter a Maximum Qty5.2.2.8 Enter the Minimum Order Qty5.2.2.9 Enter the Maximum Order Qty5.1.2.10 Optionally enter the Fixed Lot Multiplier5.1.2.11 Choose Item Sourcing as Supplier5.1.2.12 Save

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Create Purchase Requisition Automatically

Ensure that the on-hand qty of the item in the above Subinventory is well below the Min-Max minimum qty.


Planning Level : SubinventorySubinventory : Choose the SubinventoryItem Selection : Items under minimum quantityItems From : Choose your item

To : Choose the same itemRestock : YesInclude PO Supply : NoInclude WIP Supply : NoInclude Interface Supply : No

5.1.2.17 Click on OK5.1.2.18 Click on the push button ‘Submit’5.1.2.19 Click on No5.1.2.20 Click on the push button ‘Refresh’ till then your request is processed by the server.5.1.2.21 Click on the push button ‘View Output’5.1.2.22 Click on the push button ‘Next

You must see that all the relevant data have come there.

Note:When you run the ‘Min-Max Planning Report’, the data required to generate a purchase requisition are transferred to the Interface Tables. These data will be converted into a purchase requisition only when you do ‘Requisition Import’ from Oracle Purchasing.

Requisition Import from Oracle Purchasing

Caution:Before doing the Requisition Import from Purchasing, you must ensure the following.

You have been defined as an Employee

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Beginner’s GuideYour Employee name is attached to your User nameYou have bee defined as a Buyer

5.1.2.23 Switch Responsibility to ‘Purchasing’5.1.2.24 Help View My Request5.1.2.25 Click o the push button ‘Submit a New Request’

5.1.2.26 Choose the report ‘Requisition Import’5.1.2.27 Select the following parameters for the report


5.1.2.28 Click on OK5.1.2.29 Click on the push button ‘Submit’5.1.2.30 Click on No5.1.2.31 Click on the push button ‘Refresh’ till then the server process your request.5.1.2.32 Click on the push button ‘View Output’

You must see the message requisition created.

Finding the Number of the Created Requisition



5.2.3 Organization Level Min-Max Planning for Make Items

5.2.3.1 N Items Organization Items5.2.3.2 Enter the item that you want to place under organization

Level Min-Max Planning5.2.3.3 Click on the push button ‘Find’5.2.3.4 Change region to ‘General Planning’5.2.3.5 Choose Make as value for the field named ‘Make or Buy’5.2.3.6 Choose the Min-Max Planning as value for the field

named ‘Inventory Planning Method’5.2.3.7 Enter a Minimum Qty5.2.3.8 Enter a Maximum Qty5.2.3.9 Enter the Minimum Order Qty5.1.3.10Enter the Maximum Order Qty

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Beginner’s Guide5.1.3.11 Optionally enter the Fixed Lot Multiplier5.1.3.11 Save5.1.3.12 N Items Master items5.1.3.13 F11, Enter the Item Name, Ctrl + F115.1.3.14 Change region to ‘Purchasing’5.1.3.15 Uncheck the check box named ‘Purchasable’5.1.3.16 Save

Create Discrete Job Automatically

Ensure that the on-hand qty of the item is well below the Min-Max minimum qty.


Planning Level : OrganizationItem Selection : Items under minimum quantityItems From : Choose your item

To : Choose the same itemRestock : YesFor Repetitive Item : Create discrete jobInclude PO Supply : NoInclude WIP Supply : NoInclude Interface Supply : No

5.1.3.17 Click on OK5.1.3.18 Click on the push button ‘Submit’5.1.3.19 Click on No5.1.3.20 Click on the push button ‘Refresh’ till then your request is processed by the server.5.1.3.21 Click on the push button ‘View Output’

You will get the number of the Discrete Job created from this window.

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5.2 Reorder Point Planning

A complete Reorder Point planning involves the following steps.

