Oracle Receivable (FAQs) Interview Questions and answers

1. What is MRC and what is its use?

The Multi Reporting Currency Feature allows you to report and maintain records at the transaction level in more than one functional currency. You can do by defining one or more set of books in addition to primary set of books.

2. How is the balance of an invoice derived ?

It is the total invoice amount minus the amount received from the customer. Use application rule set to control how Receivable will reduce the balance due of open debit items when you apply payments.

3. Explain Accounting for invoice in Advance and Arrears.

Accointing for invoice in advance

a) Receivable A/c .....................Dr.

To Unearned revenue a/c

(when we raise the invoice with invoicing rule as advance)

b) Unearned Revenue A/c .............. Dr.

To Revenue A/c

(when we receive the payment, the number of journal entry (b) is depend upon the accounting rules which can be fixed or variable)

Accounting for invoice in arrear

a) Unbilled receivable a/c ....................Dr.

To Revenue a/c

(when we receive the payment of unbilled invoice, the number of journal entry (a) is depend upon the accounting rules which can be fixed or variable))

b) Receivable a/c .........................Dr.

To Unbilled receivable a/c

(when we raise the invoice, with invoicing rule arrear)

4. What is the use of Transaction Flexfield in Autoinvoice ?

Transaction Flexfield actually identifies the the uniqueness among the Multiple lines of a single Invoice

5. What are value sets?

Value sets are the defined as list of possible values for a specific purpose. These are assigned to flexfields. These are the only possible values to be choosen from. This eliminates the data entry errors.

Value set is a set of possible values.

There are 8 value set types:

1.Dependent

2.Independent

3.Table

4. None

5.Pair

6.Translatable Dependent

7.Translatable Independent

8. Special

6. Describe the main tables involved in AR, and what is the data stored in them?

RA_BATCHES_ALL -- Information about Transaction BATCHES RA_CUSTOMER_TRX_ALL -- Header information about Transaction

RA_CUSTOMER_TRX_LINES_ALL -- Lines information about Transaction

RA_CUST_TRX_LINE_GL_DIST_ALL - Distribution information about Transaction

RA_CUST_TRX_LINE_SALESREPS_ALL -- Sales representative of Transaction Information

AR_PAYMENT_SCHDULES_ALL - Information about Payment Schedules

AR_APPLICATION_PAYABLES_ALL

RA_INTERFACE_ERRORS - Errors in AutoInvoice Interface Data

RA_INTERFACE_LINES_ALL - Use this table to enter Header and Lines information in AutoInvoice Interface program

RA_INTERFACE_DISTRIBUTIONS_ALL - Distribution Table in AutoInvoice Interface program

RA_INTERFACE_SALESCREDITS_ALL - Sales Credits information in AutoInvoice Interface

7. What is the importance of Batch Source set up in AR ?

Batch sources control the standard transaction type assigned to a transaction and determine whether Receivables automatically numbers your transactions and transaction batches. You can define two types of transaction batch sources-Manual and Imported

8. What do you mean by HZ_ in customer tables?

These are the tables which come into picture after 11.5.9 because of the TCA. HZ stands for Human Zone(HZ_). Anytihing which is related to the human like Customer profiles, their accounts, locations, relationships are stored in these tables only. From release 11i TCA came into picture in Accounts Recievable module, where oracle has grouped all the customer information at one place. Most important tables in TCA are-

HZ_PARTIES,

HZ_CUST_ACCOUNTS_ALL,

HZ_CUST_ACCT_SITES_ALL,

HZ_CUST_SITE_USES_ALL,

HZ_LOCATIONS,

HZ_PARTY_SITES,

HZ_PARTY_SITE_USES,

HZ_CONTACT_POINTS. few to name.

9. What is the difference between _all, _tl, _vl, _v tables in Oracle Apps ? Also name various other table suffix.

_ALL : Table holds all the information about different operating units. Multi-Org environment. You can also set the client_info to specific operating unit to see the data specific to that operating unit only.

_TL are tables corresponding to another table with the same name minus the _TL. These tables provide multiple language support. For each item in the table without _TL there can be many rows in the _TL table, but all with different values in the LANGUAGE column.

_B these are the BASE tables. They are very important and the data is stored in the table with all validations. It is supposed that these table will always contain the perfect format data. If anything happens to the BASE table data, then it is a data corruption issue.

_F these are date tracked tables, which occur in HR and Payroll. For these there are two date columns EFFECTIVE_START_DATE and EFFECTIVE_END_DATE which together with the PK identifies a row uniquely. The date intervals cannot overlap. Many think they are Secured data. Guess someone from Oracle confirms.

