Following are the various stakeholders involved with their access points and major

features in the ecosystem:

Stakeholder/Role Major Features

Employee  Manages all the transactional data.

Advance Procurement  Update Requestor preferences.

Requestor  To create Requisitions.
 To create catalog requisitions.
 To create non catalog requisitions.
Procurement Manager  To create Purchase orders.
 To create suppliers.
 Create Purchase Agreements.
 Approve Purchase documents

Receiving agent  To create PO receipts.

 Receive Expected Shipments.
 Create put away receipts.

Supplier Manager  Create ASN.

Product Data Steward  Executes change requests upon approval and maintains
the quality of the product master. Responsible for data
loads. Develops consistent data in accordance with the
business rules of the corporation. Responsibilities also
include data scrubbing, monitoring data entry
exception, data de-duplication, ensuring overall data
quality.
Product Manager  Ensures that a product gets created, tested, and
shipped on schedule and meets specifications. A
member of either the marketing organization or the
development organization.
Inventory Manager  Inventory Manger can do the transaction related to
material transfer, receive the material and quantity
adjustment and Inventory counting, receipts.
Warehouse Operator  Performs warehouse activities such as creating
inventory transactions, processing movement requests,
recording cycle and physical inventory counts,
performing material put away, and confirming pick slips.
Warehouse Manager  Manages and analyzes all warehouse activities including
analyzing materials management and logistics
performance, managing inventory transactions,
managing cycle, and physical counts, configuring
warehouse setup, and reviewing inventory balances.
Pricing Manager  Manages all price lists, cost lists, discount lists, pricing
guidelines and currency conversion lists.
 1. Solution Design

supply chain Solution design requirements are divided into three different modules.
Below are the module details:

 Inventory Management
 Procurement

1.1 Introduction to Inventory:

Oracle Fusion Cloud Inventory Management is a complete materials management and

costing solution that enables to gain full visibility and control of the flow of goods across
organization and global supply networks.

1.1 Inventory Organization Structure:

`

1.1.1 Location

 Location identifies physical addresses of a workforce structure.

1.1.2 Inventory Organizations

1. Master Inventory Organization:

 Master organization is a logical organization which is used to create an item and

assign the item to the Respective child organizations.

2. Child organizations (Branches):

 Child Organization is used to create an inventory transaction like issue the

material and receive the material

3. Sub-Inventory

 Sub-inventory is used to maintain the item on-hand-quantity by receiving the

quantity from vendors and internal organization transfers. Quantity can also be
issued from source sub-inventory to another sub-inventory.

 Sub inventories are the actual stores where items are inventoried. Each store will
be defined with a sub inventory code and description with a set of control
parameters
 All sub inventory that are defined in the system will be classified with unique sub
inventory name.
 Sub inventory Type is selected if it is for ‘Storage’ or ‘Receiving’. The Location of
each sub inventory is mentioned during sub inventory creation if the type is
Receiving
 Each Inventory Organization consists of its own Sub inventories according to the
business needs. One Sub Inventory is mandatory in every organization for
material receipt. It can be an Asset or Expense. Tracking of quantity can be
enabled or disabled.
 For Organization the following sub inventories are envisaged. No Sub Inventory
Restrictions are proposed. All are Asset sub-Inventories with quantity tracked
enabled.
1.1.3 Locators

 locators can be setup at the sub inventory level.

 While receiving the item on-hand quantity in to the respective sub inventory and
while issue the material from the sub inventory time will select the locators.
Quantity can be easily tracked with help of the locators.
Create miscellaneous Transactions

Miscellaneous Receipt Transactions is performed to increase the inventory for any

miscellaneous inventory adjustments. In Miscellaneous receipt, need to remember the
complete GL Account Combination to which this Item Material should be charged.

Miscellaneous Issue Transactions is performed to decrease the inventory for any

miscellaneous Inventory adjustments. In Miscellaneous issue, need to remember the
complete GL Account Combination to which this Item Material consumption should be
charged

SAMPLE SCREEN SHOT

 Select the transaction type.