5.2.1 Set the Required Item Attributes

5.2.1.1 Set the following item attributes at organization level as follows.

(a) N Items Organization Items(b) Enter the item(c) Click on the push button ‘Find’(d) Change region to ‘General Planning’(e) ‘Inventory planning Method’ : Reorder point(f) Make or Buy : Buy(g) Order Cost : Enter a value(h) Carrying Cost Percent : Enter a value(i) Source Type : Supplier(j) Safety Stock Method : Non-MRP Planned(k) Safety Stock Bucket Days : Enter a value(l) Safety Stock Percent : Enter a value

5.2.2 Define a Forecast

5.2.2.1 N Planning Forecasts Sets5.2.2.2 Enter a ‘Forecast Set’ name5.2.2.3 Optionally enter a description5.2.2.4 Choose a ‘Bucket Type’ (Days)5.2.2.5 Choose a ‘Level’ (Item)5.2.2.6 Click on the Lines5.2.2.7 Enter a ‘Forecast’ name5.2.2.8 Optionally enter a description5.2.2.9 Move cursor to the next line5.2.2.10 Enter the second ‘Forecast’ name5.2.2.11 Optionally enter a description for the second Forecast5.2.2.12 Repeat till all the Forecast names are entered

5.2.2.13 Click on the first Forecast name5.2.2.14 Click on the push button ‘Forecast Items’5.2.2.15 Choose the item5.2.2.16 Move cursor to the next line5.2.2.17 Choose the second item and so on

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Beginner’s Guide5.2.2.18 Click on the push button ‘Details’

5.2.2.19 Choose the Bucket Type (Days)5.2.2.20 Choose the starting date of your demand in the field named (From) Date5.2.2.21 Choose the last date of your demand in the field named ‘End Date’5.2.2.22 Enter your demand in the field named (Current) Quantity

The Quantity you enter here is the requirement per bucket. Say, for example, if your Bucket Type is selected Days and you entered a qty of 70 means that your demand for the item is 70 per day. If the selected Bucket Type is Weeks and if you entered a Qty of 70, means that your demand for the item is 70 per week or 10 per day.

5.2.2.23 Optionally enter a ‘Confidence Percent’

The ‘Confidence Percent’ represent the accuracy of Forecast. If you entered a Qty of 100 and a confidence Percent of 90, the actual demand will be considered as 100 – (100 x 90/100) = 90.

5.2.2.24 Close the window5.2.2.25 Click on the second line and repeat steps 5.2.2.18 to 5.2.2.23

5.2.2.26 Close the Details window5.2.2.27 Close the Forecast Items window.5.2.2.28 Click on the second Forecast name5.2.2.29 Repeat steps 5.2.2.14 to 5.2.2.255.2.2.30 Save

Note:One ‘Forecast Set’ can contain multiple ‘Forecasts’, A Forecast can be used to define the demand for specific period of a year or to define the demand for a particular region of sales.

5.2.3 Define or Generate Safety Stock

Define a safety Stock Manually

5.2.3.1 N Planning Safety stocks5.2.3.2 Click on the push button ‘New’

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Beginner’s Guide5.2.3.3 Choose the item5.2.3.4 Enter an Effective date5.2.3.5 Enter the Qty that you want as Safety Stock5.2.3.6 Save

Generate Safety Stock as a Percentage of Forecast Demand

5.2.3.1 N Planning Safety Stock5.2.3.2 F11, Enter the item you entered in step 5.2.3.3, Ctrl + F115.2.3.3 Click on the push button ‘Open’5.2.3.4 Special Reload5.2.3.5 Choose/Enter the following report parameters

Selection : Specific inventory itemItem : Choose the itemMethod : User-defined percentForecast : Choose the Forecast (You should

choose a Forecast name and not a Forecast set name

Safety Stock%: Enter a value

5.2.3.6 Click on OK5.2.3.7 Click on the pus button ‘Submit’5.2.3.8 Help View My request5.2.3.9 Click on the push button ‘Find’5.2.3.10 Click on ‘Refresh’ till your request is processed by the Server.

Viewing the Generated Safety Stock

5.2.3.11 N Planning Safety Stock5.2.3.12 F11, Enter the item name, Ctrl + F115.2.3.13 Click on the push button ‘Open’

You will see that the system has assigned a new value for the field ‘Quantity’. Also you can see that a value of 0 is assigned for the field named ‘Quantity’ from the day on which there exists no demand for the item as per the Forecast selected for the ‘Reorder Point Report’ parameter.

Note:For doing the ROP Planning, you need to generate a Safety Stock using any one of the methods described above. Do not use both methods one after another

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5.2.4 Run the Reorder Point Report

Ensure that the on-hand qty of the item is well below the Safety Stock qty.

