Oracle Applications Inventory

Oracle Applications
Inventory
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Table of Contents
1. TERMINOLOGY .........................................................................................................................................................3
2. DEFINE WORK DAY EXCEPTION TEMPLATE ................................................................................................6
3. DEFINE A NEW WORKDAY CALENDAR ............................................................................................................6
4. DEFINE LOCATION ............................................................................................................................................... 10
5. DEFINE ORGANIZATION ..................................................................................................................................... 11
4. ATTACH ORGANIZATION AT LOCATION DEFINITION ........................................................................... 17
5. DEFINE SUBINVENTORY ..................................................................................................................................... 19
4. DEFINE STOCK LOCATORS................................................................................................................................ 24
5. DEFINE AND UPDATE UNIT OF MEASURE CLASSES ................................................................................. 25
6. DEFINE UNITS OF MEASURE ............................................................................................................................. 25
7. DEFINE UNIT OF MEASURE CONVERSIONS ................................................................................................. 26
8. DEFINE TRANSACTION SOURCE TYPES........................................................................................................ 27
9. DEFINE TRANSACTION TYPES ......................................................................................................................... 27
10. DEFINE TRANSACTIONS REASONS ............................................................................................................ 28
11. DEFINE INTER-ORGANIZATION SHIPPING NETWORKS .................................................................... 28
12. DEFINE ITEMS.................................................................................................................................................... 31
13. DEFINE ITEM RELATIONSHIPS ................................................................................................................... 38
14. DEFINE CROSS REFERENCE TYPES ........................................................................................................... 40
15. DEFINE CUSTOMER ITEMS AND CROSS REFERENCES ...................................................................... 41
16. ITEM TRANSACTION DEFAULTS................................................................................................................. 42
17. DELETION GROUPS .......................................................................................................................................... 43
18. DEFINING ITEM ATTRIBUTE CONTROL LEVELS ................................................................................. 44
19. DEFINE ITEM STATUS ..................................................................................................................................... 45
20. ITEM TEMPLATE .............................................................................................................................................. 46
21. DEFINE CATEGORY CODES .......................................................................................................................... 46
22. CATEGORY SET ................................................................................................................................................. 47
23. DEFINE ITEMS AND ASSIGN NEWLY DEFINED CATEGORIES .......................................................... 48
24. LOCATOR CONTROLLED ITEMS................................................................................................................. 49
25. REVISION CONTROLLED ITEMS ................................................................................................................. 52
26. LOT CONTROLLED ITEMS............................................................................................................................. 54
27. SERIAL CONTROLLED ITEMS ...................................................................................................................... 57
28. REVISION / LOCATOR / LOT / SERIAL CONTROLLED ITEMS ........................................................... 59
29. MISCELLANEOUS TRANSACTIONS ............................................................................................................ 62
30. DEFINE ACCOUNT ALIASES .......................................................................................................................... 62
31. SUB INVENTORY TRANSFERS ...................................................................................................................... 63
32. INTER ORGANIZATION TRANSFERS ......................................................................................................... 63
33. MOVE ORDERS................................................................................................................................................... 64
FREQUENTLY ASKED QUESTIONS..................................................................................................................... 66
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1. Terminology
Terms used in the conventional Inventory system and as referred in Oracle Inventory may be different. A brief
explanation of the ‘Oracle Inventory’ term’s vis-à-vis the existing terminology is provided the following
paragraphs. These terms are extensively used in documenting the ‘Inventory - To Be’ flows and it is
recommended that the various users of this system. Get acquainted with the same.
Item Validation Organization: The organization that contains your master list of items. You define it by
setting the OE: Item Validation Organization profile option.
Logical organization: Business units that track items for accounting purposes but do not physically exist.
Organization: A business unit such as a plant, warehouse, division, department, and so on. Order
Management refers to Organizations as warehouses on all Order Management windows and reports.
Destination organization: An inventory organization that receives item shipments from a given Organization.
Workday calendar: A calendar that identifies available workdays for one or more organizations. Master
Scheduling/MRP, Inventory, Work in Process, and Capacity plan and schedule activities based on a
calendar’s available workdays.
Workday exception set: An entity that defines mutually exclusive sets of workday exceptions. For each
organization, you Can specify a workday calendar and exception set.
Primary unit of measure: The stocking unit of measure for an item in a particular organization.
Unit of measure: The unit that the quantity of an item is expressed.
Unit of measure class: A group of units of measure and their corresponding base unit of measure. The
standard unit Classes are Length, Weight, Volume, Area, Time, and Pack.
Unit of measure conversions: Numerical factors that enable you to perform transactions in units other than
the primary unit of the item being transacted.
Category: Code used to group items with similar characteristics, such as plastics, metals, or glass items.
Category set A feature in Inventory where users may define their own group of categories. Typical category
sets include purchasing, materials, costing, and planning.
Purchased item: An item that you buy and receive. If an item is also an inventory item, you may also be able
to stock it.
Standard item: Any item that can have a bill or be a component on a bill except planning items, option
classes, or models. Standard items include purchased items, subassemblies, and finished products.
Substitute item: An item that can be used in place of a component. Master Scheduling/MRP suggests
substitute’s items on some reports.
Inventory item: Items you stock in inventory. You control inventory for inventory items by quantity and value.
Typically, the inventory item remains an asset until you consume it. You recognize the cost of an inventory
item as an expense when you consume it or sell it. You generally value the inventory for an item by
multiplying the item standard cost by the quantity on hand.
Item attribute control level: To maintain item attributes at the item master attribute level or the Organization
specific level by defining item attribute control consistent with your company policies. For example, if your
company determines serial number control at headquarters regardless of where items are used, you define
and maintain serial number attribute control at the item master level. If each organization maintains serial
number control locally, they maintain those attributes at the organization specific level.
Item attributes: Specific characteristics of an item, such as order cost, item status, revision control, COGS
account, etc.
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Item master level attribute: An item attribute you control at the item master level as opposed to controlling at
the organization level.
Item status: Code used to control the transaction activity of an item.
Deletion constraint: A business rule that restricts the entities you can delete. A deletion constraint is a test
that must succeed before an item, bill, or routing can be deleted.
Current on–hand quantity: Total quantity of the item on–hand before a transaction is processed.
On–hand quantity: The physical quantity of an item existing in inventory.
Subinventory: Subdivision of an organization, representing either a physical area or a logical grouping of