 Select the account.
 Select the current item cost.
 Enter the item details.
 Enter the sub-inventory and locator details
 Enter the quantity to receive the item quantity
 1.1.4 Account Alias Issue

Account alias issue is almost similar like the Miscellaneous issue in oracle. They also use
to reduce the stock of the item in sub-inventory without having Requirement to consume
the stock again WIP JOBS. But the Only Difference between Miscellaneous issue and
Account alias issue is that, in Miscellaneous issue need to remember the complete GL
Account Combination to which this item material consumption should be charged
whereas in the Account alias Issue will use the GL Account Combination aliases which
have already created in the GL so that don’t need to remember the complete account.

 Select the transaction type.

 Select the account.
 Select the current item cost.
 Enter the item details.
 Enter the sub-inventory and locator details
 Enter the quantity to receive the item quantity

Account Alias Receipt

This is also one of the Transaction types of the Inventory. Account alias receipt is almost
similar like the Miscellaneous receipt in oracle. They also use to Increate the Stock of the
Item in Sub inventory without having requirement of Open Purchase order. But the Only
Difference between Miscellaneous receipt and Account alias receipt is that, in
Miscellaneous receipt need to remember the complete GL Account Combination to which
this Item Material should be charged whereas in the Account alias receipt will use the GL
Account Combination aliases which have already created in the GL so that don’t need to
remember the complete account. Account alias is the user-friendly name of the GL
account combination that helps non finance user to easily remember the names instead
of entire GL account combination to which material should be charged.
Create Sub Inventory Transfer (With-in
Branch)
Sub Inventory Transfer is used to transfer the material from one sub inventory to
destination sub inventory within the inventory organization.

Use the Sub Inventory Transfer window to move material from one sub inventory to
another. By specifying the same sub inventory as the ‘from and to’ sub inventory, can
move material between locators within a sub inventory.

 Select the Type as Sub inventory Transfer.

 Enter the item details.
 Select the from sub inventory, to sub inventory and quantity details.
 Optionally, if it is location-controlled sub inventory then select the locator details.

Movement Request (With-in Branch)

Movement requests are requests for the movement of material within an inventory
organization such as a warehouse or facility.
Movement Request Process Flow:

To perform the movement request process flow:

 Manually create a requisition movement request on the Manage Movement

Requests page.
 Run the Print Movement Request Pick Slip Report using the Enterprise Scheduler
Service.
 Give the pick slips to the warehouse operator.

Note: Set the Release Approved Lines parameter on the Print Movement Request Pick
Slip Report to Yes to eliminate the need to perform the pick in the Reservations and Picks
pages.

 Physically move material according to the Movement Request Pick Slip Report’s
specifications.
 Confirm pick slips.

To confirm pick slips, verify that it moved the material according to the Movement
Request Pick Slip report, and confirm the items to be shipped on the Confirm Pick Slips
page.
If necessary, also enter discrepancies such as changing the quantity of items that get
picked.

There are three types of movement requests in oracle Cloud Inventory management.

 Requisition movement requests

 Replenishment movement requests
 Shopfloor movement requests

(a) Requisition Movement Requests

Requisition movement requests are manually created and can be used for sub inventory
transfers and account issues. Once a movement request has been submitted, the
movement request is ready to be sourced and transacted.

A movement request creates instructions to pick or move material for warehouse

personnel. Organization can create a requisition movement request to manually relocate
stock within a warehouse. Create a requisition movement request to issue material out of
a certain location. For example, want to issue out stock for damaged goods, or to a
certain project.

(b) Replenishment Movement Requests

 Replenishment movement requests are requests that are generated by min-max
planning to replenish material when a minimum quantity for a specific item is
reached. Replenishment movement requests replenish material that’s sourced
from a different location within the same inventory organization. For example, a
requisition movement request can be generated to move material from a bulk
locator to a fast pick locator.

Material status

Material Status control restricts the movement and usage of portions of on-hand
inventory. Material status control enables to control whether to pick or ship an internal
order, sales order, or issue material for a work order. It will allow to specify whether
material needs to be quarantined until inspect. In addition, helps to determine whether
products with a particular status can be reserved, included in available to promise
calculations, or netted in production planning. Assign material statuses can be four
levels: sub-inventory, locator, lot, and serial.

