Oracle Inventory Management

Inventory Management Integration with Projects

An Oracle White Paper
ORAC L E WH IT E PA PER | U PDA T ED SEPT EMB ER 2017
Table of Contents

Project Transaction Overview 2

Setup Project Transaction Type 2

Create Miscellaneous Transaction 4

Create Movement Request 5

Review Completed Inventory Transactions 6

Transfer Transactions from Inventory to Costing 6

Create Cost Accounting Distributions 7

Review Cost Accounting Distributions 7

Create Accounting 8

Import and Process Cost Transactions 9

Manage Expenditure Items 10

Project Costing for Purchase Receipt Transactions 12

Purchase Order Creation 12

Purchase Order Receipt and Put Away 13

Transfer Transactions from Receiving to Costing 13

Create Receipt Accounting Distributions 14

Review Receipt Accounting Distributions 14

Create Accounting 15

Import Costs 16

Manage Project Costs 17

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Project Transaction Overview
Oracle Projects fully integrates with Oracle Inventory Management to order and receive
items into inventory before assigning them to a project. You can capture project
information for purchase receipt transactions, miscellaneous inventory transactions and
movement requests as you take items out of or receive items into Oracle Inventory
Management. When you enter project-related transactions in Oracle Inventory
Management, you enter the project information on the source transaction. Oracle Cost
Management transfers project-related miscellaneous inventory issues and move orders to
Oracle Project Portfolio Management.

When you enter project-related transactions in Oracle Inventory Management, you enter
the project information on the source transaction. Oracle Inventory Management and
Oracle Projects carry the project information through from the Issue or Receipt
transaction in Oracle Inventory Management to the project expenditure in Oracle
Projects.

Setup Project Transaction Type

The setup task Manage Inventory Transaction Sources and Types enables creation of
user-defined transaction types that allow project transactions. Project transactions are
only allowed for transaction types with transaction action ‘Receipt into stores’ and ‘Issue
from stores’. The checkbox ‘Allow project transactions’ must be checked.

Navigation: Setup and Maintenance > Manage Inventory Transaction Sources and
Types

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Figure 1: Transaction Type: Allow Project Transactions

Project Transactions are also supported for Movement Requests. Select the Transaction
Source Movement Request defining project related transaction types.

Navigation: Setup and Maintenance > Manage Inventory Transaction Sources and
Types

Figure 2: Transaction Type: Movement Request

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Create Miscellaneous Transaction

Project transactions are created using the ‘Create Miscellaneous Transaction’ user
interface. Once a user-defined transaction type is setup to allow project transactions, the
transaction type will be available for selection when creating a miscellaneous transaction.
The transaction type list of values will include the user-defined transaction type.

Navigation: Warehouse Operations > Inventory > Create Miscellaneous Transaction

Figure 3: Create Miscellaneous Transaction

The Project and Task region is displayed in the single record view when creating a
miscellaneous transaction. Click on the ‘View Details’ button for the transaction line to
edit the transaction in the in a single record view.

Figure 4: Create Miscellaneous Transaction Lines

The ‘Project and Task’ region are shown below. The required fields are Project Number,
Task Number, Expenditure Type, and Expenditure Organization.

The fields Contract Number and Funding source are related to Grants Management and
the association of awards to projects.

Projects are typically sponsored or funded externally by a government agency, company,

or nonprofit organization. Sponsored projects allow users to accrue revenue or bill the

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funding source by award. One of the primary capabilities of Oracle Project Contracts is
the ability to track funding at any level of the contract. A contract can be funded from
multiple parties in multiple currencies. The fields Contract Number and Funding Source
are used to identify the contract and funding source associated with the award.

Figure 5: Enter Inventory Transaction Project and Task Details

Once the Project and Task attributes are entered, click the ‘OK’ button then the ‘Submit’
button to process the transaction.

Create Movement Request

Project related transactions are supported for movement requests. A movement request
creates instructions to pick or move material for warehouse personnel. You can create a
requisition movement request to manually relocate stock within a warehouse. You can
also create a requisition movement request to issue material out of a certain location. For
example, you might want to issue out stock for damaged goods, or to a certain project.

Below is an example of a Movement Request Project Issue Transaction. Similar to the

Miscellaneous Transaction you would enter the project details such as Project Number,
Task Number, Expenditure Type, and Expenditure Organization.

Navigation: Warehouse Operations > Inventory > Create Movement Request

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Figure 6: Create Movement Requests

Review Completed Inventory Transactions

The Review Completed Transactions user interface can be used to view project related
completed inventory transactions. The Project and Task region is displayed on the single
record view of the completed inventory transaction.

Navigation: Warehouse Operations > Inventory > Review Completed Transactions

Figure 7: Review Completed Project Transaction Details

Transfer Transactions from Inventory to Costing

Once the project related transaction has been successfully processed in Inventory
Management, it must be transferred over to Cost Management. Inventory transactions can
be transferred to Cost Management by running the scheduled process ‘Transfer
Transactions from Inventory to Costing.

Navigation: Tools > Scheduled Processes > Transfer Transactions from Inventory to
Costing

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Figure 8: Transfer Transactions from Inventory to Costing

Create Cost Accounting Distributions

In the Cost Accounting work area, access the Create Cost Accounting Distributions page
to process imported transaction data. On this page define the run controls by specifying
the cost organization books and cost processors that you want to execute.

Navigation: Costing > Cost Accounting > Create Cost Accounting Distributions

Figure 9: Create Cost Accounting Distributions

Review Cost Accounting Distributions

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A single inventory transaction can generate multiple cost transactions, for which Cost
Accounting creates accounting data.

In the Cost Accounting work area, use the Review Cost Accounting Distributions page to
see cost information and distributions related to each transaction, as well as receipt layers
for receipt transactions, and depletion layers for issue transactions.

