Oracle Inventory

Release 11i
Presentation by
Oracle Applications Center of Excellence

Agenda


Overview
Key Features
Business Process Flow at a glance
Interaction with other modules
Set up
Detail Process Flows
Reports
Inventory Overview
Issue of material
Materials Planning
Track storage locations
Stock Audit
Maintenance
of material
Receipt of material Storage of material
Track quantity
on hand
Cost control
Inventory
Inventory Functions
Shortage of stock
Reporting
Needs
Misplaced items
Cost control
Excess Stock
Tracking of critical items
Query of items
Manual errors
INVENTORY
Multi-location stores
Areas of Concern
Flexible multi-site Inventory Mgmt
Comprehensive Item Definition
Revision, Lot & Serial no. Control
Faster Transaction System
Extensive Item Categorization & Cataloging
Improved Accuracy
Sophisticated Planning Tools
Item Cross Referencing Links
Configurable ATP
Multiple UOM
Parameter specific on-line search
Agile Manufacturing through mix-mode mfg.
Key Features
Business Process Flow at a glance
Inventory Flow Process
Inventory Flow Process
Interaction with Other Modules
Oracle Cost
Management
Oracle
Inventory
Oracle WIP
Oracle
Purchasing
Oracle Order
Entry/Shipping
Oracle Bills
of Materials
Oracle Master
Scheduling/MRP
Oracle
Engineering
Integration with Oracle Manufacturing
Oracle Payables
Oracle
Inventory
Oracle General
Ledger
Oracle
Receivables
Oracle Assets
Integration with Oracle Financials
Oracle Inventory Set Up
Organization Set Up
Perform the following steps to set up your Inventory
Structure
Inventory Organization Setup
An organization is an inventory location assigned to a
set of books , costing method, workday calendar, and list
of items.

An organization can be a company, subsidiary, or
warehouse.
Inventory Organization
Inventory Organization Structure
Enter Organization Information
Organization Definition
Enter Locations associated with each Organization
Location Definition
Enter control options and defaults for each inventory
organization
Organization Parameters
Assign specific organization to each responsibility
Organization Access
Define subinventories within each organization
Subinventory
Enter locators to use for locator-controlled items or storage
areas
Locators
Hands On exercises
Create a location
Create an Organization and assign the defined location and
relevant parameters
Define subinventories

Item Set Up
The following graphic summarizes all the steps that you
need to take in order to define and maintain items:
Choose item attribute control levels
Define
UOMs
Define Status
Control Levels
Define
Statuses
Define
Categories
Define
Category
Sets
Define
Default
Categories
Create
Templates
Define
Catalogs
1
Items Overview
1
Copy Templates
Copy Items
Enter Attributes value
Assign Categories
Assign Catalogs
Enable in Child Organization
Update Organization Level Attributes
Define Item Costs
Item Definition Process Steps Overview
Units of Measure
A unit of measure (UOM) is a term that you must use,
along with a numeric value, to specify the quantity of
an item. For example, each is a unit of measure that
you would use to specify the number of units of an
item.
Unit of Measure Class
A unit of measure class is a group of units of measure
with similar characteristics. For example, weight can
be a unit of measure class with units of measure such
as kilogram, gram, pound, and ounce.
Unit of Measure
Perform the following steps to define multiple units of
measures and set up conversions
Unit Of Measure
Examples of UOM Classes
UOM Class
Define UOM Class
Examples of UOM
Units of Measure
Define Units of measure within each class
Define UOM
UOM conversions enables you to perform transactions in units of
measure other than the primary UOM of the item
UOM Conversion
Overview of Item Setup
Define Items
An Item Status enables you to control the key functionality of
an Item
Item Status
Status Attributes
Define Item Status and Attributes
Define Item Status
Defining Attribute Control Levels
Attribute Control Levels
You can define an item status by selecting the value check
boxes for the status attributes
Define Item Status
You can group your items in several
category grouping schemes
Define Categories and Category Sets
Steps to define Categories and Category Sets
Categories and Category Sets Definition Steps
Define Categories
Define Category Sets
Default Category Sets
Assign Categories to Items
Item templates are defined set of attributes that can be
used over and over to create many similar item.The
following are the list of item templates:
ATO Model
ATO Option Class
ATO Item
Finished Good
Kit