Assign sub-inventory and locator statuses in the sub-inventory and locator windows. The
location status applies to the material in the location and not the location itself. To assign
a material status to a lot or serial, first enable the item attributes Lot Status Enabled, and
Serial Status enabled on the item in the Item Master. Optionally can assign a default lot
or serial status to an item on the Item Master. After receiving the item, the system
automatically assigns the default lot or serial status to the item. The lot or serial status
remains the same through all inventory transactions including organization transfers. If
necessary, can change the material status at receipt, or use the material workbench or
mobile status update page to modify the material status.

Inventory Replenishment

Inventory Replenishment carried through Min-Max Planning.

 Min-Max Planning

Min-Max planning to maintain inventory levels for all items or for selected items. Min-Max
planning requires specification of minimum quantity and maximum quantity inventory
levels for items. While printing the Min-Max Planning report, the inventory level for an
item, on-hand quantities plus on-order quantities, is considered. If the inventory level is
below the minimum quantity defined for the item, min-max planning suggests a new
purchase requisition or movement request to bring the inventory level back up to the
maximum quantity. min-max planning can be performed at the inventory organization
level or at the sub-inventory level.

Setup Planning Attributes:

Perform the following actions for min-max planning:

 Define min-max planning attributes when setting up items, item sub-inventories,

or inventory organizations.
 Print the Min-Max Planning report.

Note: The min-max planning calculations exclude any items and item sub-inventories
configured with the Supplier Managed inventory planning method. See the Oracle SCM
Cloud: Using Supply Chain Collaboration guide for more information.

Define Min-Max Planning Attributes:

To use min-max planning set the attributes used by min-max planning. The following
attributes are used by min-max planning calculations.

 Min-max minimum quantity

 Min-max maximum quantity
 Fixed lot multiple
 Minimum order quantity
 Maximum order quantity
 Round reorder quantity

To use min-max planning at the organization level, set the attributes used by min-max
planning while manage items. First, set the Inventory Planning Method attribute to min-
max planning.

To use min-max planning at the sub-inventory level, set the attributes used by min-max
planning while manage item sub-inventories. Enable min-max planning for the item sub-
inventory.

At the sub-inventory level, Min-Max planning generates either a transfer order,

movement request, or purchase requisition based on the following rules:

 If the source type is Organization, using the same organization to which the sub-
inventory belongs, then min-max planning generates an intra-organization
transfer order (sub-inventory transfer). While using a different organization to
which the sub-inventory belongs, then min-max planning generates an inter-
organization transfer order.

 If the source type is sub-inventory, then min-max planning generates a movement

request.
 If the source type is Supplier, then min-max planning generates a purchase
requisition.

Print the Min-Max Planning Report

 Print the Min-Max Planning report to show planning information for all min-max
planned items in an organization or sub-inventory or for items with on-hand
 balances either below or above their assigned minimum or maximum on-hand
quantities. While Submitting the Min-Max Planning report, the first parameter to
specify is the planning level parameter to specify organization level or sub-
inventory level.

Cycle counting

Cycle counting is an inventory accuracy analysis technique where inventory is counted

on a cyclic schedule rather than once a year to ensure the accuracy of inventory
quantities and values.

 Cycle counting enables to keep inventory records accurate by correcting errors

between the on-hand (perpetual) and actual on-hand (physical) quantities.

 Cycle counting can also be a valuable tool to help identify patterns in the errors
found. Analysis of these patterns can suggest and help to prioritize improvements
in training, tools, and processes. Over a period, these improvements may increase
the average level of inventory record accuracy.

Accurate on-hand quantities are essential for managing supply and demand, maintaining
high service levels, and planning production. Most effective cycle counting procedures
require the counting of a certain number of items every workday with each item counted
at a prescribed frequency.

Create and Manage Cycle Counts

Cycle Count Criteria

Cycle counting is the periodic counting of individual items throughout the course of the
year. Cycle counting increases the level of inventory accuracy.

Perform cycle counts using either of these as criteria:

 ABC classes
 Item categories from Product Information Management

ABC Classes
 Group items assigned to specific ABC classes. With ABC classification of items as
the basis for deciding the count frequency, A class items get counted more
frequently compared to B or C class items. For this method specify ABC
assignment groups and ABC assignment group synchronization options.