items, such as a storeroom or receiving dock.
Locator: Physical area within a Subinventory where you store material, such as a row, aisle, bin, or shelf.
Locator control: An Oracle manufacturing technique for enforcing use of locators during a material
transaction.
Revision A particular version of an item, bill of material, or routing.
Revision control: An inventory control option that tracks inventory by item revision and forces you to specify
a revision for each material transaction.
Lot: A specific batch of an item identified by a number.
Lot control: An Oracle Manufacturing technique for enforcing use of lot numbers during material transactions
thus enabling the tracking of batches of items throughout their movement in and out of inventory.
Serial number: A number assigned to each unit of an item and used to track the item.
Serial numbers control: A manufacturing technique for enforcing use of serial numbers during a material
transaction.
Min–max planning: An inventory planning method used to determine when and how much to order based on
a fixed user–entered minimum and maximum inventory levels.
Reorder point planning: An inventory planning method used to determine when and how much to order
based on customer service level, safety stock, carrying cost, order setup cost, lead time and average
demand.
Safety stock: Quantity of stock planned to have in inventory to protect against fluctuations in demand and/or
supply.
ABC classification: A method of classifying items in decreasing order of importance, such as annual dollar
volume or your company’s transaction history.
Cycle counting: An inventory accuracy analysis technique where inventory is counted on a cyclic schedule
rather than once a year.
Physicals inventory: A periodic reconciliation of item counts with system on–hand quantities.
Account alias: An easily recognized name or label representing an account charged on miscellaneous
transactions. You may view, report, and reserve against an account alias.
Inter–organization transfer: Transfer of items from one inventory organization to another you can have
freight charges and transfer credits associated with inter–organization transfer. You can choose to ship items
directly or have them go through intransit inventory.
Material transaction: Transfer between, issue from, receipt to, or adjustment to an inventory organization,
sub inventory, or locator. Receipt of completed assemblies into inventory from a job or repetitive schedule.
Issue of component items from inventory to work in process.
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Transaction cost: The cost per unit at which the transaction quantity is valued.
Transaction interface: An open interface table through which you can import transactions.
Transaction manager: A concurrent program that controls your manufacturing transactions.
Receipt: A shipment from one supplier that can include many items ordered on many purchase orders.
Return to supplier: A transaction that allows you to return to the supplier items from a fully or partially
received purchase order and receive credit for them.
Supplier: Provider of goods or services.
Accounting period: The fiscal period a company uses to report financial results, such as a calendar month
or fiscal period.
Average costing: A costing method which can be used to cost transactions in both inventory only and
manufacturing (inventory and work in process) environments. As you perform transactions, the system uses
the transaction price or cost and automatically recalculates the average unit cost of your items.
Standard costing: A costing method where a predetermined standard cost is used for charging material,
resource, overhead, period close, job close, and cost update transactions and valuing inventory. Any
deviation in actual costs from the predetermined standard is recorded as a variance.
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2. Define Work Day Exception Template
A workday calendar defines the valid working days for a manufacturing organization and consists of repeating
pattern of days on and days off and exceptions to that pattern. This allows you to, for example, designate a
normal workday as a scheduled downtime day, or designate a holiday as a workday. You can define one or
more workday calendars and assign them to any number of organizations, and any number of organizations
can share a calendar. You can specify the start and end dates, and the weekend schedule for each calendar.
Add a Workday Exception set to identify calendar exceptions.

Navigation: Setup: Organizations: Calendar Exception Templates
Click on the SAVE icon
3. Define a new Workday Calendar
Define the workday calendar with calendar type, days on, days off, start and end dates.
Navigation: Setup: Organizations: Calendars
Click on the SAVE icon

Click on “Work Day Pattern” Button
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Click on the SAVE icon and Close the Window. Click on “Dates” Button on the Screen workday Calendar.
Click on “Exception List” Button. Click on “Load” Button. “Load Exceptions” Window appears.
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Click on “OK”. Close the “Calendar” Window. Click on “Shifts” Button on screen workday Calendar. Shift
Window for TXX-CAL opens
Click on “Workday Patterns” Button. Workday Patterns (under Shifts) opens
Click on SAVE icon. Close the window. Click on “Times” Button for 1st Shift. Shift Times (under Shifts).
Click on SAVE icon. Close the window. Shifts Window (first blank line)
Click on “Workday Patterns” Button. Workday Patterns (under Shifts) opens.
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Click on SAVE icon. Close the window. Click on “Times” Button for 2nd Shift. Shift Times (under Shifts).
Click on SAVE icon. Close the Shift time’s window. Close Shifts window.
In the Workday Calendar window review you calendar dates by clicking on the Dates button.
• While still in the Workday Calendar Window, run the calendar build process
Tools Menu: Build
• Verify your requested job has completed
View: Requests: Find
• Verify your calendar built correctly
Setup: Organization: Calendar: View Menu: Find
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4. Define Location
Locations are shared across Business Groups in HRMS and with two other Oracle applications: Inventory and
Purchasing. HRMS does not use some of the fields in the Location window. These fields are disabled for
HRMS users. For example, the Legal Address check box is read-only and supports future functionality in
Oracle Financials. Set up and name a location for your organization
Navigation: Setup: Organizations: Locations
Go to shipping details table
Click on the Save icon.
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5. Define Organization
Navigate to the Organization window and select the new button to create a new organization.
Navigation: Setup: Organizations: Organizations: Click on “New”
1. Enter a name for your organization in the Name field.

2. All Oracle applications you install share the information entered in the Organization window. Therefore
organization names must be unique within a business group, and business group names must be unique
across your applications network.
3. Optionally, select an organization type in the Type field.
4. Organization types do not classify your organization; you use them for reporting purposes only. The type
may identify the function an organization performs, such as Administration or Service, or the level of each
organization in your enterprise, such as Division, Department or Cost Center.
5. Enter a start date in From field. This should be early enough to include any historical information you
need to enter.
6. Enter a location, if one exists. You can also enter an internal address to add more details such as floor or
office number.
7. Enter internal or external in the Internal or External field. You cannot assign people to an external
organization.
8. Save the basic organization details.
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To determine the purpose and use of each organization you create, you give it one or more classifications.
The setup information you enter for an organization depends in large part on its classification
1. Enter the classification for your organization in the Name field.

2. Enable the classification by checking the Enable box. This allows you to use and enter the essential
additional information for your organization.
3. Save the classification details.
4. You can either enter additional information for the classification type or enter another classification.
Click on others button and select accounting information. Give accounting information as vision operations.
Click on ok and save. Go to organization classification window and again select others and give inventory
information.
1. Enter organization code.
2. Enter item master organization.
3. Enter calendar for the organization.
4. Enter move order time out action.
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5. Enter locater control.
Go to costing information tab

1. Enter costing organization.
2. Enter costing method.
3. Enter transfer to GL as YES.
4. Give all valuation accounts.
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Go revision, lot, serial and LPN TAB
1. Enter starting revision.

