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100 INVENTORY Application Setups Reco & Rwasco Author: Creation Date: Last Updated: Version: Raymond Mangulama May 26, 2010 Jun e 14, 2010 Final 1.0 1

1. Document Control Change Record Date 01-June-10 Author Raymond Mangulama Version Draft Change Reference No Previous Document Reviewers Name Martin Ashelford Raymond Mangulama Position Project Manager Team Leader Distribution Copy No. 1 2 3 4 Name Library Master Location Project Library 2

Table of Contents 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. D ocument Control ................................................................ ............................................................... 2 The prerequisi tes setups that must be done before setting up inventory........................ ..........................4 Define your Inventory Flexfield .................... ................................................................................ ....... 5 Define your Calendar ................................................. ..........................................................................6 Upda te System Profile Options ...................................................... ......................................................8 Define Locations........ ................................................................................ ........................................ 10 Define your Inventory Organizations ................................................................................ .................. 11 Define your cost types.................................... ................................................................................ .... 15 Define your Unit of measure classes .................................... ............................................................... 16 Define your S ubinventories .................................................................. .......................................... 17 Define your stock locators........ ................................................................................ ...................... 18 Define Item planners ................................. ................................................................................ ..... 19 Define your Categories ................................................ .................................................................. 20 Define you r Category Sets ................................................................ ............................................. 21 Define your default category se ts ............................................................................. ...................... 22 Define your shipping networks ........................ ............................................................................... 23 Define custom transaction types ............................................. ........................................................ 24 Define your transact ion reasons..................................................................... ................................. 25 Define your receiving options ............. ................................................................................ ........... 26 Modify your request managers .................................... ................................................................... 27 Define It em Templates ................................................................... ................................................ 28 Open and Closed Issues on th is deliverable ................................................................. ................... 39 Open Issues .................................................................... ........................................................................ 39 Clos ed Issues ...................................................................... .................................................................... 39 3

2. The prerequisites setups that must be done before setting up inventory I. Define Primary Ledgers Navigate: Setup >> Financials >> Accounting Setup Mana ger>>Accounting setups Description: Use window to define primary ledger Note: Pl ease refer to GL setup document II. Define Calendar Navigate: Setup >> Financial s >> Accounting Calendar >> Accounting Description: Use this form to define your calendar. You associate a calendar and a period type. Note: Please refer to GL setup document III. Define Locations Navigate: Setup >> Organizations >> Locatio ns Description: Use this form to enter locations and their addresses for your or ganization Note: Please refer to HRMS setup document 4

3. Define your Inventory Flexfield Description: Plan your key flexfield structures carefully, including all your se gment information such as segment order and field lengths, before you define your segm ents using this form. Decide on which one to use, whether it s the system items or the items categories (N )Setup >> Flexfields >> Key >> Segments Application : Inventory Flexfield Title : Item Categories Code : ITEM_CATEGORIES Segments: Number 1 2 Name Item Category Item Code Window Prompt Item Category Item Code Column SEGMENT1 SEGMENT2 Values et RR_Item_Category_VS RR_Item_Code_VS Value sets: Value Set Name Description Security Type RR_Item_Code_VS Reco & NonR wasco Hierarchical Item code value set RR_Item_Category_VS Reco & NonRwasco Hier archical Item Category Value Set Format Type Char Max Size 10 Validation Type Dependent Edit Information Dependent on the Item Category Char 10 Independent After definition of the value sets Freeze and compile and make sure that it comp iled successfully before populating the list of values. 5

4. Define your Calendar (N) Setup > Organizations > Calendars A workday calendar defines the valid worki ng days for an inventory organization and consists of repeating pattern of days on and days off and exceptions to that pattern. This allows you to, for example, designate a normal workday as a scheduled downtime day, or designate a holiday as a workday. Name RR_WDC Description Reco & Rwasco Workdat Calendar Quarterly T ype 5/4/4 Week Pattern From 01-JAN2010 To 01-JAN2014 Workday Pattern - Seq 1 (On 5 days Off 2 Days - Seq 2 (On 6 Days Off 1 Day Then click on Tools > Build Make sure the calendar has completed successfully 6