_V tables are the views created on base tables _VL are views for multi language tables which combines the row of the base table with the corresponding row of the _TL table where the LANGUAGE = USERENV(’LANG’).

_S are sequences, used for finding new values for the primary key of a table.

_A are Audit Shadow Tables

_AVN and _ACN are Audit Shadow Views (when data was changed, and with what values)

10. How many Flex fields are there in AR and what are they?

Required Key Flex fields:

1. Territory Flex field

2. Sales Tax Location flex field

Optional Key Flex fields:

1. Transaction flex field (requied only if Auto Invoicing is enabled)

2. System Items Flex field (If Inventory or OM is installed this should be defined there. other wise, it should be set up in AR).

11. What is FSG and what is its use?

FSG is a powerful and flexible tool you can use to build your own custom reports without programming. FSG is only available with GL. Using Financial Statment Generation (FSG), we can create different financial statement and we will get finacial reports. Oracle Apps std reports does not support for reports such as Income Stmt and Final A/c.So we need to go for FSG to prepare Reports Such as P&loss stmt and balance sheet.FSG is Powerful tool for Reporting.Reporting with FSG is Mix and Modify Reuse and Recylce Activity.

12. What is the difference between conversions and interfaces ?

Conversion is a process by which we transfer legacy data from temporary tables to base tables. Interfaces also does the same but is a daily process and most of the interfaces are automated by scheduling. Example:AutoInvoice. Conversition is on time process this is before instlation, and interface every time process we can run any time.

13. How many reporting currencies can be attached to Primary Set of Books?

We can have a total of 8 SOB's (including the Primary SOB). Therefore, we can have 7 Reporting SOB.

14. What are Different types of transactions in AR?

There are 7 type of transactions in AR-

Invoice,

Debitmemo,

Creditmemo,

Chargeback,

Deposits,

Guarenty, and

Bills Recivable.

15. What is the use of lockboxes?

AutoLockbox (or Lockbox) is a service that commercial banks offer corporate customers to enable them to outsource their accounts receivable payment processing. An AutoLockbox operation can process millions of transactions a month.

AutoLockbox eliminates manual data entry by automatically processing receipts that are sent directly to your bank. You specify how you want this information transmitted and Receivables ensures that the data is valid before creating QuickCash receipt batches.

Steps for lock box are :

1. The first step involves reading and formatting data from your bank file into AutoLockbox tables.

2. The second step involves submitting the validation program which checks data in the AutoLockbox tables for compatibility with Receivables.

3. Once data is validated, it is transferred into QuickCash tables. At this point, you can optionally query your receipts in the QuickCash window and change how they will be applied before submitting the final step,

4. Post QuickCash. Submitting Post QuickCash updates your customer's balances.

16. What are the interface tables used for ar invoices, customers, receipts for conversion process?

Customer interface tables:

ra_customer_interface

ra_contant_phones_interface

ra_customer_banks_interface

ra_customer_profiles_interface

ra_cust_pay_method_interface

Invoice interface tables:

ra_interface_lines_all

ra_interface_sales_credits

ra_interface_distributions

Following are the Validation for Autoinvoice:

1- AR Transaction Type Validation : Check if the Transaction type provided in data file is defined in AR transaction types(RA_CUST_TRX_TYPES_ALL)

2- Transaction Batch Source Validation: Check if the source provided in data file is defined in AR transaction Batch source (RA_BATCH_SOURCES_ALL).

3- Invoice Currency Validation: Check if the currency provided in data file is defined in AR Currency (FND_CURRENCIES).

4- Customer Validation: Check if the Bill to Customer Number, Ship to Customer Number, Bill to Custom Location, Ship to Customer Location provided in the data file is defined in AR Customer(ra_customers).

5- Primary Sales Representative Validation: Sales representative number to be hardcode to “-3” for “No Sales Credit.”

6- Term Name : Check if the Term name provided in the data file is defined in Payment terms (RA_TERMS)

7- Validate Sales Credit Type : Sales Credit to hardcode to “Quota Sales Credit”

8- Inventory Item Validation: Check if the Item provided in data file is defined in Inventory Items (MTL_SYSTEM_ITEMS).

9- Unit of Measurement validation: Check if the UOM provided is defined in MTL_UNITS_OF_MEASURE Table

10- Invoice Tax Code Validation : Check if the Tax Code provided in data file is defined in AR_VAT_TAX_ALL_B Table.

11- Invoice GL Date Validation : Check if the GL Data of provided invoices is in open period.Used ARP_UTIL.IS_GL_DATE_VALID API to validate.