5.2.4.1 Help View My Request5.2.4.2 Click on the push button ‘Submit a New Request’5.2.4.3 Choose the report named ‘Reorder point planning’5.2.4.4 Choose/Enter the following parameters for the report

Item Selection : Sort By : Inventory itemRange : Full ListingFrom : Enter your itemTo : enter the same item selected aboveDemand Cutoff Date : Choose the current dateSupply Cutoff Date : Enter today’s date or a date ahead

of today’s dateCreate Requisitions : YesForecast : Choose a Forecast name

5.2.4.5 Click on OK5.2.4.6 Click on the push button ‘Submit’5.2.4.7 Click on No5.2.4.8 Click on the push button ‘Find’5.2.4.9 Click on the push button ‘Refresh’ till then your request is

processed by the Server.5.2.4.10 Click on the push button ‘View Output’5.2.4.11 Click on the push button ‘Next’

You must see that all the relevant data are available here.

5.2.5 Do Requisition Import from Purchasing



5.2.5.1 Switch Responsibility to ‘Purchasing’5.2.5.2 Help View My request

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Beginner’s Guide5.2.5.3 Click on the push button ‘Submit a New Request’5.2.5.4 Choose the report named Requisition Import5.2.5.5 Choose the following parameters for the report


5.2.5.6 Click on OK5.2.5.7 Click on the push button ‘Submit’5.2.5.8 Click on No5.2.5.9 Click on the push button ‘Find’

5.2.5.10 Click on the push button ‘Refresh’ till then your request is processed by the Server

5.2.5.11 Click on the push button ‘View Output’

You must get the message ‘requisition created’

5.2.6 Find out the Requisition Number from the Requisition Summary window.



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5.3 Replenishment

The Replenishment is normally used to replenish Expense Subinventories. You can use this feature to replenish Asset Subinventories also. The Expense item, while assigning them to an expense subinventory can be placed under Min-Max Panning as usual. In the example give below, it is assumed that the item is not under Min-Max Planning.

5.3.1 N Counting Replenishment Counts Counts5.3.2 Click on the push button ‘New’5.3.3 Enter a name for the Replenishment Count5.3.4 Choose the Subinventory5.3.5 Click on the push button ‘Lines’5.3.6 Choose the item5.3.7 Choose the Count Type as Order Quantity5.3.8 Enter a Qty5.3.9 Save5.3.10 Close the Lines window5.3.11 Click on the push button ‘Process and Report’

5.3.12 Help View My Request5.3.13 Click on the push button ‘Find’5.3.14 Click on the push button ‘Refresh’ till then your request is

processed by the Server

Do Requisition Import from Purchasing



5.3.15 Switch Responsibility to ‘Purchasing’5.3.16 Help View My request5.3.17 Click on the push button ‘Submit a New Request’5.3.18 Choose the report named Requisition Import5.3.19 Choose the following parameters for the report


5.3.20 Click on OK

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Beginner’s Guide5.3.21 Click on the push button ‘Submit’5.3.22 Click on No5.3.23 Click on the push button ‘Find’

5.3.24 Click on the push button ‘Refresh’ till then your request is processed by the Server

5.3.25 Click on the push button ‘View Output’


Find out the Requisition Number from the Requisition Summary window.

5.3.26 N Requisition Requisition Summary5.3.27 Enter the item5.3.28 Click on the push button ‘Find’


Note:In step 5.3.7, you can choose the options, Order Maximum or On-hand quantity provided that the item is placed under Min-Max Planning at Subinventory Level. If Order Maximum is selected as the option, you need not to enter a Qty at all. The system will generate a purchase requisition for the Min-Max maximum qty. On the other hand, if the option selected is On-hand Quantity, then the Qty you enter will be compared with the Min-Max minimum qty and if the entered qty is less than the Min-Max minimum qty, then a purchase requisition will be generated for a qty of Min-Max maximum qty.

You can use the Replenishment Count to replenish an asset item assigned to an Asset Subinventory also if required.

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5.4 Kanban

5.4.1 N Kanban Pull Sequences5.4.2 Click on the push button ‘New’5.4.3 Choose the item5.4.4 Choose the Subinventory5.4.5 Choose a locator if the item is under Locator Control5.4.6 Choose the Status Active5.4.7 Choose a Card Status New5.4.8 Choose the Source Type as Supplier5.4.9 Choose a Supplier Name5.4.10 Tab to the field named ‘Kanban Size’ and enter the Kanban size5.4.11 Enter he Number of Cards5.4.12 Enter the Min Order Qty5.4.13 Save

5.4.14 lick on the push button ‘Cards’5.4.15 Enter a Card Number5.4.16 Click on the push button ‘Replenish’

See that the Card Status is changed to Empty

Do Requisition Import from Purchasing



5.4.17 witch Responsibility to ‘Purchasing’5.4.18 Help View My request5.3.17 Click on the push button ‘Submit a New Request’5.3.18 Choose the report named Requisition Import5.3.19 Choose the following parameters for the report


5.3.20 Click on OK5.3.21 Click on the push button ‘Submit’5.3.22 Click on No5.3.23 Click on the push button ‘Find’

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5.3.24 Click on the push button ‘Refresh’ till then your request is processed by the Server

5.3.26 Click on the push button ‘View Output’


Find out the Requisition Number from the Requisition Summary window.