Navigation: Costing > Cost Accounting > Review Cost Accounting Distributions

Figure 10: Review Cost Accounting Distributions

Create Accounting

The Create Accounting process is an Enterprise Scheduler Service (ESS) process. It can
be submitted as a request from the Scheduled Processes Monitor window to create
journal entries for a batch of events. It has input parameters that determine the execution
mode and the selection criteria for events.

Cost Management should be entered as the Subledger Application. Cost Management

represents the source system for which the Create Accounting process is being executed.

Navigation: Costing > Cost Accounting > Create Accounting

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Figure 11: Create Accounting

Import and Process Cost Transactions

The Import and Process Cost Transactions process imports transactions from Oracle
Fusion and third-party applications, and validates the transactions ensuring that the
transactions do not violate rules and finally processes the transactions creating
expenditure items and cost distributions. The exceptions of invalid transactions are
tracked in the Costs Overview page and in the Import and Process Cost Transactions
report. Fix the errors and resubmit them to process again.

Navigation: Projects > Project Costs > Import and Process Cost Transactions

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Figure 12: Import and Process Cost Transactions

Manage Expenditure Items

An expenditure is a group of expenditure items, or transactions, incurred by an employee

or an organization for an expenditure period. You charge expenditures to a project to
record actual work performed or cost incurred, and you charge commitments to record
future costs you expect to incur.
The Manage Expenditure Items user interface enables you to view expenditure items and
associated costs.

Navigation: Projects > Project Costs > Manage Expenditure Items

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Figure 13: Manage Expenditure Items

Figure 14: Expenditure Item Details

End of Process Flow

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Project Costing for Purchase Receipt Transactions
Oracle Projects fully integrates with Oracle Purchasing allowing you to enter project-
related requisitions, purchase orders, and supplier invoices using those products.

When you enter project-related transactions in Oracle Purchasing you enter project
information on your source document. The project information is carried throughout the
document flow: from the requisition to the purchase order in Oracle Purchasing, to the
receipt document in Oracle Invnetory Management, and to the project expenditure in
Oracle Projects.

The project information is transparent to the Receiving user. The Receiving Manager and
Receiving Agent do not have visibility to the project-related attributes on the source
document or purchase order. The Receiving pages such as Receive Expected Shipment
Lines and Put Away Receipts do not display any project-related attributes.

Purchase Order Creation

When creating the purchase requisition and purchase order, you can enter the following
project-related attributes.

• Project Number
• Task Number
• Expenditure Item Date
• Expenditure Type
• Expenditure Organization

Navigation: Procurement > Purchase Orders > Create Purchase Order

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Figure 1: Purchase Order Creation

Purchase Order Receipt and Put Away

Project-related attributes are not displayed in Receiving. The process is transparent the to
the receiving user. The project-related attributes entered on the purchase order line are
carried through receiving and are not visible the user. The receiving user will perform the
receipt in the same manner as purchase order without project-related attributes.

Transfer Transactions from Receiving to Costing

Once the project related transaction has been successfully received and put away into
inventory, it must be transferred over to Receipt Accounting. Inventory receipt
transactions can be transferred to Receipt Accounting by running the scheduled process
‘Transfer Transactions from Receiving to Costing.

Navigation: Tools > Scheduled Processes > Transfer Transactions from Receiving to
Costing

Figure 2: Transfer Transactions from Receiving to Costing

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Create Receipt Accounting Distributions

In the Receipt Accounting work area, access the task Create Receipt Accounting
Distributions page to process imported transaction data. On this page, define the run
controls by specifying the cost organization books and cost processors that you want to
execute.

Navigation: Costing > Receipt Accounting > Create Receipt Accounting Distributions

Figure 3: Create Receipt Accounting Distributions

Review Receipt Accounting Distributions

A single receipt transaction can generate multiple cost transactions, for which Receipt
Accounting creates accounting data.

In the Receipt Accounting work area, use the Review Receipt Accounting Distributions
page to see cost information and distributions related to each transaction.

Navigation: Costing > Receipt Accounting > Review Receipt Accounting Distributions

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Figure 4: Review Receipt Accounting Distributions

Create Accounting

The Create Accounting process is an Enterprise Scheduler Service (ESS) process. It can
be submitted as a request from the Scheduled Processes Monitor window to create
journal entries for a batch of events. It can also be submitted from the Receipt
Accounting work area. It has input parameters that determine the execution mode and the
selection criteria for events.

Receipt Accounting should be entered as the Subledger Application. Receipt Accounting

represents the source system for which the Create Accounting process is being executed.

Navigation: Costing > Receipt Accounting > Create Accounting

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Figure 5: Create Accounting

Import Costs

The Import Costs process imports transactions from Oracle Fusion and third-party
applications, and validates the transactions ensuring that the transactions do not violate
rules and finally processes the transactions creating expenditure items and cost
distributions. The exceptions of invalid transactions are tracked in the Costs Overview
page and in the Import and Process Cost Transactions report. Fix the errors and resubmit
them to process again. The Document field should be specified as “Purchase Receipt”.

Navigation: Projects > Costs > Import Costs

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Figure 6: Import Costs

Manage Project Costs

An expenditure is a group of expenditure items, or transactions, incurred by an employee

or an organization for an expenditure period. You charge expenditures to a project to
record actual work performed or cost incurred, and you charge commitments to record
future costs you expect to incur.

The Manage Project Costs page enables you to view expenditure items and associated
costs.

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Navigation: Projects > Costs > Manage Project Costs

Figure 7: Manage Project Costs

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Figure 8: Project Costing Details

End of Process Flow

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Oracle Inventory Management Internal Material Transfer Process Flow

Updated August 2017
Author: Matthew Jones

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