5. Update System Profile Options Switch responsibility to system administrator then follow the navigation (N)Prof ile > System: Application = Inventory Application Profile Options Setting Option INV: Item Form Folder Category Set IN V:Cross Reference Type INV: Allow Expense to Asset Transfer INV:Debug Level INV: Debug Trace INV: Debug file (Including the complete path) INV: Default Item Sta tus INV: Default Primary Unit Of Measure** INV: Dynamic Precision Option for qua ntity on reports HR User Type INV: Inter-Organization Currency conversion INV: I ntercompany Currency conversion INV: Item Master Flexfield INV: Maximum Number o f Quantity Trees INV: Minmax Reorder Approval INV: Product Family Item Template Name INV: Replenishment Count Line Failure INV: Replenishment Count Requisition Approval INV: RPC Timeout INV: Restrict Receipt of Serials INV: Round Reorder Qt y INV: Save Search Items INV: Transaction Date Validation INV: Updateable Item N ame INV:Capable to Promise INV:Override Neg for Backflush INV:Purchasing By Revi sion INV: Updateable Customer Item TP:INV Cycle Count Approvals Form TP:INV Cycl e Count Entries form TP:INV Enter replenishment count form TP:INV Inter-Organiza tion Transfer Form TP:INV Miscellaneous issue and receipt form TP:INV Move Order Transact Form TP:INV Transfer between subinventories form TP:INV Transaction Pr ocessing Mode Value Inventory Item's Global Trading Item Number Yes 0 No /tmp/in vdbg.db Active EACH -9,999,999.00 HR with Payroll User Spot Spot System Items / Item Categories 500 Approvel Required @Purchased Item Continue processing Approv al Required 300 No Yes Yes Provide warning when date in past period No ATP Based on Collected Data No No Yes Online processing Online processing Concurrent proc essing Online processing Online processing Online processing Online processing F orm Level processing 8

Option TP:INV Transfer between Subinventories Form TP:INV Update Average Cost fo rm Value Online processing Online processing 9

6. Define Locations These can be defined in the system if not yet defined from human resources modul e. (N)Setup > Organizations > Locations Use this zone to enter the names and add resses for the locations you use within you organization. Name Description Address Style Address Shipping Details Contact Ship To Location Ship To Site Receiving Site Office Site Other Details Inventory Organization ED I Location HQ-Head Office Tax Code AVENUE DU LAC IHEMA Yes Yes Yes Bill To Site Internal Site Yes Yes AVENUE DU LAC IHEMA HEADQUARTERS Generic P.O. Box 537, Kig ali Rw Global Inactive Date Yes 10

7. Define your Inventory Organizations (N) Setup > Organizations > Organization Description: Use this form to define an organization and its related information. This Setup should be done for each an d every inventory organization. Note that this is the Item master organization w hich should only be used to define inventory Items and not for any transactions. Note: This is an Oracle Inventory required setup. Name Head Quarters Location Da tes, From Internal or External Internal Organization Classifications HR Organiza tion Inventory Organization Enabled Yes Yes Inventory Organization > Accounting Information Name Value Primary Ledger Legal Entity Operating Unit RR_LEDGER2021(RWF) RECO & RWASCO_LE Reco & Rwasco Operatin g Unit Inventory Parameters Organization Code Master Organization Calendar Demand Class Move Order Timeout Period Move Order Timeout Action Locator Control Enforce Loc ator Alias Uniqueness HQM HEADQUARTERS RR_WDC Approval automatically None No Quantity Skipping Inspection No Control 11