5.3.26 N Requisition Requisition Summary5.3.27 Enter the item5.3.28 Click on the push button ‘Find’


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6.0 Accuracy

In any organization, due to missing transactions or inaccurate entries of transactions, there will be every possibility for differences in the system on-hand quantities and the actual quantities lying in the Subinventory. In order to correct the differences, people physically count the items and correct the system on-hand quantities periodically. This we generally call as Stock Taking. Oracle Inventory is capable of managing the Stock Taking in two ways. The two ways are (1) Cycle Counting and (2) Physical Inventory

(1) Cycle Counting

Instead of counting all the items simultaneously, you can plan and count only a few items every day or every week. For doing Cycle Counting of an item, you must set the item attribute Enable Cycle Counting to Yes. Normally high value items are placed under Cycle Counting.

For planning the number of times an item to be counted per year, you can use an ABC compile.

(2) Physical Inventory

In Physical Inventory you will have to count all the items. This is equal to the Half Yearly or Annual Stock Taking of an organization.

6.1 ABC Analysis

A complete ABC Analysis includes the following

Define a ABC Compile Define ABC Classes Define ABC Assignment Group and Assign Classes to it Assign Items to Various Classes

Define an ABC Compile

An ABC Compile is nothing but sorting the items based on a specific criterion.

6.1.1 ABC Codes ABC Compiles6.1.2 Enter a name for the Compile6.1.3 Choose a ‘Content Scope’ (Organization)

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Beginner’s Guide6.1.4 Choose a ‘Valuation Scope’ (Organization)6.1.5 Choose a Criterion in the ‘Compile Specification’ block. (Current

on-hand value)6.1.6 Click on the push button ‘Compile’

6.1.7 Help View My Request6.1.8 Click on the push button ‘Find’6.1.9 Click on the push button ‘Refresh’ till then the server process your

request.6.1.10 Click on the push button ‘View Output’

In this window, you can see the result of the ABC Compile

Content Scope:The Content Scope specifies list of items to be considered in the ABC Compile. If a value of ‘organization’ is selected here, all the items assigned to the current organization will be included in the ABC Compile. If a value of ‘Subinventory’ is selected, then you have to specify a Subinventory. In this case, the items assigned to the selected Subinventory only will be included in the ABC Compile.

Valuation ScopeThe Valuation Scope specifies, in which all areas the system should search for the items selected as per the ‘Content Scope’. For example, if Subinventory is selected as the Content Scope and Organization is selected as the Valuation Scope, then the system will search all subinventories of the current organization for finding the items assigned to the Subinventory selected in the Content Scope.

Compile Criteria that You can Use

1. Current on-hand quantity2. Current on-hand value3. Historical usage value4. Historical usage quantity5. Historical number of transactions6. Forecasted usage value7. Forecasted usage quantity8. Previous cycle count adjustment quantity9. Previous cycle count adjustment value10. MRP demand usage quantity11. MRP demand usage value

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Define ABC Classes

6.1.11 N ABC Codes ABC Classes6.1.12 Enter a Class name6.1.13 Optionally enter description for the above class6.1.14 Move cursor to the next line6.1.15 Enter the name of the second Class6.1.16 Optionally enter a description for the second Class6.1.17 Repeat steps 6.1.14 to 61.1.16 till all the Class names are entered6.1.18 Save

Note:You can enter any number of classes. Need not to limit to only three classes named A, B and C.

