Table of Contents

Table of Contents .................................................................................................................................................... 1

1. Transaction Setup ........................................................................................................................................... 2
1.1
Transaction Actions ................................................................................................................................. 4
1.2
Transaction Source Types ....................................................................................................................... 5
1.3
Transaction Types ................................................................................................................................... 7
1.4
Defining Transaction Reasons ............................................................................................................... 10
2. Transactions .................................................................................................................................................. 11
2.1
Performing Miscellaneous Transactions ............................................................................................... 11
2.2
Sub inventory transfer .......................................................................................................................... 12
2.3
Move Orders ......................................................................................................................................... 14
2.4
Setting up Move Order.......................................................................................................................... 16
2.5
Workflow for Move Order Approval Process ........................................................................................ 17
2.6
Defining Pick Slip Grouping Rules ......................................................................................................... 17
2.7
Move Order Components ..................................................................................................................... 19
2.8
Move Order Process Flow ..................................................................................................................... 21
3. Interorganization Transfers......................................................................................................................... 22
3.1
Direct Interorganization Transfers ...................................................................................................... 24
3.2
InterOrganization Transfers via Intransit Inventory............................................................................ 26
4 Interface Manager ........................................................................................................................................ 30
5 On-Hand Availability ..................................................................................................................................... 33
6 Material Transactions ................................................................................................................................... 37
7 Pending Transactions .................................................................................................................................... 39
8. Picking Rule ................................................................................................................................................... 40

1. Transaction Setup
Setting transaction profile options:
Oracle Inventory provides you with the following transaction processing profiles:
Enter Replenishment Count
InterOrganization Transfer
Miscellaneous Issue and Receipt
Transaction Processing Mode
Transfer Between Subinventory
Update Average Cost
Server Side Online Processing
Allow Expense to Asset Transfer
Project Miscellaneous Transaction Expenditure Type
RPC Timeout
Restrict Receipt of Serials
Transaction Date Validation
Use New Trx Manager for Processing
Override negative for Black flush
Quantity Tree Timeout for Lock
Maximum Number of Quantity Trees
Cycle Count Approvals
Cycle Count Entries
Transaction Processing Mode
you can set processing control globally for all transactions or you can choose different options for
each type of transaction. You establish the method of transaction processing by choosing one of the
following options when you set up your TP: INV Transaction Processing Mode profile:
Online processing Processes transactions while you wait and returns control to you once it finishes.
Background processing Returns control immediately to you. With this option, Oracle Inventory
processes transactions
on a periodic basis via the Inventory Transaction Manager.
Immediate concurrent processing Spawns a concurrent process when you commit the transaction
and returns control immediately to you, allowing you to continue working.
Form level processing Processes transactions using the processing control option you choose for that
particular type of transaction. You must also set the Inventory profile options for InterOrganization
Transfer, Miscellaneous Issue and Receipt,
Receive Customer Return, Return to Customer, and Transfer betweenSubinventories. If you are using
Oracle WorkinProcess, you must set the WIP profile options Completion Material Processing,
Completion Transaction Form, Material Transaction Form, Move Transaction, Operation Back flush
Setup, and Shop Floor Processing.
If you choose Form level processing for the Transaction Processing Mode profile you can set up
different processing controls for each type of transaction.
Online Processing If you use Online processing, you can choose whether transactions are

processed on the server or client side by setting the Server Side Online Processing profile. The
default value is server side processing.
Inventory Remote Procedure Manager Server side online processing uses the Inventory Remote
Procedure Manager to allow a transaction initiated on the client to process on the server. System
managers maintain the Remote Procedure Manager.
Launching Transaction Managers
The transaction managers execute the following processes:
material transaction,
move transaction,
resource cost transaction,
material cost transaction,
demand reservation &
remote procedure call.
These run at periodic intervals you specify until you delete them with the concurrent manager. They
control the number of transaction workers, processing intervals, and number of transactions
processed by each worker during each interval.

1.1 Transaction Actions

A transaction action is a generic type of material movement or cost update with no specificity
regarding the source of the transaction. Along with a transaction source type, a transaction
action identifies a transaction type. Oracle Inventory provides the following transaction
actions:
Issue from stores
Subinventory transfer
Direct organization transfer
Cycle count adjustment
Physical inventory adjustment
Intransit receipt
Intransit shipment
Cost update
Receipt into stores
Delivery adjustments
WIP assembly scrap
Assembly completion
Assembly return
Negative component issue
Negative component return
Staging Transfer

1.2 Transaction Source Types

The relationship between transaction source type, transaction action and transaction type is
shown in below picture.

