R12 Oracle E-Business
Suite Inventory
Walkthrough
June 2013
Objectives
• Define Inventory Structures that correspond to your sites
• Define and maintain item numbers
• Implement controls to track items in your inventory
• Record movement of items within your inventory structures
• Check accuracy of on-hand quantities by performing physical
inventory and cycle counting
• Perform inventory forecasting and planning
Agenda
• Introduction to Oracle Inventory
• Inventory Enterprise Structure
• Creating and Maintaining Items
• Inventory Controls
• Transactions
• Inventory Accuracy Controls
• Inventory Planning
Overview
Oracle Inventory enables you to satisfy your company's business
needs, area such as
• Defining part numbers
• Modeling organization structures
• Tracking perpetual inventory
• Maintaining accurate on-hand balances
• Planning material replenishments
• Forecasting anticipated demand
Overview
Plan
Plan
Model
Model Define
Define and
and Transact
Transact
Enterprise
Enterprise Items
Items Control
Control Items
Items
Inventory Flow Process
Enterprise Structure
Items
Physical Inventory
Inventory Controls ABC Analysis
Inventory Planning
Cycle
Transactions Counting
Global Organization Architecture
Business Group:
Business group is the highest level in the Organization
KSA Structure and is used for managing human resource
Business Group information. It can be setup to represent a consolidated
Enterprise or an Operating Company. There is no impact of
Business group on Accounting.
Company 1 Company 2 Company 3 Ledger:
Legal Entity Legal Entity Legal Entity Ledger is a financial reporting entity, which represents the
core of a Company’s financial records where every
transaction flows through. It provides balanced ledger
Company 3 accounting for the accounting entity and serves as a
Company 1 & 2 Legal Entity
repository of financial information.
Primary Ledger
Legal Entity:
Legal Entity represents a legal company for which Fiscal
Riyadh and Tax reports are prepared. A Legal Entity can Model to
Jeddah Riyadh Operating Unit an Enterprise, a Designated Legal unit which is recognized
Operating Unit Operating Unit by legal authorities in a country. Legal entity is a business
entity that is known to exist to the outside world.
Inventory
Inventory Inventory Organization 2 Operating Unit:
Organization 1 Organization 2 An operating Unit represents a business unit in an
Enterprise which has a business need to secure
Locator 2 transaction data, Setups and Seed data. It can be a major
Locator 1 Locator 2 division, sales office, a department, or a separate company
within an enterprise.
Legal Organization
Your group may have many Legal Entities
Why ERP Cares
Public
Company
• LEs pay the taxes
- need tax registrations
Subsidiary Subsidiary
Public
Company
Company
Company • Trade between LEs
(regional parent) (business parent)
needs intercompany
Subsidiary Subsidiary Subsidiary • LEs own the money
Company Company Company and bank accounts
• LEs file the accounts,
Subsidiary Subsidiary
Company Company
take care of accounting
• LEs comply with
• Parent companies (LEs) “own whatever needs
or control” subsidiaries (LEs) compliance: “legal” in LE
• No “group” entity
Oracle Inventory Integration with
Manufacturing Applications
Oracle
WIP Oracle
Flow Manufacturing Oracle
Oracle Cost Project Manufacturing
Management
Oracle External
Purchasing Systems
Oracle
Inventory
Oracle Order
Management Oracle Master
Oracle Scheduling/MRP
Engineering Oracle Bills
Oracle of Material
Shipping
Inventory Enterprise Structure
– Creating organization structures in inventory
– Defining a unit of measure
– Creating a workday calendar
Unit of Measure
Defining a unit of measure
– A unit of measure (UOM) is a term that is used, 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.
Defining a 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.
Defining a unit of measure conversion
– A unit of measure conversion is a mathematical relationship between two
different units of measure. For example, 16 ounces = 1 pound, or 2.2
pounds = 1 kilogram.
Organization Calendar
– If you perform inventory forecasting, reorder-point planning, available-to-
promise analysis, or cycle counting, you must define your workday
calendar.
– Oracle Inventory automatically generates a workday pattern (the base
calendar) that includes all days, including non-workdays, between the start
and end dates you specify.
– You can assign workday exceptions to the base calendar to denote
holidays, scheduled maintenance, or overtime.
Creating and Maintaining Items
– Defining item statuses and attributes
– Defining items
– Defining categories and category sets
Status Attributes
Master-Level Control
An attribute that you maintain at the master level has identical values for an item
in all organizations that use it.
Organization-Level Control
An attribute that you maintain at the organization level may have different values
for an item in each organization that uses it.
Defining Items
An item is a part or service that you purchase, sell, plan, manufacture, stock,
distribute, or prototype. The following Oracle Applications use items:
Inventory
Main Purchasing
Attributes
Attributes Attributes
Service Order
Management
Attributes Attribute
Work in Process Bills of Material
Attributes
Attributes Items
Costing
Receiving
Attributes
Attribute
MRP/MPS
Physical
Attributes
Attributes
Planning Invoicing
Lead Time
Attributes Attributes
Attributes
Organization Assignment and Organization
Item
Master Organization
Item # AC2967
Assign Item Assign Item Assign Item
Child Org 1 Child Org 2 Child Org 3
Categories and Category Sets
Category Grouping Schemes
Inventory Purchasing Category Craig
Category Set Set Category Set
Finished Good Hardware PC
Other
Subassembly Software
Inventory Controls
Inventory Controls
– Defining locator control
– Defining revision control
– Defining lot control
– Defining serial number control
– Defining serial genealogy
Inventory Controls
Locator Revision Lot Serial
Item # AS2497 Item # AS3691 Item # AS6026
Revision and Locator and Lot and
Serial controlled Lot controlled Serial controlled
Inventory Transactions
Material Flow Business Flow
Receive Goods
WIP Purchasing
Move Goods Inventory
Ship Goods MRP Order Entry
www.zensar.com 22
