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Contents

Implemenation of Inventory............................................................................................. 1
Oracle Inventory Flexfields.............................................................................................. 1
Item Categories.............................................................................................................. 7
Item Category Flexfield Structures.................................................................................... 9
Defining Item Categories............................................................................................... 13
Category Sets.............................................................................................................. 15
Assigning Items to Categories......................................................................................... 16
Default Category Sets.................................................................................................... 18
Item Catalog................................................................................................................ 19
Stock Locators............................................................................................................. 24
Defining Account Aliases................................................................................................ 28
Inventory Period Close.................................................................................................. 28
Transfer Transactions to General Ledger..........................................................................30
Inventory Pending Transaction....................................................................................... 32
Closing a Period........................................................................................................... 35
Units of Measure.......................................................................................................... 37
Defining Units of Measure.............................................................................................. 38
Defining Unit of Measure Conversions.............................................................................. 41
Lot-Specific Unit of Measure Conversions.........................................................................45
Rules.......................................................................................................................... 47
Transaction Flow.......................................................................................................... 49
Enterprise Structure................................................................................................. 50
Defining Planners......................................................................................................... 54
Defining Locations.................................................................................................... 55
Organization............................................................................................................... 57
Subinventories.......................................................................................................... 63
Define new Subinventory............................................................................................... 65

Receiving Sub Inventory................................................................................................ 69


Organization Access...................................................................................................... 70
Organization Parameters............................................................................................... 71
Defining Costing Information......................................................................................... 75
Other Accounts............................................................................................................ 77
Revision, Lot, Serial, LPN Parameters.......................................................................79
ATP, Pick, ItemSourcing Parameters........................................................................81
Dynamic entry for Locators............................................................................................ 83
InterOrganization Information...................................................................................... 84
InterOrganization Shipping Network.............................................................................. 86
Defining Intercompany Relations.................................................................................... 89
Shortage Parameters..................................................................................................... 91
Introduction to Items.................................................................................................... 93
Item Master Organization.............................................................................................. 94
Item Templates............................................................................................................ 96
Item Attribute, Item Defining Attributes, Status Attributes & Item Status...............................98
Defining Item Types.................................................................................................... 102
CrossReference Types........................................................................................... 103
Customer Items.......................................................................................................... 105
Defining Manufacturer Part Numbers............................................................................109
Creating Custom Deletion Constraints............................................................................111
Delete an Item............................................................................................................ 113
Item Master.............................................................................................................. 114

Implementation of Inventory
The first step inventory implementation is to design the flex field structures.

Of all the key flexfield system items is the most important. Its used to store the item information.

Oracle Inventory Flexfields


Inventory Period Close
Units of Measure
Rules
Transaction Flow

Oracle Inventory Flexfields

Inventory /
Oracle Inventory provides the following flexfields:
1. System Items
2. Item Catalogs
3. Item Categories
4. Stock Locators
5. Account Aliases
6. Sales Orders
Depending on your system's setup, Inventory may also use some or all of the following
flexfields provided by other Oracle products:

Accounting (Oracle General Ledger)


Sales Tax Location (Oracle Receivables)

Territory (Oracle Receivables)

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

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

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

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

your Stock Locators Flexfield and implement locator control in your organization.
This key flexfield supports only one structure.

5. Account Aliases
This key flexfield supports only one structure.

6. Sales Order
The Sales Order Flexfield is a key flexfield used by Oracle Inventory to uniquely identify sales order
transactions Oracle Order Management interfaces to Oracle Inventory.

Your Sales Order Flexfield should be defined as Order Number, Order Type, and Order Source. This
combination guarantees each transaction to Inventory is unique. You must define this flexfield before placing
demand or making reservations in Oracle Order Management.
You must set up the OM: Source Code profile option to determine the source code you will use in for the third
segment of this flexfield to guarantee that each transaction is unique. (Oracle Inventory defaults the value of the
OM: Source Code profile option to 'ORDER MANAGEMENT'.)
For your value sets, you must use Dynamic Inserts. The Validation Type should be None. Value Required should
be Yes to improve performance of concurrent programs. The value set must be alphanumeric. The value set
maximum size must be 40.
You should set the Required field to Yes in the Validation Information region when enabling the flexfield
segments. Setting this field to Yes, improves performance when updating existing demand or reservations by
guaranteeing that Oracle Order Management always supplies a value.
Set Right-justify Zero-fill Numbers to No so sales order numbers are not padded with zeros.
Oracle Inventory defines a unique ID for each order in MTL_SALES_ORDERS based on this flexfield. The
Inventory unique ID, as opposed to the Order Management unique ID, is used throughout Oracle Manufacturing
applications.

Item Categories
Categories are logical groupings of items that have similar characteristics. A category set is a distinct category
grouping scheme and consists of categories.

Each category grouping scheme can use different terminology for its categories, as well as different naming
structures based on number of segments. You can define multiple structures for your Item Categories flexfield.
You can configure each flexfield structure by using as many segments and any level of value set validation that
you need.
When inventory is installed, a default category must be assigned to each of the following functional areas:
Inventory, Purchasing, Order Entry, Costing, Engineering, and Planning. When an item is enabled for a
functional area, it is assigned the default category set. You cannot delete the items default category set
assignment. Default categories are required so that each functional area has at least one category set that
contains all items in that functional area. For the functional areas, optionally, you can have a unique category
set; for example, you may set up a unique category set for Purchasing. It is also possible to have one category
set defined to be the default category set for all functional areas.
The complete set up of item categories is done in below 5 steps in sequence.

Item Category Flexfield Structures


You can define multiple segment structures for the Item Categories Flexfield. Each segment structure may have
its own display prompts and fields.
When you install or upgrade Oracle Inventory or Oracle Purchasing, Oracle provides two category flexfield
structures by default: Item Categories and PO Item Category.
Each segment structure can display prompts and fields that apply specifically to a particular naming convention.
For example, you might want one of your category sets to use two segments for the names of categories.
Another item grouping scheme might use just one segment for the names of categories. You choose a flexfield
structure for every category set and category that you define.

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

3. Define the item category flex field.

4. Filling up the value set of the structure product information

Defining Item Categories


Enter a flexfield Structure Name, a unique Category (value) for each structure segment, and a unique
description for the new category. If you want to make a category inactive, enter a date you want the category to
be inactive on. Save your work.
If you choose a multisegment flexfield structure you can assign a specific meaning to each segment. For
example in our case the category "Electronics.Mobile.Samsung" means an item assinged to this category is a
samusng brand mobile device of elcetroincs product group.

Category Sets
Category sets may be used as a means to develop custom lists of items on which to report and sort. You can also
create other category sets such as Johns Priority or Janes Priority, with categories like high, medium, and low.
The category set Inventory is seeded when you install Oracle Inventory.
The category set Purchasing is seeded when you install Oracle Purchasing.
If you plan to use Order Managements group pricing functionality with item categories, you must add the
categories to the Order Entry category set.
Attention:
1. You must use this window to define valid categories for each purchasing category set before you can use
Oracle Purchasing.
2. For the Controlled At level, if the item defining attribute of the functional area (e.g. Inventorys is Inventory
Item) is controlled at the Organization level, then the new default Category Set should also be controlled at the
Organization level.

Enter a unique category set Name and Description. In the Flex Structure section, enter which flexfield structure
is to be used. The categories assigned to the category set must have the same flexfield structure as the set itself.
Select a control level and a default category.
You will then need to select Enforce List of Valid Categories if you want validation of the categories at the time
of input. You will then enter in or select the valid categories for the category set.

Assigning Items to Categories

When you enable an item in a functional area, the item is assigned to the default (mandatory) category set and
default category of the functional area. You can override the category sets default category. In addition, you can
manually assign your item to an unlimited number of category sets. You may optionally assign an item to more
than one category within a category set based on the category set definition.

When you assign your item to another organization Oracle Inventory copies Master level category sets,
Organization level default category sets, and the associated categories assigned in the Item Master organization.
This means that if you manually assign an Organization level category set to the item in the Master
organization, Inventory does not copy over that Organization level category set when you assign that item to
another organization.
After assigning an item to another organization you can disable the item for one or more functional areas in the
new organization. However, Inventory does not remove the corresponding functional areas default category set.
For example, you may have set the value of the Purchased attribute to Yes when you defined the item in the
item master organization. When you assign this item to another organization Inventory copies over the Yes
value of the Purchased attribute and
therefore assigns the default category set of the purchasing functional area. In the new organization you may
decide to set the value of the Purchased attribute to No. After you disable the item for the purchasing
functional area in the new organization, the item still retains the purchasing default category set. You may
manually delete the purchasing category set in the new organization.
If you copy an item from another item with category sets defined at the Organization level, Inventory assigns
the new item the default categories of the mandatory category sets, even if the original item did not have the
default categories. This is because Inventory copies the values of the item defining attributes and not the
category sets and categories themselves.

Default Category Sets

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

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

Usage: An electronics company (say Samsung) can use the catalog to


incorporate length, breadth and height of each mobile it produces. As the
company Samsung also produces other electronics products such as TV,
Refrigerator and etc. We should first create an item category as mobile and
then create a catalog group as mobile-catalog with three catalogs lengthbreadth and height.

Defining and Using Item Catalogs


Follow these steps to define and use item catalogs:
1 Define the item catalog group.

2 Define descriptive elements within each catalog group.

3 Enter categories for the catalog groups.

Items belonging to the above category are attached with the descriptive element of the catalog.
4 Enter descriptive element values for each item.

5 Update item descriptions with catalog group and descriptive element values.

6 Search for items using descriptive elements as the search criteria.

Seraching all the items with bredth 20.

Stock Locators

You use locators to identify physical areas where you store inventory items. Item quantities can be tracked by
locator. Items can also be restricted to specific locators.

