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OracleInventoryDefiningOrganizationOracleApps(SCM)
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OracleInventory
Defining
Organization
BishnuPrasadChoudhury /
11:00PM /
DefiningInventory
Organization
NavigatetotheInventorySuperUserresponsibility.
SetupOrganizationsOrganizations
Definethefollowingorganizationsasperthe
requirementofbusiness
BusinessGroup
Legalentity
OperatingUnit
Organization
Externalorganizations(forexample,taxoffices,
insurancecarriers,disabilityorganizations,benefit
carriers,orrecruitmentagencies)
Internalorganizations(forexample,departments,
sectionsorcostcenters)
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SelectNew
CreatinganOrganization
1.EnteranameforyourorganizationintheNamefield.
Acheckisperformedtoseeiforganizationswiththe
samenamealreadyexist.
AllOracleapplicationsyouinstallsharethe
informationenteredintheOrganizationwindow.
Thereforeorganizationnamesmustbeuniquewithin
abusinessgroup,andbusinessgroupnamesmustbe
uniqueacrossyourapplicationsnetwork.
2.Optionally,selectanorganizationtypeintheType
field.
Organizationtypesdonotclassifyyourorganization
youusethemforreportingpurposesonly.Thetype
mayidentifythefunctionanorganizationperforms,
suchasAdministrationorService,orthelevelofeach
organizationinyourenterprise,suchasDivision,
DepartmentorCostCenter.
3.EnterastartdateintheFromfield.Thisshouldbe
earlyenoughtoincludeanyhistoricalinformationyou
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needtoenter.
4.Enteralocation,ifoneexists.Youcanalsoenteran
internaladdresstoaddmoredetailssuchasflooror
officenumber.
5.EnterinternalorexternalintheInternalorExternal
field.Youcannotassignpeopletoanexternal
organization.
Examplesofexternalorganizationsthatmayrequire
entryaredisabilityorganizations,benefitscarriers,
insurancecarriers,organizationsthatemployees
nameasbeneficiariesofcertainemployeebenefits,
andorganizationsthatarerecipientsofthirdparty
paymentsfromemployees'pay.
6.Thensaveyourwork.
OrganizationClassification
AswearedefininganInventoryOrganization,wewill
choosetheclassificationnameasInventory
Organization.
Thenmarktheenabledcheckboxandthensaveyour
work.
ThengotoOthers
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SelectAccountingInformation
Here,weneedtoattachtheLedger,LegalEntityand
OperatingUnit.
EnterthedetailsandselectOk,againinnextwindow
Ok.
Thiswillaskforaconfirmation,selectYes.
ThenagainfromtheOthersbutton,selectInventory
Information.
ThiswillpopuptheOrganizationParameterswindow.
OrganizationParameters
Youcandefineandupdatedefaultinventoryand
costingparametersforyourcurrentorganizationinthe
followingareas:
1.InventoryParameters
2.CostingInformation
3.OtherAccountParameters
4.Revision,Lot,Serial,LPNParameters
5.ATP,Pick,ItemSourcingParameters
6.DefiningInterOrganizationInformation
7.DefiningWarehouseParameters
InventoryParameters
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1.Enteranorganizationcodeforwhichyouwantto
setuptheorganizationparameter.
2.SelectanItemMasterorganization.Oracle
InventoryonlydefinesitemsintheItemMaster
organizationoftheorganizationfromwhichyouenter
theItemswindow.
3.Selectaworkdaycalendar.Thisisrequiredwhen
OracleMasterScheduling/MRPandOracleSupply
ChainPlanningisinstalled.
4.Optionally,selectademandclass.Demand
classessegregatescheduleddemandandproduction
intogroups,allowingyoutotrackandconsumethose
groupsindependently.OracleMasterScheduling/MRP
andOracleSupplyChainPlanningusesthisdemand
classduringforecastconsumption,andshipmentand
productionrelief.
5.IntheMoveOrderTimeoutPeriodfield,enterthe
numberofdaysamoveorderrequisitioncanwaitfor
approval.
Theworkflowapprovalprocesssendsanotificationto
theitemplannerwhenamoveorderrequisition
requiresapproval.Afterthefirsttimeoutperiod,ifthe
recipienthasnotapprovedorrejectedtheorder,a
remindernoticeissent.Afterthesecondtimeout
period,theorderisautomaticallyapprovedor
rejected,dependingonwhetheryouselectApprove
automaticallyorRejectautomaticallyintheMove
OrderTimeoutActionfield.Ifyouwanttobypassthe
moveorderapprovalprocessandautomatically
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approvemoveorderrequisitions,enter0daysinthe
MoveOrderTimeoutPeriodfieldandselectApprove
automaticallyintheMoveOrderTimeoutActionfield.