Item Templates
Item Templates
You can use templates and existing items to define new items
Item creation using Copy Feature
You can enter values for item master-level attributes and defaults for
organization-level attributes.
Item Attributes Setup
You can assign multiple categories to your item.
Assign Categories to Items
You can enable an item in any child organization.
Item in Child Organization
Item Costs
Item Relationships
Manufacturere Part Number
You can import items from a different system through import items window.
Item Import
You can use item cataloging to add descriptive information to items
and to partition your Item Master into groups of items that share
common characteristics.
Catalog Groups
1. Define the item catalog group
2. Define descriptive elements within
each catalog group
3. Assign item to each catalog group
4. Enter descriptive element values
for each item
5. Update item description with catalog
groups and descriptive element values
6. Search for items by using descriptive
elements as search criteria
Defining and using Item Catalogs
Item Catalogs
You can enter item catalog groups and descriptive elements
Define Catalog Groups
Define Catalog Groups
You can choose item catalog group, enter descriptive element values and
update item description.
Assign Item to Catalog Groups
Hands On exercises
Define item in the master organization and assign to child
organizations
Items to be purchased only.
Do the relevant set up for restricting the items in pre defined
sub inventories in different organizations.
Create items copying the attributes of existing items

Item Enquiry
You can search for items by using multiple query criteria.
Item Search
You can query all items that are related to or substitutes for a
particular item.
Item Search
You can query all items with a particular cross reference.
Item search
System Profile Values
Personal Profile Values
Detailed Process Flows
Material Flow
Business Flow
Process Flows
Direct
Interorganization
Transfer
Interorganization
Transfer by way
of Transit
Miscellaneous
Receipt
Miscellaneous
Issue
Process Flow
Inventory
Order
Entry
Receivables
Return from customer
Customizing and Processing Transactions

A Transaction Source Type and Transaction Action make up
a Transaction Type

Inventory Transactions
You can define your own origins for inventory transactions.
Transaction Source Types
You can define a transaction type by combining a transaction action and a
transaction source type.
Transaction Types

You can define reason codes that you can associate with each transaction
line.
Transaction Reasons
You can choose processing modes for each type of transaction
Transaction processing Modes
You can perform transactions only in Open Periods.
Inventory Accounting Periods
You can charge receipts and issue transactions to account numbers
Miscellaneous Transactions
Miscellaneous Issue
You can transfer items between subinventories and locators in the same
organization
Subinventory Transfers
Hands On excercises
Do a miscellaneous receipt of the items defined
Perform a subinventory transfer between the stores within
the organization

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

They allow planners and facility managers to request the movement of
material within a warehouse or facility for purposes like replenishment,
material storage relocations, and quality handling. Move orders can be
generated either manually or automatically depending on the source
type you use.

Move orders are restricted to transactions within an organization. For
transferring material between organizations, internal requisition process
is used.
Move Orders
1. Create a move order for required material. You can manually create a move order
requisition or set up your system to automatically generate replenishment or pick wave
move orders.
2. Approve the move order lines. If the move order requisitions require approval, the
item planner must approve the move order lines.
3. Allocate the move order. Once the move order is approved, it must be allocated.
Allocating is the process that uses Oracle Inventory picking rules to determine where to
source the material to fulfill a request line. The allocating process fills in the move order
line details with the actual transactions to be performed and allocates the material to the
move order.
4. Print a pick slip. Before you transact the move order, you can print a pick slip or push
the move order line allocations to mobile devices for transaction through the move order
APIs.
5. Transact move order lines. You can either transact all the move order lines at once or
transact one allocation line at a time as the items are moved. If you transact less than the
requested quantity, the move order stays open until the total quantity is transacted or until
the order is closed or cancelled.
Move Orders Process Flows
Three types of move orders:
1) Move order requisitions
2) Replenishment move orders
3) Pick wave move orders.