2. Enter uniqueness as none.
3. Enter generation.
4. Enter uniqueness.
5. Enter generation.
6. Enter starting serial number.
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GO TO ATP, PICK, ITEM-SOURCING TAB
1. Enter rule and enable over picking for transfer orders enabled.
2. Enter type as supplier.
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1. Go to inter-org information tab
2. Select inter organization transfer charge as none.
3. Select all accounts like transfer credit
Go to other accounts tab. Select receiving accounts, profit and loss accounts, and other accounts.
• Click on the Save icon

• Close the window
• Click on the Others Button
• Select Receiving Information.
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4. Attach Organization at Location Definition
Tie the Location to the Organization

Navigation: Setup: Organizations: Locations
Go to locations window. Press F11 and query your organization which you want to attach to location and
press CTRL F11. Go to other details tab enter or select your organization. Save the information.
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5. Define Subinventory
You define one or more subinventories for each inventory organization. A Subinventory is a physical or logical
grouping of your inventory, such as raw material, finished goods, defective material, or a freezer
compartment.
Navigate to the Subinventories Summary folder window. (NAV: SETUP: ORGANIZATIONS:

SUBINVENTORIES.)
Click New. The Subinventories window appears. Enter a unique name and description. Indicate the material
status of this subinventory. Indicate the default cost group for this subinventory. Select the subinventory type
from the drop-down list.
Select the Main tabbed region. Indicate whether each transaction for this subinventory updates the quantity
on hand for the subinventory (Quantity Tracked). If you leave this option unchecked, on-hand balances are
not maintained and you cannot check or update the Asset Inventory option.
You can update this value only if there is no on-hand quantity, no pending transaction, or no uncosted
transaction for the subinventory.
Indicate whether to maintain the value of this subinventory on the balance sheet (Asset Subinventory). You
can update this value only if there is no on-hand quantity for the subinventory. Indicate whether this
subinventory is depreciable.
Indicate if Periodic Automatic Replenishment (PAR) is enabled. If you select this check box you cannot
perform min-max planning for this subinventory. Select a type of locator control.
You can select an option only if you selected locator control as Determined at subinventory level in the
Locator Control field in the Organization Parameters window. You can only update this option if there is no
on-hand quantity for the subinventory.
¾ None: Inventory transactions within this subinventory do not require locator information.
¾ Prespecified: Inventory transactions within this subinventory require you to enter a valid predefined
locator for each item.
¾ Dynamic entry: Inventory transactions within this subinventory require you to enter a locator for each item.
You may choose a valid predefined locator, or define a locator dynamically at the time of transaction.
¾ Item level: Inventory transactions use locator control information that you define at the item level.
Indicate the default locator status of the locators in this subinventory. Enter a picking order value for use by
Oracle Warehouse Management to sequence picking tasks.
This value indicates the priority with which you pick items from this subinventory, relative to another
subinventory, where a given item resides. If you have Oracle Warehouse Management installed, this field
determines the picking path through the warehouse and not the order in which material is allocated for a sales
order. Enter a dropping order value for use by Oracle Warehouse Management to sequence material drops.
Optionally, enter an inactive date for the subinventory. Enter a location for the subinventory. If the
Subinventory type is receiving, this field is mandatory.
Indicate the picking unit of measure used to store material in this subinventory. It is used by the WMS rules
engine to divide picks across subinventories in the warehouse. This feature is available if you have Oracle
Warehouse Management installed, and you are working with a WMS enabled organization.
Select the appropriate Default Replenishment Count Type from the drop down list. This field defaults the
default count type on the Replenishment Lines window. It does not affect existing Default Count Type
headers.
Indicate if this you can create locator aliases for locators within this subinventory. If you enable this
parameter, you must create locator aliases for locators within this subinventory. Indicate if the locator aliases
are unique across the subinventory.
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NOTE: You can also set this parameter at the organization level. If set at the organization level, and you click
Enable Locator Alias, you cannot update this parameter.
Optionally, enter pre-processing, processing, and post-processing lead times for items in this subinventory.
These lead times are used when you use min-max planning at the subinventory level.
Select a source type for item replenishment.
¾ Inventory: Replenish items internally, from another organization.

¾ Supplier: Replenish items externally, from a supplier you specify in Oracle Purchasing.
¾ Subinventory: Replenish items internally, from another subinventory in the same inventory organization.
Select the organization used to replenish items in this subinventory. You must enter a value in this field if you
entered Inventory in the Type field. The organization you select must have a shipping network defined. Select
the subinventory used to replenish items in this subinventory. You must enter a value in this field if you
entered your current organization in the Organization field.
1. Select the Accounts tabbed region.

2. Enter the general ledger accounts.
The default accounts are those defined for the organization in the Organization Parameters window.
If you are using average costing, you may enter the valuation accounts, but they are not used. Average
costing uses only the Expense and Encumbrance accounts. If you use standard costing, and Oracle Bills
of Material is installed, all asset accounts are required. If you use standard costing, and Oracle Bills of
Material is not installed, you are only required to enter the Material and Material Overhead accounts.
3. Save your work.
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Step 2: Link Items to Sub Inventory
You can assign items to a given subinventory. Assigning items to a subinventory does not restrict the
subinventory to that list of items. Rather, the items are restricted to that subinventory. Thus, you can always
issue and receive unrestricted items to any subinventory, but you can only issue and receive restricted items
to their list of subinventories. You activate the list of subinventories for a restricted item by setting the Restrict
Subinventories attribute when defining or updating items.
You also use the item/subinventory relationship to specify valid subinventories for zero quantity cycle counts
for an item, and to specify items for an ABC analysis performed at the subinventory level. In these cases you
do not have to set the Restrict Subinventories attribute, only establish the relationship between the items and
subinventory.
Enter Item Code and Enter Min, Max Quantity and Save
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Step 3: Assign Locators to the Sub Inventory
1. Enter Locator
2. Choose Status to Active
3. Save
Step 4: View Sub Inventory Summary
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Define two Sub inventories for STORES and SHOP.
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4. Define Stock Locators
Locators are optional structures within subinventories. Locators may represent rows, aisles, or bins in
warehouses. You can receive items directly into and ship items directly from locators.
1. Navigate to the Stock Locators window. (Setup: Organizations: Stock Locators)

2. Select New to display the Stock Locators window ready to define a new locator.
3. Select the Parameters tabbed region.
4. Enter a locator and a description. The locator must be unique across an organization.
5. Indicate the locator type. Available choices are: Dock Door, Staging Lane, Storage Locator, Consolidation
Locator, Packing Station, Receiving, and Inspection Station. Dock doors are used in Oracle Warehouse
Management environments only.
6. Indicate the material status of this locator, which controls the enabled transactions for all material in this
locator. The status is not overridden by the status of any subinventory, lot, or serial within this locator. The
statuses of those objects will be considered when determining transactions that are not enabled.
7. Enter the subinventory where the locator resides.
8. Enter a picking order value indicating the priority for picking items from this locator relative to another
locator. This value is used by Oracle Warehouse Management to sequence picking tasks.
A picking order of 1 means that order management functions pick items from this locator before other
locators with a higher number (2, 3, and so on).
If you have Oracle Warehouse Management installed, this field determines the picking path through the
warehouse and not the order in which material is allocated for a sales order.
9. Enter a dropping order to indicate the priority for dropping items in this locator relative to another locator.
Oracle warehouse management uses this value to sequence tasks.
10. Enter an alias if you selected Enabled Locator Alias on the Subinventories window. If you selected
Enforce Locator Uniqueness on the Subinventories window, then no two locators within the same
subinventory can have the same alias. If you selected Enforce Locator Uniqueness on the Organization
Parameters window, then no two locators within the organization can have the same alias.
11. Enter the inactive date for the locator. This is the date when the locator becomes inactive.
12. Save your work.
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5. Define and update Unit of Measure Classes
Unit of measure classes represent groups of units of measure with similar characteristics. Creating unit of
measure classes is the first step in unit of measure management. Each unit of measure you define must
belong to a unit of measure class.
Each class has a base unit of measure. The base unit of measure is used to perform conversions between
units of measure in the class. For this reason, the base unit of measure should be representative of the other
units of measure in the class, and generally one of the smaller units. For example, you could use CU (cubic
feet) as the base unit of a class called Volume
Use your unique identifier T (XX) to set up your UOM classes and save your entries.
Use your unique identifier to set up multiple UOMs for your classes. Set up UOMs for Dozen, Gross and Case
and save your entries.
Create standard conversions for your UOM in multiples of dozen, gross, and case. Also create an inter-class
conversion.
1. Enter a unique name for the unit of measure class.