6.Selectamoveordertimeoutaction
Approveautomatically:Afterthesecondtimeout
period,moveorderrequisitionsareautomatically
approved.SelectthisoptionandsettheMoveOrder
TimeoutPeriodto0ifyouwanttobypassthemove
orderapprovalprocessandautomaticallyapprove
moveorderrequisitions.
Rejectautomatically:Afterthesecondtimeoutperiod,
moveorderrequisitionsareautomaticallyrejected.
7.Selectalocatorcontroloption:
None:Inventorytransactionswithinthisorganization
donotrequirelocatorinformation.
Prespecifiedonly:Inventorytransactionswithinthis
organizationrequireavalid,predefinedlocatorfor
eachitem.
Dynamicentryallowed:Inventorytransactionswithin
thisorganizationrequirealocatorforeachitem.You
canchooseavalid,predefinedlocator,ordefinea
locatordynamicallyatthetimeoftransaction.
Determinedatsubinventorylevel:Inventory
transactionsuselocatorcontrolinformationthatyou
defineatthesubinventorylevel.
Indicatewhethertoallownegativebalances.
Determineswhetherinventorytransactionscan
drivetheinventorybalanceofanitemnegative.
Attention:Ifinsufficientquantityonhandexistsina
supplysubinventorytosatisfybackflushdemand,
OracleWorkinProcessforcesthesupply
subinventorybalancenegative,ignoringthisoption
setting.
AutodeleteallocationatMoveOrder
cancellation
IndicatewhetherthisorganizationisanOracle
WarehouseManagementenabledorganization.
YoucanuseWMSfeaturessuchasLPNs,task
management,warehouseexecutionrulesandcost
groupsinthisorganization.Locatorcontrolmustbe
enabledinordertoenableWMS.Oncethishas
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beenenabledandtransactionshavebeenentered
inthisorganization,thisboxcannotbeunchecked.
Indicatewhetherthisorganizationisenabledfor
Qualityinspection.
IndicatewhetherthisorganizationisanOracle
EnterpriseAssetManagementenabled
Organization.
Enteratotalloadweightandunitofmeasurefor
thisorganization.
Enteratotalvolumeandunitofmeasureforthis
organization.
8.SelectaDefaultOnhandMaterialStatustracking
option.Thisstepisoptional.
9.Indicatewhetherlocatoraliasesmustbeunique
acrosstheorganization
CostingInformation
1.CostingOrganization
2.CostingMethod
3.TransfertoGLIndicatewhetheralltransactions
arepostedindetailtothegeneralledger.
Caution:Transferringdetailtransactiondistributionsto
thegeneralledgerincreasesgeneralledgerposting
timesduetothenumberofrecordscreated.
4.ReverseEncumbranceIndicatewhetherto
reverseencumbranceentryuponreceiptininventory.
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Younormallyselectthisoptionifyouuse
encumbranceswithOraclePurchasing.
5.Optionally,enteraCostCutoffDate
Ifyouleavethisfieldblank,allavailabletransactions
willbecosted,asusual.Ifyouenteradate,all
transactionspriortothisdatewillbecosted.All
transactionsonorlaterthanthisdatewillnotbe
costed.
Forinterorganizationtransfers,astandardcosting,
receivingorganizationwillnotcostareceiptifthe
sendingorganizationdidnotalreadycostthe
transaction.
Thedefaulttimeisthefirstinstantofthedate.Youcan
optionallychooseanothertime.
Thestandardcostupdateprocesscanbeperformed
onthecostcutoffdate.Youcanrestartcost
processingbychangingthecutoffdatetoblank,ora
futuredate.
6.DefaultMaterialSubelement
Forstandardcosting,selectamaterialsubelement
thatthisorganizationusesasadefaultwhenyou
defineitemcosts.Foraveragecosting,thedefault
materialsubelementyouselectcanbeusedforcost
collectionwhenProjectCostCollectionEnabledisset.
7.MaterialOverheadSubelement
Optionally,selectaDefaultMaterialOverheadSub
Elementfromthelistofvalues.DuringtheSupply
ChainRollupprocess,whencostsaremergedfrom
anotherorganization,markupandshippingcostswill
usethisvalue.
