Wednesday, October 15, 2014

Oracle Inventory 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: A business unit that tracks items for accounting purposes but does 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 substitutes 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.
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, subinventory, or locator. Receipt of completed assemblies into inventory from a job or repetitive schedule. Issue of component items from inventory to work in process.
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.
Day 1
  1. Define Location
Set up and name a location for your organization
Navigation:      Inventory > Setup > Organizations > Locations
Screen:         Locations
Field Name Remarks
Name TXX-LOCATION
Description TXX Location
Stay on Address Details Tab
Address Style United States
Address Location Address window opens..
Address Line 1 123 MAIN STREET
Address Line 2
Address Line 3
City Select: Atlanta
State GA
Zip Code 30010
County Select: Fulton
Country Select: United States
Telephone
Click on OK.
Go to Shipping Details Tab
Ship-to Location TXX-LOCATION
Ship-to Site Check the box
Bill-to Site Check the box
Office Site Check the box
Internal Site Check the box
Receiving Site Check the box
Click on the Save icon.
  1. Define Organization
Set up and name your organization for your team
Navigation:      Inventory > Setup > Organizations > Organizations > Click on “New”
Screen:         Organization
Field Name Remarks
Name TXX-ORG
Type Plant
Field Name Remarks
Dates From Use the Default
Dates To Leave Blank
Location TXX-LOCATION
Internal or External Internal
Location Address Use the Default
Internal Address Leave Blank
Click on the Save icon.
Organization Classifications
Name Inventory Organization  ( Enter or Choose from the LOV)
Enabled Click the Check Box
Click on the Save icon.
With cursor in Name
Click on Others button
Select Accounting Information
Click on OK then press tab
Accounting Information
Set of Books Vision Operations (USA)
Legal Entity Vision Operations
Operating Unit Vision Operations
Click on OK
Click on OK
Click on Save icon
Click on Others button
Select Inventory Information
Stay on the Inventory Parameters tab
Field Name Remarks
Organization Code TXX
Master Organization Vision Operations
Calendar TXX-CAL
Process Enabled Do not check the box
Demand Class
Move Order Timeout Period 60
Move Order Timeout Action Approve Automatically
Allow Negative Balances Check the Box
Locator Control Determined at Sub Inventory level
Go to Costing Information Tab
Costing Information
Costing Organization Display - Cannot be changed
Costing Method Average
Rates Cost Type
Transfer to GL Summary
Reverse Encumbrance Do not check the box
Default Material Sub-Element
Valuation Accounts
Material 01-000-1410-0000-000
Outside Processing 01-000-1450-0000-000
Material Overhead 01-000-1420-0000-000
Overhead 01-000-1430-0000-000
Resource 01-000-1440-0000-000
Expense 01-520-7530-0000-000
Go to Revision, Lot, Serial tab
Starting Revision A
Lot Control: Uniqueness Across items
Lot Control: Generation At item level
Zero Pad Suffix Do not check the box
Lot Control: Prefix LOT#
Lot Control: Total Length 30
Serial Control: Uniqueness Within Inventory Items
Serial Control: Generation At Organization Level
Serial Control: Prefix SER#
Serial Control: Starting Number 1000
Go to  ATP, Pick, Item Sourcing tab
ATP, Pick, Item Sourcing
ATP Defaults Rule Total ATP, No DC
Picking Defaults Rule RevSub
Picking Defaults: Subinventory Order
Picking Defaults: Locator Order
Item Sourcing Detail: Type Supplier
Item Sourcing Detail: Org
Item Sourcing Detail: Subinv
Go to Inter-org Information tab
Inter-org Information
Inter-org Transfer Charge Check the radio button “Predefined Percent”
Predefined Percent 10
Inter-org Transfer Accounts
Transfer Credit 01-520-5290-0000-000
Purchase Price Variance 01-520-5210-0000-000
Receivable 01-000-1810-0000-000
Payable 01-520-2370-0000-000
Intransit Inventory 01-000-1460-0000-000
Go to Other Accounts Tab
Other Accounts
Invoice Price Variance 01-520-5220-0000-000
Accounts Payable Accrual 01-000-2220-0000-000
Encumbrance
Profit and Loss Accounts
Sales 01-520-4110-0000-000
Cost of Goods Sold 01-520-5110-0000-000
  • Click on the Save icon
  • Close the window
  • Click on the Others Button
  • Select Receiving Information
Field Name Remarks
Receipt Date:
Days Early 5
Days Late 5
Action Warning
Over Receipt Controls:
Tolerance 5
Action Warning
Miscellaneous:
Allow Substitute Receipts Check the Box
Allow Unordered Receipts Check the Box
Allow Express Transactions Check the Box
Allow Cascade Transactions Check the Box
Allow Blind Receiving Do not check the Box
Receipt Routing Standard Receipt
Enforce Ship-To Warning
ASN Control Action Warning
Receipt Number Options:
Action Automatic
Type Numeric
Next Receipt Number 1001
Receiving Inventory Account 01-000-1410-0000-000
Click on the Save icon
Close the Receiving Options Window
Close the Organizations window.
  1. Attach Organization at Location Definition
Tie the Location to the Organization
Navigation:      Inventory > Setup > Organizations > Locations
Screen:         Location
Steps:
Field Name Remarks
Enter Query (F11)
Location Enter “TXX-LOCATION
Execute Query (CTRL F11)
Go to Other Details tab
Inventory Organization TXX  ( Enter or Pick the value from LOV)
Click on Save icon
  1. Define Subinventories
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.
Navigation:      Inventory > Setup > Organizations > Subinventories   Choose Organization (M1)
Screen:         Subinventories (M1)
Define two Sub inventories named TXX-STORES and TXX-SHOP
Field Name Remarks
Inventory > Setup > Organizations > Subinventories
Choose Organization “M1” from the List of values if asked.
Click on New
Name TXX-STORES
Description TXX Stores
Quantity Tracked Check the Box
Asset Subinventory Check the Box
Depreciable Check the Box
Include in ATP Check the Box
Allow Reservation Check the Box
Nettable Check the Box
Locator Control Item Level
Picking Order
Inactive On
Click on Save icon
Field Name Remarks
Inventory > Setup > Organizations > Subinventories
Choose Organization “M1” from the List of values if asked.
Click on New
Name TXX-SHOP
Description TXX Shop Floor
Quantity Tracked Check the Box
Asset Subinventory Check the Box
Depreciable Check the Box
Include in ATP Check the Box
Allow Reservation Do not check the Box
Nettable Check the Box
Locator Control None
Picking Order
Inactive On
Click on Save icon
  1. 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.
Navigation:      Inventory > Setup > Organizations > Stock Locators
Screen:         Stock Locators
Field Name Remarks
Click on the New Button
Click on the LOV
Row TXX First Row
Rack TXX First Rack
Bin TXX Fifth Bin
Project Leave it blank
Task Leave it blank
Description TXX Stock Locator
Type Pick the Value “Storage locator” from LOV
Status Active
Subinventory Choose from the LOV “TXX – Stores”
Picking order Leave it blank
Inactive On Leave it blank
Click on Save icon
  1. Define and update unit of measure classes
You are on the implementation team to set up the UOM classes and conversions for the new Oracle software. 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.