1. Add the segment values of the KFF stock locator.


Navigation : GL -> Financials -> Flexfields -> Key -> Values

2. Enter the new locator in locator form which can be accessed from below navigation or on subinventory form.
Navigation : Inventory -> Set up -> Stock Locator

1. Locator Type: Indicate the locator type available choices are as follows: Dock Door, Receiving, Inspection
Station, Storage Locator, Consolidation Locator, Staging Lane, Packing Station. Dock doors are used in
Oracle Warehouse Management environments only.
2. Indicate the material status of this locator, which controls the enabled transactions for all material in this
locator. The status is not overridden by the status of any ubinventory, lot or serial, within this locator. The
statuses of those objects will be considered when
determining transactions that are not enabled. This field is used if you have Oracle Warehouse Management
installed.
3. Enter the subinventory where the locator resides.
4. Enter a picking order value indicating the priority for picking items from this locator relative to another
locator. This value is used by Oracle Warehouse Managment to sequence picking tasks. A picking order of 1
means that order management functions pick items from this locator before other locators with a higher number
(2, 3, and so on). If you have Oracle Warehouse Management installed, this field determines the picking path
through the warehouse and not the order in which material is allocated for a sales order.
5. Enter a dropping order to indicate the priority for dropping items in this locator relative to another locator.
Oracle warehouse management uses this value to sequence tasks.
6. Enter the inactive date for the locator. This is the date the locator becomes inactive.

Defining Account Aliases


An account alias is an easily recognized name or label representing a general ledger account number. You can
view, report, and reserve against an account alias. During a transaction, you can use the account alias instead of
an account number to refer to the account.

Inventory Period Close


The period close process for perpetual costing enables you to
1. Summarize costs related to inventory and manufacturing activities for a given accounting period.
2. Distribute those costs to the general ledger.
3. Calculates ending period subinventory values.
4. Closes the open period for Inventory and Work in Process.

Generally, you should open and close periods for each separate inventory organization independently.
By keeping only one period open, you can ensure that your transactions are dated correctly and posted to
the correct accounting period. (For monthend adjustment purposes, you can temporarily hold multiple
open periods.)

The accounting periods and the period close process in Cost Management use the same periods, fiscal
calendar, and other financial information found in General Ledger.

Inventory and work in process transactions automatically create accounting entries. All accounting
entries have transaction dates that belong in one accounting period. You can report and reconcile your
transaction activity to an accounting period and General Ledger. You can transfer summary or detail
transactions to General Ledger. You can transfer these entries to General Ledger when you close the
period or perform interim transfers.

When you transfer to General Ledger, a general ledger (GL) batch ID and organization code are sent
with the transferred entries. You can review and report the GL batch number in General Ledger and
request Inventory and Work in Process reports by the same batch number. You can also view general
ledger transfers in Inventory and drill down by GL batch ID into the inventory and WIP accounting
distributions.

Note: Purchasing holds the accounting entries for receipts into receiving inspection and for deliveries into
expense
destinations. This includes any perpetual receipt accruals.Purchasing also has a separate period open and close,
and uses
separate processes to load the general ledger interface.
Closes Open Period
The period close process permanently closes an open period. You can no longer charge transactions to a closed
period. Once you close a period, it cannot be reopened. As a precaution, you can do a GL transfer without
closing the period.
Transfers Accounting Entries to the General Ledger
If your inventory organizations parameter for Transfer to GL is None, perpetual accounting entries are not
transferred to the General Ledger. The other choices for the Transfer to GL parameter are Summary and Detail,
indicating whether the period close process creates summary or detail transactions for posting to the general
ledger. The period close
process transfers the following information:
work in process transactions
job costs and variances
period costs for expense nonstandard jobs
depending on the selected options, the remaining balances for
repetitive schedules
Note: If you have chosen the new Periodic Costing feature, Cost Management warns you of the possibility of
inadvertently
posting both Periodic and perpetual costed transactions to the General Ledger. The warning displays if there is
at least one
legal entitycost type combination that has the Periodic Cost Post Entries to GL option checked, where the
organization
under that legal entity also has the perpetual cost GL transfer enabled.
Calculates Ending Period Subinventory Values
For each subinventory, the period close adds the net transaction value for the current period to the prior periods
ending value. This, along with values intransit, creates the ending value for the current period.

Transfer Transactions to General Ledger


You can perform the general ledger transfer at any time during an open periodnot just at period close. Interim
transfers allow you to reconcile and transfer information weekly, making the monthend period close process
much simpler and
faster.
The general ledger transfer loads summary or detail accounting activity for any open period into the general
ledger interface, including both inventory and work in process entries. When more than one period is open, the
transfer selects transactions from the first open period, up to the entered transfer date, and passes the correct

accounting date and financial information into the general ledger interface.
For example, when you transfer detail entries, the transaction date is the accounting date with a line for line
transfer. When you transfer summary entries with two periods open and enter a transfer date in the second
period, the transfer process assigns the period one end date for all the summarized transactions in period one
and assigns the entered transfer date for the summarized transactions in period two.
For each inventory organization, Cost Management transfers transactions to the general ledger interface table,
line for line. If you transfer summary information, Cost Management groups transactions by GL batch, by
journal category, by currency code, and by account.
Attention: Transfer in detail only if you have low transaction volumes. Transferring large amounts of detail
transactions can
adversely affect General Ledger performance.
For both detail and summary transfers, Cost Management passes the organization code, GL batch number, batch
description, and batch date. When you transfer in detail, you also pass the material or work in process
transaction number. In General Ledger, you can see the transferred information, as follows:

Cost Management uses the journal source Inventory for both inventory and work in process transactions.
The journal categories Inventory and Work in Process distinguish between inventory and work in process
transactions.
Using Journal Import and Post Journals processes in General Ledger, you can then post this information to the
general ledger.
Period Summarization Process
Summarization of transaction records for the open period is the last step in period close. You have the option to
perform this process automatically or manually using the profile option, CST:Period Summary. If the profile

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

Inventory Pending Transaction


Users can see the number of pending transactions by navigating to the Inventory Accounting Periods Form.
Navigate > Cost > Accounting Close Cycle > Inventory Accounting Periods
Place cursor on the appropriate open accounting period and click on the [Pending] Button. There are three zones
titled Resolution Required, Resolution Recommended and Unprocessed Shipping Transactions.

Unprocessed material transactions exist for this period


This message indicates you have unprocessed material transactions in the
MTL_MATERIAL_TRANSACTIONS_TEMP table. You are unable to close the period with this condition.
Please see your system administrator. Inventory considers entries in this table as part of the quantity movement.
Closing the period in this situation is not allowed because the resultant accounting entries would have a
transaction date for a closed period, and never be picked up by the period close or general ledger transfer
process.

Uncosted material transactions exist for this period


This message indicates you have material transactions in the MTL_MATERIAL_TRANSACTIONS table with
no accounting entries (Standard Costing) and no accounting entries and no costs (Average Costing). You are
unable to close the period with this condition. These transactions are part of your inventory value.
Closing the period in this situation is not allowed because the resultant accounting entries would have a
transaction date for a closed period, and never be picked up by the period close or general ledger transfer
process.
Pending WIP costing transactions exist in this period
This message indicates you have unprocessed resource and overhead accounting transactions in the
WIP_COST_TXN_INTERFACE table. You are unable to close the period with this condition. These
transactions are in your work in process value, and awaiting further processing.
Closing the period in this situation is not allowed because the resultant accounting entries would have a
transaction date for a closed period, and never be picked up by the period close or general ledger transfer
process.
Unprocessed Shipping Transactions
Pending Transactions in the Unprocessed Shipping Transactions zone indicate there are transactions in the
WSH_DELIVERY_DETAILS table in a status of shipped.
Pending receiving transactions for this period
When you use Purchasing, this message indicates you have unprocessed purchasing transactions in the
RCV_TRANSACTIONS_ INTERFACE table. These transactions include purchase order receipts and returns
for inventory. If this condition exists, you will receive a warning but will be able to close the accounting period.
These transactions are not in your receiving value. However, after you close the period, these transactions
cannot be processed because they have a transaction date for a closed period.
Pending material transactions for this period
This message indicates you have unprocessed material transactions in the
MTL_TRANSACTIONS_INTERFACE table. If this condition exists, you will receive a warning but will be
able to close the accounting period. These transactions are not in your inventory value. However, after you close
the period, these transactions cannot be processed because they have a transaction date for a closed period.
Pending move transactions for this period
This message indicates you have unprocessed shop floor move transactions in the
WIP_MOVE_TXN_INTERFACE table. If this condition exists, you will receive a warning but will be able to
close the accounting period. These transactions are not in your work in process value. However, after you close
the period, these transactions cannot be processed because they have a transaction date for a closed period.

Closing a Period
1. Enter all transactions.
Be sure you enter all transactions for the period. Perform all issues,receipts, and adjustments. Verify that no hard
copy records exist or are waiting for data entry, such as packing slips in receiving.
2. Check Inventory and Work in Process transaction interfaces.You can set up the material and move
transaction managers to execute transactions immediately, then submit an immediate concurrent request to
execute, or submit a concurrent request periodically at a time interval you specify. If you do not use immediate
processing, or interface external transactions, check the Inventory material transaction manager and the Work in
Process move transaction manager before closing the period.
3. Check Cost Management cost interfaces.
Cost Management processes your inventory and work in process accounting transactions as a concurrent
request, using a specified time interval. Before you close the period, you should check that the Cost Manager is
active.
4. Check Order Management transaction processes. If you use Order Management, ensure that all sales
order transaction processes complete and transfer successfully to Inventory.
5. Review Inventory transactions.
Before you close a period, review all of the transactions using the Material Account Distribution Report for the
period with a high dollar value and/or a high transaction quantity. Check that you charged the proper accounts.
Correcting improper account charges before you close a period is easier than creating manual journalentries.
6. Balance perpetual inventory.
Check that your ending perpetual inventory value for the period being closed matches the value you report in
the general ledger. Perpetual inventory value normally balances automatically with the general ledger. However,
one of the following sources can create a discrepancy:
Other inventory journal entries. Journal entries from products other than Inventory that affect the inventory
accounts.

