ORGANIZATION PARAMETERS

INVENTORY PARAMETER TAB (MANDATORY FIELDS)

1) ORGANIZATION CODE
2) ITEM MASTER ORGANIZATION : You create items in the item master organization and assign them to otherorganization within your operating unit.
3) WORK DAY CALENDAR : required when mrp/scp is involved
4) Move Order Time-out Period : maximum 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 time-out period, if the
recipient has not approved or rejected the order, the system sends a reminder
notice. After the second time-out period, the system automatically rejects or
approves the order depending on whether you select Approve automatically or Reject
automatically in the Move Order Time-out Action field.
5) move order timeout action : a) Approve automatically b) Reject automatically
Approve automatically: After the second time-out period, the system automatically
approves move order requisitions. Select this option and set the Move Order
Time-out Period to 0 if you want to bypass the move order approval process and
automatically approve move order requisitions.
Reject automatically: After the second time-out period, the system automatically
rejects move order requisitions.
6) 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 you define at the subinventory level.
7) Default On-hand Material Status tracking option:
a) allow negative balances :
This parameter determines if inventory transactions can drive the inventory balanceof an item negative
Important: If insufficient quantity of on hand material exists in a
supply subinventory to satisfy backflush demand, Oracle Work in
Process forces the supply subinventory balance negative, and
ignores this option setting.
b) auto delete Allocations at move order cancel:
Indicate whether auto delete Allocations are enabled. If you select this check box,
when you delete a source order, or delete or cancel the order line, the system
automatically deletes the associated move order allocations. If you do not select the
check box, when you delete a source order, or delete or cancel the order line, then
the system does not delete the associated allocations lines. You must manually
delete the move order line allocations. If you choose not to delete these lines, the
system transacts these lines as subinventory transfers, and does not consider the
lines as over picks.
Note: You can enable auto delete allocations only if you do not
enable Warehouse Management for the organization. In a
Warehouse Management organization, the system automatically
deletes move order allocations or tasks unless a user starts work on
the task.
2) ITEM MASTER ORGANIZATION : You create items in the item master organization and assign them to otherorganization within your operating unit.
4) Move Order Time-out Period : maximum 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 time-out period, if the
recipient has not approved or rejected the order, the system sends a reminder
notice. After the second time-out period, the system automatically rejects or
approves the order depending on whether you select Approve automatically or Reject
Approve automatically: After the second time-out period, the system automatically
approves move order requisitions. Select this option and set the Move Order
Time-out Period to 0 if you want to bypass the move order approval process and
Reject automatically: After the second time-out period, the system automatically
None: Inventory transactions within this organization do not require locator
Prespecified only: Inventory transactions within this organization require a valid,
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
Determined at subinventory level: Inventory transactions use locator control
This parameter determines if inventory transactions can drive the inventory balanceof an item negative
Indicate whether auto delete Allocations are enabled. If you select this check box,
when you delete a source order, or delete or cancel the order line, the system
automatically deletes the associated move order allocations. If you do not select the
check box, when you delete a source order, or delete or cancel the order line, then
the system does not delete the associated allocations lines. You must manually
delete the move order line allocations. If you choose not to delete these lines, the
system transacts these lines as subinventory transfers, and does not consider the
Note: this tab applies only to discrete organizations.
The costing organization that controls the costs in your current organization and the
costing method are displayed. You cannot make changes to these fields.
Costing Method: a) standard b) average
a)
b) When the Costing Method is Average, you can enter the Average Rates Cost Type.
Transfer to GL : a) yes b) no
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
Reverse Encumberance
Indicate whether to reverse encumbrance entry upon receipt in inventory.
You normally select this option if you use encumbrances with Oracle Purchasing.
Project Cost Collection Enabled
Indicate whether subinventories can be associated with a given project and task.
If the Project Cost Collection Enabled check box is selected, and the Enable Project
References check box, located in the Project Manufacturing Parameters, is also
selected, the cost collector process can transfer costs to project accounting.
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.
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.
OTHER ACCOUNTS
A) Receiving accounts
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.
Inventory AP Accrual The liability account that represents all
inventory purchase order receipts not
matched in Accounts Payable, such as the
uninvoiced receipts account.
B) Profit & loss A/c's
Sales The profit and loss (income statement)
account that tracks the default revenue
account.