The move order type refers to the entity that created the move order.
For all move orders, the final result is one of the two supported
transactions:
subinventory transfer or account issue.

Move Order Requisitions
A move order requisition is a manually generated request for a move
order.
It is available for subinventory transfers and account transfers.Once
a requisition has been approved, it becomes a move order.
These requests can optionally go through a workflowbased
approval process before they become move orders ready to be
sourced and transacted.
Move Orders Source Types
Replenishment Move Orders
You can automatically create preapproved move orders using the following
planning and replenishment functions.
These processes generate move orders if the material is sourced from another
inventory location within the organization.

Min Max Planning When a minimum quantity for a specific item is reached
in inventory, you can use a move order to replenish the supply.

Replenishment Counting If a system that uses replenishment counting
triggers an item for replenishment, you can use move orders to
replenish the supply.

Kanban Replenishment When a kanban card signals the need to
release an item into a subinventory, you can generate a move order
to handle the release.
Move Orders Source Types
Pick wave move orders
preapproved requests for subinventory transfers to bring material from
a source location in the warehouse to staging subinventory.
These move orders are generated automatically by the Oracle
Shipping Execution pick release process.
Move Orders Source Types
Create Move Orders
Approve Move Orders
Transact Move Orders
You can define shipping networks before entering inter-organization
transfers
Use intransit
inventory
FOB=Receiving
Require internal
order to ship
Direct Transfer
Use intransit
inventory
FOB=Shipping
Organization Transfer
Perform interorganization transfers as direct or intransit shipments.
Can transfer one or more items in a single transaction.
Can transfer partial quantities of the same item to different
subinventories and locators in a single transaction.
The item under transfer must exist in both organizations.
Can transfer expense and asset items from one organization to
another using intransit inventory.
Can specify the organizations that can ship items between each other
Organization Transfer
Direct Organization Transfer
Use a direct interorganization transfer to move inventory directly from a
shipping organization to a destination organization.

The validity of a transfer transaction depends on the controls defined in
both the shipping and destination organizations for the items to be
transfered.

For example, you can transfer item A from organization X to organization
Y, even though item A is under lot control only in organization X (you can
specify the lot numbers for item A in organization X during the transfer
transaction).

However, you cannot transfer item B from organization X to organization
Y if item B is under lot control only in organization Y (you cannot specify
lot numbers for item B in the destination organization because you are
performing a direct transfer).
Indirect Organization Transfer
Use a direct interorganization transfer to move inventory directly from a
shipping organization to a destination organization.

The validity of a transfer transaction depends on the controls defined in
both the shipping and destination organizations for the items to be
transfered.

For example, you can transfer item A from organization X to organization
Y, even though item A is under lot control only in organization X (you can
specify the lot numbers for item A in organization X during the transfer
transaction).