2. Define the base unit of measure for this class.
3. Define a unique abbreviation for the base unit of measure.
4. Save your work.
Navigation: Setup: Unit of Measures: Classes
6. Define Units of Measure
Define and update units of measure used for tracking, issuing, receiving and storing inventory items.
Note: Scroll down the screen to find the UOM Name TXX-EACH. This was created automatically when your
class was defined as above in sub heading no 8.
Navigation: Setup: Unit of Measures: Unit of Measures
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7. Define Unit of Measure Conversions
Define and update the conversions between the base unit of measure and other units of measure within a
class. Enter unit, class, conversion and base unit.
Navigation: Setup: Unit of Measures: Conversions
Intra – class tab

Enter item, source unit , source class, conversion and base unit.
Inter class tab. Enter item, base unit, class, conversion and source base unit and class.
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8. Define Transaction Source Types
Oracle Inventory predefines a list of transaction source types for you. You can add more source types to this
list or update the predefined types; however, you cannot delete the predefined types. You can add source
types for miscellaneous transactions, inter-organization and subinventory transfers, and account transactions.
Enter name and description.
Navigation: Setup: Transactions: Source Types
9. Define Transaction Types
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.
¾ Navigate to the Transaction Types window.

¾ Select the User Defined tabbed region.
¾ Enter a unique name for the transaction type.
¾ Enter a transaction source type. This field does not appear if you navigate from the Transaction Source
Types window.
¾ Select a transaction action. The combination of the transaction source type and the transaction action
limits the transaction type.
¾ Check Project to enable this transaction type for project use.
¾ Check Status Control to enable material status control for this transaction type.
¾ Select the location required check box to require the Location field on the transaction windows and
Create Move Order window. You can select this check box if the transaction Source Type is Inventory or
Move order and the transaction action is issues from stores, receipt from stores, or issue from stores. You
cannot change this parameter if there are pending transactions for this transaction type.
¾ Save your work.
Navigation: Setup: Transactions: Types
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10. Define Transactions Reasons
1. Navigate to the Transaction Reasons window.

2. Enter name and description.
3. Enter a unique name for the transaction reason.
4. Enter a reason description in the Description field.
5. If desired enter select a Workflow Name from the list of values.
6. If you entered a workflow name, select a workflow process from the list of values.
7. Select a Reason Type from the list of values. The available choices are as follows:
o Load
o Drop
o Receiving
o Replenishment
o Cycle Count
o Shipping
o Update Status
o QA Update Status
The Replenishment reason type is disabled (note)
8. If you selected Picking as the Reason Type, select a Reason Context from the list of values. The
available choices are as follows:
o Curtail Pick: End the pick after picking a few LPNs or Lots and load the contents.
o LPN Exception: Pick partial quantity of the scanned fully consumable LPN.
o Pick None: End the pick without picking anything.
o Pick Over: Pick more than the requested quantity.
o 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.
o Pick Short: Specify a quantity less than the requested quantity, and back order the rest of the
required quantity.
o Change Source Locator: Change the location from which the material is picked.
o Change UOM: Change the transaction unit of measure for the task.
9. Save your work.
Navigation: Setup: Transactions: Reasons
11. Define Inter-Organization Shipping Networks
Inter-organization shipping network information describes the relationships and accounting information that
exists between shipping (from) organization that ships inventory to a destination (to) organization.
1. Navigate to shipping networks window

2. Determine if the organization displayed is the To Organization, From Organization, or the From or to
Organization.
Note: If your function security allows multiple organization access, you can enter any organization. Otherwise,
the Organization field is display only.
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3. To define a new shipping network for the current organization chooses New Record from the Edit menu.
To enter a new record in a single-row window chooses the new button. To find existing shipping network
information for the current organization choose Find.
4. Select the Main tabbed region.
5. Enter the shipping or from organization.
6. Enter the destination or to organization.
7. Enter the transfer type:
¾ Direct: Inter-organization transfers move inventory directly from the shipping organization to the
destination organization.
¾ Intransit: Inter-organization transfers move inventory to in transit inventory first. You can track this
inventory until it arrives at the destination organization.
8. If you selected Intransit in the Transfer Type field, select the FOB terms:
¾ Receipt: The shipping organization owns the shipment until the destination organization receives it.
¾ Shipment: The destination organization owns the shipment when the from organization ships it (and
while the shipment is in transit).
9. If you selected Intransit in the Transfer Type field, select a receipt routing option:
¾ Standard: Receive this item first, then deliver without inspection.

¾ Direct: At receipt, deliver this item directly to its location.
¾ Inspection: Receive this item first, inspect it, and then deliver.
10. Indicate whether an internal order is required for each transfer.

11. Save your work.
Navigation: Setup: Organizations : Shipping Networks
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12. Define Items
There are two ways you can define items from the Master Items window. You can use the Attribute Groups
tab, or the Item Folder tab. The Attributes Group tab allows you to select individual attributes, and use the tool
menu to apply templates and assign organizations The Item Folder tab enables you to create an item, apply a
default template, and assign the item to an organization all in one window.
1. From the Master Item window choose Copy From on the Tools menu.
2. Enter the name of the template you want to apply.
3. Choose Cancel to close the Copy From window, choose Apply to copy template information, or choose
done to copy template information and close the Copy From window.
You can apply multiple templates to the item. The more recent attribute values (from the last template
applied) override previous values unless the previous value is not updatable (such as the Primary Unit of
Measure, which is never updatable).
Main page:
Enter Item Attributes under Main Page: (UOM :( Primary, Tracking, Pricing), User Item Code
Inventory Page:
1. Navigate to the Organization Parameters window.