Navigation:              Inventory > Setup > Unit of Measures > Classes
Screen:         Unit of Measure classes
Note:  Be sure to add a new row by clicking on the New icon
Field Name Remarks
Name TXX-QTY
Description TXX Quantity Class
Base Unit of Measure TXX-EACH
UOM EXX
Inactive Date Leave it blank
Click on Save icon
  1. Define Units of Measure
Define and update units of measure used for tracking, issuing, receiving and storing inventory items.
Navigation:              Inventory > Setup > Unit of Measures > Unit of Measures
Screen:         Unit of Measures
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 6.
Field Name Remarks
Click on New Icon
Name TXX-Dozen
UOM DXX
Description TXX DOZEN UOM
Base Unit NO
Class TXX-QTY
Inactive Date
Click on the Save icon
Click on the New icon
Name TXX-GROSS
UOM GXX
Description TXX-GROSS UOM
Base Unit Do not check the box
Class TXX-QTY
Inactive Date
Click on the Save icon
Click on the New icon
Name TXX-CASE
UOM CXX
Description TXX-CASE UOM
Base Unit Do not check the box
Class TXX-QTY
Inactive Date
Click on the Save icon
  1. Define Unit of Measure Conversions
Define and update the conversions between the base unit of measure and other units of measure within a class.
Navigation:              Inventory > Setup > Unit of Measures > Conversions
Screen:          Unit of Measure Conversions
Field Name Remarks
Stay on the Standard tab
Click on New Icon
Unit TXX-DOZEN
Class TXX-QTY
Conversion 12
Base Unit TXX-EACH
Inactive Date
Click on the Save icon
Click on the New icon
Unit TXX-GROSS
Class TXX-QTY
Conversion 144
Base Unit TXX-EACH
Inactive Date
Click on the Save icon
Click on the New icon
Unit TXX-CASE
Class TXX-QTY
Conversion 24
Base Unit TXX-EACH
Inactive Date
Click on the Save icon
Go to Inter-class tab
Click on New icon
Item AS18947
Base Unit TXX-EACH
Class TXX-QTY
Conversion 2
Base Unit EACH
Class QUANTITY
Click on the Save icon
  1. Define Inter-Organization Shipping Networks
Inter-organization shipping network information describes the relationships and accounting information that exists between a shipping (from) organization that ships inventory to a destination (to) organization.
Navigation:      Inventory > Setup > Organizations > Shipping Networks
Screen:         Shipping Networks
Field Name Remark
Click on the Find Button
Stay on the Main Tab
Organization from M1
Organization to TXX
Transfer Type Intransit
FOB Choose Receipt
Elemental Visibility enabled Do not check the box
Receipt Routing Standard
Internal Order required Do not check the box
Manual receipt at Expense destination Do not check the box
Click on the Save icon
Click on the Transfer, Distance Tab
Transfer Charge Type Predefined
Defaults from Organization Parameters ( You can change this value from LOV;s)
% Defaults from Organization ( Or enter a percentage value)
Click on Primary Accounts Tab
Check whether all accounts have defaulted from Organization parameters
Click on Secondary Accounts Tab
Check whether all accounts have defaulted from Organization parameters
Click on Intransit Account Tab
Check whether all accounts have defaulted from Organization parameters
Click on Save icon
  1. Define Items
Navigation: Inventory > Items > Master Items
Screen:  Master Items (V1)
A. Define items by copying from Item templates
Field Name Remark
Item TXX-10001000
Description TXX Purchased Item
Stay on Main Tab
Unit of Measure: Primary Use default “Each
User Item type Keep the cursor on User Item Type and click on Tools Menu
Click on Copy From
Template Choose @Purchased Item from LOV
Click on Apply and Done
User Item type Shows now as “Purchased Item”
Click on Save icon
Click on all tabs and review the attributes
B. Define items by copying from existing item.
Field Name Remark
Item TXX-10001001
Description TXX Purchased Item
Stay on Main Tab
Unit of Measure: Primary Use default “Each
User Item type Keep the cursor on User Item Type and click on Tools Menu
Click on Copy From
Item Choose TXX-10001000 from LOV
Click on Apply and Done
User Item type Shows now as “Purchased Item”
Click on Save icon
Click on all tabs and review the attributes
C. Assign items to Child Organizations.
Field Name Remark
click on Tools Menu while staying on item TXX-10001001
Click on Organization Assignment
Assigned Check the box against organization “M1
Check the box against organization “TXX
Click on Save icon
Repeat the same steps for item “TXX-10001000” and assign M1 and TXX
D. Review Categories assigned to items.
Field Name Remark
click on Tools Menu while staying on item TXX-10001000
Click on Categories
Item TXX-10001000
Category Set Purchasing
Control Level Master
Category Default “MISC.MISC
Click on LOV to select values for Item category and Commodity, if item belongs to different category
Category Set Inventory
Control Level Org
Category Default “NEW.MISC
Click on LOV to select values for Family and Class, if item belongs to different category
Click on Save icon
Repeat the same steps for item “TXX-10001001” and Review Categories assignment.
Day 2
  1. 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:             Inventory > Setup > Flexfields > Key > Values
Screen:         Find Key Flexfield segment
Region Field Name Values
Find Values By
Key Flexfield Check the box
Application Oracle Inventory
Title Item Categories
Structure Item Categories
Segment Choose “Family
Click on the Find Button
Screen Segment Values Stay on the Values, Effective Tab
Click on New icon
Value Enter “TXX LAPTOP
Translated value Use the default
Description Laptop
Click on the Save icon
Navigation:             Inventory > Setup > Flexfields > Key > Values
Screen:         Find Key Flexfield segment
Region Field Name Values
Find Values By
Key Flexfield Check the box
Application Oracle Inventory
Title Item Categories
Structure Item Categories
Segment Choose “Class
Independent Value Choose “LAPTOP
Click on Find Button
Screen Segment Values Stay on the Values, Effective Tab
Click on New icon
Value Enter “TXX DELL
Translated value Use the default
Description Dell
Click on the Save icon
Close the window.
Step 2: Create the Category Codes with new values defined above
Navigation:             Inventory > Setup > Item > Categories > Category Codes
Screen:         Categories
Click on new Button
Structure Name Category Description Inactive on
Choose “Item Categories” from LOV TXX LAPTOP.TXX DELL Dell Laptop
Click on Save icon and close the Window.