However, you cannot transfer item B from organization X to organization
Y if item B is under lot control only in organization Y (you cannot specify
lot numbers for item B in the destination organization because you are
performing a direct transfer).
Organization Transfer
Organization Transfer
Performing Receiving Transaction
Receiving Transaction
Receiving Concepts
Reviewing Supplier Receipt Options
Receiving Unordered Items
Receiving Unordered Items
Receiving In-transit Shipment
Inspect, Transfer & Deliver Receipts
Return to Supplier
Return Material Authorization Process
RMA
Accepting Items into Inventory
Receiving against RMA
You can receive or reject (return) items requiring inspection
Inspecting RMA Returns
You can accept items that passed inspection or that do not require
inspection into a subinventory
RMA Receiving Returns
You can accept items that passed inspection or that do not require
inspection into a subinventory
RMA Receiving Returns
If items were originally accepted into a subinventory for repair, you can
record return of repaired items to the customer
Returning Items to Customer
You can credit customers and close returns using the receivables interface
and Close Orders windows, respectively
Crediting Customer & Closing RMA
Capturing serial genealogy allows tracking and tracing multi-
level composition history from receipt of serial numbers through
shipment of the end assembly serial to customers.
Track & Trace Inventory
Inventory Planning
Inter-Org
Shipments
Statistical and
Focus Forecasts
WIP Issues
Sales Order
Shipments
Miscellaneous
Issues
Planning Overview
Order Time
Order Size
Planning Methods
Planning Overview
Oracle Inventory Processes
Reorder point
planning
Min-Max Planning
Sub-inventory
replenishment
Populate Requisition
Open Interface
Run Requisition Import
Create Purchase
Requisition
Create Purchase
Order
Create
Internal
requisition
To Oracle Order Entry Process
(Create Internal Order)
(Run Order Import)
Oracle Purchasing Process
Planning Overview
Oracle
Purchasing
Oracle
Inventory
Supply Sources for Planning
Oracle
Order Entry
Oracle
Inventory
Demand Sources for Planning
Oracle
Planning
Oracle
Inventory
Historical Sales Data & Forecast Rules
Define rules to check item availability.

Check item availability for future dates by using
planned supply and demand
Defining ATP
ATP
Defining ATP Rules:
Computation options
Time fence options
Supply sources
Demand sources


Setting Up Items and Bills for ATP Checks and Bills for
ATP Checks:
Item ATP rule Item ATP rule
Check ATP attribute
ATP Components attribute
Bill Component Check ATP attribute
Overview of ATP
2
3
4
6
5
1
Steps for checking ATP
2
3
4
5
1
6
Defining an ATP Rule
Steps Involved:
The following table contains various ATP rules:
Defining an ATP Rule
Defining an ATP Rule
Is Item,ATO
/PTO only,a
parent of an
assembly?
Is Item a
component of
an ATO /PTO
Assembly?
Yes
No
Yes
Item & Bill Setup for ATP Checking
Uses of ATP in Oracle Order Entry:
You can set up your item so that Oracle Order Entry
automatically checks ATP when you place demand
for the item.
You can navigate to the ATP Criteria window to view
ATP details.

Uses of ATP in Oracle Bills of Material :
You can set up your item so that Oracle Inventory
performs ATP checking for an ATP items bill of
material components when you order that item in
material components Oracle Order Entry.
Available to Promise (ATP)
Steps Involved:
1
2
3
4
Reorder Point Planning
Time
Quantity
Reorder Point
Safety Stock
Reorder Point Planning
Do you want
specific lot
increments?
Yes
No
Min-Max Planning
Steps Involved:
1
2
3
Min-Max Planning
Steps Involved:
1
2
3
6
4
5
Sub-Inventory Replenishment
Kanban Replenishment
Kanban is a means of supporting pullbased replenishment in
manufacturing systems.
A Kanban system is a selfregulating pull system that leads to
shorter lead times and reduced inventory.
Kanbans represent replenishment signals that are usually
manual and highly visible, such as a colorcoded card that
moves with the material,a light that goes on when
replenishment is required, or an empty bin that is moved to the
supply location to trigger replenishment.
Overview of Kanban
Pull Sequences
A pull sequence is a group of information that defines a kanban
location, source information, and planning parameters for an item.
Pull sequences are used to calculate the number or quantity
in each kanban container at that location.
Kanban Chain
For every kanban planned item, you can define a kanban chain,
which is a series of pull sequences that model the
replenishment network on the shop floor, for example,
line stock to stores and stores to supplier.
Major Features of Kanban
Card Definition
Kanban cards are created for an item, subinventory, and
locator (optional). They are uniquely identified by a kanban
number. For cards generated from a kanban pull sequence,
the number is automatically generated. For manually
defined cards, both replenishable and nonreplenishable,
you can enter an unused kanban number or let the system
create the number.
Card Printing
You can print Kanban cards for a replenishment plan or a
replenishment chain when you generate the cards. You can
also print cards individually if the card information is
complete.
Major Features of Kanban
Use the Pull Sequences window to view, update, and define the source
of replenishment for a kanban planned item in a kanban location.
Defining Kanban Pull Sequences
Use the Kanban Cards Summary window to view, define, and update
kanban cards. You can also automatically generate kanban cards with the
Generate Kanban Cards process.
Defining Kanban Cards
When a kanban is empty, you can replenish it systematically. This
will change the card status to empty and will trigger the necessary
transactions to refill the kanban.