2. Select the Inventory Parameters tab.
3. Enter an organization code.
4. Select an Item Master organization.
You create items in the item master organization and assign them to other organization within your
operating unit.
5. Select a workday calendar. This is required when Oracle Master Scheduling/MRP and Oracle Supply
Chain Planning is installed. Optionally, select a demand class.
Demand classes segregate scheduled demand and production into groups, and allow you to track and
consume those groups independently. Oracle Master Scheduling/MRP and Oracle Supply Chain Planning
31
uses this demand class during forecast consumption, and shipment and production relief. See Demand
Classes, Oracle Master Scheduling / MRP and Oracle Supply Chain Planning User's Guide.
6. In the Move Order Time-out Period field, enter the maximum number of days a move order requisition can
wait for approval.
The workflow approval process sends a notification to the item planner when a move order requisition
requires approval. After the first time-out period, if the recipient has not approved or rejected the order,
the system sends a reminder notice. After the second time-out period, the system automatically rejects or
approves the order depending on whether you select Approve automatically or Reject automatically in the
Move Order Time-out Action field.
7. Select a Move Order Time-out Action:
¾ Approve automatically: After the second time-out period, the system automatically approves move
order requisitions. Select this option and set the Move Order Time-out Period to 0 if you want to
bypass the move order approval process and automatically approve move order requisitions.
¾ Reject automatically: After the second time-out period, the system automatically rejects move order
requisitions.
8. Select a locator control option:
¾ None: Inventory transactions within this organization do not require locator information.
¾ Prespecified only: Inventory transactions within this organization require a valid, predefined locator for
each item.
¾ Dynamic entry allowed: Inventory transactions within this organization require a locator for each item.
You can choose a valid, predefined locator, or define a locator dynamically at the time of transaction.
¾ Determined at subinventory level: Inventory transactions use locator control information you define at
the subinventory level.
9. Indicate whether to allow quality skipping for inspections.

10. Indicate whether locator aliases must be unique across the organization.
11. Indicate whether to allow negative balances.
This parameter determines if inventory transactions can drive the inventory balance of an item negative.
Attention: If insufficient quantity of on hand material exists in a supply subinventory to satisfy backflush
demand, Oracle Work in Process forces the supply subinventory balance negative, and ignores this
option setting.
12. Indicate whether auto delete Allocations are enabled. If you select this check box, when you delete a
source order, or delete or cancel the order line, the system automatically deletes the associated move
order allocations. If you do not select the check box, when you delete a source order, or delete or cancel
the order line, then the system does not delete the associated allocations lines. You must manually delete
the move order line allocations. If you choose not to delete these lines, the system transacts these lines
as subinventory transfers, and does not consider the lines as over picks.
Note: You can enable auto delete allocations only if you do not enable Warehouse Management for the
organization. In a Warehouse Management organization, the system automatically deletes move order
allocations or tasks unless a user starts work on the task.
13. Indicate whether this is a manufacturing partner organization. This parameter enables you to use
Chargeable Subcontracting. Chargeable Subcontracting is support only for Japan, Taiwan, and Korea. . If
you enable this parameter, then you must set the Transfer to GL parameter to No. This parameter
indicates if an original equipment manufacturer is a manufacturing partner.
14. Select the Process Manufacturing enabled check box if the organization is a Process Manufacturing
organization. If the organization is a process manufacturing organization you can use process
applications such as Process Execution, Process Quality, and Process Costing.
15. Check the Warehouse Control System (WCS) to enable the Warehouse Control System. The Warehouse
Control System provides a bridge between Warehouse Management and the control level for device
automation and integration, and the coordination of task execution.
32
Note :You can only enable WCS for Warehouse Management organizations.
16. Indicate whether this organization is an Oracle Enterprise Asset Management enabled Organization.
Indicate whether this organization is an Oracle Warehouse Management enabled organization. You can
use Warehouse Management features such as LPNs, task management, warehouse execution rules, and
cost groups in this organization.
You must enable locator control in order to enable Warehouse Management. After you process
transactions within the organization, you cannot change the value of this parameter.
17. Enter a total load weight and unit of measure for this organization.
18. Enter a total volume and unit of measure for this organization.
Bills of Material Page: Check BOM Allowed
33
Costing Page:
Check Costing Enabled, Inventory Asset Values, Include in Rollup. Enter COGS
Purchasing Page:
Check Purchased, Purchasable, Invoice Matching, RFQ Required, Enter List Price, Expense Account Number
Physical Attributes:
Enter Physical Attributes
34
MPS/MRP Planning:
Enter Planning Method, Forecast Control
Work In Process Page:

Enter Type
35
Order Management:
Check Customer Ordered, Customer Orders Enabled, Internal Ordered, Internal Orders Enabled, Shippable,
OE Transact able, and ATP Rules
Item Costs
1. Navigate to the Item Costs Summary folder window.

2. Enter search criteria in the Find Item/Cost Type window. The Item Costs Summary folder window displays
costing information for the item for all cost types.
3. Do one of the following:
¾ Choose the New button to define new cost information, or the Open button to review existing cost
information. The Item Costs Details window appears.
¾ To view item cost details, choose the Views button. After you select an inquiry, the Item Costs
Summary window appears.
¾ To define or maintain item cost information, choose the Costs button. The Item Cost window appears.
36
Item Cost Summary:
1. Navigate to the View Item Costs Summary window by choosing the Views button from the Item Costs
Summary or Item Costs Details windows.
2. Select an inquiry by which to view cost information. The View Item Costs Summary window displays
information on the item cost and the associated cost type.
3. Drill down on Unit Cost to open the View Item Cost Details window. If you chose a by level inquiry, you
can also drill down on This Level Cost and Previous Level Cost. The View Item Cost Details window
displays different information depending upon the selected inquiry.
4. Optionally, select another inquiry by which to view cost type details by choosing the Views button again.
5. From the Item Costs Summary window, select an item line and choose Open. The Item Costs Details
window appears. The Item Costs Details window includes the following cost fields:
¾ Last PO Price - displays the Purchase Order Price for the last receipt of this item including non-
recoverable tax, if any.
¾ Invoice Price - displays the invoice price for the last AP Invoice of this item excluding taxes
37
Define items by copying from Item templates.
13. Define Item Relationships
You can define relationships between items. This allows you to search for items through these relationships.
Except in Oracle Purchasing, these relationships are for inquiry and reporting purposes only.
Item Relationships with Oracle Purchasing

Within Oracle Purchasing you can define acceptable substitute items for receiving. You must define a list of
substitutes before you receive a substitute item in place of an originally ordered item.
Attention: If you receive a substitute item, you must have previously defined a unit of measure conversion
between the unit of measure on the purchase order and the unit of measure on the receipt.
Navigation: Items: Item Relationships

Navigate to the Item Relationships window. The Find Item Relationships window appears.
Choose new to define a new relationship.
You can also enter search criteria and choose Find to display existing item relationships.
Enter an item that represents the from part of the relationship.
Enter an item that represents the to part of the relationship.
Select the Type of relationship between the items.

