Inv Topics

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Organization definition:
BG, LE, OU, IMO, Inv org, subinventory, locator

Item definition:
Material Staus
Item Mmaster Creation and Maintenance
Item category
Item Catalog
Item costing

Invnetory Transations:
Subinv Transfer
Move Order Transfer
Inter org transfer transactions

Inventory Accuracy maintenance

ABC Classes
Cycle Countng

Inventory Planning
Min Max Planning
Kanban
Replenishment planning
ROP planning

Inv KFF's
Items
Locators
Account Alias
Sales Order
Item Category
Item Catalog
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Business Group:

Default one given by Oracle: Setup Business Group.

It needs to be defined as a HR organization (Organization Classifications) in order
to have employees defined under it.
It should have 5 imp segments defined(Business Group Info flex field): Grade,
Group, Position, Job & Costing

Legal Entity:

It should be defined as GRE /Legal Entity.

Enter LE information FF.
In 11i, defined in same organizations form, In R12, html page in General Ledger->
Setup->Accounting Setup Manager->Accounting Setups
It will have three C's: Currency, Chart of Accounts, Calendar
In R12, it has Subledger accounting

Operating Unit

Operating unit is an independent financial unit.

It holds accounting details of SO, PO, AP, AR & Fixed Assests. It has all the
financial transactions
All the transactions are first rolled up to OU and then can be rolled to LE if
needed.
Eg SO is always to a OU

Different Lines of Business in a big company map to LE's (which have diff legal
names)
Each operation maps to a seperate OU (financila operations: cost, revenue, assets)
Operation unit inforamation FF: Pirmary Ledger (ability to use accts), Default
Legal ontext, OU Short code

Operating unit comes into picture when financial information, suppliers, customers
etc., need to be secure ie.,
one operating unit cannot view above data fo another.

Master Org:
We dont have seperation concept of master org, It is defined as an inv org
Only diff is in Organization Parameters form (Inventory information option in
others)
Master org has itself defined as Master
Where as other inv orgs have a separate master org
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Inventory Org:
Same as Master org, Click on Others button and provide Accounting info
Here, we link org with OU, LE and BG
This is for accounting purpose eg., Manufacturing costs, shipping costs, COGS,
Fixed and current assests etc.,

Customer Supplier association information is used for Vendor managed inventory

(when that org is created
only for a specific customer or supplier)
This is used for checking Onhand at a specific supplier/customer location,
planning/scheduling purposes
Supplier site is configured as an organization

When we want to have reporting needs for specific area/inventory, we need to define
it as inventory org.
Eg., Within a small shop, if we want to track VMI, then we define that area as a
diff inv org so that reporting
and tracking are possible.

Org Parameters form:

Calander: for palnning/scheduling to know if a day is a holiday or working day,
similar to manufacturing calander
Move Order approval timeout options: Approve or cancel after timeout period
workflow driven (if planner hasn't taken an action)
Demand class: is used in forcasting, a reporting field, has MRP impact
Used in MRP module for forecasting future sales. Items are classified under demand
classes and then forecast is given
Locator control: None, prespecified, dynamic entry etc
Costing info:
Costing methods: 4 old -> Standard, Average, LIFO, FIFO
R12 new (Landed Cost- apart from payment to vendor, agent pays legal charges, port
clearance fees etc., for importing and transportation)
Costing Org: every inv org can be an independent costing org, depends on the item
attribute setup

Preferable:
Manufacturing companies use: Standard cost
Trading companies use Average costing or FIFO
If using standard cost, inventory valuation would not depend on purchase price of
the item on the PO
For Standard costing, item cost is the average of all the purchase prices/ total
qty. Hence cost & hence inventory valuation,
varies every time a new PO is created
Large distributors use FIFO
Transfer to GL: inventory org costing info should be posted or not to GL for
consolidated reporting

Reverse Encumberence checkbox: Encumberance is the process of allocating funds from

an approved monthly or annual funds in Oracle
Reverse encumberance is the process where we unreserve the allocated fun when we
cancel a purcase request