Following are the base tables

hz_parties

hz_cust_accounts

hz_cust_acct_sites_all

hz_cust_sit_use_all

hz_party_sites

hz_locations

hz_party_site_uses

hz_customer_profiles

hz_organization_profiles

hz_person_profiles

17. What is Auto Invoicing? Explain?

Auto Invoicing is a process of Importing Invoice related information from External / Internal Sources.External will be your business Legacy Systems like Main Frame / AS400 or Non Oracle ERP systems like SAP / JDE or From Custom Oracle Applications. The data is placed into Interface tables and from there either from Application or from PL/SQL , you can call Auto Invoice Concurrent request to validate and transfer data into AR Transaction tables. The data from these tables can be seen when queries from Transaction Screens.

Auto Invoicing is a process of creating an invoice automatically in AR when a sales order has been shipped and closed. This process is triggered by a concurrent request 'AUTO INVOICE MASTER PROGRAM'. Auto invoicing is used to import the AR invoices direclty into the AR module.

18. What is AUTO Accounting what are the steps for setting up auto accounting?

Auto Accounting is a mechnism for generating defualt accounting flexfields for revenue , receivables, frieght and tax based on the other parameters associated with the invoice you are entering.. since auto accounting looks at the following tables to get the data so please set/define the following depending upon your requirement.

1.Salesrep.

2.Transaction Types.

3.Standard Lines.

4.Taxes.

5.Customer bill-to-site

Receivables uses the Auto Accounting rules to determine the GL Accounts that you Enter manually or import using Auto invoice. Receivables creates the Default accounts for the Receivable, revenue, Freight, Tax, Unerned revenue, Finance charges, Unbilled receivables, Bills receivables, and Auto invoice Clearing Accoutns.You need to define these accoutns before you start entering the transactions in AR. However, you can overide these accounts during the Transaction Entry in AR.Setup Autoaccounting:AR>Setup>Transactions>AutoAccountingSelect the Type of the accoutn you wish to define the auto accoutning.In the Segments Block:Choose the segment for which you wish to assign the Auto accounting.Choose the Table Name : Sales Rep, Trxn Type, Site, Std Lines.If you wish to use a Default Constant value, then enter the value in the Constant Field.

19. what are the standard concurent programs for auto invoice interface and customer interfaces?

Autoinvoice Import Program -- for auto invoice program Customer Interface Master Conc Program --> for Customer Interface

20. Explain the process of recievables in oracle financials?

AR Complete Cycle (hoping that GL is already implemented)Define Transaction SetupsDefine Receipt and Receipt Application SetupsDefine CustomerCreate an InvoiceCreate a ReceiptApply Receipt to InvoiceReview Customer balances (Collections). The BASIC process of Receivables involves the following:

1. Creation of Customer Invoices.

2. Making the receipts of the customer payments.

3. Remittance fo the same to the bank.

21. How do we segregate debit & credit transactions in Receivables and where we will do it?

Basically the debit and credit transaction are classified by the transaction class.

22. whether we are defining customer in AR? If it is in AR then how are we placing the order and how the shipment will be done?

Customers and the associated information is stored in TCA structure, which is shared across All oracle application modules. If you add a customer in AR, it gets stored TCA underlying tables. When you want to create an Order in Order Management, the customer LOV displays data from Record Group that is created on TCA tables.

The basic Oracle ERP data model is the single Data model shared (integrated) by multiple application. The owner of the creation of customer is the AR schema and is shared by other application such as OM. These are usually called as shared entities (Supplier,Partners,Items etc)

23. How To Close Periods In AR?

After raising transactions and receiving the RECEIPT amount, transfer the all TRANSATIONS and RECEIPTS to the GENERAL LEDGER. And then only close the PERIOD in AR.

24. Explain about Party and Customer in AR?

Party could be a person or an organization which has no business relation with your entreprise, if you establish a sales relation with a department in a party then that particular department is your customer.