38
¾ Related: The items are related in a non-specific way.
¾ Substitute: One item is a substitute for another. To define the parameters for substitute item relationships,
select the Planning Details button and see defining details for substitute item relationships below.
¾ Attention :The Planning Details button is enabled only for the item relationship type Substitute.
¾ Cross-Sell: This relationship indicates that one item may be sold in lieu of another item.
¾ Up-Sell: This relationship indicates that a newer version of the item exists, and can be sold in place of the
older item.
¾ Service: This relationship establishes service items for a repairable item.
¾ Prerequisite: This relationship indicates that you must possess one of the items as a requirement to
possessing the other item.
¾ Collateral: This relationship indicates collateral, such as marketing brochures, that you possess for an
item.
¾ Superseded: This relationship indicates that one item has replaced another item that is no longer
available.
¾ Complimentary: This relationship indicates if a customer purchases one item, the other item is received
for free.
¾ Impact: This relationship is used to relate items to each other but only under special conditions.
¾ Conflict: This relationship indicates that these items may never be used together.
¾ Mandatory Charge: This relationship indicates a mandatory charge if the customer purchases both items.
¾ Optional Charge: This relationship indicates an optional charge if the customer purchases both items.
¾ Promotional Upgrade: This relationship enables a customer to upgrade from one item to another item or
equal or higher value, without an additional charge.
¾ Split: This relationship enables you to split support for an item so you do not have to manually split
support at contract renewal. To use this relationship, you must be in a planning enabled organization.
¾ Merge: This relationship enables rules based consolidation of contracts. You may use the earliest or
latest target end date for consolidation. This allows you to choose how contracts are consolidated. To use
this relationship, you must be in a planning enabled organization.
¾ Migration: During contact renewal you are given the option of renewing contracts based on new licenses,
or old licenses. To use this relationship, you must be in a planning enabled organization.
¾ Repair to: You use the Repair to item relationship with field service operations that use spares
management functionality. If a part has been superseded by another part, the Repair to item relationship
determines the replacement part.
Indicate whether the item relationship is Reciprocal.

Indicate if the item relationship type is substitute; indicate if planning is enabled for the substitute item.
Enter the Effective Dates if the item relationship is Split, Merge, or Migration.
Save your work.
Note: You can also define Item relationships by choosing Item Relationships from the Tools menu on the
Master Items window.
39
14. Define Cross reference Types
Cross-reference types define relationships between items and entities such as old item numbers or supplier
item numbers.
Navigate to the Cross-Reference Types window. Enter a unique cross-reference type name. Save your work.
Navigation: Items: Cross References
Assigning cross references
1. Navigate to the Cross-Reference Types window.

2. Select the cross-reference you want to assign.
3. Choose Assign to navigate to the Assign Cross-References window.
4. Enter an item.
5. Indicate whether the cross-reference applies only in the specified organization or to all organizations to
which the item is assigned.
40
6. You can optionally enter a unit of measure for the cross-referenced entity if the cross-reference type is
Item GTIN Code. You can select any UOM that is permissible in a transaction.
7. Enter the name of the organization to which the cross-reference applies. If you select Applicable to All
Organizations, this field is skipped.
8. Enter a cross-reference value. This value is the entity you cross-reference to the item, such as its old item
number or supplier part number.
9. Save your work.
15. Define Customer items and Cross References
Use the Customer Items Summary and Customer Items Detail windows to define and update customer items.
You can toggle between these windows with the Summary/Detail option in the Go option on the Toolbar. You
can cross reference customer items to your Oracle Inventory items to support processing orders and
shipments
Navigation: Items: Customer Items: Customer Items.
1. Enter the Customer Item number and description.

2. Select one of the existing Customer Names (in the Details window, you can use either Customer Name or
Customer Number,).
3. Select the Definition Level: Customer, Address Category, or Address.
A customer item defined at the Customer level is recognized across all address and address categories
for that customer. If you ship an item to multiple customer ship-to sites that have been grouped as an
address category, you can define the customer item for that address category. You would define a
customer item at the address level if you ship the item to only one ship-to site for that customer.
4. For the Address Category definition level, enter the address category For the Customer Address
definition level, enter the customer address.
5. In the Commodity tabbed region, you can assign the customer item to a Commodity Code.
6. In the Container tabbed region, you can enter the default master and detail containers for this customer
item as well as the minimum fill percent for the container.
7. In the Model, Departure Planning tabbed region, you can reference a customer item as when the item is a
Customer Item that belongs to the same Customer and the BOM Item Type attribute is set to Model.
You can also check required to indicate that items must be departure planned before they released and
Before Build to indicate that ATO items must be departure planned before they are built.
41
8. In the Demand Tolerances, Active tabbed region, you can enter positive and negative tolerance
percentages and select or deselect the Active check box.
9. Save your work.
16. Item Transaction Defaults
Use this form to define a default subinventory and/or locator for an item for shipping, receiving, and move
order transactions. Oracle Shipping Execution displays the default shipping information when you ship an
item. Oracle Inventory displays the default receiving information when you receive an item. For move orders,
Oracle Inventory derives the default put away locator when you transact an item into a locator controlled
subinventory if no locator was specified by the creator of the move order
Navigation: Setup: Transactions: Item Transaction Defaults
1. Navigate to the Item Transaction Defaults window.

2. Select the Subinventories tabbed region.
3. Enter an item for which you want to assign a default transaction subinventory.
4. Select the type of default:
¾ Shipping: Assign a default shipping subinventory to the item.