Allow Negative Balance No Auto Delete Allocations at None Move Order cancel Costing Information Use this window to define the Costing Information Costing Or ganization HEADQUARTERS Costing Method Average Rates Cost Type Transfer to GL Re verse Encumbrance Defer Logical Transactions Cost Cutoff Date Default material s ubElement Material Overhead subElement Default Cost Group RR_AVG Yes None None N one None RR_CG Material 00-000-000-00-3100000-000 Outside Processing 00-000-000-00-3711000-000 Valuation Accounts Material Overhead 00-000-000-00-3712000-000 Overhead 00-000-0 00-00-3713000-000 Resource 00-000-000-00-3714000-000 Expense 00-000-000-00-37150 00-000 Revision, Lot and Serial Number Controls Window Use this Window to define and update revision, lot & serial number control details for the organization. Starting Revision Lot Number Uniqueness Lot Number Generation Lot Number Prefix Zero Pad Suffix Total Lot Number length Serial Number Control Uniqueness Serial Number generation 0 None At Item Level Not applicable 30 Within Inventory model and items At Organization Level 12

Prefix Serial Number Prefix Starting serial Number None 01 ATP/ Picking Defaults Window 1 Use this Window to define and update available to promi se, picking options, and item sourcing details. Used in conjunction with Order E ntry. Default ATP Rule Default Picking Rule Sub inventory Picking Order Locator Picking Order Type Organization Sub Inventory Overpicking for Tranfer Order Enab led Yes None None None Inter-Organization Options & Accounts Window Inter-organization Tranfer None Cha nges Purchase Price Variance None Receivable Payable In Transit Inventory None N one 00-000-000-00-3100000-000 Other Accounts Window Use this Window to define and update receiving accounts, p rofit and loss and average cost variance accounts Purchase Price Variance None I nvoice Price Variance Inventory Accounts Payable Accrual Encumbrance 00-000-00000-3721000-000 00-000-000-00-3722000-000 None 13

Sales Cost of Goods Sold Project Clearance Account Deferred COGS Account Cost Va riance Account 00-000-000-00-71-000 00-000-000-00-6000000-000 None 00-000-000-00-3723000-000 00 -000-000-00-3724000-000 R Receiving Information Receiving Inventory Account Clearing Account 00-000-000-00-3716000-000 00-000-000-00-3717000-000 14

8. Define your cost types (N)Setup > Costs > Cost Types Cost Type : Description : Default Cost Type : Mult i Org : Allow Updates : Available for engineering : RR_AVG Reco & Rwasco Weighte d Average Cost Type Average Yes Yes No 15

9. Define your Unit of measure classes (N)Setup > Units Of Measure > Classes Base Inactive Name Description Unit UOM On Each Each Item Eac Length Length Meter Mtr Mass Mass Kilogram Kg Packet Packet Pack Pkt Period Period Daily DAY Piece Pieces Piece Pcs Define the Unit Of Measu res (N)Setup > Units Of Measure > Unit Of Measure Base Name UOM Description Unit Class Each Eac Each * Each Meter Mtr Meter * Length Kilogram Kg Kilogram * Mass Pack Pkt Pack * Packet BiWeekly BWK Bi-Weekly Period Daily DAY Daily * Period H alf Yearly HYR Half Yearly Period Monthly MTH Monthly Period Quarterly QTR Quart erly Period Weekly WK Weekly Period Yearly YR Yearly Period Piece Pcs Piece * Pi ece Inactive On 16

10.Define your Subinventories Navigate: Setup >> Organizations >> Subinventories Description: Use this form to define and update subinventories Note: The Number of sub inventories is set to grow with the organization. Main Window Name Central Stores Description Main Sto res Status Active Default Cost Group RR_CG Type Storage Qty Tracked Asset Subinvento ry Depreciable Include in ATP Allow Reservation MAIN Nettable Enable PAR level P lanning Default Replenishment Qty Tracked Material Outside Processing Material O verhead Overhead Resource Expense Encumbrance Yes Yes No Yes Yes Yes No Order Quantity Yes ACCOUNTS none 17