Item Categories
 Assign items associated with specific item categories to a cycle count. All items
belonging to those item categories are included in a cycle count regardless of the
sub inventory or locator they’re stored in. This helps to define the items in the
cycle count based on common grouping criteria already established in Oracle
Fusion Product Information Management item categories.
Cycle Count Creation
 Creating a cycle count includes specifying schedules, approvals, parameters,
items, item categories, and classes to include in a cycle count. Use the Create
Cycle Count and Manage Cycle Counts tasks from the Inventory work area to
create and manage cycle counts.
  Perform cycle counts using ABC classes or PIM item categories as criteria for the
cycle count.

Physical Count

Physical inventory count is a process where a business physically counts its entire
inventory.
  A physical inventory may be mandated by financial accounting rules or tax
regulations to place an accurate value on the inventory. A physical inventory is
performed on a periodic basis to evaluate and reconcile inventory quantities and
values.

 The physical inventory process requires the inventory organization to suspend

incoming and order fulfilment activities for the time it takes to conduct the
physical inventory.

 Physical inventory allows to get an accurate count of stock and identify count
variances. It helps to determine an accounting value for the entire on-hand
inventory. It is a periodic reconciliation of system on-hand balances with physical
counts in inventory. Organization can perform a physical inventory for an entire
organization or sub inventories within an organization.

 A physical inventory is typically performed once every six months or once a year,
depending on the organization requirements.

 Note: It is recommended to perform physical counting once or twice in a year.

Physical Counting Flow

1. Generate Physical Inventory Snapshot

2. Generate Physical Inventory Tags

3. Record Physical Inventory Tags

4. Enter Physical Counts

5. Approve Physical Inventory Adjustments

6. Post Physical Inventory Adjustment

Standard Reports

S.NO Report Name Report description

1 Inventory Valuation Inventory Valuation Report gives an understanding of

Report the total cost of the inventory and potential profits
from their sale.

2 Inventory Aging An aged inventory report, also known as an aged stock

Report report or inventory aging report, is a financial
document that provides key metrics about the status
of inventory and in particular: How long each item of
inventory typically spends in storage before being sold
or utilized.
3 Displays details about a catalogue including the
CatLog Details
catalogue configuration, category hierarchy, category
details, and assigned items for each category.
4 Change Order Listing Displays details of changes made to the item,
Report structure, approved manufacturer list, and attachment
attributes in a change order.
5 Item Structure Report Displays details of multi-level item structure including
associated manufacturer parts.
6 Displays transfer orders eligible for cancellation,
Consumption Advice initiates mass cancellation of selected transfer orders,
and prints a list of cancelled orders.
7 Electronic Record for
Inventory Displays consumed consigned inventory generated by
Miscellaneous the buyer and sent to the seller.
Transaction

8 Material Status The report displays the miscellaneous transaction lines

where Used and their electronic signature identifier.
9 Displays pick slips for movement request requisitions,
Min-Max replenishment movement requests, and pick wave
movement requests.
10 Movement Request
Pick Slip Displays min-max replenishment levels for items.

11 Displays pick slips for movement request requisitions,

Transfer Order Status replenishment movement requests, and pick wave
movement requests.

Purchase orders:

Purchase Order will create for a one-time purchase of various items.

Roles Required: Procurement Agent and Procurement Manager.

Based on the business requirements, Organization will create two types of Purchase
orders.

1.Service Based Purchase Order

2.Inventory (Item) Based Purchase Order

Purchase Order Flow:

Auto create PO Approval Process:

Below are the types of purchase order statuses.

Incomplete:

A purchase order is incomplete when it is not submitted for approval or when all the
active lines have a status of incomplete.

Pending Approval:

Pending approval status will be available when a purchase order line that's submitted but
hasn't gone through the approval process. A purchase order is pending approval if all the
active lines on the purchase order are pending approval.

Cancel:

A purchase order is canceled if all the lines on the purchase except for those with a
status of split or replaced have a status of canceled.
Approved:

Purchase order is approved if on initial submission for approval it was approved.

Open:

Order is in open status after the purchase order (PO) has been issued to the vendor.