¾ Receiving: Assign a default receiving subinventory to the item.
¾ Move Order Receipt: Assign a default move order subinventory to the item.
5. Enter a subinventory to use as the default transaction subinventory for the item. If you restrict the item to
specific subinventories using either the Subinventory Items window or the Item Subinventories window,
you can only choose those subinventories in this field. Save your work.
42
17. Deletion Groups
Set up groups of entities to check, delete and optionally archive. Entities can include items, bills of material,
components, routings, or operations.
Navigation: Items: Delete items
1. Navigate to the Deletion Groups window. If you are updating an existing deletion group, the date it was
last submitted (if applicable) is displayed.
2. Enter a group name to identify the group of entities to delete.
3. Select what type of entity to delete. If the type of entity to delete is a bill, then the checkbox, Common
Bills Only, is enabled. If you check this box, only bills referencing the specified bill entities are considered
for deletion. If you do not check this box, then both bills referencing the specified bill entities and non-
specified bill entities are considered for deletion.
4. Indicate whether to create a delete group for the current organization, an organization hierarchy, or all
organizations. Additional information: Create a delete group for the current organization by specifying the
entities (Item, Bill, and Routing) and subentities (Component, Routing) to be deleted. You can enter an
organization hierarchy name while creating the delete group for the current organization. In this case,
processing is done for all subordinate organizations in the chosen organization hierarchy. You can create
a delete group for all organizations. In this case, processing is done for all organizations having the same
item master organization as the current organization.
5. Indicate whether to archive the deleted entities in the archive tables. You can archive bill and routing
information, but not item information. The option to archive is not available if you are deleting only items.
6. Enter the item, bill, or routing to delete, or from which to delete components or operations. The Details
tabbed region displays the organization the entity belongs to, its type, and the alternate (if applicable).
The Effectivity tabbed region displays the effective date range. The Results tabbed region displays the
delete status and the date of deletion (if applicable).
7. To delete an alternate bill or routing, enter the alternate.
8. If you are deleting components, choose the Components button; if you are deleting operations, enter the
Operations button.
9. When finished, choose either the Delete Group button or the Check Group button
43
18. Defining Item Attribute Control levels
Navigation: Set Up: Items: Attribute Controls
You can choose between centralized and decentralized control of item attributes. The control level you define
for an attribute applies to all items. Defining attribute controls does not determine the value of an attribute,
only the level at which It is controlled. You assign values to the attributes when you define an item. Just
review the Attribute controls, which have only two values of control:
1. Master Level
2. Organization Level
Below are set up as per the business requirements. Navigate to the Item Attribute Controls window.
2. Scan the information displayed in the Group Name and Attribute Name fields to locate the desired attribute.
The Group Name field displays the name for a group of attributes. Attributes are grouped by function, such as
Main, Inventory, and Receiving. When you define or update items, define templates, or view item attributes,
you can display the attributes for a particular group. This makes it easier to locate a specific attribute.
3. Select a control level for the attribute.
¾ Master Level: Define and maintain this attribute at the Master level. For the same item, the values of this
attribute are identical across all organizations.
¾ Org Level: Define and maintain this attribute at the Organization level. For the same item, each
organization may define a different value for this attribute.
Attention: Some attributes can only be set at a specific level. In these cases, you have only one option
4. Choose a status setting for each status attribute.
¾ Defaults Value: Value of this attribute, as defined by the status code, defaults when you assign the status
to an item. You can change this default value.
¾ Not Used: Use neither default nor status control.
¾ Sets Value: Value of this attribute, as defined by the status code, defaults when you assign the status to
an item. Once assigned, you cannot change the default.
5. Save your work.
44
19. Define Item Status
You can use statuses to provide default values for certain item attributes to control the functionality of an item.
When you update the values for a status, all items to which it is assigned are also updated.
1. Navigate to the Status window.

2. Enter a unique name for the status code.
3. For each attribute, use the Value option to indicate the functionality that is controlled by the status code.
Navigation: Set up: Items: Status Codes
45
Notice the effect of item status code by doing the following steps:
Navigation: Items: Master Items
20. Item Template
A template is a defined set of attribute values. When you apply a template to an item, you overlay or default in
the set of attribute values to the item definition.
You can apply the same or different templates to an item multiple times. The more recent attribute values
(from the last template applied) override previous values unless the previous value is not updatable (for
example, the Primary Unit of Measure, which is never updatable).
Navigation: Items: Master Items: Go to Tools: Copy From
Select the Following:

Template and / or Item
Click on Done button
Master Item’s window will pop up.
Enter the information in the required field and save your work.
21. Define Category Codes
You can define an unlimited number of categories and group subsets of your categories into category sets. A
category can belong to multiple category sets. You can assign a category to a category set either at the time
you define a category
Set or at the time you assign an item to the category. A category is a logical classification of your items.
Step 1: Enter the new values for “Family” and “Class” Key Segments
Navigation: Setup: Flexfields: Key: Values
46
Step 2: Create the Category Codes with new values defined above
Navigation: Setup: Item: Categories: Category Codes
Click on new Button. Enter structure name, category and description. Click on save icon and close the
Window.
22. Category Set
A category set is a set or group of categories. Each functional area viz. Purchasing, Inventory, Costing, Order
entry can have a separate default Category set. You can use categories and category sets to group items for
various reports and programs.
Navigation: Setup: Items: Categories: Category Sets
47
23. Define Items and Assign Newly Defined Categories
Navigation: Items: Item Master
Go to Tools: Copy From
48
Press done button.
Screen: Master Items
Observe the Following:
Save your work.
Go to Tools: Categories
24. Locator Controlled Items
Define a new item with Locator control enabled as “Prespecified”
49
Press (B) Done
Go to Tools: Organization Assignment
50
Assign Item: TXX-10001008 to M1, M2 and TXX Organization. Click on save icon
Step 2: Perform a Miscellaneous Transaction with the item defined above
Before performing a miscellaneous transaction, please check whether your accounting periods for M1
organization are open
Navigation: Accounting Close Cycle: Inventory Accounting periods (Check whether Period in which you are
transacting is open)
Navigation: Transactions: Miscellaneous Transaction (Choose M1 Org)
Step 3: View the On Hand Quantity
Navigation: On Hand, Availability: On – Hand Quantity
51
25. Revision Controlled Items
Define a new item with Revision control enabled
52
Press done button.
Master Items screen will appear
Enter the relevant information in master items screen and save your work.
Assign Item: TXX-10001009 to M1 M2 and TXX Organization
Click on save icon
Navigation: On Hand Availability: On – Hand Quantity: Choose M1 Organization
53
26. Lot Controlled Items
Step 1: Define a new item with Lot control enabled
54
Press Done
Save your work.

Screen: Organization Assignment

Assign Item: TXX-10001010 to M1 and TXX Organization
55
Click on save icon
Navigation: On Hand, Availability: On – Hand Quantity. Choose M1 Organization
56
27. Serial Controlled Items
Step 1: Define a new item with Lot control enabled
57
Press on done button then master item window will pop up give necessary information and Save your work.

Assign Item: TXX-10001011 to M1, M2 and TXX Organization
58
28. Revision / Locator / Lot / Serial Controlled Items
Step 1: Define a new item with Revision / Locator / Lot / Serial control enabled
59
Press Done
60
61
29. 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 user-defined 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 on-hand quantities when you start implementing Oracle Inventory.
We have seen Miscellaneous Receipts in the above sessions. There are other types of miscellaneous
transactions which are:
1. Miscellaneous Issues.
2. Account Aliases Issues / Receipts.
Step 1: Perform Miscellaneous Issue item TXX-10001008 who’s current on Hand qty is 100
30. Define Account Aliases
An account alias is an easily recognized name or label representing a general ledger account number. You
can view, report, and reserve against an account alias. During a transaction, you can use the account alias
instead of an account number to refer to the account.
Navigation: Set Up: Account Aliases (Choose M1 Organization)
Account Alias Receipt

Step 1: Perform Account Alias Receipt for item TXX-10001008 whose current on Hand qty is 60
Screen: Miscellaneous Transaction (M1)

Choose M1 Organization
Account Alias Issue

Step 1: Perform Account Alias issue for item TXX-10001008 whose current on Hand qty is 100

Screen: Find On-Hand Quantities (M1)
62
31. Sub Inventory Transfers
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 subinventories, as well as from tracked
to non-tracked subinventories. If an item has a restricted list of subinventories, you can only transfer material
from and to subinventories In that list. Oracle Inventory allows you to use user-defined transaction types when
performing a subinventory transfer.
Step 1: Perform a Sub Inventory Transaction with Serial Controlled item TXX-10001011
Navigation: Transactions: Sub Inventory Transfer (Choose M1 Org)