Thesupplychaincostrollupwillcomplete
successfully,regardlessofwhetherthisfieldis
populated.IftheCostRollupidentifiesanorganization
withadefaultmaterialoverheadsubelementnotset
up,acorrespondingwarningmessagewillbeprinted
inthelogfile.
8.DefaultCostGroup
Indicatethedefaultcostgroupfortheorganization.
ThiswilldefaultintotheDefaultCostGroupfieldfor
eachsubinventory.IftheWMScostgrouprules
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enginefailstofindacostgroup,thiscostgroupwillbe
used.
9.ValuationAccounts
Youchooseadefaultvaluationaccountwhenyou
defineorganizationparameters.Understandard
costing,theseaccountsaredefaultedwhenyou
definesubinventoriesandcanbeoverridden.Under
averagecosting,theseaccounts(exceptforExpense)
areusedforsubinventorytransactionsandcannotbe
updated.Foradetaileddiscussionofcost
elements.
MaterialAnassetaccountthattracksmaterialcost.
Foraveragecosting,thisaccountholdsyourinventory
andintransitvalues.Onceyouperformtransactions,
youcannotchangethisaccount.
MaterialOverheadAnassetaccountthattracks
materialoverheadcost.
ResourceAnassetaccountthattracksresourcecost.
OverheadAnassetaccountthattracksresourceand
outsideprocessingoverheads.
OutsideprocessingAnassetaccountthattracks
outsideprocessingcost.
ExpenseTheexpenseaccountusedwhentrackinga
nonassetitem.
OtherAccounts
PurchasePriceVariance:Thevarianceaccount
usedtorecorddifferencesbetweenpurchaseorder
priceandstandardcost.Thisaccountisnotusedwith
theaveragecostmethod.
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InvoicePriceVariance:Thevarianceaccountused
torecorddifferencesbetweenpurchaseorderprice
andinvoiceprice.ThisaccountisusedbyAccounts
Payabletorecordinvoicepricevariance.
InventoryA/PAccrual:Theliabilityaccountthat
representsallinventorypurchaseorderreceiptsnot
matchedinAccountsPayable,suchastheuninvoiced
receiptsaccount.
Encumbrance:Anexpenseaccountusedto
recognizethereservationoffundswhenapurchase
orderisapproved.
Sales:Theprofitandloss(incomestatement)account
thattracksthedefaultrevenueaccount.
CostofGoodsSold:Theprofitandloss(income
statement)accountthattracksthedefaultcostof
goodssoldaccount.
ProjectClearanceAccount:Whenperforming
miscellaneousissuestocapitalprojects,theproject
clearanceaccountisusedtopostthedistributions.
DeferredCOGSAccount:Thisaccountisusedby
theSalesOrderIssuetransactiontypetodeferred
COGSuntilARrecognizesrevenue.
CostVarianceAccount:Underaveragecostingwith
negativequantitybalances,thisaccountrepresents
theinventoryvaluationerrorcausedbyissuingyour
inventorybeforeyourreceipts.
LandedCostManagement(LCM)variance
account:ThisaccountisusedbythenewLanded
CostManagementmodule.
Note:Forstandardcosting,onlythePurchasePrice
Variance,InventoryA/PAccrual,InvoicePrice
Variance,Expense,SalesandCostofGoodsSold
accountsarerequired.Theotheraccountsareused
asdefaultstospeedyoursetup.
Note:Foraveragecosting,onlytheMaterial,Average
CostVariance,InventoryA/PAccrual,InvoicePrice
Variance,Expense,SalesandCostofGoodsSold
accountsarerequired.Theotheraccountsareused
asdefaultsorarenotrequired.
Revision,Lot,Serial,LPNParameters
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Enterastartingrevisiontobethedefaultforeach
newitem.
LotNumber
1.Selectanoptionforlotnumberuniqueness.
Acrossitems:Enforceuniquelotnumbersforitems
acrossallorganizations.
None:Uniquelotnumbersarenotrequired.
2.Selectanoptionforlotnumbergeneration.
Userdefined:Enteruserdefinedlotnumberswhen
youreceiveitems.
Atorganizationlevel:Definethestartingprefixandlot
numberinformationforitemsusingthevaluesyou
enterinthePrefix,ZeroPadSuffix,andTotalLength
fields.Whenyoureceiveitems,thisinformationis
usedtoautomaticallygeneratelotnumbersforyour
items.
Atitemlevel:Definethestartinglotnumberprefixand
thestartinglotnumberwhenyoudefinetheitem.This
informationisusedtogeneratealotnumberforthe
itemwhenitisreceived.