11.Define your stock locators Navigate: Setup >> Organizations >> Stock Locators Description: Use this form to define and update locators. Note: The stock locator flexfield has to have been defined before (N)Setup > Flexfields > Key > Segments > Application : Inventory Title : Stock Locators Number : 10 Name : Stock Locators Windows Prompt: Stock L ocators Column : Segment 1 Value Set : RR_Stock_Locator Name Subinventory Description Descriptive Text Picking Order Inactive On Maximum Units Volume UOM Row Water Rows Rack Bin Maximum Volume Weight UOM Maximum Weight 18

12.Define Item planners This Varies from Organization to organization, as in most cases this becomes app arent to the users later on during and or after training once the min-max planni ng has been thoroughly demonstrated. 19

13.Define your Categories (N)Setup > Items > Categories > Category codes Structure Name Category Descripti on Enabled Inactive Date Contract Categories Inventory.Expense Inventory Expense Items (Stockable) Yes 20

14.Define your Category Sets Navigate: Setup >> Items >> Categories >> Category Sets Description: Use this fo rm to create sets that group your categories into functional areas . This is an Oracle Inventory required setup. Name Inventory Description Flexfield Structure Control Level Default Category Inventory category set Item categories Organizati on level Inventory.Expense Allow Multiple Item No category Assignments Enforce List of Valid No Categories Valid Categories Window Use this Window to define and update a list of valid cat egories for this set 21

15.Define your default category sets Navigate: Setup >> Item >> Categories >> Default Category Sets Description: Use this form to define and update default category sets for your functional areas. Note: This is an Oracle Inventory required setup. FUNCTIONAL AREA Inventory Purc hasing Planning Service Cost Engineering Order Entry Product line accounting CAT EGORY SET Inventory Inventory Inventory Inventory Inventory Inventory Inventory Inventory DESCRIPTION Inventory Category Set Inventory Category Set Inventory Ca tegory Set Inventory Category Set Inventory Category Set Inventory Category Set Inventory Category Set Inventory Category Set 22

16.Define your shipping networks Navigate: Setup >> Organizations >> Shipping Networks This setup must be done af ter the inventory organizations have all been defined and confirmed on the shipp ing networks. Organization HQ From Scope From or To Org Transfer FOB Type To Receipt Routing Charge Type Transfer Transfer Credit Account Inter-Org Receivable Account Inter-Org Payable Account Intransit Account CST HQ Intransit Receipt Standard None 00-000-00000-3100000000 00-000-000-004710000-000 00-000-00000-4710000000 00-000-00000-3100000000 Do this for all the subsequent inventory organizations that have shipping networ ks 23

17.Define custom transaction types Navigate: Setup >> Transactions >> Types Description: Use this form to define yo ur transaction types Name Description Source Type Action Notification Location Reqrd Yes YES Opening Balance Issue To User Opening Balances Items Issuance to user Inventory Inventory Receipt into stores Issue from stores Yes 24

18.Define your transaction reasons Navigate: Setup >> Transactions >> Reasons Description: Use this form to define your transaction reasons. Name POST Opening Balance Issue from stores Description Increase and Decrease Opening Stock / Insufficient Balances Issue It ems from Stores Inactive Date 25

19.Define your receiving options Navigate: Setup >> Organization>>Receiving Parameter Description: Use this Windo w to define the defaults you can later use to speed up data entry and enforce sy stem wide requirements. Although this form is part of the Oracle Inventory set u p the field data should be coordinated with the purchasing function Inventory Or ganization Central Stores Enforce Ship-To ASN Control Action Receipt Days Early Receipt Days Late Receipt Days Exceed-Action Over Receipt Tolerance (%) Over Receipt Action Receiving Option RMA Receipt Routing Receipt Routing Allow Substitute Receipts Allow Unordered Re ceipts Allow Express Transactions Allow Cascade Transactions Allow Blind Receivi ng Validate Serial Numbers on RMA Receipts Receipt Number Generation Receipt Num ber Type Next Receipt Number Validate Lots on RMA Receipts Warning Warning 3 3 Warning 3 Warning Inspection Required Inspection Required Ye s Automatic Alphanumeric 1 Restricted None None ACCOUNTING Receiving Inventory Account Retroactive Price Adjustment Account Clearing Accoun t Cost Factors Interface to Advanced Pricing Interface to Transportation Execution 26