Define ABC Assignment Group and Assign Classes to it

6.1.19 N ABC Codes ABC Assignment Groups6.1.20 Enter a Group Name6.1.21 Choose an ABC Compile name in the field named ‘Compile

Name’

6.1.22 Click on the push button ‘Group Classes’6.1.23 Choose a ‘Priority’ (say 1)6.1.24 Choose an ABC Class name in the field named ‘Class Name’6.1.25 Move cursor to the next line and repeat steps 6.1.23 and 6.1.246.1.26 Repeat till all the classes are assigned to the Group6.1.27 Save

Assign Items to Various Classes

6.1.28 Close the ‘Group Classes’ window opened in step 6.1.226.1.29 Click on the push button ‘Assign Items’

All the Classes belong to the Group defaults6.1.30 Enter a value in the field named ‘Seq’

Suppose you entered a value of 100 in the above step, means that the first 100 items listed in the ABC Compile is assigned to the A Class. Refer step 6.1.10.

6.1.31 Move cursor to the next line6.1.32 Enter a value for the field named ‘Seq’

Suppose you entered a value of 200 in the above step, means that the items from 101 to 200 listed in the ABC Compile is assigned to the B Class.

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6.1.33 Repeat steps 6.1.31 and 6.1.32 till all the items are assigned.6.1.34 Save

6.2 Cycle Counting Using ABC Compile

6.2.1 N Counting Cycle Counting Cycle Counts6.2.2 Enter a name for the Cycle Count6.2.3 Optionally enter a description for the Cycle Count6.2.4 Choose a Workday Calendar6.2.5 Choose an Adjustment Account6.2.6 Check the check box ‘Auto Schedule’6.2.7 Choose an auto schedule frequency (day)6.2.8 Check the check box ‘Count Zero Quantity’6.2.9 Enter a value in the field named Starting Seq6.2.10 Check the check box ‘Unscheduled Entries’6.2.11 Check the check box ‘Display system Qty’6.2.12 Choose the option All for ‘Count Subinventories’6.2.13 Change region to ‘Adjustments, ABC’6.2.14 Choose If out of tolerance as value for the field named ‘Required’

in the Approval block6.2.15 Enter the tolerances6.2.16 Choose the ABC Assignment Group as value for the field named

Group’ in the ABC Initialization block. Refer step 6.1.206.2.17 Choose the option None in the field named ‘Option’ in the above

block.

Entering Count Frequencies6.2.18 Click on the push button ‘Classes’6.2.19 Choose the first Class name6.2.20 Enter the number of times you wish to count the A class items in

the field named ‘Counts Per Year’6.2.21 Move cursor to the next line6.2.22 Choose the second Class name6.2.23 Enter the number of times you wish to count the B class items in

the field named ‘Counts Per Year’6.2.24 Repeat steps 6.2.21 to 6.2.23 till count frequencies are entered for

all the items.

Generating and Listing the Count Schedules6.2.25 N Counting Cycle Counting Cycle Counts6.2.26 F11, Enter your Cycle Count Name, Ctrl + F116.2.27 Click on the push button ‘Open’6.2.28 Special Perform Full Cycle Count

This request is comprised of three reports as follows

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Generate automatic schedule requestsGenerate cycle count requestsCycle count listing

6.2.29 Click in the field ‘Parameters’ of the first report and enter the following parameters.

All Cycle Counts : NoCycle Count Name : Choose your cycle count nameInclude Control Items : No

6.2.30 Click on OK6.2.31 Click in the field ‘Parameters’ of the second report and enter the

following parameters.


6.2.32 Click on OK6.2.33 Click in the field ‘Parameters’ of the third report and enter the

following parameters.


6.2.34 Click on OK6.2.35 Click on the push button ‘Submit’6.2.36 Help View My Request6.2.37 Click on the push button ‘Find’6.2.38 Click on the push button ‘Refresh’ till then the server process your

request.6.2.39 Click on the report name ‘Cycle Count Listing’6.2.40 Click on the push button ‘View Output’

You must see the items scheduled for cycle counting

Entering Count Quantities

6.2.41 N Counting Cycle Counting Cycle Count Entries6.2.42 Enter the Cycle Count name6.2.43 Click on the push button ‘Find’

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Beginner’s Guide6.2.44 Enter the counted quantities for all the listed items in the field

named ‘Quantity’6.2.45 Save

Approving the Cycle Count Entries

6.2.46 N Counting Cycle Counting Approve Counts6.2.47 Enter the Cycle Count name6.2.48 Click on the push button ‘Find’6.2.49 Choose the required radio button (None, Approved, Rejected or

Recount) for each line as appropriate.6.2.50 Save

6.3 Physical Inventory

A complete Physical Inventory involves the following actions

Define Physical Inventory Take a Snapshot of System On-hand Quantities Generate Physical Inventory Tags Print the Generated Tags Attach the Tags to its respective item Count the actual quantities and enter them in the respective

tag. Collect all the Tags Enter the quantities recorded in the Tag in the System Approve the Physical Inventory Launch Adjustments