1. A transaction source type is the type of entity against which Oracle Inventory charges a
transaction. Along with a transaction action, it uniquely identifies the type of transaction you
perform. Oracle Inventory provides the following predefined transaction source types:
Account
Account Alias
Cycle Count
Internal Order
Internal Requisition
Inventory
Job or Schedule
Move Order
Periodic Cost Update
Physical Inventory
Purchase Order
RMA (Return Material Authorization)
Sales Order
Standard Cost Update
2. You can define additional transaction source types in the Transaction Source Types window. You can then
use these userdefined transaction source types and predefined transaction actions to define a new

transaction type. This userdefined transaction type is now a customized form of tracking transactions with
which you can group and sort reports and inquiries.

Navigation: Setup ->Source Types

3. When you perform a transaction, you specify a transaction type and a source. For example, for
a PO receipt
transaction, the transaction source type is Purchase Order and the actual PO number is the
source.
Transaction source type = Purchase Order
Transaction source = Purchase Order Number
Transaction Action = Receipt
Transaction type = PO Receipt

1.3 Transaction Types

1. A transaction type is the combination of a transaction source type and a transaction action. It
is used to classify a particular transaction for reporting and querying purposes. Oracle
Inventory also uses transaction types to identify certain transactions to include in historical
usage calculations for ABC analysis or forecasting. The following table presents predefined
transaction types:

Use the Transaction Types window to define additional transaction types to customize
transaction entry. A userdefined transaction type is a combination of a userdefined
transaction source type and a predefined transaction action. For example, if you frequently
donate items to charity, you might want to define a transaction source type calledCharity
and a transaction type calledIssue to Charity. In this case, the transaction action would be
Issue from Stores. You would then use the Miscellaneous Transactions window to actually
issue an item to charity, using theIssue to Charity transaction type. You would also specify

the actual charity to which you are issuing, such as Goodwill, and the expense account that
specifies the source (Goodwill).
You define transaction types by combining transaction actions and transaction source types.
You define transaction source types in the Transaction Source Types window. Oracle Inventory
provides the list of transaction actions.

Navigation: Setup -> Types

You must specify a transaction type when you perform a miscellaneous receipt or issue, a
subinventory transfer, a WIP transaction, or an interorganization transfer.

1.4 Defining Transaction Reasons

A transaction reason is a standard means of classifying or explaining the reason for a transaction.
Transaction reasons can be used in all transaction forms.
You can use these standard transaction reasons with any type of material transaction. Oracle
Inventory provides transaction reporting and inquiring capabilities by transaction reason.
Navigation: Setup ->Reasons

In the reason type from the list of values. The available choices are as follows:
Load
Drop
Receiving
Replenishment
Cycle Count
Shipping
Update Status
QA Update Status
Note: The Replenishment reason type is disabled.
If you selected Picking as the Reason Type, select a Reason Context from the list of values. The
available choices are as follows:
Curtail Pick: End the pick after picking a few LPNs or Lots and load the contents.
LPN Exception: Pick partial quantity of the scanned fully consumable LPN.
Pick None: End the pick without picking anything.

 Pick Over: Pick more than the requested quantity.

Pick Partial: Split the pick and allow confirmation of less than the requested quantity. You must still
pick the entire quantity, but can pick in stages.
Pick Short: Specify a quantity less than the requested quantity, and back order the rest of the
required quantity.
Change Source Locator: Change the location from which the material is picked.
Change UOM: Change the transaction unit of measure for the task.

2. Transactions
Oracle Inventory, with Oracle Order Management, Oracle Purchasing, and Oracle Work in Process,
provides you with a complete set of transactions and reports for maintaining inventory control. This
allows you to control the flow of material from the time you receive items to the time you ship
finished goods to the customer.

Inventory transactions and on hand balance supports decimal precision to 5 digits after the decimal
point. Oracle Work in Process supports decimal precision to 6 digits. Other Oracle Applications
support different decimal precision. As a result of the decimal precision mismatch, transactions
another Oracle Application passes may be rounded when processed by Inventory. If the transaction
quantity is rounded to zero, Inventory does not process the transaction. It is therefore suggested that
the base unit of measure for an item is set up such that transaction quantities in the base unit of
measure not require greater than 5 digits of decimal precision.