Cost Cut-off date: Cost rollup cutoff date

Subelement cost: if the item cost has sub elements like material overhead, resource
cost etc., the 6 buckets into which these could be put
Cost Group: Group of all costs

Revison/Lot Serial, LPN Setup:

LPN options are relevant to the shipping org. Packing step invovles lpn generation,
to track shipments through LPN's

ATP/ Pick, Item Sourcing tab:

ATP: Available to promise (in Sales Order) based on ATP rules configuration
Picking rules : FIFO, LIFO
Pick confirmation required checkbox - Auto Picking is not allowed

Item sourcing detail: Could be Supplier/Internal This info is for min max planning,
whether to create PO or internal order
when min stock is reached

Distributed parameters:
Need for WMS org so that we can drive distributed org features in WMS

Inter org transfer info tab:;

Interorg teansfer accounts:

Intransit inventory acct: When material is in between the orgs then this account
will hold the cost of itemm * qty intransit
Purchase price variance: When interorg transfer is happening, item price delta
between shipping and Receiving org will be captured
in this acct
Transfer Credit, Feceivable and Payable accts come into picture when transfer
between two operating units is
involved

Other Accounting
Inventory AP Accrual Acct: when we are receiving but not paying to the supplier
right away, then this acct will be hit
On AP side, this goes into liability acct
Purchase price variance acct: diff between item cost defined in the system and
price of the item on PO
Invoice price varaince: diff between PO price and inv price. It needs to be either
absorbed or write off
If we have continuous purchase price varaince, it means item cost is not upto
market, you need to revise the standard cost of the item
We do it generally once a year
COGS: Any shipping happens from shipping org
Defferred COGS: if we donot want to recoginse cost based on the shipping date and
want to defer it until it is received by the customer
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Subinventory:
Different buckets for receiving products, shipping products, quality etc., leads
to creation of multiple subinventories
Eg., If manufacturing then FGI for finished goods, Consigned for VMI, Bulk,
Dropship, Return, Depot Repair etc.,
Bare min two subinv for shipping and receiving

Attributes:
Quantity Trackable for storage subinv, Asset if it needs to be counted as an asset
In WMS org, subinventory should have a locator, in other orgs, locator control is
not mandatory
Locator control could be: None, Prespecified, Item level, Dynamic entry
Set of Accounts that will hold valuation of the product: 6 buckets defined in the
org form
These are defaulted from the cost group at parent level and can be overridden. if
we do so, system creates a new CG
and assigns to the subinventory
Subinventory type could be Storge or Receiving
If Receiving subinventory then, location comes into picuture. the Gate no where the
material needs to be dropped
before inventorizing

Locator is a flexfield. Once the KFF structure of the locator is defined in the
system, all organizations follow the same
structure. A locator is useful in exactly telling the supplier where to drop the
goods and hence tracking
inventory precisely. Eg., Different gates (locators) could be used in a floor of
inventory(subinv). You can tell the
supplier which gate to enter through the truck by givng them the locator info. If
we have different blocks or dockdoors further
in the gates, this can be acheived by defining gate+dockdoor combination as the
locator.

Futher classification of the org structure beyond locator is not possible. Locator
is the lowest unit. But since locators
are KFF's, they can be configured to track the exact scenario in the warehouse.

In a manufacturing unit with multiple areas (subinventories), ie., Receiving,

Storage (Bulk&Case), shipping lanes etc., locator segments
are classified based on the max combination of tracking units.

Eg., Bulk Storage subinv needs Row, Rack & Bin and Case subinv needs only Aisle &
Floor.
Locator in this organization will be defined with three segments, first two
mandatory and the third is non madatory.

For bulk, we capture all the three segments where as for case, we only capture two
segments.

Item: Item code is a Flex field eg., the ISBN number associated with a book
Item also has 216 (system defined) and other custom, total 300+ attributes like:
Publisher of a book, its classification like fiction, auto biography etc.,
Purchasing flags et.,
Asset or expense item etc.,
Items are always defined in the master org and then assigned to child orgs so that
transactions are possible in the corresponding child org.