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Query To Get The Oracle Concurrent Program Parameters

  SELECT df.descriptive_flexfield_name,

         cp.user_concurrent_program_name,

         cp.concurrent_program_name,

         ap.application_name,

         cp.description,

         cp.enabled_flag,

         cp.output_file_type,

         cx.executable_name,

         lv.meaning,

         cx.user_executable_name,

         df.column_seq_num,

         df.end_user_column_name,

         df.description,

         df.enabled_flag,

         df.required_flag,

         df.security_enabled_flag,

         df.display_flag,

         fvs.flex_value_set_name,

         df.default_type,

         df.DEFAULT_VALUE

    FROM apps.fnd_concurrent_programs_vl cp,

         apps.fnd_executables_form_v cx,

         apps.fnd_application_vl ap,

         apps.fnd_descr_flex_col_usage_vl df,

         apps.fnd_flex_value_sets fvs,

         apps.fnd_lookup_values lv

   WHERE     cp.executable_id = cx.executable_id

         AND cp.application_id = ap.application_id

         AND fvs.flex_value_set_id = df.flex_value_set_id

         AND lv.lookup_type = 'CP_EXECUTION_METHOD_CODE'

         AND lv.lookup_code = cx.execution_method_code

         AND cp.user_concurrent_program_name = 'AR Aging Report'

         AND df.descriptive_flexfield_name = '$SRS$.' || cp.concurrent_program_name AND lv.language = 'US'

ORDER BY df.column_seq_num

Oracle Inventory Setup Steps and Customizations

Step 1 Define Your System Items Flexfield (Required)
You must design and configure your System Items Flexfield before you can start defining items. You must indicate how many separate segments your flexfield has, how many characters each segment has, and whether you want to validate the values that you assign to the segments. Once you define the structure of your flexfield and any applicable value sets, you must freeze and compile your flexfield definition.

All Oracle Applications products that reference items share the System Items Flexfield and support multiple segment implementations. Therefore, if you have already configured this flexfield while setting up another product, you do not need to perform this step.

Step 2 Define Your Item Categories Flexfield (Required)
You must design and configure your Item Categories Flexfield before you can start defining items since all items must be assigned to categories. You must indicate how many separate segments your flexfield has, how many characters each segment has, and whether you want to validate the values that you assign to the segments. Once you define the structure of your flexfield and any applicable value sets, you must freeze and compile your flexfield definition. Compiling the flexfield definition enables the Item Categories Flexfield pop-up window.

You can define multiple structures for your Item Categories Flexfield, each structure corresponding to a different category grouping scheme. You can then associate these structures with the categories and category sets you define.

Step 3 Define Your Item Catalog Group Flexfield (Required)
If you make entries for your items in a standard industry catalog or want to group your items according to certain descriptive elements, you need to configure your Item Catalog Group Flexfield. You must indicate how many separate segments your flexfield has, how many characters each segment has, and whether you want to validate the values that you assign to the segments. Once you define the structure of your flexfield and any applicable value sets, you must freeze and compile your flexfield definition. Compiling the flexfield definition enables the Item Catalog Group Flexfield pop-up window.

Even if you do not use item cataloging, you must enable at least one segment and compile this flexfield before you can define items.

Step 4 Define Your Stock Locators Flexfield (Required)
If you keep track of specific locators such as aisle, row, bin indicators for your items, you need to configure your Stock Locators Flexfield and implement locator control in your organization. You must indicate how many separate segments your flexfield has, how many characters each segment has, and whether you want to validate the values that you assign to the segments. Once you define the structure of your flexfield and any applicable value sets, you must freeze and compile your flexfield definition. Compiling the flexfield definition enables the Stock Locators Flexfield pop-up window.

Even if you do not implement locator control, you must still compile the Stock Locators Flexfield because all Oracle Inventory transaction and on-hand inquiries and reports require a frozen flexfield definition. However you do not need to configure the flexfield in a specific way.

Step 5 Define Your Account Aliases Flexfield (Required)
If you want to define logical references to frequently used account number combinations and use them as transaction source types, you need to configure your Account Aliases Flexfield and define account aliases. You must indicate how many separate segments your flexfield has, how many characters each segment has, and whether you want to validate the values that you assign to the segments. Once you define the structure of your flexfield and any applicable value sets, you must freeze and compile your flexfield definition. Compiling the flexfield definition enables the Account Aliases Flexfield pop-up window.

Even if you do not use account aliases, you must still compile the Account Aliases Flexfield because all Oracle Inventory transaction inquiries and reports require a frozen flexfield definition. However, you do not need to configure the flexfield in a specific way.

Step 6 Define Your Sales Orders Flexfield (Required)
If you want to ship items from inventory to meet customer demand as specified in a sales order, regardless of whether you are using Oracle Order Entry, you must configure your Sales Orders Flexfield. You must indicate how many separate segments your flexfield has, how many characters each segment has, and whether you want to validate the values that you assign to the segments. Once you define the structure of your flexfield and any applicable value sets, you must freeze and compile your flexfield definition. Compiling the flexfield definition enables the Sales Orders Flexfield pop-up window.