3.Indicatewhethertoaddzeroestorightjustifythe
numericportionoflotnumbers(ZeroPadSuffix).
4.Optionally,selectanalphanumericlotnumberprefix
touseforsystemgeneratedlotnumberswhen
generationisattheorganizationlevel.
5.Optionally,definethemaximumlengthforlot
numbers.IfyouuseOracleWorkinProcessandyou
settheWIPparametertodefaultthelotnumberbased
oninventoryrules,thenWIPvalidatesthelengthof
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thelotnumberagainstthelengthyoudefineinthis
field.
SerialNumber
1.Selectanoptionforserialnumberuniqueness.
Withininventoryitems:Enforceuniqueserialnumbers
forinventoryitems.
Withinorganization:Enforceuniqueserialnumbers
withinthecurrentorganization.
Acrossorganizations:Enforceuniqueserialnumbers
throughoutallorganizations.
2.Selectanoptionforserialnumbergeneration.
Atorganizationlevel:Definethestartingprefixand
serialnumberinformationforitemsusingthe
informationyouenterinthefollowingfieldsofthis
window.
Atitemlevel:Definethestartingserialnumberprefix
andthestartingserialnumberwhenyoudefinethe
item.
3.Optionally,selectanalphanumericserialnumber
prefixtouseforsystemgeneratedserialnumbers
whengenerationisattheorganizationlevel.
4.Optionally,enterastartingserialnumbertousefor
systemgeneratedserialnumbers.
Ifserialnumbergenerationisattheorganizationlevel
youmustenterastartingserialnumber.
5.Indicatewhetherthesystemwillsuggestserial
numbersaspartofthemoveorderlineallocating
process.Ifyoudonotselectthisoption,youmust
manuallyentertheserialnumbersinordertotransact
themoveorder.
ATP,Pick,ItemSourcingParameters
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SelectadefaultATPrule.
ATPrulesdefinetheoptionsusedtocalculatethe
availabletopromisequantityofanitem.Ifyouare
usingOracleOrder
Management,thedefaultistheATPruleforthe
Masterorganization.
PickingDefaults
Selectadefaultpickingrule.
Pickingrulesdefinetheprioritythatorder
managementfunctionsusetopickitems.
Notes:ThisrulewillnotbeemployedinaWMS
enabledorganization.TheWMSpickingruleswillbe
used.
Enteradefaultsubinventorypickingorder.
Thisvalueindicatestheprioritywithwhichyoupick
itemsfromasubinventory,relativetoanother
subinventory,inwhichagivenitemresides.Thevalue
youenterheredisplaysasthedefaultwhenyou
defineasubinventory.
Enteradefaultlocatorpickingorder.
Thisvalueindicatestheprioritywithwhichyoupick
itemsfromalocator,relativetoanotherlocator,where
agivenitemresides.Thevalueyouenterhere
displaysasthedefaultwhenyoudefinealocator.
CheckthePickConfirmationRequiredboxifyou
wantyourpickerstomanuallypickconfirm.Ifyoudo
notcheckthebox,pickconfirmationwilloccur
automatically.
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ItemSourcingDefault
Selectasourcetypeforitemreplenishment.
Inventory:Replenishitemsinternallyfromanother
subinventoryinthesameorganizationoranother
organization.
Supplier:Replenishitemsexternally,fromasupplier
youspecifyinOraclePurchasing.
None:Nodefaultsourceforitemreplenishment.
Selecttheorganizationusedtoreplenishitems.
Youmustenteravalueinthisfieldifyouselected
InventoryintheTypefield.
Selectthesubinventoryusedtoreplenishitems.
Youmustenteravalueinthisfieldifyouselectedyour
currentorganizationintheOrganizationfield.You
cannotenteravalueinthisfieldifyouselected
SupplierintheTypefield.
InterOrganizationInformation
SelectanInterOrganizationTransferCharge
option.
None:Donotaddtransferchargestoamaterial
transferbetweenorganizations.
Predefinedpercent:Automaticallyaddapredefined
percentofthetransactionvaluewhenyouperformthe
interorganizationtransfer.
Requestedvalue:Enterthediscretevaluetoadd
whenyouperformtheinterorganizationtransfer.
Requestedpercent:Enterthediscretepercentageof
thetransfervaluetoaddwhenyouperformtheinter
organizationtransfer.
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Interorganizationcostaccounts
Enterdefaultinterorganizationcostaccounts.These
accountsaredefaultedwhenyousetupshipping
informationinthe
InterOrganizationShippingNetworkswindow
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