Charges to improper accounts: For example, you issued material from a subinventory to a miscellaneous
account, but used one of the subinventory accounts as that miscellaneous account.
Issue to miscellaneous account: For example, the following miscellaneous transaction issue would cause an
out of balance situation: debit account specified at transaction 123, credit subinventory valuation account 123.
The debit and credit net to zero with no financial charge, but since the inventory quantity decreased, the month
end inventory valuation reports will not equal the general ledger account balance.
Transactions after period end reports. This occurs when you run the end of month inventory valuation reports
before you complete all transactions for the period.
If you do not run the inventory reports at period end, you can also run these Reports:
Inventory Value Report
Material Account Distribution Detail Report
Material Account Distribution Summary Report
Period Close Summary Report
Period Close Reconciliation report
Inventory Subledger Report (Average Costing Only)
In a organization using Project Manufacturing Average Costing, if there is more than one cost group, the
following valuation reports should not be used for reconciliation purposes because these reports list the average
value across cost groups.
Transaction historical Summary Report
Receiving Value Report
All Inventories Value Report
Elemental Inventory Value Report
Subinventory Account Value Report
Item Cost Report
7. Validate Work in Process inventory.
If you use Work in Process, check work in process inventory balances against transactions with the WIP
Account Distribution Report.
8. Transfer transactions in advance of closing period (optional).
If time permits, run the general ledger transfer process up to the period end date before closing the period.
Closing a period executes the general ledger transfer automatically. However, you can also run this process
without closing a period using Transfer Transactions to General Ledger. Since you cannot reopen a closed
period, running this process before period close allows you to proof the interfaced transactions and make
adjustments to the period via new inventory transactions as necessary.
9. Close Oracle Payables and Oracle Purchasing.
If you use Payables and Purchasing, you need to close the accounting periods in the following order:
Payables
Purchasing
Inventory
If you only use Purchasing and Inventory, you need to close Purchasing first. Close Payables before Purchasing,
in preparation for accruing expenses on uninvoiced receipts. Doing so ensures that all new payables activity is
for the new month and you do not inadvertently match a prior month invoice in payables to a new month
receipt. When you close Purchasing or Inventory, you cannot enter a receipt for that period. However, as a
manual procedure, close Purchasing before Inventory. This still allows miscellaneous transaction corrections in
Inventory.
10. Run the Period Close Reconciliation report.

This report automatically runs in simulation mode for the open period. It is used to match account balances with
inventory value at period end.
11. Close the accounting period and automatically transfer transactions to the general ledger.
This sets your Inventory Accounting Period status to Closed not Summarized. If the CST: Period Summary
profile option is set to Automatic, no other steps are necessary. The period status is set to Closed when the
summarization process has completed.
12. If the CST: Period Summary profile option is set to Manual, create period summarization
transactions by generating the Period Close Reconciliation report.
The concurrent program creates summarized transaction records, and displays the differences between account
balances and inventory value.

Units of Measure
Oracle Inventory provides you with powerful methods for defining and manipulating units of measure. You can
easily convert between the units of measure you define. This enables you to manufacture, order, or receive items
in any unit of measure. With units of measure you can:
1. Define unit of measure classes,
2. Define units of measure,
3. Define unit of measure conversions,
4. Define lot-specific unit of measure conversions

Defining Unit of Measure Classes


Unit of measure classes represent groups of units of measure with similar characteristics.

Creating unit of measure classes is the first step in unit of measure management. Each unit of measure
you define must belong to a unit of measure class.
Each class has a base unit of measure. The base unit of measure is used to perform conversions between
units of measure in the class. For this reason, the base unit of measure should be representative of the
other units of measure in the class, and generally one of the smaller units. For example, you could use
CU (cubic feet) as the base unit of a class called Volume.
Unit of measure classes are not organization-specific. Default unit of measure classes are not provided.

1. Enter a unique name for the unit of measure class.


2. Define the base unit of measure for this class.
3. Define a unique abbreviation for the base unit of measure.

Defining Units of Measure/


Units of measure are used by a variety of functions and transactions to express the quantity of items.

Defining units of measure is the second step in unit of measure management.


The values defined in the Units of Measure window provide the list of values available in unit of
measure fields in other windows.

Units of measure are not organization-specific.

Primary Unit of Measure


Theprimary unit of measure is the stocking unit of measure for an item in a particular organization. The primary
unit of measure is an item attribute that you specify when defining each item.
Prerequisites
You must define at least one unit of measure class.
Enter UOM from UOM Class FORM

After defining the UOM class click on Uint of measure button to enter a new UOM.
Enter the UOM namd and short name. Save the form
Define a UOM in UOM form
Navigate to the Units of Measure window.

1. Enter a unique name for the unit of measure.


2. Enter a unique abbreviation for the unit of measure with a maximum length of three characters.
For example, EA for each or HRS for hours.
3. Enter a unit of measure class.
4. Indicate if this is the base unit of measure for the unit of measure class.
To delete a unit of measure:
1. You can delete existing units of measure that are not base units of measure if no standard or item specific
conversions are defined.
To make a unit of measure inactive:
1. Enter the date on which the unit of measure becomes inactive. As of this date, you can no longer assign
standard or item-specific conversions to the unit of measure.
To change Base UOM:
Its not possible to change the base UOM from one UOM to another UOM

Defining Unit of Measure Conversions


Unit of measure conversions are numerical factors that enable you to perform transactions in units other than
the primary unit of the item being transacted. You can define:
A conversion common to any item (Standard)
A conversion for a specific item within a unit of measure class (Intra-class)
A conversion for a specific item between unit of measure classes (Inter-class)
Unit of measure conversions are not organization-specific.
You must define a conversion between a non-base unit of measure and the base unit of measure before
you can assign the non-base unit of measure to an item
Specifying Which Conversion to Use
When you define an item you decide which type of unit of measure conversion to use:
1. Itemspecific: Only uses unit of measure conversions unique to this item. If none exist, you can only

transact this item in its primary unit of measure.


2. Standard: Uses standard unit of measure conversions for this item if an item-specific conversion is not
available.
3. Both: Uses both item-specific and standard unit of measure conversions. If both exist for the same unit

of measure and item combination, the item-specific conversion is used.

Unit of Measure Conversions During Transactions


Whenever you enter an item's quantity, the default is the primary unit of measure for the item. The list of values
for the unit of measure field displays all units of measure for which you have defined standard and/or itemspecific conversions from the primary unit of measure.
Transactions are performed in the unit of measure you specify. The conversion happens automatically and item
quantities are updated in the primary unit of measure of the item.
Important: Inventory transactions and on hand balance supports decimal precision to 5 digits after the decimal
point. Oracle Work in Process supports decimal precision to 6 digits. Other Oracle Applications support
different decimal precision. As a result of the decimal precision mismatch, transactions another Oracle
Application passes may be rounded when processed by Inventory. If the transaction quantity is rounded to zero,
Inventory does not process the transaction.
It is therefore suggested that the base unit of measure for an item is set up such that transaction quantities in the
base unit of measure not require greater than 5 digits of decimal precision.
Define a Standard conversion for any item
In standrad conversion you specify how one unit of mesaure is related to the primary unit of measure in the
same class.
In standrad conversion you cant do the following
You cant specify any sort of intra class conversion
Relationship between two UOMs not invloving primary UOM
Navigate to the Unit of Measure Conversions window & Select the Standard tabbed region.

1 Enter a unit of measure.


2 Enter the conversion factor by which the unit of measure is equivalent to the base unit of measure established
for this class.
For example, if one DZ (this unit of measure) is equivalent to 12 EA (base unit), the conversion factor is 12. Or,
if EA is equal to one-twelfth of a DZ, the conversion factor is 0.08333.
Define a conversion for a specific item within a unit of measure class (Intra-class)
We have seen in standard conversion we can only do convesrion from one UOM to primary UOM.
Suppose we have defined a UOM convsrion rule for a unit of measure UOM_XYZ as UOM_XYZ = 6 x
Primary UOM but for a particular item the vonvsrion rate is not 6 in that case we define a intra class convesrion
for a particular item and when ever that item is transacted system 'll pick the convesrion rate from either intra
class or standrad convesrion depending upon ITEM master set up.
Notes
We can do intra class conversion between two UOMs for a particular item only for a single class which is the
UOM class of the primary UOM of the item.
For exampe Suppose ITEM001 has a primary UOM as Ea and UOM Ea belongs to class Quantity then we can
define intra class conversion for the item ITEM001 between two UOMs in the class Quantity.
we cant define intra class convesrion between any other UOMs belonging to a differnt UOM class.

Navigate to the Unit of Measure Conversions window.

1. Select the Intra-class tabbed region.


2. Enter an item.
3. Enter a unit of measure.
4. Enter the conversion factor by which the unit of measure is equivalent to the base unit of measure established
for this class.
For example, if one LB (this unit of measure) is equivalent to 16 OZ (base unit), the conversion factor is 16.

Define a conversion for a specific item between unit of measure classes (Inter-class)
Inter class conversion is used to convert an item from one primary UOM in one class to another primary UOM
in a differnt class for a particular item.
Navigate to the Unit of Measure Conversions window and Select the Inter-class tabbed region.

1. Select an item.
2. Select the destination base unit of measure of the class to which you are converting a unit of measure.
3. Enter the conversion factor by which the source base unit is equivalent to the destination base unit.
For example, if one ML (source base unit) is equivalent to one GR (destination base unit), the conversion factor
is one.

Lot-Specific Unit of Measure Conversions


/
Lot specific conversions enable you to perform a specific inter-class conversion for a given lot. This enables
you to establish more granular control over the transactional quantities of a lot. For example, the standard interclass conversion for a lot controlled item is one gallon equals 15 pounds; however, when you receive a
particular lot of the item, 1 gallon equals 16 pounds. You can create a lot specific unit of measure for this
instance.
You can create lot-specific unit of measure conversions for on-hand lots or lots with a zero balance. If you
create a lot-specific conversion for a lot with on-hand quantities, you can automatically update the quantities in
the system to more accurately reflect the on-hand quantity.
You can also view the history of changes made to the lot unit of measure conversion, and the corresponding
quantity changes.