20.Modify your request managers Navigate: Setup >> Transactions >> Interface Managers Name Status Worker Rows Ti meout Minutes 0 0 0 40 Process Interval Minutes 59 5 5 5 Cost Manager Lot Move transactions Material Transaction Move transactions Inactive Inactive Inactive Inactive 200 200 500 200 27

21.Define Item Templates Navigate: Setup>>Items>>Templates Template Name Organization Attribute Name User Item Type Item Status Reco Stockable Reco Stores Control At Master Description RR Item Template Value Inventory Type Active Each Standard Master Master Master Master Master Master Master Master Master Master Master Mas ter Master Master Master Master Master Master Master Primary Unit of Measure Conversions Description Tracking UOM Indicator Pricing U OM Indicator Defaulting Control Secondary Unit of Measure Deviation Factor + Dev iation Factor Inventory Item Stockable Transactable Revision Control Lot Control Starting Lot Number Starting Lot Prefix Serial Number Generation Starting Seria l Number Primary Primary Default Each Yes Yes Yes Not under revision quantity control No lot control No serial number control 28

Starting Serial Prefix Lot Expiration Shelf Life Days Restrict Subinventories Lo cator Control Restrict Locators Reservable Cycle Count Enabled Negative Measurem ent Error Positive Measurement Error Check Material Shortage Lot Status Enabled Default Lot Status Serial Status Enabled Default Serial Status Lot Split Enabled Lot Merge Enabled Lot Translate Enabled Lot Substitution Enabled Bulk Picked Lo t Divisible Grade Controlled Default Grade Child Lot Enabled Child Lot Generatio n Child Lot Prefix Master Master Master Master Master Master Master Master Master Master Org Org Or g Org Org Org Org Master Org Org Org Org Org Org Org Org Reservable Yes 29

Child Lot Starting Number Child Lot Format Validation Retest Interval Expiration Action Interval Expiration Action Maturity Days Hold Days Copy Lot Attributes B OM Item Type BOM Allowed Base Model Autocreated Configuration Configurator Model Type Create Configured Item, BOM Match Configuration Costing Enabled Inventory Asset Value Cost of Goods Sold Account Include in Rollup Standard Lot Size Purch ased Purchasable Default Buyer Use Approved Supplier Input Tax Classification Co de Taxable Org Org Org Org Org Org Org Org Master Master Master Master Master Master Master Master Master Org Master Master Master Master Master Master Org Master Yes Yes Yes Yes 30

Receipt Close Tolerance Allow Description Update Inspection Required Receipt Req uired Market Price UN Number Hazard Class RFQ Required List Price Price Toleranc e % Asset Category Rounding Factor Unit of Issue Outside Processing Item Outside Processing Unit Type Invoice Close Tolerance Encumbrance Account Expense Accoun t Outsourced Assembly Over-Receipt Qty Action Receipt Routing Over-Receipt Qty T olerance Enforce Ship-To Allow Substitute Receipts Allow Unordered Receipts Allo w Express Transactions Master Master Master Master Master Master Master Master Master Master Master Mas ter Master Master Master Master Org Org Org Master Master Master Master Master M aster Master Yes 31

Days Early Receipt Allowed Days Late Receipt Allowed Receipt Date Action Weight Unit of Measure Unit Weight Volume Unit of Measure Unit Volume Container Vehicle Maximum Load Weight Minimum Fill Percentage Internal Volume Container Type Coll ateral Item Event Electronic Format Downloadable OM Indivisible Dimension Unit o f Measure Length Width Height Inventory Planning Method Make or Buy Planner MinMax Minimum Quantity Master Master Master Master Master Master Master Master Master Org Org Org Org M aster Master Master Master Org Master Master Master Master Master Master Org Mas ter Buy 32