  1. 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
Screen: Category Sets
Field Name Values
Click on (M) View , select “Query by example”  and Enter
Name Enter “Inv.Items
Click on (M) View , select “Query by example”  and Run
Inv.Items” Category Set displays
Name Inv.Items
Description Inventory Category Set
Flex Structure Item Categories
Controlled At Org Level
Default Category NEW.MISC
Enforce Valid Category Yes
List of Valid Category Enter Below values which are created by you in above session
Click on New icon
TXX LAPTOP.TXX DELL
Click on Save icon
  1. Define Items and Assign Newly Defined Categories
Navigation: Items > Item Master
Screen: Master Item
Enter the Following:
Name TXX-10001004
Description Dell laptop – Category Assignment
Go to            (M) Tools > Copy From
Screen:          Copy From
Select the Following:
Template Purchased Item
Press            (B) Done
Screen:          Master Items
Save your work. (Ctrl + S)
Go to            (M) Tools > Categories
Screen: Category Assignment Screen
Category Set Category
Inv.Items The default is NEW.MISC  Select your category “TXX LAPTOP.TXX DELL
  1. Locator Controlled Items
Step 1: Define a new item with Locator control enabled asPrespecified
Navigation: Items > Item Master
Screen: Master Item
Enter the Following:
Name TXX-10001008
Description Purchased Item – Locator Controlled
Go to            (M) Tools > Copy From
Screen:          Copy From
Select the Following:
Template Purchased Item
Press            (B) Done
Screen:          Master Items
Enter the Following:
Region Field Name Values
Main
Use Item Type Purchased Item
Item Status Active
Conversions - Both Yes
Inventory
Locator Control Choose “Prespecified
Purchasing List Price 10
Save your work. (Ctrl + S)
Go to            (M) Tools > Organization Assignment
Screen:          Organization Assignment
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
Navigation:              Inventory > Transactions > Miscellaneous Transaction   (Choose M1 Org)
Screen:         Miscellaneous Transaction (M1)
Before performing a miscellaneous transaction, please check whether your accounting periods for M1 organization are open
Navigation:              Inventory > Accounting Close Cycle > Inventory Accounting periods  (Check whether Period in which you are transacting is open)
Screen:         Miscellaneous Transaction (M1)
Region Field Name Values
Transaction
Date Defaults to Today’s date
Type Choose “Miscellaneous Receipt
Source Leave Blank
Account Leave Blank
Transaction lines Click on Transaction Lines Button
Item TXX-10001008
Subinventory Stores
Locator 1.1.1
Quantity 100
Account 01-580-7740-0000-000
Click on Save icon
Close the windows.
               
Step 3: View the On Hand Quantity
Navigation:              Inventory > On Hand, Availability > On – Hand Quantity
Screen:         Find On-Hand Quantities (M1)
Choose M1 Organization
Region Field Name Values
Organization M1
Item TXX-10001008
Description Defaults from item Master
Display
Detailed Check the Box
Click on Find Button
Detailed On-Hand Quantities window opens
Observe the following details
Organization M1
Item TXX-10001008
Subinventory Stores
UOM Ea
Locator 1.1.1..
On-Hand Qty 100
Close the Window.
  1. Lot Controlled Items
Step 1: Define a new item with Lot control enabled
Navigation: Items > Item Master
Screen: Master Item
Enter the Following:
Name TXX-10001010
Description Purchased Item  Lot Controlled
Go to            (M) Tools > Copy From
Screen:          Copy From
Select the Following:
Template Purchased Item
Press            (B) Done
Screen:          Master Items
Enter the Following:
Region Field Name Values
Inventory
Lot Control Choose “Full Control
Lot Starting Prefix LOT
Lot Starting Number 001
Purchasing List Price 10
Save your work. (Ctrl + S)
Go to            (M) Tools > Organization Assignment
Screen:          Organization Assignment
Assign Item:             TXX-10001010 to M1 and TXX Organization
                        Click on Save icon
Step 2: Perform a Miscellaneous Transaction with the item defined above
Navigation:              Inventory > Transactions > Miscellaneous Transaction   (Choose M1 Org)
Screen:         Miscellaneous Transaction (M1)
Region Field Name Values
Transaction
Date Defaults to Today’s date
Type Choose “Miscellaneous Receipt
Source Leave Blank
Account Leave Blank
Transaction lines Click on Transaction Lines Button
Item TXX-10001010
Subinventory Stores
Quantity 100
UOM Ea
Lot Leave Blank
Account 01-580-7740-0000-000
Click on Lot / Serial Button
Screen: Lot Entry (M1) Click on “Generate” Button
Lot Lot number displays as per the Parameters set up in Org.
“ Sxxxxx” or “LOTxxx”
Qty 100
Click on Done button
Click on Save icon
Close the windows.
               
Step 3: View the On Hand Quantity
Navigation:              Inventory > On Hand, Availability > On – Hand Quantity
Screen:         Find On-Hand Quantities (M1)
Choose M1 Organization
Region Field Name Values
Organization M1
Item TXX-10001010
Description Defaults from item Master
Display
Detailed Check the Box
Click on Find Button
Detailed On-Hand Quantities window opens
Observe the following details
Organization M1
Item TXX-10001010
Subinventory Stores
UOM Ea
On-Hand Qty 100
Click on Lot / Serial Button
Lot On-Hand Quantities (M1) – TXX-10001010 Screen Appears Observe the below:
Lot Sxxxx
Qty 100
Close the Windows.
Day 3
  1. 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.
Step 1: Perform Miscellaneous Issue item TXX-10001008 whose current on Hand qty is 100
Navigation:              Inventory > Transactions > Miscellaneous Transaction   (Choose M1 Org)
Screen:         Miscellaneous Transaction (M1)
Region Field Name Values
Transaction
Date Defaults to Today’s date
Type Choose “Miscellaneous Issue
Source Leave Blank
Account Leave Blank
Transaction lines Click on Transaction Lines Button
Item TXX-10001008
Subinventory Stores
Locator 1.1.1
Quantity 40
Account 01-580-7740-0000-000
Click on Save icon
Close the windows.
               
Step 2: View the On Hand Quantity
Navigation:              Inventory > On Hand, Availability > On – Hand Quantity
Screen:         Find On-Hand Quantities (M1)
Choose M1 Organization
Region Field Name Values
Organization M1
Item TXX-10001008
Description Defaults from item Master
Display
Detailed Check the Box
Click on Find Button
Detailed On-Hand Quantities window opens
Observe the following details
Organization M1
Item TXX-10001008
Subinventory Stores
UOM Ea
Locator 1.1.1..
On-Hand Qty 60   (Depleted to 60 from earlier on Hand 100)
Close the Window.
  1. 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 item TXX-10001008
Navigation:              Inventory > Transactions > Sub Inventory Transfer   (Choose M1 Org)
Screen:         Subinventory Transfer (M1)
Region Field Name Values
Transaction
Date Defaults to Today’s date
Type Choose “Subinventory Transfer
Source Leave Blank
Account Leave Blank
Transaction lines Click on Transaction Lines Button
Item TXX-10001008
Subinventory Stores
Locator 1.1.1..
Quantity 25
To Subinv FGI
Click on Done button
Click on Save icon
Close the windows.