1. Enter the item number in the Item field.


2. Enter the lot number in the Lot Number field.
3. Select the destination base unit of measure of the class to which you are converting the unit of measure.
4. Enter the conversion factor by which the source base unit is equivalent to the destination base unit.
For example, if 16 pounds (source base unit) is equivalent to 1 Gallon (destination base unit), the conversion
factor is 16.
5. Optionally, enter an inactive date for the conversion. This is the date when the unit of measure conversion for
the lot reverts back to the standard inter-class conversion.
6. Optionally, enter a transaction reason for the conversion.

Rules
Picking Rules
When you define an item you choose a picking rule to determine the order in which revisions, lots,
subinventories, and locators are picked for sales order. Oracle Shipping Execution submits requests to Oracle
Inventory, which uses the information you enter in the Picking Rules window to generate pick lists for sales
orders.
If you choose None for any of the criteria fields, Inventory ignores that criterion. For example, if you choose
None for Revision, Inventory picks units of an item without regard to revision levels.
Oracle Inventory looks at the picking criteria in the order in which they appear in the Picking Rules window.
Then, Inventory looks at the options (except for None options) for each criterion in the order in which they
appear beneath each criterion.
To define a picking rule

1. Navigate to the Picking Rules window.


2. Enter a unique name for the rule.
3. Select an option for revision order:
Revision: Pick most recent revision.
Effective Date: Pick earliest revision effective date.
None: Do not consider revision levels in the picking process.
4. Select an option for lot order:
Expiration Date: Pick earliest lot expiration date.
Receipt Date: Pick earliest lot receipt date, the date you received items into their current location.
Lot Number: Pick lowest lot number.
None: Do not consider lot numbers in the picking process.
5. Select an option for subinventory order:
Subinventory: Pick by order defined for each subinventory.
Receipt Date: Pick earliest subinventory receipt date.
None: Do not consider subinventories in the picking process.
6. Select an option for locator order:
Locator: Pick items according to the picking order defined for each locator.
Receipt Date: Pick items according to the earliest locator receipt date.
None: Do not consider locators in the picking process.
To delete a picking rule
You can delete a picking rule if there are no references to it.

Transaction Flow

Inventory /
MTL_TRANSACTIONS_INTERFACE table is the Interface between non-Inventory applications and the
Inventory Transactions module. In other words any other module other than Inventory that wants to update
Inventory has to come through this table. Modules such as WIP (Work In Progress) and OE (Order Entry) first
pass their records to the MTL_TRANSACTIONS_INTERFACE (MTI)for validation.

There is an Interface Manager called the Transactions Manager (INCTCM) which reads records from this table,
validates them and moves the successful transactions onto MTL_MATERIAL_TRANSACTIONS_TEMP, and
submits Transaction workers (sub-processes - INCTCW) which then processes these records through inventory.
This process consists of data derivation, validation, and transfer of records from
MTL_TRANSCTIONS_INTERFACE, MTL_TRANSACTIONS_LOTS_INTERFACE and
MTL_SERIAL_NUMBERS_INTERFACE into their respective TEMP (temporary) tables from where the
transactions processor processes them.
Both the Lots and Serial number tables above are used when items being updated are under 'Lot' or 'Serial'
number control. Example :- In the case of an Sales Order, the item is being shipped to a client so the lot and
serial number if being used, this needs to be updated to show that it is no longer available in Inventory stock.
It is important to note that in general the processors will not move the transactions from this table if the
following fields are not set as follows.
LOCK_FLAG = 2
PROCESS_FLAG = 1
transaction_mode = 3
Once the transactions have been passed to this table after initial validation by the Transactions Manager
(INCTCM) from the MTL_TRANSACTIONS_INTERFACE a job id is attached and a Transactions Worker
(INCTCW) is submitted by the INCTCM process in order to the get the records processed and moved to the
MTL_MATERIAL_TRANSACTONS table.
This table is also used by Inventory Module and Purchasing module which writes directly onto this table for any
transactions entered within itself and each transaction in turn through a process of strict validation.
Inventory Module Forms like Miscellaneous transactions writes directly into this table. The transactions which
are done through these form are on-line processing. It is from here that the inventory quantities finally get
updated,serial/lot numbers get marked as being used.

Enterprise Structure
You must plan how Oracle Inventory represents your companys inventory sites and business units. This
includes defining organizations, locations, subinventories, and locators depending on your company structure.
You also must plan how to implement certain parameters and what level of the structure controls them.

Multi-org often refers to an Oracle Applications setup used to enable multiple business units in a single install.
With multi-org, a business enterprise may set up multiple business units with differing sets of books, operating
units, and legal entities all within a single instance. With multi-org, goods my be sold out of one operating unit
or legal entity and shipped out of another, and the system will process an intercompany sale to properly account
for it.
Multi-org, however, should not be mistaken for installs with multiple inventory organizations. You do not have
to use Oracle Applications multi-org to support multiple inventory organizations if all the inventory
organizations share the same set of books, operating unit, and legal entity.
Location: A location is simply a name and address, and is assigned to an organization or used to indicate
delivery information on a purchase order. You may define as many locations as you like, but only one location
may be assigned to an inventory organization.
Business group is a group of companies that does business in different markets under common administrative
or financial control whose members are linked by relations of interpersonal trust on the bases of similar
personal ethnic or commercial background a business group.

Set of Books (SOB): The financial entity that represents the chart of accounts, fiscal calendar, and base
currency. The SOB is set up in the General Ledger.
Legal Entity Organization: An entity used to represent a legal company. Fiscal and tax reporting are done at
the Legal Entity level.
A legal employer is a legal entity that is responsible for employing people in a particular country. Therefore, if
you employ people in a country, then you must have at least one organization classified as a legal entity and a
legal employer.
The Configuration Workbench classifies an organization as a GRE/Legal Entity where your enterprise operates
in a country, and classifies it as an Employer if you employ people in that country also. For example, you can
have a legal entity in a country where you do business, but do not employ people in that country.
Operating Unit Organization: A business unit that shares a common Purchasing, Accounts Payable, Order
Entry and Accounts Receivable setup. An operating unit may consist of multiple inventory organizations, with
multiple manufacturing sites, distribution centers, and sales offices, but they share a common sales order and
purchase order system. For example, a sales order may have lines shipping from different inventory
organizations or a purchase order may have lines destined for different inventory organizations.
Inventory Organization: An entity used to represent a manufacturing or distribution site. Inventory
organizations are where a user tracks on-hand balances, manufactures goods, and transacts the daily ins and outs
of material movement. An inventory organization is the lowest level entity for costing goods, planning material
requirements, and securing system access. Only a single address may be assigned to an Inventory
Organization. An inventory organization is assigned a Set of Books which determines the chart of accounts,
fiscal calendar, and base currency for all financial and value added activities that occur within the organization.
Inventory Organizations are also assigned to a Legal Entity Organization and an Operating Unit Organization.
A variation on the inventory organization is the master item organization. Generally, with Oracle Applications a
single inventory organization is created and designated at the master organization. Items are defined first in the
master organization, then enabled in other inventory organizations as necessary. Some of the item attributes are
set as controlled at the master organization and therefore the attribute values cannot be updated within
individual inventory organizations. Category sets may also be designated as master organization level. Crossreferences are also master level only or master level optional as well.
Subinventory: Physical or logical locations for storing inventory. Subinventories are generally defined to
represent the main stores area as well as stocking points on the production floor. Additional subinventories may
be used to specify supply closets or cabinets and the cage area for discrepant material. Subinventories are
flagged as to availability for planning (nettable), reservations, and available to promise checks, thereby
determining the availability of the material stored in the subinventory. Subinventories are assigned material
asset account numbers. As goods move in and out of a subinventory a transaction posts to the asset account.
Stock Locator: A physical area within a stockroom. The stock locator is a key flexfield that is often defined as
a multiple segment flexfield with the segments representing the physical layout of a stockroom. For example, a
stockroom may be laid out in rows of shelves with bins on the shelves, each numbered so that a row/shelf/bin
combination would direct someone to a particular material storage compartment. Such an implementation
would define a locator flexfield as a 3 segment flexfield with segments for row, shelf, and bin.
Attachment of LE/OU/INV with BG
We never attach any LE/OU/INV with BG in front end...but its available in
HR_ALL_ORGANIZATION_UNITS in column Business_Group_ID..so the question is from where it comes?
First we create a Business Group. When ever we create a business group the system creates an organization with
type businessgroup and attach a business group ID 'N' which is same as the organization ID for that Business
group.

After that we attach the business group to a responsibility through the profile option HR : Business Group.
Next we create whenever we create a new LE/OU/Inv with one responsibility the system 'll attach the Business
Group which is attached with the HR : Business group for that particular responsibility.

Defining Planners/
You can define and update material planners or planning entities for the current organization and assign them to
inventory items at the organization level.
To define and update material planners or planning entities:
1. Navigate to the Planners window.
2. Enter a unique planner name. A planner can be a person or an entity, such as a department or a division.
3. Enter the electronic mail address of the planner.
4. Optionally, enter a date on which the planner becomes inactive. From this date on, you cannot assign this
planner to an inventory item.

Defining Locations
Use the Locations window to define shipto, bill-to, receiving, office site, internal site & other location
information for Purchasing documents.

Locations are shared across Business Groups in HRMS and with two other Oracle applications: Inventory and
Purchasing. HRMS does not use some of the fields in the Location window. These fields are disabled for HRMS
users. For example, the Legal Address check box is read-only and supports future functionality in Oracle
Financials.
Header
Uncheck the Global check box if you want the location to only be available within the default Business Group
of your current responsibility. Accept the default if you want the location to be a global location and therefore
available to all Business Groups. If you are setting up a global location, the location name must be unique
across all Business Groups. If you are setting up a location for one Business Group, the location name must be
unique within that Business Group and all global locations, but does not have to be unique across all Business
Groups.
Note: You cannot amend the Global check box once you have set up your location.
Address Details Tab
Select a national address style from the list. If a local address style exists for your country, it is displayed as the
default. Otherwise, the international style is displayed.
Shipping Details
Selecting the check boxes means that you are making the location Name a valid location in the list of values on
a Purchasing
document. For example, selecting ShipTo Site makes the location Name a valid choice in the list of values for
the ShipTo field on a purchase order header. Note that if you define a default ShipTo or BillTo Location in
the SupplierPurchasing region of the Financials Options window for your organization, that is the location that
defaults onto your purchase orders. But if you wanted to change that default, the location Name that you define
here and enable as a ShipTo or BillTo site is available in the list of values for you to choose from in the Ship
To or BillTo fields.