Define Physical Inventory

6.3.1 N Counting Physical Inventory Physical Inventories6.3.2 Enter a name for your Physical Inventory6.3.3 Optionally enter a description6.3.4 Choose If out of tolerance as value for the field named ‘Required’

in the Approvals block.6.3.5 Enter the tolerances6.3.6 Choose All as value for the field ‘Count Subinventories’6.3.7 Check the check box named ‘Allow Dynamic Tags’6.3.8 Save

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Take a Snapshot of System On-hand Quantities

6.3.8 Click on the push button ‘Snapshot’

Generate Physical Inventory Tags

6.3.9 N Counting Physical Inventory Tag Generation6.3.10 Choose the physical inventory name in the ‘Name field6.3.11 Choose the ‘Type’ as Default6.3.12 Check or uncheck the check box ‘Show Serial on Tags’6.3.13 Enter a Starting Tag6.3.14 Enter the Digit Increment

If the ‘Starting Tag’ is entered as A001, then the ‘Digit Increment’ must be entered as 0111

6.3.15 Enter an Ending TagThe Number of Tags will default

6.3.16 Click on the push button ‘Generate’

Print the Generated Tags

6.3.17 Help View My Request6.3.18 Click on the push button ‘Submit a New Request’6.3.19 Choose the report ‘Physical Inventory Tag Report’6.3.20 Click on the push button ‘Submit’6.3.21 Click on No6.3.22 Click on the push button ‘Find’6.3.23 Click on the push button ‘Refresh’ till then the request is processed

by the Server6.3.24 Click on the push button ‘View Output’6.3.25 Action Print

Attach the Tags to its respective item

This has to be done manually

Count the actual quantities and enter them in the respective tag.


Collect all the Tags


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Enter the quantities recorded in the Tag in the System

6.3.26 N Counting Physical Inventory Tag Counts6.3.27 Enter the Physical Inventory name6.3.28 Click on the push button ‘Find’6.3.29 All the items will be listed now in the lines6.3.30 Enter the counted quantities in the field named ‘Qty’ for each item.6.3.31 Check the check box named ‘Void’ for all those items, which are

not deliberately counted.If voiding is not done for any missing entry, the system will assume a qty of zero when posting adjustments

6.3.32 Save

Approve the Physical Inventory

6.3.32 N Counting Physical Inventory Approve Adjustments6.3.33 Enter the Physical Inventory name6.3.34 Click on the push button ‘Find’6.3.35 Choose the action None, Approve or Reject for each line.6.3.36 Save

Launch Adjustments

6.3.37 N Counting Physical Inventory Physical Inventories6.3.38 F11, Enter the Physical Inventory name, Ctrl + F116.3.39 Special Launch Adjustments6.3.40 Enter an Adjustment Account6.3.41 Enter an Adjustment Date6.3.42 Click on the push button ‘Launch Adjustments’

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7.0 Inventory Costing

Costing is broadly classified into Standard Costing and Average Costing. Under Standard Costing, you will have to manually define the item cost. The system will not generate the cost by averaging the PO prices.

In Average Costing, you need not define the Item Cost. The system will automatically generate the Cost by averaging the PO prices.

If BOM and WIP are installed, you cannot adopt Average Costing. The only option you can select is Standard Costing. (The Costing Method for an organization is selected in the organization definition.) Because of this reason, we will discuss only the things that you are supposed to do under Standard Costing.

Using Oracle Inventory is installed you can do the Inventory Costing. In Inventory Costing, you can define and update the item costs. If Inventory and BOM are installed, you can find out the Expected Cost of manufacturing of an item. If Inventory, BOM and WIP are installed, you can find out the Actual Cost of manufacturing of an item.

7.1 Cost Elements

The following are the Cost Elements

Material (Material Cost) Material Overhead (Procurement cost of materials) Resource (Resource Cost) Overhead (Any overhead cost other than the Material

overhead) Outside processing (the cost incurred due to outside

processing)

These elements are standard you cannot add or remove the above stated Cost Elements. But, for each Cost Element, you can define as many Sub-elements as you like. When you define a Sub-element, you have to specify, for which Cost Element you are defining the Sub-element.

7.2 Cost Sub-elements

Sub-elements are containers to hold a piece of cost of cost of a particular Cost Element. For example, you can have two Sub-elements named Order Cost and Unloading Cost for the Element Material of a particular item.