2.1 Performing Miscellaneous Transactions

With a miscellaneous transaction you can issue material to or receive material from general
ledger accounts in your current organization. This allows you to issue material to groups that
are not inventory, receiving, or work in process such as a research and development group or
an accounting department. You can also make manual adjustments to the general ledger by
receiving material from one account to inventory, and then issuing that material from
inventory to another account.
You can use your userdefined transaction types and sources to further classify and name
your transactions. You can use this feature to issue items to individuals, departments, or

projects; or to issue damaged items to expense accounts such as scrap. You can perform the
receipts for items that were acquired by means other than a purchase order from a supplier.
You can also use this feature to load all item onhand quantities when you start implementing
Oracle Inventory.
You will receive a material shortage alert while performing a miscellaneous transaction if you
have enabled shortage alerts for the miscellaneous transaction type being performed. Also, a
miscellaneous transaction can trigger a shortage notification to be sent to various predefined
individuals.

Navigation: Transactions ->Miscellaneous Transactions

2.2 Sub inventory transfer

You can transfer material within your current organization between Subinventories, or between two
locators within the same subinventory. You can transfer from asset to expense Subinventory, as well
as from tracked to nontracked Subinventory. If an item has a restricted list of Subinventory, you can
only transfer material from and to Subinventory in that list. Oracle Inventory allows you to use user
defined transaction types when performing a subinventory transfer.
Navigation: Transactions ->Subinventory Transfer

Navigation: Transactions ->SubInventory Transfer

2.3 Move Orders

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. You can generate
move orders either manually or automatically depending on the source type you use.
Note: Move orders are restricted to transactions within an organization. If you are transferring
material between organizations you must use the internal requisition process.
Managed Material Flow in a Facility:
Move orders allow you to distinguish between inventory management processes and the actual
material transaction process. This provides for the following:

Move Order Source Types:

Oracle provides three types of move orders:
1) Move order requisitions,

2) Replenishment move orders, and

3) Pick wave move orders.
4) Manufacturing component pick.
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: sub inventory transfer or account issue.
Move Order Requisitions
A move order requisition is a manually generated request for a move order. It is available for sub
inventory transfers and account transfers. Once a requisition has been approved, it becomes a move
order. These requests can optionally go through a workflow-based approval process before they
become move orders ready to be sourced and transacted.
Replenishment Move Orders
you can automatically create pre-approved 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:
Replenishment Counting
Kanban Replenishment
Pick Wave Move Orders
Pick wave move orders are pre-approved requests for sub inventory transfers to bring material from
a source location in the warehouse to a staging sub inventory. These move orders are generated
automatically by the Oracle Shipping Execution pick release process.
Manufacturing Component Pick
Created my component pick release in WIP
Workflow for Move Order Approval Process:
If you require planner approval for move order requisitions, you can use the move order approval
process, which forwards move order lines to the designated item planner for approval. Oracle
Inventory manages the approval process through Oracle Workflow.
To govern the move order approval process, you set two inventory organization parameters: Move
Order Timeout Period and Move Order Timeout Action. The Move Order Timeout Period attribute
determines the number of days the order can wait for approval. After one time out period, if the
recipient has not approved or rejected the order, a reminder notice is sent. After a second time out
period, the order is automatically approved or rejected, depending on the Move Order Timeout
Action attribute you set. Upon approval, additional notifications can be sent to specified individuals.
The item planner is an item attribute. If no planner is specified on the item, the requisition line will be
automatically approved.
Once the order line is approved, notices are sent to a notification list that is attached to the source
and destination sub inventories to let the sub inventory planners know that material will be moved to
or from their areas.
Note: Replenishment and pick wave move orders are pre-approved

Express Pick Release

Customers who use Oracle Inventory primarily for financial purposes as opposed to operational
purposes can user express pick release to enhance pick release performance.
The overall process for this method is as follows:
1. Create detailed reservations.
2. Pick release order.
3. Populate reservations in shipping delivery details.
4. Ship confirm order.
Express pick release makes the following assumptions:
There are no locators in the warehouse.
The same subinventory is used for storing and staging shipped material.
Detail level reservations are created before you run pick release, or during order or after order
import.
For plain and serial controlled items, the reservation must specify the subinventory.
For lot-controlled items, the reservation must specify the subinventory and lot number.
For revision controlled items, the reservation must specify the revision.
If the above conditions are met, the logic in pick release is set to bypass creating of move order lines,
quantity tree and reservations, and pick confirm.