32. Inter organization Transfers
You can transfer material from your current organization to another organization or from your current
organization to intransit inventory.
To enable inter org transfers, prerequisites is to define Shipping networks and it is defined in our earlier
session.
Navigation: Transactions: Inter-Organization Transfer (Choose M1 Org)
Step 1: Perform Direct Inter Org Transfer with Revision Controlled item TXX-10001009
Enter the Following:
63
Step 2: Change the Organization to (M2)
Navigation: Change Organization (Choose M2 Organization from List of values)
Step 3: View the On Hand Quantity for TXX-10001009
Navigation: Inventory: On Hand, Availability: On – Hand Quantity. Choose M2 Organization
33. Move Orders
¾ Move orders are requests for the movement of material within a single organization.
¾ Manage all material requisition and request processes within an organization by manually or
automatically creating, Approving, and transacting a move order.
¾ Used for movement of material within a warehouse or facility for purposes like replenishment, material
storage Relocations and quality handling.
Navigation: Move Orders: Move Orders
64
1. Enter Description, Transaction Type, Source Sub Inventory and Destination Sub Inventory
2. Enter Item Code, Quantity
3. Approve Move Order and Make a note of Move Order Number.
Step 1: Define a new item for Move Orders Cycle testing


Screen: Copy From
Press Done
Save your work.
Click on save icon
Step 2: Review the time-out periods and time-out actions for move orders in organization M1. Verify
that the timeout period is 0 for automatic approval
Navigation: Setup: Organizations: Parameters
Step 3: Create a miscellaneous receipt for 500 pieces of your item TXX-10001013 and receive them
into two Locators, 01.1.1 and 02.1.1.

Step 5: Create a move order for your item. Move 10 pieces from one of the FGI subinventory locators
you received. Make a note of the move order number.
Navigation: Move Orders: Move Orders
Step 6: Find your move order number.

Navigation: Move Orders: Transact Move Orders
1. Enter your move order number on the Header tab and press Tab.
2. Click Find.
Step 7: Allocate the line of the move order you created.

1. Select the line of the move order you created. Click on View/Update Allocations button.
2. Review the details of your move order
3. Click on Transact button.
4. Close the windows
Step 8: View the results to make sure your material moved

Navigation: On-hand, Availability: On-hand Quantity
Screen: Find On-hand Quantities (M1)
1. Fill in your item TXX-10001013 and click on Find button
3. Check your sub inventories to see that the Quantities of items changed.
65
Frequently Asked Questions
1. What is Multi Org? What is the difference between Operating Unit and Inventory Organization?
2. How many Key Flexfields do we need to configure to use Inventory Application?
3. What Min- Max Planning? How do we implement this in Oracle?
4. Why do we classify items into ABC Categories? How do we perform this in Oracle?
5. Explain any FIVE key setup steps in Inventory Application?
6. How many Costing Methods are supported by Oracle Inventory?
7. Is it possible to carry out Activity Based Costing (ABC) in Oracle Inventory?
8. How many applications in Oracle are integrated with Inventory?
9. How do we transfer accounting entries from Inventory to General Ledger?
10. How do we differentiate an inventory item as Purchase Item or Saleable Item?
11. Can we receive Fixed Assets into Inventory?
12. What is the difference between Fixed Asset and Inventory Item?
13. Do we receive Expense Items into Inventory?
14. What is the difference between Move Order and Sub-Inventory Transfer?
15. What is the role of Inventory Application in Procure To Pay Cycle and Order To Cash Cycle?
16. What is the difference between Sub Inventory and Locator?
17. ABC Industries uses Standard Costing in Hyderabad Inventory Organization. Now ABC wants to move to
Average Costing. Is this possible? What procedure will you recommend for this?
18. ABC Industries purchases three types of items, i.e. Expense Item, Inventory Item and Fixed Asset? What
are the differences between these three?
19. How will you transfer items from one Inventory Organization to another?
20. What is the difference between Min-Max Planning and Reorder Point? Which one will you suggest to your
client?
66

Oracle Applications Inventory

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Unit of measure: The unit that the quantity of an item is expressed.

Item status: Code used to control the transaction activity of an item.

On–hand quantity: The physical quantity of an item existing in inventory.

Subinventory: Subdivision of an organization, representing either a physical area or a logical grouping of

Revision A particular version of an item, bill of material, or routing.

Lot: A specific batch of an item identified by a number.

Transaction manager: A concurrent program that controls your manufacturing transactions.

Supplier: Provider of goods or services.

Add a Workday Exception set to identify calendar exceptions.

Click on the SAVE icon

3. Define a new Workday Calendar

Click on the SAVE icon

Click on “Workday Patterns” Button. Workday Patterns (under Shifts) opens

Click on “Workday Patterns” Button. Workday Patterns (under Shifts) opens.

Navigation: Setup: Organizations: Locations

Go to shipping details table

Click on the Save icon.

Navigation: Setup: Organizations: Organizations: Click on “New”

1. Enter a name for your organization in the Name field.

1. Enter the classification for your organization in the Name field.

Go to costing information tab

1. Enter starting revision.

• Click on the Save icon

Tie the Location to the Organization

Navigate to the Subinventories Summary folder window. (NAV: SETUP: ORGANIZATIONS:

Select a source type for item replenishment.

¾ Inventory: Replenish items internally, from another organization.

1. Select the Accounts tabbed region.

3. Save your work.

Step 4: View Sub Inventory Summary

1. Navigate to the Stock Locators window. (Setup: Organizations: Stock Locators)

1. Enter a unique name for the unit of measure class.

Navigation: Setup: Unit of Measures: Classes

6. Define Units of Measure

Navigation: Setup: Unit of Measures: Unit of Measures

Navigation: Setup: Unit of Measures: Conversions

Intra – class tab

Navigation: Setup: Transactions: Source Types

9. Define Transaction Types

¾ Navigate to the Transaction Types window.

Navigation: Setup: Transactions: Types

1. Navigate to the Transaction Reasons window.

The Replenishment reason type is disabled (note)

Navigation: Setup: Transactions: Reasons

11. Define Inter-Organization Shipping Networks

1. Navigate to shipping networks window

¾ Standard: Receive this item first, then deliver without inspection.

10. Indicate whether an internal order is required for each transfer.

Navigation: Setup: Organizations : Shipping Networks

1. Navigate to the Organization Parameters window.

7. Select a Move Order Time-out Action:

8. Select a locator control option:

9. Indicate whether to allow quality skipping for inspections.

Bills of Material Page: Check BOM Allowed

Work In Process Page:

1. Navigate to the Item Costs Summary folder window.

13. Define Item Relationships

Item Relationships with Oracle Purchasing

Navigation: Items: Item Relationships

Select the Type of relationship between the items.

Indicate whether the item relationship is Reciprocal.

Navigation: Items: Cross References