               
Step 2: View the On Hand Quantity
Navigation:              Inventory > On Hand, Availability > On – Hand Quantity
Screen:         Find On-Hand Quantities (M1)
Choose M1 Organization
Region Field Name Values
Organization M1
Item TXX-10001008
Description Defaults from item Master
Display
Detailed Check the Box
Click on Find Button
Detailed On-Hand Quantities window opens
Observe the following details
Organization M1
Item TXX-10001008
Subinventory Stores
UOM Ea
On-Hand Qty 35
  1. 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:              Inventory > Transactions > Inter-Organization Transfer   (Choose M1 Org)
Screen:         Inter-Organization Transfer (M1)
Step 1: Perform Direct Inter Org Transfer with item TXX-10001008
Enter the Following:
Region Field Name Values
Transaction
Date Today’s Date defaults
To Org Choose M2 from the LOV
Type Direct Org Transfer”  Defaults from Shipping Network
Shipment
Type Do not use in-transit inventory” defaults
Number
Freight DHL
Waybill/Airbill TXX123
Containers
Click on Transaction Lines
Direct Org Transfer (M1) screen Appears
Item TXX-10001008
Sub Inventory Stores
Locator 1.1.1..
To Sub Inv Stores
UOM Ea
Quantity 25
Percent of Transaction value 7 ( defaults from Shipping network)
Account 01-520-7220-0000-000 ( defaults from Shipping network)
Click on Save icon
Close the Windows.
Step 2: Change the Organization to (M2)
Navigation:                     Inventory > 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
Screen:         Find On-Hand Quantities (M1)
Choose M2 Organization
Region Field Name Values
Organization M2
Item TXX-10001009
Description Defaults from item Master
Display
Detailed Check the Box
Click on Find Button
Detailed On-Hand Quantities window opens
Observe the following details
Organization M2
Item TXX-10001009
Subinventory Stores
UOM Ea
On-Hand Qty 25
Close the Windows.
  1. Move Orders
  • Move orders are requests for the movement of material within a single organization.
  • Manage all material requisition and request processes within an organization by manually or automatically creating, approving, and transacting a move order.
  • Used for movement of material within a warehouse or facility for purposes like replenishment, material storage relocations, and quality handling.
Step 1: Define a new item for Move Orders Cycle testing
Navigation:              Items > Item Master
Screen:         Master Item
Enter the Following:
Name TXX-10001013
Description Purchased Item Move order
Go to            (M) Tools > Copy From
Screen:          Copy From
Select the Following:
Template Purchased Item
Press            (B) Done
Screen:          Master Items
Enter the Following:
Region Field Name Values
Main
Use Item Type Purchased Item
Item Status Active
Conversions - Both Yes
Inventory
Locator Control Choose “Dynamic Entry
Purchasing List Price 10
Save your work. (Ctrl + S)
Go to            (M) Tools > Organization Assignment
Screen:          Organization Assignment
Assign Item:             TXX-10001013 to M1 and TXX Organization
                        Click on Save icon
Step 2: Review the time-out periods and time-out actions for move orders in organization M1. Verify that the time-out period is 0 for automatic approval
Navigation:              Inventory > Setup > Organizations > Parameters
Screen:         Organization parameters
Field Name Remarks
Stay on the Inventory Parameters tab
Move Order Timeout Period Enter “0”
Move Order Timeout Action Approve Automatically
Click on Save icon and Close the window.
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.
Navigation:              Inventory > Transactions > Miscellaneous Transaction  (Choose M1 Org)
Screen:         Miscellaneous Transaction (M1)
Region Field Name Values
Transaction
Date Defaults to Today’s date
Type Choose “Miscellaneous Receipt
Source Leave Blank
Account Leave Blank
Transaction lines Click on Transaction Lines Button
Item TXX-10001013
Subinventory FGI
Locator Enter “03.1.1”
Quantity 250
Account 01-580-7740-0000-000
Tab to the Next Line
Item TXX-10001013
Subinventory FGI
Locator Enter “04.1.1”
Quantity 250
Account 01-580-7740-0000-000
Click on Save icon
Close the windows.
               
Step 4: View the On Hand Quantity
Navigation:              Inventory > On Hand, Availability > On – Hand Quantity
Screen:         Find On-Hand Quantities (M1)
Choose M1 Organization
Region Field Name Values
Organization M1
Item TXX-10001013
Description Defaults from item Master
Display
Detailed Check the Box
Click on Find Button
Detailed On-Hand Quantities window opens
Observe the following details
Organization M1
Item TXX-10001013
Subinventory FGI
UOM Ea
Locator 03.1.1..
On-Hand Qty 250
Organization M1
Item TXX-10001013
Subinventory FGI
UOM Ea
Locator 04.1.1..
On-Hand Qty 250
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:              Inventory > Move Orders > Move Orders
Screen:         Move Orders (M1)
Region Field Name Values
Number Tab out of the Number field to have this automatically assigned.
Description TXX-10001013
Default Tab through the Default section (this will give you more flexibility in the body of the transaction.)
Stay on Item tab
Line 1 Defaults
Item TXX-10001013
UOM Ea  Defaults
Transaction Type NL Sub-inventory Transfer
Date Required Defaults to Today’s date
Click on the Source tab
Subinventory Choose “FGI”
Locator 03.1.1..
Click on the Destination tab
Subinventory Choose “FloorStock”
Approve your move order Click on “Approve” Button
Note your move order number. The transaction is committed by the Approve step
Step 6: Find your move order number.
Navigation:              Inventory > Move Orders > Transact Move Orders
Screen:         Find Move Order Lines (M1)
  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:              Inventory > On-hand, Availability > On-hand Quantity
Screen:         Find On-hand Quantities (M1)
1. Fill in your item TXX-10001013 and click on Find button
  1. Check your subinventories to see that the Quantities of items changed.
Organization Item Subinventory UOM Locator On-Hand Qty
M1 TXX-10001013 FGI Ea 03.1.1.. 240
M1 TXX-10001013 FGI Ea 04.1.1.. 250
M1 TXX-10001013 FloorStock Ea 10
  1. ABC Analysis
Step1: Defining ABC Classes
You use ABC classes to identify the value groupings to which your items belong. You define these classes using your own terminology. For example, you might define classes High, Medium, Low, and later assign your items of highest rank to the High class, those of lower rank to the Medium class, and those of lowest rank to the Low class. You can add to the list of classes you have already defined
Attention: You must assign an ABC class to at least one ABC group.
You can use ABC classes to group items for a cycle count where you count "A" items more frequently than "B" items. When you use ABC classes in this way, you perform an ABC analysis and assign items to classes based on the results of that analysis.
Navigation:              Inventory > ABC Codes > ABC Classes
Screen:         ABC Classes (M1)
DO NOT TYPE OVER EXISTING DATA!  Click on New icon
Class name Description Inactive On
Enter “TXX-Class A” Most Important Items
Enter “TXX-Class B” Medium Importance Items
Enter “TXX-Class C” Lower Importance Items
Click on Save icon and Close the Window.