Contact: Optional contact name for the location Name.

ShipTo Location : Its the receving dock. Usually the same as the location Name. You could select a separate,
previously defined ShipTo Locationfor example, if you wanted to create a location Name, Office A, and
specify Receiving Dock A as its ShipTo Location. Note, however, that once you specify a separate ShipTo
Location, you can no longer enable the location Name as a ShipTo Site. In this example, Receiving Dock A is
the shipto site for Office A; therefore, Office A itself cannot also be the shipto site.
ShipTo Site: Is this location is a receving dock. Select this option to make the location Name a valid shipto
organization on a purchase order or requisition.
BillTo Site: Select this option to make the location Name a valid billto site. The BillTo Site, which is used
by Payables, is specified on a purchase order header.
Receiving Site: Select this option to make the location a valid receiving Location when creating a receipt or
receiving transaction.
Office Site: Select this option to indicate that this location Name is an office site, such as a field office.
Internal Site: Select this option to make the location a valid internal shipto location when creating an internal
requisition.
Other Details
Inventory Organization: Select an inventory organization within which this location will be available in the list
of values on a Purchasing document. By selecting no inventory organization, this location becomes available on
Purchasing documents
in all organizations.
EDI Location: If you use Electronic Data Interchange (EDI) to receive Advance Shipment Notices (ASNs) or
ASNs with billing information (ASBNs), enter a defined location. This location should match the ship-to
location specified on an ASN or ASBN

Organization
Define the following organizaions as per the requirement of business
i. Business group
ii. Legal Entity
iii. Operating Units
iv. Organization
External organizations (for example, tax offices, insurance carriers, disability organizations, benefit carriers, or
recruitment agencies)
Internal organizations (for example, departments, sections or cost centers)
Creating an Organization
1. Enter a name for your organization in the Name field. A check is performed to see if organizations with the
same name already exist.
All Oracle applications you install share the information entered in the Organization window. Therefore
organization names must be unique within a business group, and business group names must be unique across
your applications network.
You can create two organizations with the same name in different business groups but this can cause confusion
later, if the HR: Cross business group profile option is set to Yes and you decide to share certain information

across all business groups. If you decide to create two organizations with the same name, be sure that this will
not cause you problems in the future.
2. Optionally, select an organization type in the Type field.
Organization types do not classify your organization, you use them for reporting purposes only. The type may
identify the function an organization performs, such as Administration or Service, or the level of each
organization in your enterprise, such as Division, Department or Cost Center.
3. Enter a start date in the From field. This should be early enough to include any historical information you
need to enter.
Note: You cannot assign an employee to an organization before the start date of the organization.
4. Enter a location, if one exists. You can also enter an internal address to add more details such as floor or
office number.
If you are using Oracle Payroll in the US, every organization to which employees can have assignments,
including business groups, must have on record a location with a complete address. This is because the system
uses the location of the organization of the employee's primary assignment to determine employee work
locations for tax purposes. This does not apply to GREs, because the assignment to a GRE exists in addition to
the assignment to an organization.
For Dutch users only, if you are setting up external organizations for a tax office, a social insurance provider or
a private health insurance provider, you must enter the postal address and contact details using the
NL_POSTAL_ADDRESS Location EIT.
Note: If you are an Oracle Inventory user, then you must not assign a location to more than one organization
classified as an Inventory Organization.
5. Enter internal or external in the Internal or External field. You cannot assign people to an external
organization.
Examples of external organizations that may require entry are disability organizations, benefits carriers,
insurance carriers, organizations that employees name as beneficiaries of certain employee benefits, and
organizations that are recipients of third party payments from employees' pay.
Inventory : Setup -> Organizations -> Organization

Enter Organization Classifications & Additional Information


1. Business Group

Business Group Information.


Budget Value Defaults.
Work Day Information.
Benefits Defaults.
PTO Balance Type.
Recruitment Information.
Payslip Information.
Self Service Preference Information.
2. Attaching Set of Books to Legal Entity

3. Attaching Set of Books & Legal Entity to Operating Unit

4. Attaching Operating Unit to organization

Subinventories
Subinventories are unique physical or logical separations of material inventory, such as raw inventory, finished
goods, or defective material. All material within an organization resides in a subinventory. There are two types
of subinventories within Warehouse Management, storage and receiving.
Storage subinventories are intermediate or final put away locations for material. Material that resides in a
storage subinventory appears in on hand quantity, and is tracked by the system. The system can book orders
against, and use manufacturing processes on material that resides in a storage subinventory. You must define at
least one storage subinventory for your implementation.
Optionally, you can create receiving subinventories to track material in the receiving area. You use receiving
subinventories when you want to track the material as soon as it enters the warehouse before an operator puts it
away. Receiving subinventories enable managers to see where the material resides as soon as it enters the
warehouse. Material located in a receiving subinventory does not appear in on hand quantity, and the system
cannot reserve the material.
An operator can also only specify a receiving subinventory if they are using a mobile device to receive the
material.
Note: Operators cannot transfer material from a storage subinventory to a receiving subinventory.

All material within an organization is held in a subinventory therefore, you must define at least one
subinventory.

Define new Subinventory


Select a source type for item replenishment.

Header
1. Enter a unique alphanumeric name.
2. Indicate the material status of this subinventory, which controls the enabled transactions for all material in
this subinventory. The status is not overridden by the status of any locator, lot or serial, within this subinventory.
The statuses of those objects will be considered when determining transactions that are not enabled. This field is
used if you have Oracle Warehouse Management installed.
3. Indicate the default cost group for this subinventory. If the cost group assignment rules fail to identify a cost
group for newly received material, this cost group will be assigned. This cost group will remain with the
material, even through subinventory transfers, until you perform a cost group change transaction. This feature is
available if you have Oracle Warehouse Management installed, and you are working with a WMS enabled
organization.
4. Select the subinventory type from the drop down list. The available choices are as follows:
Storage: Designates the subinventory as a Storage subinventory.
Receiving: Designates the subinventory as a receiving subinventory, and links it to a receiving location. This
subinventory type is used only for receiving material. Material in this type of subinventory cannot be onhand,
or reserved.
Null: No subinventory designation
Parameters
Following are the important parameters that we must define

1. Quantity tracked Indicate whether each transaction for this subinventory updates the quantity on hand for
the subinventory (Quantity Tracked).
If you leave this option unchecked, onhand balances are not maintained and you cannot check or update the
Asset Inventory, Include in ATP, Reservable, or Nettable options. You can update this value only if there is no
onhand quantity, no pending transaction, or no uncosted transaction for the subinventory.
2. Asset Subinventory: Indicate whether to maintain the value of this subinventory on the balance sheet (Asset
Subinventory). You can update this value only if there is no onhand quantity for the subinventory.
3. Include in ATP: Indicate whether to include items in this subinventory in ATP calculations.
4. Depreciable: Indicate whether to designate items in this subinventory as depreciable.
This data is needed to support depreciable and location information in the Subinventory Setup from the Oracle
Network Logistics product.
5. Allow Reservation: Indicate whether to include this subinventory when you perform availabletoreserve
calculations.
6 Nettable: Indicate whether the planning process uses the onhand balance of these subinventory items as
available inventory (Nettable).
7. LPN Controlled: Indicate if material may be packed into an LPN in the subinventory. If this is unchecked,
all LPNs transacted into this subinventory will be automatically unpacked, and LPNs cannot be packed into this
subinventory. This feature is available if you have Oracle Warehouse Management installed, and you are
working with a WMS enabled organization
8. Select a type of locator control.
You can select an option only if you selected locator control as Determined at subinventory level in the Locator
Control field in the Organization Parameters window. You can only update this option if there is no onhand
quantity for the subinventory.
None: Inventory transactions within this subinventory do not require locator information.
Prespecified: Inventory transactions within this subinventory require you to enter a valid predefined locator for
each item.
Dynamic entry: Inventory transactions within this subinventory require you to enter a locator for each item.
You may choose a valid predefined locator, or define a locator dynamically at the time of transaction.
Item level: Inventory transactions use locator control information that you define at the item level.
9. Optionally, enter an inactive date for the subinventory.
10. Enter a location for the subinventory. If the Subinventory type is Receiving, this field is mandatory.
Lead times
Optionally, enter preprocessing, processing, and postprocessing lead times for items in this subinventory.
These lead times are used when you use minmax planning at the subinventory level.
Sourcing
Inventory: Replenish items internally, from another organization.
Supplier: Replenish items externally, from a supplier you specify in Oracle Purchasing.
Subinventory: Replenish items internally, from another subinventory in the same inventory
organization.Navigate to the Subinventories Summary folder window. Choose New. The Subinventories
window appears.

subinventory account information


Enter the general ledger accounts.The default accounts are those defined for the organization in the
Organization Parameters window. If you are using average costing, you may enter the valuation accounts, but
they are not used. Average costing uses only the Expense and Encumbrance accounts. If you use standard
costing, and Oracle Bills of Material is installed, all asset accounts are required. If you use standard costing, and
Oracle Bills of Material is not installed, you are only required to enter the Material and Material Overhead
accounts.

Receiving Sub Inventory

Designates the subinventory as a receiving subinventory, and links it to a receiving location. This subinventory
type is used only for receiving material. Material in this type of subinventory cannot be on-hand, or reserved.
You can not enable status attributes (Include in ATP, Allow Reservation, Nettable).
Quantity tracked, Asset Subinventory and Depreciable fields are also not applicable for receiving sub inventory

Organization Access
You can specify which organizations a responsibility can access by mapping responsibilities to organizations.
Once this mapping is set up, a user logging into an Oracle Manufacturing product is restricted to the
organizations mapped to the responsibility chosen. The Change Organization window is restricted as well.
Attention: Until you assign an organization to a responsibility in this window, all responsibilities have access to
all organizations. Once you have restricted any responsibility to an organization, you must then explicitly define
the organizations which all responsibilities can access.
Attention: This feature does not restrict access once the user is in the product. Users with access to functions
that cross multiple organizations (such as ATP, Interorganization Transfers, Item Search, Multiorganization
Quantity Report, and so on) can still specify any valid organization when running these functions.