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Material Sub-element7.2.1 N Setup Costs Sub-elements Material (for defining

Material Sub-elements)7.2.2 Enter a Sub-element name in the field named ‘Material’7.2.3 Optionally enter a description for the Sub-element7.2.4 Choose the Default Basis as Item7.2.5 Save

Overhead Sub-element7.2.6 N Setup Costs Sub-elements Overhead (for defining

Overhead Sub-elements)7.2.7 Enter an Overhead Sub-element name in the field named

‘Overhead’7.2.8 Choose the Cost Element as Overhead7.2.9 Optionally enter a description7.2.10 Choose an Absorption Account7.2.11 Save

7.3 Cost Types

Cost Types are logical containers for holding the cost of an item. A Cost Type is made up of certain or all Cost Elements and their corresponding Sub-elements. It should be note that the values of cost are held by Sub-elements and not by Cost Elements. Even if there is only one piece of cost for a particular Cost Element, say, Material, you have to define a Material Sub-element for holding that piece of cost.

Oracle Inventory provides two predefined Cost Types. (1) Frozen and (2) Current. Frozen is used as the Default Cost Type under Standard Costing and Current is used as the Default Cost Type under Average Costing.

Under standard costing, we have seen that the item cost is defined manually by a user. This will necessitate to updating the cost of an item periodically. The updation cannot be done directly by changing the values once after transacting the item. What you have to do for updating the cost of an item is to create a separate set of costs under a different Cost Type and then update the original cost from the new Cost Type created. Now the item is having two Cost Types associate with it. One is the running cost held by the Default Cost Type (Frozen) and the other is the cost held by another Cost Type created for updating the Default Cost. In this way you can create any number of costs for an item using different Cost Types. Afterwards, if you want, you can compare the costs of different Cost Types.

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Suppose you have created Cost Types named ‘Cost 2000’, ‘Cost 2001’ for holding the item costs of the year 2000 and 2001. You used this Cost Types to update the Default Cost Type (Frozen) in the years 2000 and 2001. Now, you got three Cost Types with values in it. You can now make comparison among the costs of 2000 and 2001.

7.3.1 N Setup Costs Cost Types7.3.2 Click on the push button ‘New’7.3.3 Enter a name for the Cost Type7.3.4 Optionally enter a description7.3.5 Choose the Default Cost Type as Frozen7.3.6 Check the check box named ‘Multi-Org’ if you want this Cost

Type name to be available in organizations other than your current organization. If this check box is checked, only the Cost Type name will be available to other organizations and not the cost defined in it.

7.3.7 Check the check box named ‘Allow Update’7.3.8 Check the check box named ‘Available To Engineering’7.3.9 Check the check box named ‘Component Yield’7.3.10 Check the check box named ‘Element’ 7.3.11 Check the check box named ‘Operation’7.3.12 Save

7.4 Define Item Cost

You will be able to define the cost of an item directly only before performing transactions on the item. If any transaction is performed, the system will assign a cost of zero for the item and you will not be permitted to change it directly. In such cases, you have to define the costs in a new Cost Type and then update the existing cost from the new Cost Type.

7.4.1 N Costs Item Costs7.4.2 F11, Enter the item name, Ctrl + F117.4.3 Keep the cursor in the Cost Type Frozen and click on the push

button ‘Open’7.4.4 Enter the Lot Size7.4.5 Click on the push button ‘Costs’7.4.6 Choose the Cost Element (Material)7.4.7 Choose a Sub-element defined for the Cost Element ‘Material’7.4.8 Choose the Basis Item7.4.9 Enter the Rate or Amount.7.4.10 Move cursor to the next line7.4.11 Choose the Cost Element (Material Overhead)

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Beginner’s Guide7.4.12 Choose a Sub-element7.4.13 Choose a Basis Lot7.4.14 Enter a Rate or Amount

The entered value will be divided by the Lot Size entered in step 7.4.4 to derive the Unit Cost due to this sub-element.

7.4.15 Move cursor to the next line7.4.16 Repeat steps 7.4.11 to 7.4.147.4.17 Save

7.5 Updating Item Cost

7.5.1 N Costs Standard Cost Update View Cost Update7.5.2 Choose/enter the following parameters

Cost Type : Choose the Cost Type from which you want to update the existing cost

Adjustment Account : ChooseDescription : EnterItem Range : Specific ItemUpdate Option : Item costsSpecific Item : ChooseSave Details : Yes

7.5.3 Click on OK7.5.4 Click on the push button ‘Submit’7.5.5 Help View My Request7.5.6 Click on the push button ‘Find’7.5.7 Click on the push button ‘Refresh’ till then the Server processes

your request.