Cost of goods sold The profit and loss (income statement)
account that tracks the default cost of goods
sold account
c) Other a/c's
Deferred Cogs a/c
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.
When the Costing Method is Average, you can enter the Average Rates Cost Type.
You normally select this option if you use encumbrances with Oracle Purchasing.
Indicate whether subinventories can be associated with a given project and task.
If the Project Cost Collection Enabled check box is selected, and the Enable Project
differences between purchase order price and
differences between purchase order price and
starting revision
Enter a starting revision to be the default for each new item.
Lot control
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.
Generation
Select an option for lot number generation.
User-defined: You can define a lot number for an item when you receive it.
At organization level: The system uses values you enter in the Prefix, Zero Pad Suffix,
and Total Length fields to automatically generate a lot number for an item when
you receive it.
At item level: The system uses the starting lot number prefix and the starting lot number you define in the item master to automatically generate a lot number for an
item when you receive it.
Lot Name generation
Zero pad suffix
Indicate whether to add zeroes to right-justify the numeric portion of lot numbers
prefix
Optionally, select an alphanumeric lot number prefix to use for system-generated
lot numbers when you generate lot numbers at the organization level.
Total length
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 that you enter in this field.
child lot control
Indicate how to generate child lots if you lot control at the organization level. The
available choices are:
Parent: The system bases the child lot numbers on the same sequence as the lot
number. For example, if a parent lot is P1, then the child lot is P2.
Parent + Child: The parent lot acts as a prefix, and the system adds the next
available number to form the child lot. For example if the parent lot is P1, then
the child lot is P1-1.
8. Indicate whether to add zeroes to right-justify the numeric portion of lot numbers
(Zero Pad Suffix).
9. Enter an alphanumeric prefix if you set the child lot generation to Parent + Child.
10. Enter the total amount of characters for the child lot. This includes the prefix if
applicable.
11. Select Format Validation to ensure that manually entered lots conform to the
predetermined naming convention.
12. Select Copy Lot Attributes to ensure the child lots inherit the parent lot information.
Auto Create Lot UOM Conversion.
Select the desired value for Auto Create Lot UOM Conversion. If set to Yes or User
Confirmation, then the system automatically creates lot-specific unit of measure
conversions. The system bases the conversion on lot quantities that you receive in
the transactional UOM, and creates a conversion between the transactional UOM
and the secondary UOM. The system creates a lot conversion only if the item is
under dual unit of measure control and the lot conversion is different from the item
conversion. For example, a conversion would be created only if the user changes the
secondary quantity (or the primary quantity without changing the secondary
quantity) so that the conversion between primary and secondary is different from
the item level conversion. The available values are:
Yes
No
User Confirmation
Null
Note: If you enable this parameter, then the system automatically
creates lot level UOM conversions for lots that are created in
Inventory and Process Manufacturing. It does not automatically
create lot-level UOM conversions for lots that are created in Work
in Process.
Allow Different Material Status to control
Select the value for Allow Different Material Status to control what happens if
material statuses differ when you perform transactions (differences in material
status of non-lot controlled items are included as well). The values are:
Yes: You can transfer out of, receive into, or produce material into an existing
status and the new quantity inherits the status of the existing material.
No: You cannot transfer out of, receive into, or produce material into an
existing status.
With Exception: You can transfer out of, receive into, or produce material into
an existing status only if the on-hand balance of the destination organization is
zero.
Note: This feature is extended to Intra-Org Transactions like
subinventory transfer, and staging transfer.
Serial Control
Select an option for serial number uniqueness.
Within organization: Enforce unique serial numbers within the current organization.
Within inventory items: Enforce unique serial numbers for inventory items.
Across organizations: Enforce unique serial numbers throughout all organizations.
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.
Optionally, select an alphanumeric serial number prefix to use for system-generated
serial numbers when generation is at the organization level.
5. Optionally, enter a starting serial number to use for system-generated serial
numbers.
If serial number generation is at the organization level, you must enter a starting
serial number.
6. Indicate whether the system suggests 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.
LPN IS USED IF WMS IS INSTALLED
number you define in the item master to automatically generate a lot number for an
item when you receive it.
Note: If you enable this parameter, then the system automatically
creates lot level UOM conversions for lots that are created in
Inventory and Process Manufacturing. It does not automatically
create lot-level UOM conversions for lots that are created in Work