2.4 Setting up Move Order

Define the Subinventory source type
to automatically create move orders using min-max planning and replenishment counting; you must
define the sub inventory source type at once of the following levels:

Subinventory
Item Subinventory

To automatically create move orders using the Kanban system, you must define the Subinventory
source type at the pull sequence level.
Define approval process parameters
to require planner approval for move order requisitions; you must define two parameters at the
organization level: Move Order Timeout Period and Move Order Timeout Action.
If you want to bypass the move order approval process and automatically approve move order
requisitions, enter 0 days for the Move Order Timeout Period and select Automatically Approve for
the Move Order Timeout Action.
You must also assign the planner who approves move order lines to the item or the organization.
You can also specify individuals to be notified if a shortage occurs.
Note: If the requested item does not have an assigned planner, the approval process is not enabled.
Define item transaction defaults
if you want to populate move order line allocations with item transaction defaults for the destination
locator, you must first define the item transaction defaults.
Note: You do not need to perform this step if you specify the locator at the time you create or
allocate the move order lines.

Define lot level UOM conversions

if you define a lot level conversion for a specific lot the move order quantity reflects the lot quantity
to transact.
Setup Material Status
you can transact only material that permits move order transactions. You must that verify you can
transact the material before you perform move orders.

2.5 Workflow for Move Order Approval Process

If you require planner approval for move order requisitions, you can use the move order approval
process, which forwards move order lines to the designated item planner for approval. Oracle
Inventory manages the approval process through Oracle Workflow.
To govern the move order approval process, you set two inventory organization parameters: Move
Order Timeout Period and Move Order Timeout Action. The Move Order Timeout Period attribute
determines the number of days the order can wait for approval. After one time out period, if the
recipient has not approved or rejected the order, a reminder notice is sent. After a second time out
period, the order is automatically approved or rejected, depending on the Move Order Timeout
Action attribute you set. Upon approval, additional notifications can be sent to specified individuals.
The item planner is an item attribute. If no planner is specified on the item, the requisition line will be
automatically approved.
Once the order line is approved, notices are sent to a notification list that is attached to the source
and destination sub inventories to let the sub inventory planners know that material will be moved to
or from their areas.
Note: Replenishment and pick wave move orders are pre-approved

2.6 Defining Pick Slip Grouping Rules

You can create grouping rules to organize how picking lines for released sales orders and
manufacturing tasks are grouped on pick slips. For example, if you select Delivery as grouping criteria,
all picking lines for the same delivery are grouped together on a pick slip.
You can also select additional grouping attributes for your grouping rules. For example if you select
Delivery and Carrier as grouping criteria, picking lines for the same delivery and carrier are grouped
together on a pick slip.
Navigation: Setup ->Rules->Pick Slip Grouping Rules

2.7 Move Order Components

A move order comprises the following:
Move order header
Oracle Inventory uses the move order header to store the move order source type. This refers to the
entity that created the move order. The header also stores the default source and destination (if
known), the order number, and the requested date.

Move Order Number

Status
Move Order Type

Navigation: Move Orders ->Move Orders

Move order lines

Move order lines are the requests on a move order. They store the item, requested quantity,

completed quantity (if the move order has been partially fulfilled), and source and destination (if
known). The move order lines also include any project and task references if the organization is
Oracle Project Manufacturing enabled. You can also request specific serial and lot numbers on the
move order line.

Source
Destination
Control - Status

Move order line allocations

The line allocations are the transactions that occur to fulfill a particular move order line.
You can set up your system to have Oracle Inventory's picking engine automatically fill in the
allocations, or you can manually fill in the line details and edit them before you transact. If the
material is locator, lot, or serial controlled, the system fills in this information at the line detail level.
Navigation:Move Orders ->Transact Move Orders

2.8 Move Order Process Flow

The move order process follows the following steps:

1.1. 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.
1.2. Approve the move order lines. If the move order requisitions require approval, the item planner
must approve the move order lines.
Navigation: Move Orders ->Move Orders

1.3. Allocate the move order. Once the move order is approved, you can allocate it, or cancel it.
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.
You can also cancel partially allocated move order requisitions and replenishment move orders.
Oracle Inventory provides a profile option INV: Kill Move Order which allows the system to cancel
partially allocated and transacted move orders.
Note: 1. Allocating creates a pending transaction the will be executed when you transact the line. It
therefore decrements the available quantity (i.e. it creates a soft reservation).
2. You can cancel move order lines that have no allocations. You can select an individual move order
line, or multiple move order lines. It does not matter if the move order lines belong to different move
orders.
You can cancel move order lines only for move order requisitions and replenishment move orders.
1.4. 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.
Print Move Order Pick Slips:
You can print move order pick slips before or after the move order transaction is committed. The
Move Order Pick Slip report generates pick slips for move order requisitions and replenishment move
orders.
To generate a pick slip for pick wave move orders, you submit the Oracle Shipping Execution Pick Slip
report.
1.5. 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. You can cancel partially allocated and transacted Move Order Requisitions and
Replenishment Move Order lines.