Step2: Defining and Running an ABC Compile
You can define and compile an ABC analysis for your entire organization or for a specific subinventory within your organization. You choose the compilation criterion, the scope of your analysis, the cost type to use in determining item values, and any additional information that may be conditionally necessary, based on your compilation criterion. The combination of all these parameters constitutes an ABC compile header, identified by the ABC compile name. You use this name to identify any activity pertaining to this ABC analysis.
Navigation:              Inventory > ABC Codes > ABC Compiles
Screen:         ABC Compiles (M1)
  1. Navigate to the ABC Compiles folder window and choose New. The Define ABC Compile window appears.
2. Enter a unique name for the ABC compile.
3. Determine the scope of the analysis by selecting the content level for items to include in the compile.
If you use the entire organization, Oracle Inventory includes all items defined for your current organization in the ABC compile, even those with zero cost or zero quantity. If you use a particular subinventory, Oracle Inventory includes all items for which you have defined an item/subinventory relationship.
Attention: You cannot compile an ABC analysis for a subinventory that is defined as a non-quantity tracked subinventory. You can, however, use non-asset (expense) subinventories for which you track quantities.
  1. Select the valuation scope for determining the ranking of items.
Ranking must be done at the Organization level if you did not select a subinventory in the Content Scope field.
If you only want to include items in a subinventory but you want the ranking to be done based on the organization wide ranking, select Organization.
  1. Select the compile criterion or method of ranking items in the ABC compile.
Oracle Inventory uses the compile criterion to value the items you include in your ABC compile. After determining each item's compile value, Oracle Inventory ranks all the items in your ABC compile.
  1. Enter a cost type.
You can select a value here only if you selected Current on-hand quantity, Current on-hand value, Forecasted usage quantity, Forecasted usage value, MRP demand usage quantity, or MRP demand usage value in the Criterion field. If you are compiling by quantity criterion, the cost type is used for reporting purposes only.
  1. Select an MRP forecast name.
You can select a value here only if you selected Forecasted usage quantity or Forecasted usage value in the Criterion field.
  1. Select an MRP plan name.
You can enter a value here only if you enter MRP demand usage quantity or MRP demand usage value in the Criterion field.
  1. Enter a start (from) date.
You must enter a value in this field if you choose an option other than Current on-hand quantity or Current on-hand value in the Criterion field.
  1. Enter an end (to) date.
You must enter a value in this field if you choose an option other than Current on-hand quantity or Current on-hand value in the Criterion field.
Click on New button.
Region Field Values
Compile Name Enter “TXX-Compile”
Description TXX-Compile
Content Scope Organization
Subinventory Check the Box
Choose “Stores
Valuation Scope Organization
Subinventory Check the Box
Compile Specification
Criterion Choose “Current on hand quantity”
Cost Type Defaults to ‘Frozen”
Click on Save icon
To run an ABC compile Click on Compile button
This submits a request to run the compile program
Step3: To view ABC Compile results:
Navigation:             Inventory > ABC Codes > ABC Compiles
Choose Open Button
Screen:         Define ABC Compile (M1)
Go To View Menu,  Query by Example and Select Enter
Enter Compile name:      TXX-Compile
Go To View Menu, Query by Example and Select Run
TXX-Compile window appears
Go To Tools Menu, View Compile
Step4: Defining ABC Assignment Groups
ABC assignment groups associate ABC classes with an ABC compile. You assign items to ABC classes within a particular group. This allows you to assign items to different ABC classes in different groups.
Navigation:              Inventory > ABC Codes > ABC Assignment Groups
Screen:         ABC Assignment Groups (M1)
Click on New icon
Group Name Compile Name Sub Inventory Valuation Scope
Enter “TXX-AG-M1-Current-OH Qty” Choose from LOV
“TXX-Compile”
Stores defaults Restricted to subinventory
defaults
Click on Save icon
ChooseGroup ClassesButton
Step 5: To enter classes to use with an ABC group:
The ABC Group Class Assignments window appears.
Priority Class Name Description
1 Choose “TXX-Class A” Most Important Items Defaults
2 Choose “TXX-Class B” Medium Importance Items
3 Choose “TXX-Class C” Lower Importance Items
Click on Save icon
Click on “Assign Items” Button
Step 6: Defining ABC Item Assignments
You can assign and update ABC classes to an ABC assignment group where an ABC compile was also entered. From the ABC Descending Value Report you determine the cutoff points for assigning ABC classes. You can then use the classifications for other purposes such as determining how often you cycle count a given item.
Screen:                  Assign ABC Items (M1)
Class Seq Remarks
TXX-Class A (defaults) Enter “10” Rest of the fields defaults after entering Seq
TXX-Class B (defaults) Enter “30” Rest of the fields defaults after entering Seq
TXX-Class C (defaults) Defaults to last Item number Rest of the fields defaults after entering Seq
Click on Save icon
Click on “Assign” Button. Concurrent Program runs.
Observe the following documentation on defining ABC assignments:
  1. Navigate to the Assign ABC Items window, or navigate to the ABC Assignment Groups window and choose the Assign Items button.
  1. Enter the ABC group for which to assign items to classes.
If you navigate from the ABC Assignment Groups window this field is already entered
The Compile Name, Subinventory, Number of Items, and Total Compile Value fields display information for the compile used by the ABC Group.
  1. Specify the cutoff point for each ABC class. Each ABC class must have at least one item assigned to it, and all items in the ABC compile must be assigned to an ABC class. You can use any of the following fields to determine the cutoff points:
Seq: You can enter the sequence number from the ABC Descending Value Report for the last item to be included in each ABC class. Oracle Inventory automatically calculates this value if you choose to assign classes by another method. Oracle Inventory displays the last sequence number as the default for the last class.
Inventory Value: You can enter the cumulative value from the ABC Descending Value Report for the last item to include in each ABC class. Oracle Inventory automatically calculates the maximum value. This maximum value is restricted to the total inventory value compiled and is displayed in the Total Compile Value field. Oracle Inventory displays the total inventory value as the default for the last class.
% Items: You can enter the percent of number of items compiled from the ABC Descending Value Report to include in each class. Oracle Inventory automatically calculates this value if you choose to assign classes by another method.
% Value: You can enter the percent of total compile value from the ABC Descending Value Report to include in each class. Oracle Inventory automatically calculates this value if you choose to assign classes by another method.
Attention: It is possible to have several items in the ABC compile with zero value. If any item with zero value is in a class other than the last class, you may only assign items using the sequence number or item percent.
4. Choose the Assign button to launch the concurrent request to assign the items to the classes in the ABC group.
Day 4
  1. Cycle Count
Cycle counting is a process used to periodically count selected items in the inventory to make sure that the actual inventory balances agree with the computer records.  By setting up a cycle counting program, you can count practically all items in the inventory over a period of 12 months.  This eliminates the need for an annual physical inventory, though some companies do both.  In the Oracle Inventory application, the cycle counting process starts with assigning an ABC value to each item.  Then you select the frequency of counts per year for each category of items.  You want to count A class items more often than C class items.