Close:

An order is in closed status when all the transactions have been completed (i.e., the
items have been received and invoiced).

Service Based Purchase Order:

Service based purchase order will be used to procure service from the vendors. For
service-based PO’s, line type will be fixed price services or rate base services.

Item based Purchase Order:

Item based purchase order will be used to procure the items from the vendors. For item-
based PO’s, line type will be Goods.

 Select the supplier details and site details from the drop-down.
 Select the currency and supplier contact details
  Select the communication method, bill-to and default ship-to location
 Select the buyer details, procurement BU, Requisitioning BU and Sold-to Legal
Entity details.

In the resulting line enter the following details,

 Type – Goods
 Item – Desired Item Code (Use the Search option to retrieve the Item code from
Item Master)
 Quantity – Desired PO quantity
 Price – Price of the Item
 Need-by Date – Desired need by date on which item to be delivered.
 Manage Approvals – need to configure approval limits for Document approvals,
it’s a onetime setup, update approvals if requires.

Receiving

Purchase order receipts are used to receive the ordered quantity into the inventory
organization. A receipt is also known as a Receivables document that describes the
payment received in exchange for goods or services.

Roles Required: Warehouse Manager and Receiving agent.

Receipt in Fusion:

Oracle Procurement Cloud helps the user to create a goods receipt based on the
approved purchase order.

Purchase order receipts are used to receive the ordered quantity into the inventory
organization.

The system will allow us to receive partial shipments and full shipments. Organization
can create receipt for un-ordered items.

They are three types of receipt routings. They are

1. Direct
2. Standard
3. Inspection

Direct:

In Direct receipt routing, shipments are received into a receiving location and put away
in the same transaction. Put away happens automatically upon receipt creation.

Standard:

In Standard receipt routing, shipments are received into a receiving location and then put
away in a separate transaction. standard receipts can be inspected or transferred before
put away.

Inspection:

In Inspection receipt routing, shipments are received into a receiving location and then
inspected and put away in separate transactions. Accept or reject material during the
inspection, and put away to separate locations, based on the inspection result.

Create Receipt
 Inspect Receipt:

Oracle Procurement Cloud helps the user to create a inspect receipt based on the goods
receipt. If the user wants to inspect some items, a inspect receipt can be created for the
number of items to be inspected.

Put Away Receipt:

Oracle Procurement Cloud helps the user to create a put away receipt based on the
goods receipt.
Put away is the process of moving received inventory to stock for storage. Oracle WMS
Cloud supports both user and system directed types of Put away.

Receipt Correction:

Oracle Procurement Cloud helps the user to create a correct receipt. If the user wants to
correct some items, a correct receipt can be created for the number of items to be
correct.

Enter the receipt number to correct the items.

Return Receipt:
Oracle Procurement Cloud helps the user to create a return receipt. If the user wants to
return some items, a return receipt can be created for the number of items returned.

Unordered receipts:
Creation of Receipt for un-ordered items and match the un-order receipts with PO with
zero cost in the system.

Create an unordered receipt by receiving unordered material. Unordered material

consists of items that arrive at the warehouse without documentation such as a purchase
order. Match unordered receipts to a valid document before inspecting or put away the
receipt lines.

Oracle Procurement Cloud helps the user to create an un-ordered receipt based on the
goods available at gate level. If the user wants to un-order some items, an un-ordered
receipt can be created for the number of items at gate receipt.

Matching level:

Default Match Approval Level:

Two–Way: Purchase order and invoice quantities must match within tolerance before
the corresponding invoice can be paid.

Three–Way: Purchase order, receipt, and invoice quantities must match within tolerance
before the corresponding invoice can be paid.

Four–Way: Purchase order, receipt, inspection, and invoice quantities must match within
tolerance before the corresponding invoice can be paid.

This setup can be over-ridden in the purchase order Shipments.

Create Pick wave:

A pick wave is a batch of shipment lines that are pick released together based on certain
business-related criteria.
Can use the create pick wave to

a. Fulfilling a particular customer demand

b. Optimizing transportation
c. Fulfilling backorders to reduce delay in shipment

Confirm Pick Slips used to enter details of picked material and confirm a pick slip.