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Current Webcast: Consignment New Features For
R12.2
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Upcoming Advisor Webcast Schedule
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Oracle Advisor Webcast
Consignment New Features For R12.2
(Doc ID 1938948.1)
Sean Smotrilla, Jim Phipps
August 17th, 2016

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Safe Harbor Statement
The following is intended to outline our general product direction. It is intended for
information purposes only, and may not be incorporated into any contract. It is not a
commitment to deliver any material, code, or functionality, and should not be relied upon
in making purchasing decisions. The development, release, and timing of any features or
functionality described for Oracles products remains at the sole discretion of Oracle.

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Oracle Advisor Webcast
Consignment New Features For R12.2
(Doc ID 1938948.1)
Sean Smotrilla, Jim Phipps
August 17th, 2016

Copyright 2016, Oracle and/or its affiliates. All rights reserved. | 5

Agenda
1 Business need
2 Consignment R12.2 new feature
3 Setups
4 Demonstration
5 Frequent questions

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Goals and Objectives
Discuss the Business needs
Review R12.2 new consignment features
Demonstrate new features

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Business Need
Increased manufacturing costs due to overpayment of unused material
Complicated Process For Unused Material
Prevented customers from fully using consignment
Transfer back to consigned easily
Process Manufacturing flexible material requirements
Complicated Workarounds:
Customizations or business processes to work around the problem.
Additional problems due to workarounds.

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Consignment is

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Implicit vs. Explicit
Transfer to Regular: Transaction generated whenever consumption takes
place.
Implicit:
1) Happens automatically when you issue material. Sales Order issues, WIP issues.
Inter-organization transfers, Miscellaneous issues.

2) Setup rules to transfer like subinventory transfer.

Explicit: Manually performing a transfer to regular via the consignment form.

Copyright 2016, Oracle and/or its affiliates. All rights reserved. | 10

Implicit vs. Explicit (Continued)

Implicit Supplier
(Auto-Consume) Regular
Owned

Explicit Supplier
Owned
Transfer to
Regular
Regular

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New feature

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Original Design
Manual transfer to regular (Explicit), then could transfer to consigned.
Customers had many extra steps in order to get this to work.
Could not transfer to consigned for any implicit consumption
Implicit is the most common, high volume of consumption.
Any misc. issue, sales order issue, wip issue, or rule-based subinventory trasnfer
would consume material that could not be given back.
Datafix
Some used an unsupported datafix to update the source code on transactions to
EXPLICIT.
Others needed bugs to cancel consigned.

Copyright 2016, Oracle and/or its affiliates. All rights reserved. | 13

New Design
1) Return implicit consumption
Option to transfer implicit consumption back to consigned.

2) Automatic WIP Can return components

Option for component return back to consigned without any extra steps.

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Additional Setup Required
1) Return implicit consumption
No additional setup

2) Automatic WIP Can return components

Custom Hook: INV_CONSIGNED_PUB.auto_consigned_return

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Automatic WIP Return Example
CREATE OR REPLACE PACKAGE BODY INV_CONSIGNED_PUB AS
/* $Header: INVCSRPB.pls 120.0.12020000.1_CUSTOM_MODIFIED $ */

FUNCTION auto_consigned_return(p_org_id IN NUMBER,

p_item_id IN NUMBER)
RETURN VARCHAR2 IS
BEGIN
IF p_org_id = 207 THEN return 'Y';
ELSE return 'N';
END IF;
END auto_consigned_return;
END INV_CONSIGNED_PUB;
/

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Analyzing Results - History
SELECT
a.TRANSACTION_ID,
a.CONSUMPTION_PROCESSED_FLAG,
b.transaction_type_id,
b.transaction_source_type_id,
b.transaction_source_id,
b.transaction_quantity,
a.Net_qty,
a.batch_id,
NVL(b.source_code, 'Blank- IMPLICIT'),
b.OWNING_ORGANIZATION_ID,
b.OWNING_TP_TYPE
FROM mtl_consumption_transactions a,
mtl_material_transactions b
WHERE a.transaction_id = b.transaction_id
AND a.creation_date > sysdate - 1;

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Analyzing Results - Onhand
SELECT
c.inventory_item_id,
c.organization_id,
c.is_consigned,
c.owning_organization_id,
c.transaction_quantity
FROM mtl_onhand_quantities_detail c
WHERE c.inventory_item_id =
(select distinct inventory_item_id from mtl_system_items_b where
segment1 = NVL('&enterItemNumber', 'Your Consigned'))
ORDER BY last_update_date;

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Demonstration: Consigned Inventory

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Frequent Questions: 12.1.3 Customers
Use the original process and workarounds
Discuss on the community idea #11806:
https://community.oracle.com/ideas/11806

Copyright 2016, Oracle and/or its affiliates. All rights reserved. | 20

Frequent Questions: Inter-Org Transfer
Limitations remain for inter-org transfers.
Cannot transfer material consigned, nor transfer back
Discuss on the community idea #2073:
https://community.oracle.com/ideas/2073

Copyright 2016, Oracle and/or its affiliates. All rights reserved. | 21

Frequent Questions: Commingling
Commingling is a situation where consigned and regular stock reside
together in the same location.
See Note 1346145.1 - How To Sort Out Consignment Commingling

Supplier Subinventory Regular

Owned

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Frequent Questions: Model
Model impact of new feature.
See Note 1093731.1 Consignment Flow

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References
Note 406390.1 - FAQ: Using Consigned Inventory / Consumption Advise / Vendor Managed Inventory
Note 1938948.1 - New Feature: Consumption To Consigned For Implicit Consumption
Note 1063493.1 - Common Inventory Ideas and Enhancement Requests (ERs)
Note 2048039.1 - EBS Inventory Consignment Analyzer
R12.1.3 Idea #11806: https://community.oracle.com/ideas/11806
Inter-Org Idea #2073: https://community.oracle.com/ideas/2073

Copyright 2016, Oracle and/or its affiliates. All rights reserved. | 24

Summary
What we covered today

Business need
Consignment R12.2 new feature
Setups
Demonstration
Frequent Questions

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Q&A
To ask a question on the phone
line, select *1 on your phone.
To ask a question online, use the
Q&A area at the top.
Your question will be read aloud in
the order received.
Question can also be asked on the
My Oracle Support Communities

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Top Articles and Community Links
Document for this webcast: (Doc ID
1938948.1)

Oracle Inventory, Product Information

Management and Warehouse Management
Teams Informational Webcasts (Doc ID
1290983.1)

Oracle Advisor Webcast Schedule/Archive

[ID 740966.1]

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Session Related Community Links

Questions? For follow up questions on topics

covered in this webcast connect via this
Logistics Community thread:

https://community.oracle.com/thread/3961828

Copyright 2016, Oracle and/or its affiliates. All rights reserved. | 28

Q&A
To ask a question on the phone
line, select *1 on your phone.
To ask a question online, use the
Q&A area at the top.
Your question will be read aloud in
the order received.
Question can also be asked on the
My Oracle Support Communities

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THANK YOU

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Oracle Advisor Webcast Series
Locating Current Schedule & Archived Recordings

Review the current schedule

and archived recording for your
product from Doc 740966.1

Select your Product Area

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Oracle Advisor Webcast Program
Locating Current Schedule & Archived Recordings

Check out Document ID

740966.1

Drill down to your area of

interest

Access the Logistics Webcasts

directly via <Doc ID 1455888.1 >

For Logistics Advisor Webcasts &

archived recordings, you can also
see Document ID 1290983.1

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Learn More - Resources and References on Support Portals

Help Documentation Oracle Support My Oracle Support Oracle Support

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