Even if you do not ship items against sales orders, you must still compile the Sales Orders Flexfield because all Oracle Inventory transaction inquiries and reports require a frozen flexfield definition. However, you do not need to configure the flexfield in a specific way.

Step 7 Define Your Locations (Optional)
Define names and addresses for the locations you use within your organization as well as the location you use for the organization itself. Oracle Inventory and other Oracle Applications products use locations for requisitions, receiving, shipping, billing, and employee assignments.

Step 8 Define Your Employees (Optional)
Enter the names, addresses, and other personal details of your employees. Oracle Inventory uses this information as the Quick Pick source for employee fields in your application. Employee information is used primarily to record the employees who perform your cycle and physical inventory counts.

Step 9 Define Your Organization Calendar (Required)
If you perform inventory forecasting, reorder point planning, available to promise analysis or cycle counting, you must define your workday calendar. You can assign an exception set to denote holidays, scheduled maintenance, or extended downtime. When you complete defining your calendar, it is generated automatically.

Step 10 Define Your Organizations (Required)
Before you use Oracle Inventory, you need to define one or more organizations. Organizations describe distinct entities in your company and may include separate manufacturing facilities, warehouses, distribution centers, and branch offices.

Since Oracle Inventory allows you to implement multiple sets of books with multiple organizations, you need to specify the set of books to which your organization is tied.

Whenever you first access Oracle Inventory, you must specify an organization; all subsequent activity uses this organization as your current organization. You may change your current organization at any time with the Change Organization window.

Step 11 Define Your Organization Parameters (Required)
You must define the control options and account defaults for your organization before you can define items or perform any transactions. You can assign a unique short code to your organization and use this code to identify the organization with which you want to work. You must also specify the master organization and the costing organization for your organization.

Step 12 Change Organizations (Required)
Normally, when you log in to Oracle Inventory, you are asked to choose an organization from among those you have defined. But when you set up Oracle Inventory for this first time, no organizations exist. So for the first several setup steps, until you define an organization and set parameters, Oracle Inventory operates with no specific organization chosen.

However, from this point on in the setup process, you need to identify a specific organization as your current organization. Change to one of the organization you created above, using the Change Organization window. Or, you can log out and log back in to Oracle Inventory, and let Inventory choose the first organization for you.

Step 13 Define Your Intercompany Relations
If you want intercompany relations between two operating units (typically the Shipping and Selling organizations) in a multi-organization environment, you must define the relationship in the Intercompany Relations window.

Oracle Inventory and Oracle Receivables must be installed before you can define intercompany relations. If Oracle Payables is not installed, the fields in the AP Invoicing for Selling region are not required.

Step 14 Define Your Receiving Options (Optional)
If you perform inter-organization shipments using intransit inventory, you must use the Receipts window to receive items sent to your organization. Before you can receive items, you must define the options that govern receipts in your system. You can override some of the options you define at the item level.

If you use Oracle Purchasing in conjunction with Oracle Inventory, you can also use the receiving system for purchase order receipts. You can then override most of the options you define at the supplier, purchase order, and item level.

Step 15 Define Your Picking Rules (Optional)

If you use Oracle Inventory and Oracle Order Entry to ship items to customers against sales orders, you must define picking rules. You assign a picking rule to an item to define the priorities that Oracle Inventory uses to pick units of that item for a sales order. When you pick release a sales order, Order Entry submits requests to Oracle Inventory which uses the information you enter here to generate pick lists for sales orders.

Step 16 Define Your ATP Rules (Optional)
If you check item availability in the future based on supply and demand information and various accumulation and consumption criteria, you must define available to promise (ATP) rules. ATP rules define the options Oracle Inventory uses to calculate the available quantity of an item on a requested date and/or the first date on which a requested quantity of an item first becomes available.

Step 17 Define Your Planners (Optional)
If you keep track of the names of the parties responsible for planning certain items or groups of items, you need to define planners. You can then assign these planning entities or planners to items.

Step 18 Define Your Unit of Measure Classes (Required)
You need to define unit of measure (UOM) classes and the base unit of measure for each class. UOM classes represent groups of units of measure with similar characteristics, such as Volume or Length. Oracle Inventory uses the base unit of measure to perform conversions between units of measure in each class and between two different UOM classes.

Step 19 Define Your Units of Measure (Required)
You need to define units of measure for tracking, moving, storing, and counting items. Each item that you define in Oracle Inventory must have a primary unit of measure and each transaction you perform in Oracle Inventory must have a unit of measure associated with the transaction quantity.