3. Interorganization Transfers
You can define multiple inventories, warehouses, and manufacturing facilities as distinct
organizations. With Oracle Inventory you can perform interorganization transfers as director
intransit shipments.
Inter-Org transfers can be done within or across operating units but you cannot generate
intercompany invoice with inter-org transfer. Intercompany invoicing is possible for inter-org
transfers of type In-transit only through Internal sales Orders. No intercompany invoicing is
possible if you perform org transfers between two inventory orgs belonging two different operating
units without internal sales Orders. Also note that intercompany invoice cannot be raised for interorg transfers of type Direct Transfer through internal sales Orders.

Navigation: Transactions ->Inter-Organization transfer

You can transfer one or more items in a single transaction. You can also transfer partial quantities of
the same item to different Subinventory and locators in a single transaction.
Required Setups
1. The items you transfer must exist in both organizations. You can also transfer expense and asset
items from one organization to another using intransit inventory.
2. There must be a shipping network (direct/intransit) between the two organizations.
Accountings
1. Direct Org Transfer
From org Inter-org receivables debited
Inv valuation is credited

To Org -

Inv valuation debited

Inter-org payables credited

3.1 Direct Interorganization Transfers

You can 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 you have defined in both the shipping and destination organizations for the items
you want to transfer. 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).
The following tables present direct, interorganization transfers.(As given in oracle user guide)

3.2 InterOrganization Transfers via Intransit Inventory

You usually transfer material to intransit inventory when transportation time is significant. When you
perform the transfer transaction, you do not need to specify the delivery location. You only need to
enter the subinventory you are shipping from, a shipment number, the freight information, and,
depending on the interorganization transfer charge that applies between the organizations, a
percentage of the transaction value or a discrete amount that Oracle Inventory uses to compute
transfer charges.
If the FOB point is set to Receipt in the Shipping Networks window, the destination organization owns
the shipment when they receive it. If it is set to Shipment, the destination organization owns the
shipment when the shipping organization ships it, and while it is intransit.
While your shipment is intransit, you can update shipping information such as the freight carrier or
arrival date in the Maintain Shipments window.
At the time of shipment, you must define your receiving parameters for the destination organization.
You can receive and deliver your shipment in a single transaction or you can receive and store your
shipment at the receiving dock.
The validity of a transfer transaction depends on the controls you have defined in both the shipping
and destination organizations for the items you want to transfer. 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). You
can also transfer item B from organization X to organization Y if item B is under lot control only in
organization Y (you can specify lot numbers for item B in the destination organization when you
perform the receiving transaction).
1. The following tables present interorganization transfers via intransit inventory.

2. In case of inter organization transfer via Intransit we required to put the shipment number

After completing the inter org transfer, go to the receiving form of the 'to org' and receive the
shipment with the shipment number.

4 Interface Manager
Navigation: Setup ->Transactions ->Interface Manager

Cost Manager Status is Inactive we need to schedule this manager to activate it,

Navigation: Tools ->Launch Manager

Click on Schedule

Click on OK and Submit.

Reopen the Interface Manager form,

Cost Manager is now active.

5 On-Hand Availability
Use the Material Workbench to view all On-hand Quantity in a Subinventory
1. Use the Material Workbench to view all items in your ##FGI subinventory and note the
quantities.
Responsibility = Inventory, Vision Operations USA
1.

Navigate to the Material workbench

2.

(N) On-hand, Availability, On-hand Quantity

Enter the following information:

Organization:
M1
Subinventory:
##FGI
On-hand:
Selected
View by:
Location

3.

(B) Find

4.

Click Organizations

5.

Click M1

6.

Click Onhand

7.

Select Item ##-03 in the right pane.

8.

(B) Availability

9.

What is the total quantity? _______________________________________

10. What is the available to reserve quantity? _____________________________

11. What is the available to transact quantity? _____________________________
12. (M) File > Close Form

6 Material Transactions
Navigation: Transactions -> Material Transactions

Query with respective details,

Click on Distributions to see the accounting details.

7 Pending Transactions

Query with respective details,

The transactions which are pending between 2 inventories or items which are picked but not
shipped.

8. Picking Rule
Navigation: Setup ->Rules ->Picking

Click o Assignments