Min-Max Maximum Quantity Safety Stock Bucket Days Carrying Cost Percent Order Co st Safety Stock Percent Safety Stock Fixed Order Quantity Fixed Days Supply Mini mum Order Quantity Maximum Order Quantity Fixed Lot Size Multiplier Source Type Source Organization Source Subinventory Minimum Quantity Minimum days of supply Maximum Quantity Maximum days of supply Fixed Quantity Release Authorization Req uired Consigned Forecast Type Window Days Auto-expire ASN Subcontracting Compone nt MRP Planning Method Master Master Master Master Master Master Master Master Master Master Master Mas ter Org Org Org Org Org Org Org Org Org Org Org Org Org Master 33

Forecast Control Planning Exception Set Shrinkage Rate End Assembly Pegging Roun d Order Quantities Planned Inventory Point Create Supply Acceptable Early Days C ritical Component Exclude From Budget Calculate ATP Reduce MPS Repetitive Planni ng Overrun Percentage Acceptable Rate Acceptable Rate + Planning Time Fence Plan ning Time Fence Days Demand Time Fence Demand Time Fence Days Release Time Fence Release Time Fence Days Substitution Window Substitution Window Days DRP Planne d Maximum Inventory Days Supply Master Org Master Master Master Org Org Master Org Org Master Master Master Mast er Master Master Master Master Master Master Master Master Org Org Org Org 34

Maximum Inventory Window Target Inventory Days Supply Target Inventory Window Co ntinuous Inter Org transfers Convergence Pattern Divergence Pattern Repair Progr am Repair Lead-time Repair Yield Pre-positioning Point Preprocessing Lead Time P rocessing Lead Time Post processing Lead Time Fixed Lead Time Variable Lead Time Cum Manufacturing Lead Time Cumulative Total Lead Time Lead Time Lot Size Build in WIP WIP Supply Type WIP Supply Subinventory WIP Supply Locator Over completi on Tolerance Type Over completion Tolerance Value Inventory Carry Penalty Operat ion Slack Penalty Org Org Org Org Org Org Org Org Org Org Org Org Org Org Org Org Org Master Maste r Master Org Org Org Org Org Org 35

Customer Ordered Customer Orders Enabled Internal Ordered Internal Orders Enable d Shippable OE Transactable Picking Rule Pick Components Assemble to Order Check ATP ATP Components ATP Rule Ship Model Complete Default Shipping Organization D efault SO Source Type Returnable RMA Inspection Required Over Shipment Tolerance Under Shipment Tolerance Over Return Tolerance Financing Allowed Charge Periodi city Invoiceable Item Invoice Enabled Accounting Rule Invoicing Rule Master Master Master Master Master Master Master Master Master Master Master Mas ter Master Master Master Master Master Master Master Master Org Master Master Ma ster Master Master Yes Yes 36

Output Tax Classification Code Sales Account Payment Terms Contract Item Type Co ntract Duration Period Contract Duration Coverage Template Service Request Enabl e Contract Coverage Billing Type Enable Service Billing Enable Defect Tracking T rack in Installed Base Create Fixed Asset Item Instance Class Starting Delay (Da ys) Recipe Enabled Process Quality Enabled Process Execution Enabled Process Cos ting Enabled Process Supply Subinventory Process Supply Locator Process Yield Su binventory Process Yield Locator Hazardous Material CAS Number Master Org Master Master Master Master Master Master Master Master Master Org Ma ster Org Master Master Org Org Org Org Org Org Org Org Org Org 37

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22.Open and Closed Issues on this deliverable Open Issues ID Issue Resolution Responsibility Target Date Impact Date 1 2 3 4 Closed Issues ID Issue Resolution Responsibility Target Date Impact Date 39