Step 20 Define Your Unit of Measure Conversions (Optional)
You need to define the conversion rates between the base unit of measure and other units of measure within a UOM class if you want to be able to transact an item in units of measure other than its primary unit of measure. Oracle Inventory uses these conversions to automatically convert transaction quantities to the primary unit of measure of the item being transacted.

If you want to transact items in units of measure belonging to classes other than their primary UOM class, you must define conversions between the base units of measure in different UOM classes. Oracle Inventory uses this information to convert between units of measure belonging to different UOM classes. In other words, for a specific item, you can define conversion rates between unlike units of measure such as boxes and kilograms.

For example, you can specify that 1 EACH of item XYZ weighs 50 LB where item XYZ has EACH as its primary unit of measure. You can now transact item XYZ in LB, and Oracle Inventory converts the transaction quantity to EACH and stores and updates the item quantity accordingly.

Step 21 Define Your Subinventories (Required)
You need to define at least one subinventory for each organization. A subinventory is a physical or logical grouping of your inventory, such as raw material, finished goods, defective material, or freezer compartment. You must move each item into, out of, or within a subinventory whenever you perform an inventory transaction. The number of subinventories that you define depends on the way you structure your organization.

Step 22 Define Your Stock Locators (Optional)
If you implement pre-specified locator control in your whole organization or in a particular subinventory, you must define stock locators. Locators identify physical areas within subinventories where you store items, such as rack/bin or aisle/row/bin locations. If you enable locator control, you must move each item into or out of a subinventory and locator combination whenever you perform an inventory transaction.

Step 23 Define Your Item Attribute Controls (Required)
You need to specify the level at which Oracle Inventory maintains each item attribute: the item master level or the item/organization level. Item attributes are information about an item, such as order cost, lead time, item status, revision control, tax code, list price, asset category, primary unit of measure, and so on. If you choose the item master level for a particular attribute, Oracle Inventory maintains the value of the attribute in the item master, and the value will be the same in every organization that uses the item master, in which the item exists, and does not allow updates at the item/organization level. Conversely, Oracle Inventory allows updates at the item/organization level for item attributes that you maintain at the item/organization level.

Step 24 Define Your Categories (Required)
You must define categories to group items that share similar characteristics. You must define the flexfield structure to be used for each category you define. The flexfield structure you select for a category will determine how it may be grouped with other categories. (Similar flexfield structures can be grouped.).

Step 25 Define Your Category Set (Required)
You need to define category sets to create different category grouping schemes. Category sets group your categories into functional areas, such as inventory, cost, purchasing, order entry, and so on. You can associate different flexfield structures with each category set, thereby introducing different naming structures for your categories. You may only group categories with the same flexfield structure as the category set in a single category set. For example, the catgories metal, rubber, and paper might be members of the Inventory category set, while taxable and non-taxable might be members of the Cost category set. You can also a create category set such as Priority, with members like high, medium, and low and use it as your personal item grouping mechanism for a report.

When you define items, you can assign one or more category sets to an item. Within a category set, you can assign exactly one category to an item. When you install or upgrade Oracle Inventory, Oracle provides the category set Inventory by default. When you upgrade Oracle Inventory from a previous version, your existing categories are assigned to this category set.

Step 26 Define Your Default Category Sets (Required)
You need to define a default category set for each of the seven predefined functional areas. Oracle Inventory will automatically assign items defined for use by a particular functional area to the category set associated with the functional area. Oracle Inventory defaults the appropriate category set in all the category set fields in the products that correspond to the functional areas. You may choose the same category set for more than one functional area if you have identical ways of grouping your items across those functional areas.

Step 27 Define Your Statuses (Required)
You need to define statuses that you can assign to items, denoting the level of activity you allow for them. A status is a set of Yes/No values for the status attributes. Status attributes are flags that exist for each functional area for which you enable an item: stockable, transactable, purchasable, build in WIP, customer orderable, internal orderable, BOM allowed, and invoice enabled. When you define an item, you can use statuses to control the values of or provide default values for the status attributes.

Step 28 Define Your Item Catalog Groups (Optional)
If you make entries for your items in a standard industry catalog or if you want to group your items according to certain descriptive elements, you need to define item catalog groups. An item catalog group consists of descriptive elements to which you assign certain sets of values. When you assign an item to an item catalog group, you can choose descriptive elements from the group and define values for each descriptive element.

For example, you can define an item catalog group called bicycle. You assign descriptive elements of type, size, and color to the group. In the Master Items window, you assign an item XYZ123 to the group bicycle, and choose values for each of the descriptive elements such as racer, 20", red or mountain bike, 18", blue. Now, you can reference your item by both the unique item number (XYZ123) and by the entry in the bicycle catalog (racer, 20", red).