Organization Parameters
You can define and update default inventory and costing parameters for your current organization in the
following areas:
1. Inventory Parameters
2. Costing Information
3. Other Account Parameters
4. Revision, Lot, Serial, LPN Parameters
5. ATP, Pick, ItemSourcing Parameters
6. Defining InterOrganization Information
7. Defining Warehouse Parameters

1. Enter an organization code for which you want to set up the organization parameter.
2. Select an Item Master organization. Oracle Inventory only defines items in the Item Master
organization of the organization from which you enter the Items window.
3. Select a workday calendar. This is required when Oracle Master Scheduling/MRP and Oracle
Supply Chain Planning is installed.
4. Optionally, select a demand class. Demand classes segregate scheduled demand and production into
groups, allowing you to track and consume those groups independently. Oracle Master Scheduling/MRP
and Oracle Supply Chain Planning uses this demand class during forecast consumption, and shipment
and production relief.
5. In the Move Order Timeout Period field, enter the number of days a move order requisition can
wait for approval.
The workflow approval process sends a notification to the item planner when a move order requisition
requires approval. After the first timeout period, if the recipient has not approved or rejected the order, a
reminder notice is sent. After the second timeout period, the order is automatically approved or rejected,
depending on whether you select Approve automatically or Reject automatically in the Move Order
Timeout Action field. If you want to bypass the move order approval process and automatically approve
move order requisitions, enter 0 days in the Move Order Timeout Period field and select Approve
automatically in the Move Order Timeout Action field.

6. Select a move order timeout action


Approve automatically: After the second timeout period, move order requisitions are automatically
approved. Select this option and set the Move Order Timeout Period to 0 if you want to bypass the move
order approval process and automatically approve move order requisitions.
Reject automatically: After the second timeout period, move order requisitions are automatically
rejected.
7. Select a locator control option:
None: Inventory transactions within this organization do not require locator information.
Prespecified only: Inventory transactions within this organization require a valid, predefined locator for
each item.
Dynamic entry allowed: Inventory transactions within this organization require a locator for each item.
You can choose a valid, predefined locator, or define a locator dynamically at the time of transaction.
Determined at subinventory level: Inventory transactions use locator control information that you define
at the subinventory level.

Indicate whether to allow negative balances. Determines whether inventory transactions can drive the
inventory balance of an item negative.
Attention: If insufficient quantity on hand exists in a supply subinventory to satisfy backflush demand,
Oracle Work in Process forces the supply subinventory balance negative, ignoring this option setting.
Auto delete allocation at Move Order cancellation

Indicate whether this organization is an Oracle Warehouse Management enabled organization. You can
use WMS features such as LPNs, task management, warehouse execution rules and cost
groups in this organization. Locator control must be enabled in order to enable WMS. Once this has
been enabled and transactions have been entered in this organization, this box cannot be unchecked.

Indicate whether this organization is enabled for Quality inspection.

Indicate whether this organization is an Oracle Enterprise Asset Management enabled Organization.

Enter a total load weight and unit of measure for this organization.

Enter a total volume and unit of measure for this organization.

New Features in R12


1. Select a Default On-hand Material Status tracking option. This step is optional.
Attention: You cannot update this field for existing organizations. To enable this field, you must submit the
Activate Onhand Level Material Status Tracking concurrent program.
2. Indicate whether locator aliases must be unique across the organization.

Defining Costing Information


The costing organization that controls the costs in your current organization and the costing method are
displayed. You cannot make changes to these fields.

1. Costing Organization
2. Costing Method
3. Transfer to GL Indicate whether all transactions are posted in detail to the general ledger.
Caution: Transferring detail transaction distributions to the general ledger increases general ledger posting times
due to the number of records created.
4. Reverse Encumbrance Indicate whether to reverse encumbrance entry upon receipt in inventory.
You normally select this option if you use encumbrances with Oracle Purchasing.
5. Optionally, enter a Cost Cutoff Date
If you leave this field blank, all available transactions will be costed,as usual. If you enter a date, all transactions
prior to this date will be costed. All transactions on or later than this date will not be costed.
For interorganization transfers, a standard costing, receiving organization will not cost a receipt if the sending
organization did not already cost the transaction.
The default time is the first instant of the date. You can optionally choose another time.

The standard cost update process can be performed on the cost cutoff date. You can restart cost processing by
changing the cutoff date to blank, or a future date.
6. Default Material Sub element
For standard costing, select a material subelement that this organization uses as a default when you define item
costs. For average costing, the default material subelement you select can be used for cost collection when
Project Cost Collection Enabled is set.
7. Material Over head Sub element
Optionally, select a Default Material Overhead SubElement from the list of values. During the Supply Chain
Rollup process, when costs are merged from another organization, markup and shipping costs will use this
value.
The supply chain cost rollup will complete successfully, regardless of whether this field is populated. If the Cost
Rollup identifies an organization with a default material overhead subelement not set up, a corresponding
warning message will be printed in the log file.
8. Default Cost Group
Indicate the default cost group for the organization. This will default into the Default Cost Group field for each
subinventory. If the WMS cost group rules engine fails to find a cost group, this cost group will be used.
9. Valuation Accounts
You choose a default valuation account when you define organization parameters. Under standard costing, these
accounts are defaulted when you define subinventories and can be overridden. Under average costing, these
accounts (except for Expense) are used for subinventory transactions and cannot be updated. For a detailed
discussion of cost
elements.
Material An asset account that tracks material cost. For average costing, this account holds your inventory
and intransit values. Once you perform transactions, you cannot change this account.
Material Overhead An asset account that tracks material overhead cost.
Resource An asset account that tracks resource cost.
Overhead An asset account that tracks resource and outside processing overheads.
Outside processing An asset account that tracks outside processing cost.
Expense The expense account used when tracking a nonasset item.

Other Accounts

Encumbrance: An expense account used to recognize the reservation of funds when a purchase order is
approved.
Inventory A/P Accrual : The liability account that represents all inventory purchase order receipts not matched
in Accounts Payable, such as the uninvoiced receipts account.
Purchase Price Variance : The variance account used to record differences between purchase order price and
standard cost. This account is not used with the average cost method.
Invoice Price Variance : The variance account used to record differences between purchase order price and
invoice price. This account is used by Accounts Payable to record invoice price variance.
Cost of Goods Sold: The profit and loss (income statement) account that tracks the default cost of goods sold
account.
Sales: The profit and loss (income statement) account that tracks the default revenue account.

Project Clearance Account: When performing miscellaneous issues to capital projects, the project clearance
account is used to post the distributions.
Average Cost Variance: Under average costing with negative quantity balances, this account represents the
inventory valuation error caused by issuing your inventory before your receipts.
Note: For standard costing, only the Purchase Price Variance, Inventory A/P Accrual, Invoice Price Variance,
Expense, Sales and Cost of Goods Sold accounts are required. The other accounts are used as defaults to speed
your set up.
Note: For average costing, only the Material, Average Cost Variance, Inventory A/P Accrual, Invoice Price
Variance, Expense, Sales and Cost of Goods Sold accounts are required. The other accounts are used as defaults
or are not required.

Revision, Lot, Serial, LPN Parameters

Enter a starting revision to be the default for each new item.


Lot Number
1. Select an option for lot number uniqueness.

Across items: Enforce unique lot numbers for items across all organizations.
None: Unique lot numbers are not required.
2. Select an option for lot number generation.
Userdefined: Enter userdefined lot numbers when you receive items.
At organization level: Define the starting prefix and lot number information for items using the values you enter
in the Prefix, Zero Pad Suffix, and Total Length fields. When you receive items, this information is used to
automatically generate lot numbers for your items.
At item level: Define the starting lot number prefix and the starting lot number when you define the item. This
information is used to generate a lot number for the item when it is received.
3. Indicate whether to add zeroes to rightjustify the numeric portion of lot numbers (Zero Pad Suffix).
4. Optionally, select an alphanumeric lot number prefix to use for systemgenerated lot numbers when
generation is at the organization level.
5. Optionally, define the maximum length for lot numbers. If you use Oracle Work in Process and you set the
WIP parameter to default the lot number based on inventory rules, then WIP validates the length of the lot
number against the length you define in this field.
Serial Number
1. Select an option for serial number uniqueness.
Within inventory items: Enforce unique serial numbers for inventory items.
Within organization: Enforce unique serial numbers within the current organization.
Across organizations: Enforce unique serial numbers throughout all organizations.
2. Select an option for serial number generation.
At organization level: Define the starting prefix and serial number information for items using the information
you enter in the following fields of this window.
At item level: Define the starting serial number prefix and the starting serial number when you define the item.
3. Optionally, select an alphanumeric serial number prefix to use for systemgenerated serial numbers when
generation is at the organization level.
4. Optionally, enter a starting serial number to use for systemgenerated serial numbers.
If serial number generation is at the organization level you must enter a starting serial number.
5. Indicate whether the system will suggest serial numbers as part of the move order line allocating process. If
you do not select this option, you must manually enter the serial numbers in order to transact the move order.

ATP, Pick, ItemSourcing Parameters

Select a default ATP rule.


ATP rules define the options used to calculate the available to promise quantity of an item. If you are using
Oracle Order
Management, the default is the ATP rule for the Master organization.
Picking Defaults
Select a default picking rule.
Picking rules define the priority that order management functions use to pick items.
Notes: This rule will not be employed in a WMS enabled organization. The WMS picking rules will be used.
Enter a default subinventory picking order.
This value indicates the priority with which you pick items from a subinventory, relative to another
subinventory, in which a given item resides. The value you enter here displays as the default when you define a
subinventory.
Enter a default locator picking order.
This value indicates the priority with which you pick items from a locator, relative to another locator, where a
given item resides. The value you enter here displays as the default when you define a locator.
Check the Pick Confirmation Required box if you want your pickers to manually pick confirm. If you do not
check the box, pick confirmation will occur automatically.
Item-Sourcing Default
Select a source type for item replenishment.