Before creating a cycle count, you need to generate ABC codes and assign items to these ABC codes.  Also, for items that you intend to cycle count, the Item attribute “Cycle Count Enabled” must be set to “Yes”
Defining and maintaining a Cycle Count
A combination of parameters constitutes a cycle count header, identified by the cycle count name. You use this name to identify any activity pertaining to this cycle count.
You can define and maintain an unlimited number of cycle counts in Oracle Inventory. For example, you can define separate cycle counts representing different sets of Subinventories in your warehouse.
Prerequisites
Define ABC classes.
Define your workday calendar.
When determining cycle count classes based on ABC analysis, you must compile an ABC analysis and assign your compiled items' ABC classes.
Items that you intend to cycle count, the Item attribute “Cycle Count Enabled” must be set to “Yes”
Step1: To define a new cycle count:
Navigation:              Inventory > Counting > Cycle Counting > Cycle Counts
Choose (M1) Organization
Screen:         Cycle Counts Summary (M1)
Choose New to open the Cycle Counts window.
Screen:         Cycle Counts (M1)
Region Fields Values
Name TXX-Cycle Count
Description TXX-Cycle Count
Calendar Vision01 (Use the default for training purposes)
Adjustment Account 01-580-7740-0000-000
Stay on Scope and Control Tab
Count Controls Inactive On Leave it Blank
Late Days Enter “1”
Starting Seq Enter “1”
Unscheduled Entries Check the Box.
Display System Qty” Check the Box.
Count Sub Inventories Select “Specific”
SubInventory Enter “Stores”
Automatic Recounts Check the Box
Maximum Enter 1
Click on Serial and Schedule Tab
Serial Control Option
Count Use the default “Not Allowed
Detail
Adjustment
Discrepancy
Auto Schedule
Frequency Choose “Daily”.  Available values are Daily, weekly, Period
Next Date Choose date from the calendar.
Click on Adjustments and ABC Tab
Approval Required Choose “If out of Tolerance” from LOV
Tolerances Qty Variances Enter +10 and –10 %age
ABC Initialization Group Choose “TXX-AG-M1-Current-OH Qty” from LOV
Click on Save icon
Choose the Classes button
Cycle Count Classes (M1) window opens
Classes Name Choose “TXX-Class A” from LOV
Counts per Year 6
Click on the next line
Name Choose “TXX-Class B” from LOV
Counts per Year 4
Click on the next line
Name Choose “TXX-Class C” from LOV
Counts per Year 2
Close the Cycle Count Classes window
Click on Items Button
Cycle Count Items (M1) window opens
Items Class Name Choose TXX-Class A
Item Choose 3 to 4 Items from LOV Items belonging to TXX-Class A. Items can be picked from ABC Compile report
Class Name Choose TXX-Class B
Item Choose 3 to 4 Items from LOV Items belonging to TXX-Class B. Items can be picked from ABC Compile report
Class Name Choose TXX-Class C
Item Choose 3 to 4 Items from LOV Items belonging to TXX-Class C. Items can be picked from ABC Compile report
Click on Save icon
Close the Cycle Count Items (M1) window.
Stay on Cycle Counts (M1) Window
Click on the Tools Menu and choose Cycle Count scheduler
Cycle Count Scheduler Parameters window opens Select the Include Control Group Items box and Click on OK Button. You will see a message notifying a concurrent program has been kicked off. Click on OK.
Manual Schedule Requests
Note: This is an optional Step.
Use this process to count any items associated with a cycle count at any time.  For example, you may suspect the system quantity of an item is incorrect.  Even if this is not the automatically scheduled time to count the item, you can still count it using a manual schedule request.  All qualifiers are optional.  You can enter a combination of qualifiers to perform the manual scheduling.
Navigation:              Inventory > Counting > Cycle Counting > Manual Requests.
Screen:         Manual Schedule Requests window:
Region Fields Values
Cycle Count Name TXX-Cycle Count
Description TXX-Cycle Count (Defaults)
Click on Find Button
Schedule Requests Item Enter the item(s) to be counted.
Revision Enter if required
Subinventory Enter the Subinventory of the item  “Stores
Locator Enter the locator of the item if required
Lot Enter the lot of the item if required
Schedule Date Enter the date of the count.  The date must be today or greater
Zero Count Check to count even if the system quantity is zero
Click on Save icon
Close the Manual Schedule Requests window
Step2: Generating a Cycle Count Request and Printing the Count listing
Navigation:              Inventory > Counting > Cycle Counting > Cycle Counts
Screen:          Cycle Count window:
Query the Cycle Count Name “TXX-Cycle Count” and click on Open Button
Go To Tools Menu
Select Perform Full Cycle Count. It will kick off a concurrent request. Enter the below parameters for the requests.
Choose the Cycle Count name as TXX-Cycle Count for the request “Generate automatic schedule requests
Choose the Cycle Count name as TXX-Cycle Count for the request “Generate cycle count requests
Select the Cycle Count Listing Report.  Cycle Count Listing Parameters window opens. Select the Start and End dates. Choose Stores as Sub Inventory. Check the Box for Display on Hand Quantities.
Select the Submit Request button to run the cycle.  Submit a request. It kicks off a Concurrent Request. Click on OK
Step3: Enter Cycle Counts
Navigation:              Inventory > Counting > Cycle Counting > Cycle Count Entries
Screen:          Cycle Count Entries (M1) window:
Region Fields Values
Cycle Count Name Enter “TXX-Cycle Count” and Tab
Description TXX-Cycle Count (Defaults)
Click on Find Button and a Decision window will open
Select the Yes button to find all open count requests and the Cycle Count Entries window will reopen.
Count Defaults section Date Will display the current date and time
Counted By Smith, Mr. Jonathan “Defaults”
In Actual Scenario: Enter the name of the person who conducted the count
Adjustment Account 01-580-7740-0000-000
Count Tab Count Seq Will display the count sequence in order of value
New Count Is checked if this is a new count request
Item Will display the item number to be counted
Rev Will display the revision of the item if applicable
Subinventory Displays the subinventory if applicable
Locator Displays the locator code
Lot Displays the lot number
Serial Number Displays the serial number
UOM Displays the primary unit of measure for the item
Quantity Enter the quantity that you counted for your item
In the Count Reference tab:
Count Seq Remains the count sequence
New Count Remains checked if this is a new request
Item Displays the item counted
Reason Optional - Enter a reason for the count if desired
Reference Optional - Enter a reference
Counted By Will default to the Counted By default entered in the Count Defaults section.  This can be changed here though.
Count Date Will default to the Date entered in the Count Defaults section
Click on Save Icon
Note: Adjustments Processed Pops up. Click on OK
Step3: Approve Cycle Counts
This section explains the approval process for cycle count adjustments that Oracle Inventory submits for approval.