Testing7.5.8 N Costs Item Costs7.5.9 F11, Enter the item name, Ctrl + F117.5.10 Keep the cursor in the Cost Type Frozen and click on the push

button ‘Open’7.5.11 Click on the push button ‘Views’

You must see that the item cost is changed.

7.6 Viewing Different Costs of an Item at Different Times

7.6.1 N Costs Standard Costs Update View Cost History7.6.2 Enter the item whose cost you want to see7.6.3 Click on the push button ‘Find’

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Beginner’s GuideYou can now see the various costs under different Cost Types

8.0 Purchase Order Receipts

Refer the Purchasing Notes.

9.0 Checking ATP

You can check ATP for an item from inventory with different ATP Rules. By using different ATP Rules you can find out the supply level by including/excluding Supply and Demand Sources of your choice. 9.1 N On-hand Availability Available To Promise9.2 Choose an ATP Rule in the field named ‘Default ATP Rule’9.3 Choose the organization in the field named ‘Calendar Organization’9.4 Choose a date in the field ‘Default Required Date’9.5 Click on the push button ‘Items’9.6 Choose the Organization9.7 Chose the item9.8 Enter the ‘Required Quantity’9.9 Enter the ‘Required Date’9.10 Click on the push button ‘View Results’9.11 Click on the push button ‘Period ATP’ for viewing ATP by periods

(The periods are automatically created by the system. One period is the duration of time between one supply date and one day before the next supply date.)

10.0 Attaching Documents

Creating and adding an attachment to a record is a common feature supported by many modules of Oracle Applications like Inventory, Purchasing, Order Entry, BOM, WIP etc. The method of creation and attaching a document is more or less the same in all the modules.

Creating a Document10.1 N Setup Attachments10.2 Enter a Description for your document (mandatory field)10.3 Choose a Data Type

Short Text for text below 2000 charactersLong Text for text above 2000 charactersImage for pictures

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Beginner’s Guide10.4 Check the check box named ‘Share’10.5 Enter the document content in the blank area below10.6 Save

Attaching the Document to a Record10.7 N Items Organization Items10.8 Enter the item name10.9 Click on the push button ‘Find’10.10 Edit Attachments10.11 Click on the push button ‘Document Catalog…’10.12 Enter the Description of your document10.13 Click on the push button ‘Find’

The Document details appears in the lower block10.14 Click on the push button ‘Attach 1’

The Document is attached to the item. You can attach the same document to different items at the same time.

Deleting an Attachment10.15 N Items Organization Items10.16 Enter the item name10.17 Click on the push button ‘Find’10.18 Edit Attachments

If any document is attached to this item, it appears now.10.19 Edit Delete

Note:When you delete an attachment, the original document is not getting deleted. Instead the association of the document with the record is removed.

11.0 Transferring Transactions to GL

A summarized Inventory/WIP activity for a given period can be transferred into the GL interface tables. Then, using Journal Import in General Ledger the information can be posted to GL.

The General Ledger transfers can be done at any time in an open period – not just at period close. When more than one period is open, the transfer selects the transactions from the first open period up to the entered transfer date and passes the correct accounting date and financial information to the GL Interface, including both Inventory and WIP entries. When detail entries are transferred, the transaction date is the accounting date with a line for line transfer. When

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Beginner’s Guidesummary entries are passed with two periods open, and a transfer date is entered in the second period, the transfer process assigns an end date to period one for all the summarized transactions in period one, and assigns the entered transfer date for the summarized transactions in period two.

Using Journal Import and Post Journal Process in GL, this information can be posted to GL.

11.1 N Accounting Close Cycle Transfer Transactions to GL

12.0 Closing Inventory Accounting Periods

When you close a period, all Inventory and WIP transactions will be automatically transferred to GL.

12.1 N Accounting Close Cycle Inventory Accounting Periods12.2 Keep the cursor in the period that is to be closed.12.3 Click on the push button ‘Change Status’12.4 Choose the option Close

Note:You cannot close a period if any prior period(s) is open. That is, if the period Jan 2001 is open, you cannot close the period Feb 2001. First you have to close Jan 2001 and then Feb 2001

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