Inventory: Replenish items internally from another subinventory in the same organization or another
organization.
Supplier: Replenish items externally, from a supplier you specify in Oracle Purchasing.
None: No default source for item replenishment.
Select the organization used to replenish items.
You must enter a value in this field if you selected Inventory in the Type field.
Select the subinventory used to replenish items.
You must enter a value in this field if you selected your current organization in the Organization field. You
cannot enter a value in this field if you selected Supplier in the Type field.

Dynamic entry for Locators


/
If we select the dynamic entry for locators then we can directly create the locators while do any transactions. To
allow dynamic entery allowed for locators we need to do following two setups.
1. Make the stock locator as dynamic entery either at oraganization parameter or subinventory or at item level.
2. Allow dynamic insert should be enabled for the stock locator structure.

Now when we do a transaction we can put a predefined stock locator or can a new combination if required.

InterOrganization Information

Select an InterOrganization Transfer Charge option.


None: Do not add transfer charges to a material transfer between organizations.

Predefined percent: Automatically add a predefined percent of the transaction value when you perform the
interorganization transfer.
Requested value: Enter the discrete value to add when you perform the interorganization transfer.
Requested percent: Enter the discrete percentage of the transfer value to add when you perform the inter
organization transfer.
Interorganization cost accounts
Enter default interorganization cost accounts. These accounts are defaulted when you set up shipping
information in the
InterOrganization Shipping Networks window

InterOrganization Shipping Network


Use the InterOrganization Shipping Network window to define accounting information and the relationships
that exist between shipping and destination organizations. You can specify whether an organization is a shipping
organization, a destination organization, or both.

1. From-TO organization
Determine if the organization displayed is the To Organization, From Organization, or the From or To
Organization.
Item is transfered from the 'From' organization to the 'To' Organization.
2. Transfer Type: (Intransit/Direct)
For each organization relationship you create, you must indicate what type of shipment is used. If you choose to
use intransit inventory, Oracle Inventory moves material to intransit inventory before it reaches the destination

organization when you perform an interorganization transfer. Typically, you transfer material through intransit
inventory when transportation time is significant. If you do not choose intransit inventory, Oracle Inventory
moves your material directly to the destination organization when you perform an interorganization transfer.
For direct transfer type the FOB & receipt routing is disabled.
3. FOB (Shipment/Receipt)
Determines the ownership of the materail. If it is shipment then the owner ship goes to 'To(receving)'
organization at the point of shipping. If it is receipt then the ownership is transfered from the 'From(Sending)'
organization to the 'To(receving)' organization when the materail is received at the receving organization.
4. Receiving routing
If you selected Intransit in the Transfer Type field, select a receipt routing option:
Standard: Receive this item first, then deliver without inspection.
Direct: At receipt, deliver this item directly to its location.
Inspection: Receive this item first, inspect it, then deliver.

5. Interanl orders enabled


You must also specify whether internal orders are required from the destination organization to perform inter
organization
transfers. Oracle Inventory does not allow you to perform interorganization transfers using the Transfer
Between Organizations window to an organization that requires internal requisitions.
6. interorganization transfer charge
Select the interorganization transfer charge type for calculating transfer charges:
None: Do not add transfer charges.
Predefined Percent: Automatically add a predefined percent of the transaction value.
Requested Value: Enter a discrete value to add.

Requested Percent: Enter a discrete percentage of the transfer value to add.


The default value is the value you defined in the Organization Parameters window for the shipping organization.
7. Define account information
Also, you must provide general ledger accounts to record debits and credits involved in an interorganization
transfer.\
1. Enter the general ledger transfer credit account used to collect transfer charges for the shipping
organization The default value is the value you defined in the Organization Parameters window for the
shipping organization.
2. Enter the general ledger account used to collect the purchase price variance for interorganization
receipts into standard cost organizations. You must enter an account if your receiving organization is
using standard costing.
3. Enter the general ledger receivables account used as an interorganization clearing account for the
shipping organization.
4. The interorganization receivable account for the shipping organization should equal the inter
organization payables account for the receiving organization.

8. Intransit lead time


Select Shipping Methods on the Tools menu to open the Interorg Shipping Methods window.
Enter the shipping method for which you want to associate an intransit lead time for the displayed from
and to organizations and enter the intransit lead time in days.

Defining Intercompany Relations

Use the Intercompany Relations window to define, query, and update intercompany relations between two
operating units in a multiorganization environment. These operating units are either the shipping organization
and the selling organization, or the receiving and purchasing organization.
When a sales order is entered in an operating unit, the shipping organization is often part of a separate operating
unit, belonging to a separate set of books. Once the sales order is shipped to the customer, the inventory asset
account for the shipping organization is credited and the cost of goods sold account is debited. On the other
hand, sales revenue must be recognized in the order entry organization. If the two organizations belong to
different operating units, the system must perform accounting distributions to record the intercompany revenue,
receivable, and payable entries.
Oracle Inventory and Oracle Receivables must be installed before you can define intercompany relations. If
Oracle Payables is not installed, the fields in the AP Invoicing for Selling region are not required.

Shortage Parameters
You can enable the system to send material shortage alerts and shortage notifications when a material shortage
occurs in an organization. A material shortage occurs whenever unsatisfied demand exceeds available quantity
for incoming supply of material.

Check Shortages: Indicates that the material shortage check is enabled for WIP.
Jobs and Schedules regions:
Released: Indicates that all jobs/schedules with status Released, whose scheduled start date is overdue, are
included in the material shortage check. This parameter is separately controlled for jobs and schedules.
Unreleased: Indicates that all jobs/schedules with status Unreleased, whose scheduled start date is overdue, are
included in the material shortage check. This parameter is separately controlled for jobs and schedules.
Days Overdue: Indicates how many days can go by after the jobs/schedules start date until jobs/schedules with
status Released or Unreleased are included in the material shortage check. This parameter functions only if you
checked Released or Unreleased. This parameter is separately controlled for jobs and schedules.
Hold: Indicates that all jobs/schedules with status Hold are included in the material shortage check. This
parameter can be separately controlled for jobs and schedules.
Component Is Due subregions:
Based on required date: Indicates that the required date specified for each component will be used to
determine whether the open requirement is late. This parameter is separately controlled for jobs and schedules.
If assigned operation is due: Indicates that all discrete jobs or repetitive schedules with a current operation that
has assigned open material requirements are included in the material shortage check. This parameter can be
separately controlled for jobs and schedules.
If operation before assigned operation is due: Indicates that all discrete jobs or repetitive schedules with a
current operation before an operation that has assigned open material requirements are included in the material
shortage check. This parameter is separately controlled for jobs and schedules.
Exclusions region:
The shortage check looks at the supply type of components on the job or schedule. The supply type may be

Based on Bill or manually overridden when jobs or schedules are created.


Bulk Components: Indicates that components with supply type Bulk will be excluded in the material shortage
check.
Supplier Components: Indicates that components supplied by vendor will be excluded in the material shortage
check.
Pull Components: Indicates that pull components will be excluded in the material shortage check.
Notify region: Select who will receive a workflow notification about the material shortage.

Introduction to Items
An item is a part or service that you purchase, sell, plan, manufacture, stock, distribute, or prototype. The
following Oracle Applications use items:
Oracle Inventory
Oracle Purchasing
Oracle Order Entry
Oracle Cost Management
Oracle Bills of Material
Oracle Work in Process
Oracle Master Scheduling/MRP
Oracle Receivables
Oracle Payables
Oracle Services
Oracle Engineering
Oracle Quality
Oracle Sales and Marketing
Below diagram describes the basic work that needs to be done before an item is ready to be used in inventory
for transaction purpose.

Item Master Organization


You define items in one organization. To distinguish it from others, we call it the Item Master
organization. Other organizations (child organizations) refer to the Item Master for item definition. After you
define an item in the Item Master, you can assign it to any number of other organizations.
There is no functional or technical difference between the Item Master organization and other organizations.
However, for simplicity, Oracle recommends that you limit the Item Master to just an item definition
organization.
Oracle also recommends that you do not define multiple item masters. This can make item definition and
maintenance confusing. In addition, multiple item masters are distinct entities, with no relationship to each
other. You cannot associate items in one item master organization with another item master organization. You
cannot copy items across item
master organizations.
To create the item master:
1. Use the Organization window to create the organization you want to use as the Item Master.
2. Use the Organization Parameters window to specify that organization as the Item Master. This is also where
you assign child organizations to the Item Master. The item master organization uses itself as the Item Master.

Item Templates/
Templates are defined sets of attributes that you can use over and over to create many similar items. Templates
make initial item definition easier. Oracle recommends that you use templateseither those Oracle provides or
those you definewhen you define your items.
Finished Good
ATO Item
ATO Model
ATO Option Class
Kit
PTO Model
PTO Option Class
Phantom Item
Outside Processing Item
Planning Item

You can also define your own templates using the Item Templates window. Note that the window does
not validate any of the template attributes. In other words, you can define a template with contradictory

attributes. Only when you use a template to define an item does Inventory verify that the attributes are
valid for a given item.
If an attribute is not updatable for an item, the value from the template is not applied. If a combination of
attributes is invalid a warning appears when you save the item.