At the time a count is entered, the system will compare the count quantity with the on-hand balance quantity.  If there is a discrepancy, the system checks the item’s Measurement Error values (an item attribute).  If the discrepancy is outside the measurement error, the system checks the approval options and adjustment tolerances defined in the Cycle Count.  If the cycle count calls for approvals and the discrepancy is outside the adjustment tolerance, the system will generate a recount request if recounts are turned on in the cycle count, or submit the count for approval.  If recounts are turned on and the maximum number of recounts has been reached, the adjustment is submitted for approval.
When Cycle Counts require approval, the person authorized to do approvals must have access to the Count Adjustments Approvals Summary window.  Those without approval authority must not have access to this window.
Navigation:      Inventory > Counting > Cycle Counting > Approve Counts
Screen: Count Adjustment Approvals Summary window
Region Fields Values
Cycle Count Name Enter “TXX-Cycle Count” and Tab
Description TXX-Cycle Count (Defaults)
Click on Find Button and a Decision window will open
Select the No button to find all count requests wh8ich requires approval.
Approval Defaults section Date Will display the current date and time
Approver Smith, Mr. Jonathan “Defaults”
In Actual Scenario: Enter the name of the person who Approves the count
Adjustment Account 01-580-7740-0000-000
In the Adjustments section:
To approve a count, select Approved.  The adjustments will post to the transaction manager for processing.
To reject a count, select Rejected.  An adjustment is not posted, and there is no further processing of this count.
To request a recount, select Recount.  An adjustment is not posted and a recount request is processed.
To display count history information for the current item, select the Count History button.  This window displays count and variance information for the current, prior, and first counts.
To approve the count for the current item, select the Open button.  You can use this window to view and enter approval and adjustment information for the current line.
Save your work.
  1. Physical inventory
Physical inventory is a process to count all items in selected subinventories or all subinventories for an organization.  A physical inventory may be defined for a single subinventory, selected subinventories, or an entire inventory organization.  Subinventories must be defined as “Quantity Tracked” to be included in a physical inventory.  A physical inventory assumes that all on-hand balances within the scope of the physical inventory will be counted.
The physical inventory process takes a snapshot of the on-hand balances, and generates tags for all items with an on-hand balance.  Counts are recorded against the tag number and compared to the snapshot quantity.  Deltas between the snapshot quantity and the counted quantity will generate adjustment transactions. 
Physical inventory counts are generally performed at the end of a fiscal year, although you may create a physical inventory and perform a count at any time.  When a count is being performed, material movement transactions may continue, but should be limited and controlled if an accurate count is to be assured.  The physical count is compared to a snapshot or frozen on-hand balance quantity, so material movements should not be done from the time the snapshot is taken until the count is completed.
Scenario:                Place five items into your subinventory to use for a physical inventory.
Step1: Perform Miscellaneous transactions for five items into Subinventory TXX-STORES to use for a physical inventory in M1 Organization
Navigation:      Inventory > Transactions > Miscellaneous Transaction
Screen:         Miscellaneous Transactions (M1)
Fields Values
Date (Take the default)
Type Account Alias Receipt
Source INVENTORY ADJ
Click on Transaction Lines Button
Note: Enter all items before saving.
Account Alias Receipt (M1) screen Appears
Item CM13375
Subinventory TXX-STORES
Lot
Quantity 125
UOM (Take the default)
Reason Setup
Press the down arrow key
Item CM13139
Subinventory TXX-STORES
Lot
Quantity 72
UOM (Take the default)
Press the down arrow key
Item AS54888
Subinventory TXX-STORES
Lot
Quantity 87
UOM (Take the default)
Reason Setup
Press the down arrow key
Item AS18947
Subinventory TXX-STORES
Lot
Quantity 112
UOM (Take the default)
Reason Setup
Press the down arrow key
Item AS72111
Subinventory TXX-STORES
Lot
Quantity 90
UOM (Take the default)
Reason Setup
Click on the Save icon
Close the Windows
Step2: Define Physical Inventory and make an Inventory Snapshot. Use the Physical Inventories window to:  Setup a physical inventory definition for your subinventory.
Navigation:              Inventory > Counting > Physical Inventory > Physical Inventories
Screen:         Physical Inventories Summary (M1)
Region Fields Values
Click on New Button
Define Physical Inventory Screen Appears
Name TXX-PHYS
Description TXX Physical Inventory
Date (Take the default)
Tab to the Approval Area
Approvals Required Select:   If Out of Tolerance
Quantity +10% and -10%
Value +10% and -10%
Tab to the Count Subinventories Area
Count Subinventories Specific Check the Box
Subinventory TXX-STORES
Allow Dynamic Tags Uncheck the Box
Click on Snapshot button
  • Record the concurrent request # ___________________
  • Click OK
  • Close the Define Physical Inventory screen
  • Close the Physical Inventory Summary screen
  • Go to the View menu and select Requests
  • Click on the Find button in the Find Requests screen
  • Verify your concurrent request completes normally
  • Close the Requests screen
Step3: Generate Tags. Use the Tag Generation window to:  Generate default tags for your physical inventory definition.
Navigation:             Inventory > Inventory Counting > Physical Inventory > Tag Generation
       
Screen:         Generate Physical Inventory Tags (M1)
Region Fields Values
Name TXX-PHYS
Description TXX Physical Inventory
Date (Take the default)
Tag Type Select Default
Show Serial on Tags Leave Checked
Tab to the Tags Area
Tags Starting Tag TXX001
Digit Increments 000111 (Defaults)
Ending Tag System calculated
Number of Tags System calculated
Click on Generate button
  • Record the concurrent request # ___________________
  • Click OK
  • Close the Generate Tags screen
  • Go to the View menu and select Requests
  • Verify your concurrent request completes normally and close the window.
Step3:  Enter Counts Use the Tag Counts window to: Enter tag counts using the default tags.
Navigation:             Inventory > Inventory Counting > Physical Inventory > Tag Counts
       
Screen:         Physical Inventory Tag Counts (M1)
       
Region Fields Values
Name TXX-PHYS
Click on the Find button
Click on Yes on Decision Box
Use arrow keys to move from line to line and enter a count for each item
AS54888 100
AS18947 111
CM13375 125
CM13139 60
AS72111 90
Click on the Save icon
Close the window.
Step4: Approve the Adjustments.
Use the Approve Physical Adjustments Summary window to: Approve all the adjustments.
Navigation:             Inventory > Inventory Counting > Physical Inventory > Approve Adjustments
Screen:         Approve Physical Adjustment Summary (M1)
Region Fields Values
Name TXX-PHYS
Click on the Find button
Click No on Decision Box
Click on the Approve All button
Click on the Save icon
Close the window.
Step5: Launch the Adjustments Program
Use the Physical Inventories Summary window to: Adjust the physical inventory quantities.