Step 29 Define Your Item Types (Optional)
If you want to use your own terminology to identify the types of items you define, you need to define your own item types. Oracle Inventory provides several predefined item types such as finished goods, option class, kit, purchased item, and so on. You can choose one of the predefined item types when you define an item, or choose one of your own. Oracle Inventory also provides several item templates to match the predefined item types. You then use these templates and any other user-defined ones in defining your items.

Step 30 Define Your Item Templates (Optional)
If you define many items sharing the same values for a number of attributes, you may want to define item templates that help you avoid duplication of effort. An item template is a standard set of attribute values that you use to define or update items. When you apply a template to an item, you set the item attribute values to the template attribute values for those attributes you enable in the template. You can apply the same or different templates to an item any number of times. Each new template updates the item definition of those attributes that differ from the previous templates. If an attribute already exists for an item, the more recent value (from the last template applied) overrides the previous value.

For example, you apply a template that has unit of measure EACH and cycle count enabled YES. Then you apply a new template with cycle count enabled NO and carrying cost $25.00. The item definition now has three attributes and values: unit of measure EACH, cycle count enabled NO, and carrying cost $25.00.

Step 31 Define Your Cross-Reference Types (Optional)
If you maintain relationships between your item numbers and other entities such as old item numbers, you need to define cross-reference types. Using these cross-reference types, you can define cross-references to store additional information about inventory items.

For example, you can create a cross-reference type OLD to track the old item numbers, and a type SUPPLIER to track supplier part numbers. You can then create a list of cross-references using the Cross-Reference Types window, linking your item numbers to their corresponding old part numbers, and/or their corresponding supplier part numbers. Oracle Inventory provides a report that lists all items and their corresponding cross-references.

Step 32 Define Your Item Delete Constraints (Optional)
If you want to enforce specific business rules and add custom checks that will be performed before Oracle Inventory allows the deletion of an item, you must define item delete constraints to supplement the standard item delete conditions. Oracle Inventory prevents you from deleting items if your data does not meet these conditions. Oracle Inventory predefines several standard delete constraints: you cannot delete an item if there is a job or a repetitive schedule for it; you cannot delete an item if a sales order or purchase order references it, and so on.

Step 33 Define Your Cost Types (Required)
You need to define cost types before you can start entering item costs. A cost type is a set of costs, used for historical, current and future costs, as well as for simulation purposes. You can create as many cost types as you need, but Oracle Inventory is installed with three predefined cost types: Frozen, Average, and Pending. These are costs currently in use for an item and include material and overhead charges.

If you are using standard costing in your organization, all transactions use the frozen cost at the time of the transaction. You can update your frozen costs by performing a standard cost update. If your cost method is average costing, Oracle Inventory uses the Average cost type and automatically updates your average costs after the appropriate transactions. You can also define cost types of your own for any purpose such as cost history or product cost simulation. You can then submit many cost reports based on these cost types.

Step 34 Define Your Cost Activities (Optional)
If you measure the cost and performance of the work performed in your organization, you need to define your cost activities. Activities are processes or procedures that consume costs and time. In addition to the cost element and cost code, all costs are associated with an activity. Your activities may be directly related to building your items, such as run time or setup time, or they may be indirect, such as PO generation or payroll. The goal of activity based cost accounting is to accurately identify your product costs, especially overhead costs.

Step 35 Define Your Material Sub-Elements (Optional)
If you need to have greater item cost visibility and flexibility, you may want to define material sub-elements. Sub-elements are a smaller classification of the cost elements. For every sub-element you define, you must enter the method of allocating the cost to the sub-element (basis type).

Step 36 Define Your Material Overheads (Optional)
If you keep track of overhead rates for your organization, you must define material overheads. You can define any number of material overheads, such as freight, customs, purchasing, and so on. Each overhead is charged when you receive items into inventory. You cannot use material overheads in organizations that use average costing.

Step 37 Define Your Default Material Overhead Rates (Optional)
If you use material overheads, you may want to enter default rates at the organization or category level. When you define your items, Oracle Inventory automatically uses these defaults.

Step 38 Define Your Freight Carriers (Optional)
If you ship items from one inventory organization to another, and keep track of the names of and transportation costs charged by your carriers, you need to define freight carriers. Use these freight carriers whenever you perform direct inter-organization transfers or transfers via intransit inventory. Oracle Inventory automatically charges the freight costs to the freight carrier account you specify.

Step 39 Define Your Organization Shipping Network (Optional)
If you want to move items from one inventory organization to another, you must define your shipping network. Specify the organizations to which you can ship from the organization you are currently in, choose whether you want to transfer items directly or via intransit inventory, and enter the accounting information for shipments between the two organizations.