You can enable or disable the attribute value for each attribute in a template. When you use a template, it
applies only the enabled attributes for that particular template

You can apply the same or different templates to an item multiple times. The more recent attribute
values (from the last template applied) override previous values unless the previous value is not
updatable (for example, the Primary Unit of Measure, which is never updatable). For example, you
define a new item and apply a template that has the Primary Unit of Measure = EACH and Cycle Count
Enabled = YES. Next, you apply a new template with Primary Unit of Measure = DOZ, Cycle Count
Enabled = NO, and Carrying Cost Percent = 3. The attribute values are now: Primary Unit of Measure
EACH, Cycle Count Enabled NO, and Carrying Cost Percent 3

Item Attribute, Item Defining Attributes, Status


Attributes & Item Status
/
Item attributes are information about an item, such as order cost, lead time, and revision control.
Item Defining Attributes - An item defining attribute identifies the nature of an item. What designates an item
as an engineering item is the attribute Engineering Item, but what controls the functionality of the item are the
collection of
attributes that describe it. You can buy an engineering item if you want to; simply set Engineering Item,
Purchased, and Purchasable to Yes.
The following table presents item defining attributes:

When you set an item defining attribute to Yes, the item is automatically assigned to the default category set of
the corresponding functional area. For example, if you set Inventory Item to Yes, the item is automatically
assigned to the default category set for the inventory functional area.
Item Status attributes are item attributes that enable key functionality for each item.
Status attributes enable and disable the functionality of an item over time. Each status attribute allows you to
enable the item for a particular use. For example, if you set the status attribute Purchasable to Yes, you can put
the item on a purchase order. The status attributes are related to the item defining attributes. You cannot enable a
status attribute if you do not set the corresponding item defining attribute to Yes.
The following table presents status attributes:

An item status Codes is defined by selecting the value check boxes for the status attributes.
Item Status Codes may be used to set or update the default values for certain item attributes. They can be used
to control the functionality of an item. When you update the values for a status, all items that use that status
will be updated also.
The Item Status Code controls certain item attributes designated as status attributes. Each status attribute has a
Status Setting option. The option determines whether a status attribute value is set by the status code and is not
updateable, defaulted and updateable, or not used when you define an item

Pending Status:
You can assign one or more pending statuses for an item, to be implemented on future dates. These statuses
become effective on their assigned effective dates. You can also view the history of an item status.
(N) Items>Master Items (M)>Tools -> Pending Status

You can submit the Update item statuses with the Pending statuses of the concurrent program to update the
status of all items with Pending statuses and current effective dates. When you submit this concurrent program,
change its parameters so that it resubmits itself periodically, automatically updating item statuses to a Pending
status, as effective dates become current. Pending statuses are used in the product development cycle.

Item Attribute Control determines whether you have centralized (Master level) or decentralized (Organization
level) control of item attributes. Both status attributes and item status can be controlled at the item level or
organization levels.

You can choose the status setting level of each status attribute in the Item Attribute Controls window. The status
setting level determines whether you can update the value of each status attribute within an item status.
Sets Value: The status that you assign to the item loads a non updatable value into the status attribute. You can
update the status attribute by changing the status that you assigned to your item.
Defaults Value: The status that you assign to the item loads a default value into the status attribute. You can
update the status attribute as you define your item.
Not Used: The status that you assign to the item does not determine the value of the status attribute. You can
enable or disable the status attribute as you define your item.
Status Setting Level Consideration: You have the flexibility to change individual status attribute settings. Using
meaningful status codes gives you control over item usage.

Defining Item Types


The User Item Type item attribute is a QuickCode you use when you define an item. You can use the types
provided by Oracle Inventory or create your own.
Setup Steps
1. Navigate to the Item Type QuickCodes window. The User access level is selected indicating you can add or
modify QuickCodes without restriction.
2. Enter a unique alphanumeric code describing the item type. You can define a maximum of 250 QuickCodes
for a single QuickCode type.
You cannot change the values in this field after saving them. To remove an obsolete QuickCode you can either
disable the code, enter an end date, or change the meaning and description to match a replacement code.

3. Enter the meaning of the item type. Inventory uses this value in the list of values for the User Item Type item
attribute in the Items window.

CrossReference Types
Crossreference types define relationships between items and entities such as old item numbers or supplier
item numbers. For example, you can create a crossreference type Old to track the old item numbers, and a
type Supplier to track supplier part numbers.

Navigate to INV : Items -> Cross reference , Enter a unique crossreference type name and save it.
Click on Assign an old/supplier item and its corresponding inventory item.

1. item in cloumn1 represents a current inventory item


2. Indicate whether the crossreference applies only in the specified organization or to all organizations to
which the item is assigned
3. Enter a crossreference value. This value is the entity you crossreference to the item, such as its old item
number or supplier part number.
Cross reference can also be attached from tools in item master

Customer Items
The concept of customer item is to link the customer item with the inventory item of the organization so that the
customer can order with their customer item for which we have a refernce to the inventory item. To facilitate the
process we use commodity code to group all the customer items.

Customer items can be defined at customer category level, customer level and customer ship to level.
For a single customer item we can have two differnt inventory items in customer cross reference with
rank 1, 2 etc

The process of difining customer cross reference is

1. Define commodity code


2. Define customer item and
3. Enter the customer reference.Use the Customer Items Summary and Customer Items Detail windows to
define and update customer items. You can toggle between these windows with the Summary/Detail option in
the Go option on the Toolbar. You can cross reference customer items to your Oracle Inventory items to support
processing orders and shipments.

A customer item defined at the Customer level is recognized across all address and address categories for that
customer. If you ship an item to multiple customer shipto sites that have been grouped as an address category,
you can define the customer item for that address category. You would define a customer item at the address
level if you ship the item to only one shipto site for that customer.
Commodity Codes
Customer Item Commodity Codes are used to group customer items and can be entered during the definition of
customer items.
Navigation : INV -> Setup ->Items -> Customer Item commodity code.

Customer Item
1. Select one of the existing Customer Names (in the Details window, you can use either Customer Name or
Customer Number,).
2. Select the Definition Level: Customer, Address Category, or Address.
A customer item defined at the Customer level is recognized across all address and address categories for that
customer. If you ship an item to multiple customer ship-to sites that have been grouped as an address category,
you can define the customer item for that address category. You would define a customer item at the address
level if you ship the item to only one ship-to site for that customer.
For the Address Category definition level, enter the address category.
For the Customer Address definition level, enter the customer address.
3. Enter the Customer Item number and description.
4. In the Commodity tabbed region, you can assign the customer item to a Commodity Code.
5. In the Container tabbed region, you can enter the default master and detail containers for this customer item
as well as the minimum fill percent for the container.
6. In the Model, Departure Planning tabbed region, you can reference a customer item as a Model by entering
the inventory item number of an existing Model item (the BOM Item Type attribute is set to Model).
You can also check Required to indicate that items must be departure planned before they released and Before
Build to indicate that ATO items must be departure planned before they are built.
7. In the Demand Tolerances, Active tabbed region, you can enter positive and negative tolerance percentages
and select or deselect the Active check box.

Customer Item Cross References


Use the Customer Item Cross References window to define and update cross references between your inventory
items and the customer item numbers defined in the Customer Items Summary/Detail windows.
You can also navigate to this window by selecting the Cross Reference button in the Customer Items Summary
window. Inventory displays the existing cross references for the customeritem on the current line in the
Customer Items Summary window, and you can add new cross references by selecting a new row.

Enter the Rank as a positive number. To permit alternate or substitute inventory items for a customer item, you
can define multiple cross references to inventory items for a single customer item. In these cases, you must
specify the Rank of the cross reference. The highest rank is 1.

Defining Manufacturer Part Numbers


You can define manufacturer part numbers for items. You can use this information for reporting purposes; and
in catalog searches for particular items.
Navigate to the Manufacturers window , Enter the name of the manufacturer & Save your work.

1. Navigate to the Manufacturers window.


2. Choose Parts.
3. Enter a manufacturer part number.
4. Enter an item.
You can assign the same item to multiple manufacturer part numbers.

Creating Custom Deletion Constraints


Use custom deletion constraints to enforce specific business rules. Custom deletion constraints prevent the
deletion of bills or routings if your data meets the conditions set forth in the constraint.

To create a custom deletion constraint:


1. Navigate to the Deletion Constraints window:
Inventory->Setup->Items->Delete Constraints
2. Enter a name for the deletion constraint.
3. Indicate whether the constraint is enabled. An enabled deletion constraint means that it is in effect when the
delete concurrent program runs.
4. Select what kind of delete entity the constraint applies to: item, bill, routing, component, or operation.
5. Enter the SQL Select Statement that the delete concurrent program is to execute. You cannot update SQL
statements for predefined deletion constraints.
6. Indicate whether to delete if there are rows found or no rows found by the SQL Select Statement
7. Enter a failure message from Oracle Application Object Library's message dictionary to display if the delete
fails.

Delete an Item
To delete an item which does not violate any delete constraint, navigate to Delete items window

1. Enter a group name at the header and save it.


2. Enter the items needs to be deleted at the line level and save it.
3. Click on delete groups button to delete all the item in the group. Delete item information request is fired.
View the request o/p

Item Master
You must set certain controls and reference options before defining items. These enable you to maintain, group,
reference, query, and delete your items. Once you have defined items, you can set up other parameters, such as
item cross references, to control the use of items.
You define items in one organization. To distinguish it from others, we call it the Item Master organization.
Other organizations (child organizations) refer to the Item Master for item definition. After you define an item
in the Item Master, you can assign it to any number of other organizations.
There is no functional or technical difference between the Item Master organization and other organizations.
However, for simplicity, Oracle recommends that you limit the Item Master to just an item definition
organization.
Oracle also recommends that you do not define multiple item masters. This can make item definition and
maintenance confusing. In addition, multiple item masters are distinct entities, with no relationship to each
other. You cannot associate items in one item master organization with another item master organization. You
cannot copy items across item master organizations.
To create the item master:
1. Use the Organization window to create the organization you want to use as the Item Master.
2. Use the Organization Parameters window to specify that organization as the Item Master.
Item Master Business Example
Suppose you have a distribution warehouse and a manufacturing factory. In the warehouse, the item has
independent demand and is minmax planned. In the factory, the item is MRP planned and built.
Using an Item Master with a warehouse and a factory as the other organizations, you define the item just once
in the Item Master. Next, you assign the item to both the warehouse and the factory. Finally, you change the
planning and build attributes in each organization to
describe the different behavior of the items in those organizations. You do not have to change any other
information about the item; in fact, because information such as unit of measure, description, and so on is
maintained at the Master level, you know it is consistent in each organization

http://www.oracleug.com/user-guide/oracle-inventory/item-master