Prerequisites
Generate kanban cards, with card status as Active and supply status
as Full.

To replenish kanban cards:
1. Navigate to the Kanban Cards Summary window. The Find Kanban
Cards window appears.
2. Enter search criteria and choose Find to locate the kanban card you
want to replenish.
3. Choose Replenish.
Replenishing Kanban Cards
Physical Inventory
Fully automated physical inventory
Reconcile systemmaintained item onhand
balances
Actual counts of inventory.
Manage supply and demand
Maintain high service levels and planning
production.
Overview of Physical Inventory
Define a physical inventory for your whole warehouse or
subdivisions within your warehouse.
Take a snapshot of system onhand quantities.
Generate alphanumeric tags.
Void unused or lost tags.
Approve or reject physical inventory adjustments based on
approval tolerances.
Automatically post adjustments to inventory balances and
general ledger accounts.
Purge physical inventory information.
Steps Involved:
Maintaining Physical Inventory
You can define and maintain an unlimited number of physical
inventories which are identified by a unique name you assign.
Defining a Physical Inventory
Before you can generate tags for a physical inventory, you
must take a snapshot of all system onhand quantities for
your items.

The snapshot saves all current item onhand quantities and
costs.
Taking Snapshot of Inventory Quantities
You can generate default or blank tags for your physical inventory
Tag numbers may be alphanumeric
you can increment only the numeric portion.
Generating Physical Inventory Tags
Physical Inventory Counts
Use the tags that you generated to record your physical counts.
Void Tags
Track the status of each physical inventory tag for auditing.
Void unused tags in the Physical Inventory Tag Counts
window.
Physical Inventory Counts & Void Tags
After recording your physical counts you must enter the quantity for each
tag. You can query tags for easy data entry.
Entering and Voiding Physical Inventory Tag Counts
You can view, reject, or approve physical inventory adjustments
pending approval.
Approving Physical Inventory Adjustments
Oracle Inventory deletes all information associated with the physical
definition.
However, the purge does not affect any adjustments or adjustment
transactions made using the physical definition.Those adjustments are
not changed.
You can also purge just tags if you made a mistake and want to start
over.
Purging Physical Inventory Information
Inactive Items Report
Item Reservations Report
Lot Transaction Register
Material Account Distribution Detail
Move Order Pick Slip Report
Material Account Distribution Summary
Serial Number Transaction Register
Transaction Historical summary Report
Transaction Register
Transaction Source Type Summary
Shortages Summary Report
Shortage Parameter Report
Global Transaction Purge
Item Reservations Report
Open Period Status Control
Close Period Status Control
Expired Lots Report
Reports
Reports
Item Cross-Reference Listing
Item Definition Detail
Item Definition Summary
Item Demand History Report
Item Relationships Listing
Item Statuses Report
Item Sub-inventory Report
Item Template Listing
Serial Number Detail
Supplier Lot Trace Report
Item Cross-Reference Listing
Item Definition Detail
Item Definition Summary
Item Statuses Report
Item Demand History Report
Item Relationships Listing
Item Sub-inventory Report
Item Template Listing
Serial Number Detail
Supplier Lot Trace Report
Customer Item Commodity Code Listing
Customer Item Cross-References Report
Customer Item Report
Item Organization Assignment Report
Period Close Value Summary
Forecast Rule Listing
Item Replenishment Count Report
Min-Max Planning Report
ABC Assignments Report
ABC Descending Value Report
Reports
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