Step 40 Define Your Shipping Methods (Optional)
The Shipping Method code defines specific shipping methods. For example: Ground, Express, or Air. You can associate shipping methods with lead times in the Inter-org Shipping Methods window.

Step 41 Define Your Movement Statistics Parameters (Optional)
If you plan to use movement statistics reporting, you must use the Movement Statistics Parameters window to define the parameters for gathering movement statistics. Inventory uses this information to validate entry of statistical movement transactions and to properly report the information.

Step 42 Define Your Account Aliases (Optional)
You may define one or more account aliases to use when you perform miscellaneous issue or receipt transactions. An account alias is a logical reference to a frequently used account number combination. It is also a transaction source type of its own, thereby allowing you to query and report transactions using your user-friendly references to particular account numbers.

Step 43 Define Your Transaction Source Types (Optional)
You may define your own transaction source types to use while performing transactions. Transaction source types enable you to classify transactions according to their origins, such as purchase order, sales order, account number, physical inventory, and so on. Oracle Inventory provides several predefined source types: purchase order, sales order, account, job or schedule, account alias, internal requisition, internal order, cycle count, physical inventory, standard cost update, RMA and inventory. You may use a user-defined source type when you define a transaction type.

If you want to associate a list of valid sources with your transaction source type, you can create a value set that contains the values to choose from when you use that particular transaction source type in a transaction. For example, you can create a transaction source type called Donation along with a list of account numbers in the value set.

Step 44 Define Your Transaction Types (Optional)
If you want to use your own terminology for certain kinds of transactions, you need to define your own transaction types. You create a transaction type by combining a transaction source type with a transaction action. A transaction action is a predefined method of changing the quantity and/or location and/or cost of an item. For example, if you create a transaction type with the transaction action "Issue from stores", you can use that transaction type to enter an issue transaction. You may use one of six predefined transaction actions: issue from stores, subinventory transfer, direct organization transfer, intransit shipment, cost update and receipt into stores.

For example, you can create a transaction source type called Donation along with a list of account numbers in the value set. You can then create a transaction type called Donation Receipt by combining the transaction action Receipt into stores and the transaction source type Donation. Now you can perform a receipt transaction by choosing the Donation Receipt transaction type and an account number from the value set associated with the Donation transaction source type.

Step 45 Define Your Transaction Reasons (Optional)
If you want to associate a predefined explanation with each transaction that you enter, you need to define transaction reason codes. When you enter an inventory transaction you can choose one of the reason codes that you defined. You may then use these reason codes to view and report transactions.

Step 46 Define Your Purchasing Options (Optional)
If you perform inter-organization shipments using intransit inventory, you must use the Receipts window to receive items sent to your organization. You need to define certain default control options in the Purchasing Options window to save you time when you create your receipts. If you use Oracle Purchasing in conjunction with Oracle Inventory, you must define your purchasing options as one of the first steps in your implementation of Oracle Purchasing.

Step 47 Open Your Accounting Periods (Required)
Before you can use Oracle Inventory to enter transactions, you need to open an accounting period. You must define your accounting periods in Oracle General Ledger, and open them for Oracle Inventory using the Inventory Accounting Periods window. Oracle Inventory allows you to have multiple periods open at any given time.

Step 48 Request Your Interface Managers (Optional)
You must start your material transaction and material cost interface managers if you want to perform transactions in the background or concurrent processing modes, or if you use custom forms and data collection devices to enter transactions. You also need to start your demand reservation manager if you place demand from Oracle Order Entry in the background processing mode. If you prefer to perform all your transactions on-line, then you do not need to start any interface managers.

Step 49 Set Profile Options (Required)
Profile options specify how Oracle Inventory controls access to and processes data. In general, profile options can be set at one or more of the following levels: site, application, responsibility, and user.

Oracle Inventory users use the Personal Profile Values window to set profile options only at the user level. System administrators use the System Profile Values window to set profile options at the site, application, responsibility, and user levels.

Step 50 Define Your Container Types (Optional)
Container Types are used in defining physical attributes of items.

Step 51 Define Your Commodity Codes (Optional)
Customer Item Commodity Codes are used to group customer items and can be entered during the definition of customer items.

Step 52 Define Your Customer Items (Optional)
If you need to track the item numbers used by your customers, you must define these items as customer items in Inventory.

Step 53 Define Your Customer Item Cross References (Optional)
If you want to relate customer items to your own item numbers, you must define customer item cross references.