Navigation:             Inventory > Inventory Counting > Physical Inventory > Physical Inventories
Screen:         Physical Inventory Summary (M1)
Fields Values
Click on the line which lists your Physical Inventory  TXX-PHYS
Go to the Tools Menu and select: Launch Adjustments
The Launch Adjustments screen will open
Adjustment Account 01-000-5250-0000-000
Click on the Launch Adjustments button
  • Record the concurrent request # ___________________
  • Click OK
  • Close the Physical Inventory Summary screen
  • Go to the View menu and select Requests
  • Verify your concurrent request completes normally and close the window.
Step6: Physical Inventory Report.
Use the Request Window to: Run the Physical Inventory Accuracy Analysis report
Navigation:             Inventory > Reports > ABC and Counting
  • Select Single Request in the dialog box and click OK.
  • Select the report name: Physical Inventory Accuracy Analysis.
  • Enter the name of your physical inventory definition “TXX-PHYS
  • Click on OK and then Submit.
  • Record the concurrent request # ___________________
  • Click on No.
  • Go to the View menu and select Requests.
  • Verify your concurrent request completes normally .
  • Click on the line which lists your request.
  • Click on the View Output button to review the report.
  • Close the report output window and the requests screen.
Step7: Purge Physical Inventory
Use the Physical Inventories window to: Run the physical inventory purge program
Navigation:             Inventory > Counting > Physical Inventory > Physical Inventories
Screen:          Physical Inventories Summary (M1)
  • Click on the line which lists your Physical Inventory   TXX-PHYS
  • Click on Open Button to verify that the Adjustment Posted box is checked
  • Go to the Tools Menu and select: Perform Purge
The Perform Purge screen will open
Select:  All in the dialog box.
Click on the Purge button.
Record the concurrent request # __________________.
Click OK.
Close the Physical Inventory Summary screen.
Go to the View menu and select Requests.
Verify your concurrent request completes normally and close the window.
Reopen the Physical Inventories Summary screen to verify the purge has removed your definition “TXX-PHYS”.
  1. Min Max Planning
  • You can use Min-max planning for items with independent demand.
  • Because you specify the minimum and maximum inventory levels, you can use Min-max planning for those items that you want to tightly control.
  • You can perform Min-max planning for the entire organization.
  • You can perform Min-Max planning for a specific subinventory.
Step1: Create a Min Max Planned Item
Navigation:              Items > Item Master
Screen:         Master Item
Enter the Following:
Name TXX-10001015
Description Purchased Item  Min Max Planned Item
Go to            (M) Tools > Copy From
Screen:          Copy From
Select the Following:
Template Purchased Item
Press            (B) Done
Screen:          Master Items
Enter the Following:
Region Field Name Values
Main
Use Item Type Purchased Item
Item Status Active
Conversions - Both Yes
Purchasing List Price 10
General Planning
Inventory Planning Method Choose “Min-Max
Planner Enter “J. Smith”
Min Max Qty Minimum 500
Min Max Qty Maximum 3000
Minimum Order Qty 500
Maximum Order Qty 1000
Lead Times
Processing Lead times 5
Save your work. (Ctrl + S)
Go to            (M) Tools > Organization Assignment
Screen:          Organization Assignment
Assign Item:             TXX-10001015 to M1, M2 and TXX Organization
                        Click on Save icon
Step2: Enter Min Max attributes in Subinventory for the Min Max Planned Item
In this practice, you run your Min-Max report by subinventory, so you need to enter the min-max quantities for the item/subinventory combination, or special item/subinventory. 
Navigation:             Inventory > Setup > Organizations > Subinventories
Screen:                  Subinventories Summary (M1)
Select the FGI subinventory
Region Field Name Values
Click on Item / Subinventory Button
Item Subinventories Screen displays Stay on Planning Tab
Click on New icon
Item Enter TXX-10001015
Description Defaults
Min Max Planning Check the Box
Min Qty 300
Max Qty 900
Click on Order Modifiers Tab
Order Qty Minimum 250
Order Qty Maximum 600
Click on Lead times Tab
Processing 5
Click on Save icon
Close the windows.
Note: These general planning attributes affect organization-level planning, not subinventory planning.
Step3: Run Min Max planning report at Sub Inventory level  “FGI Sub Inventory”
Navigation:             Inventory > Planning > Min Max Planning
Screen:                  Min Max Planning Parameters
Choose the parameters as below:
Planning level:                 Subinventory
Subinventory:                   FGI
Item Selection:                 Items under minimum quantity (Defaults)
Items From:                            
        Low                             TXX-10001015 (Tab)
        High                            TXX-10001015 (Defaults) Click on OK
Leave rest of the fields with defaults.
Click the OK button to return to the Min Maxa Planning submit requests window.
Click the Submit button to submit the Min Max Planning report.
Write down your request number____________________
Click the No button when prompted to enter another request.
Select (M) View > Requests to view your report.  Click on View Output
How many of this item should you Order?________________
  1. Average Costing
Step1: Define a Purchased Item in M3 (Average Costing Organization)
Change Organization to M3- Dallas
Navigation:              Items > Item Master 
Screen:         Master Item
Enter the Following:
Name TXX-10001017
Description Purchased Item  Average Costing
Go to            (M) Tools > Copy From
Screen:          Copy From
Select the Following:
Template Purchased Item
Press            (B) Done
Screen:          Master Items
Enter the Following:
Region Field Name Values
Main
Use Item Type Purchased Item
Item Status Active
Conversions - Both Yes
Purchasing List Price 10
Default Buyer Smith, Mr. Jonathan
Save your work. (Ctrl + S)
Go to            (M) Tools > Organization Assignment
Screen:          Organization Assignment
Assign Item:             TXX-10001017 to M3, M2 and TXX Organization
Click on Save icon
Choose ‘M3’ inventory organization.
Step-2: Note the Item cost
Navigation:              Inventory > Costs > Item Costs
Screen:         Find Item / Cost type
Enter Item TXX-10001017 and Click on Find.
Item cost is ‘0’.
Step-3: Create Miscellaneous Receipt as follows for the subject item.
Navigation:              Inventory > Transactions > Miscellaneous Transaction
Choose transaction type as ‘Miscellaneous Receipt’.
Click Transactions Lines button.
Select item code as TXX-10001017
Choose ‘Stores’ Subinventory.
Quantity = 10
Unit price = 10
Account = Choose appropriate account.
Save the record.
Step-3:  Verify the Subject Item cost.
Navigation:      Costs > Item cost > Item code as above > Find.
Unit Cost =10
Step-4: Repeat ‘ Miscellaneous Receipt’ transaction for the same Item with the following values.
Navigation:              Inventory > Transactions > Miscellaneous Transaction
Choose transaction type as ‘Miscellaneous Receipt’.
Click Transactions Lines button.
Select item code as TXX-10001017
Choose ‘Stores’ Subinventory.
Quantity = 10
Unit price = 20
Account = Choose appropriate account.
Save the record.
Step-5: Verify the Subject Item cost.
Navigation:             Costs > Item costs > Item code as above > Find.
Unit Cost =15

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